CONCORD, MA, November 18, 2005– Technical Communications Corporation (OTC BB: TCCO.OB) today announced its results for the fiscal quarter and year ended September 24, 2005. For the quarter ended September 24, 2005, the Company reported net income of $349,000, or $0.26 per share, on revenue of $1,228,000, as compared to net income of $172,000, or $0.13 per share, on revenue of $1,303,000 for the same period in fiscal 2004. For the year ended September 24, 2005, the Company reported revenue of $3,721,000 and a net loss of $30,000, or $0.02 per share, as compared to revenue of $4,876,000 and net income of $1,134,000, or $0.84 per share, for fiscal 2004.
Commenting on corporate performance, Mr. Carl H. Guild, Jr., President and Chief Executive Officer of TCC said, “The fourth quarter demonstrated the improvement in results we were anticipating, falling just short of returning us to profitability for the fiscal year. We expect the quarter’s positive performance to continue in fiscal 2006, although we anticipate short-term swings in profitability.
During
the quarter, TCC completed development of a major upgrade program for a
significant customer in
Continuing,
Mr. Guild said, “As mentioned in our previous earnings release, we continue to
pursue initiatives in
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 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.
Statements made in this press release, including any discussion of 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 results may differ significantly from the results expressed or implied by such forward-looking statements. The Company’s 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 December 25, 2004, March 26, 2005 and June 25, 2005 and the Company’s Annual Report on Form 10-KSB for the fiscal year ended September 25, 2004.
Technical Communications Corporation
Condensed consolidated income statements
Quarter ended
9/24/05 9/25/04
Net sales $ 1,228,000 $ 1,303,000
Gross profit 870,000
849,000
S, G & A expense 355,000 489,000
Product development costs 177,000 194,000
Operating income 338,000 165,000
Net income $ 349,000 $ 172,000
Net income per share:
Basic $ 0.26 $ 0.13
Diluted $ 0.23 $ 0.11
Year ended
9/24/05 9/25/04
Net sales $
3,721,000 $ 4,876,000
Gross profit 2,405,000
3,073,000
S, G & A expense 1,562,000 1,542,000
Product development costs 920,000 444,000
Operating income (loss) (77,000) 1,087,000
Net income (loss) $ (30,000) $ 1,134,000
Net income (loss) per share:
Basic $
( 0.02) $ 0.84
Diluted $ (0.02) $ 0.75
Condensed consolidated balance sheets
9/24/05 9/25/04
Cash $ 1,199,000 $ 2,238,000
Accounts receivable, net 973,000 330,000
Inventory 1,448,000 1,247,000
Other current assets 83,000 178,000
Total current assets 3,703,000 3,993,000
Property and equipment, net 99,000 77,000
Total assets $ 3,802,000 $ 4,070,000
Accounts payable $ 104,000 $ 166,000
Accrued expenses and
other current liabilities 382,000 579,000
Total current liabilities 486,000 745,000
Total stockholders’ equity 3,316,000 3,325,000
Total liabilities and stockholders’ equity $ 3,802,000 $ 4,070,000