Commenting on the results,
TCC President and CEO, Carl Guild, said, "As we had expected, the final quarter
of fiscal 2004 was in line with our earnings generated in the first two quarters
of the year. This quarter capped
off a very successful year both in revenue and earnings. Our fiscal 2004 revenue levels were up
over 20 percent, reflecting gains from efforts to expand our government network
business. The engineering services component of revenue slowed during the
current quarter, but we anticipate that it will improve during the later
quarters of fiscal 2005.
Traditional product sales were strong throughout the year with over $1
million delivered during the fourth quarter.
"
Mr. Guild continued, "We
continue to be optimistic about fiscal year 2005 and believe that the trends we
have experienced over the previous two fiscal years will continue. We anticipate
that government network systems will continue to be a strong sales component but
will exhibit the timing unpredictability that is typical of this business area.
New opportunities continue to be pursued for international technology
development, which will serve to entrench TCC's
position with key customers. With regard to new products, internal development
on both wireless and wireline secure voice products continues in response to the growing needs of TCC's installed customer base."
About Technical
Communications Corporation
TCC designs, manufactures,
and supports superior grade secure communications systems that protect highly
sensitive information transmitted over a wide range of data, voice and fax
networks. TCC's proven security solutions protect
information privacy on every continent in over 100 countries. Government
agencies, militaries, financial institutions, telecommunications carriers and
multinational corporations worldwide rely on TCC to protect their communications
networks.
Matters discussed in this news release,
including any discussion of or impact, expressed or implied, on our anticipated
operating results, financial condition and earnings, including statements about
the Company's ability to achieve and sustain growth and profitability, contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements, identified by
the use of such terms as "anticipates", "believes", "expects", "may", "plans"
and "estimates", among others, involve known and unknown risks. The Company's
operating results may differ significantly from the results expressed or implied
by such forward-looking statements.
The Company's operating results may be affected by many factors,
including but not limited to future changes in export laws or regulations,
changes in technology, the effect of foreign political unrest, the ability to
hire, retain and motivate technical, management and sales personnel, the risks
associated with the technical feasibility and market acceptance of new products,
changes in telecommunications protocols, the effects of changing costs, exchange
rates and interest rates, and the Company's ability to secure adequate capital
resources. These and other risks are detailed from time to time in the Company's
filings with the Securities and Exchange Commission, including the Company's
Quarterly Reports on Form 10-QSB for the fiscal quarters ended June 26, 2004,
March 27, 2004 and December 27, 2003 and the Company's Annual Report on Form
10-KSB for the fiscal year ended September 27,
2003.
Technical
Communications Corporation
Condensed consolidated income
statements
Quarter
ended
Net
sales
$ 1,303,000
$
915,000
Gross profit
849,000
500,000
S,
G & A expense
490,000
317,000
Product development costs
194,000
-
Operating income
165,000
183,000
Net
income
$
172,000
$
185,000
Net
income per share:
Basic
$
0.13
$
0.14
Diluted
$
0.11
$
0.13
Year
ended
Net
sales
$ 4,876,000
$
4,051,000
Gross profit
3,073,000
2,505,000
S,
G & A expense
1,542,000
1,490,000
Product development costs
444,000
567,000
Operating income
1,087,000
448,000
Net
income
$ 1,134,000
$
457,000
Net
income per share:
Basic
$
0.84
$
0.34
Diluted
$
0.75
$
0.34
Condensed consolidated balance
sheets
Cash
$
2,238,000
$ 1,098,000
Accounts receivable, net
330,000
270,000
Inventory
1,246,000
1,189,000
Other current assets
178,000
101,000
Total current assets
3,993,000
2,658,000
Property and equipment, net
77,000
109,000
Total assets
$ 4,070,000
$ 2,767,000
Accounts payable
$
166,000
$
106,000
Accrued expenses and
other current liabilities
579,000
478,000
Total current liabilities
745,000
584,000
Total stockholders' equity
3,325,000
2,183,000
Total liabilities and stockholders' equity
$ 4,070,000
$ 2,767,000