CONCORD,
MA, April 29, 2005- Technical Communications
Corporation (OTC BB: TCCO.OB) today announced its results for its second
quarter of fiscal 2005. The
Company reported revenue of $555,000 and a net loss of $437,000, or $0.32 per
share, for the quarter ended
Commenting on corporate performance, Mr. Guild said,
"Our revenues and profit performance in the second quarter of fiscal 2005,
although not adequate, were consistent with our expectations as reported in our
first quarter earnings release. The foreign procurement delays we had been
experiencing are starting to abate and we believe both current backlog and
order flow are improving. During
the quarter, TCC received an amendment to an engineering services contract that
is expected to generate revenue of approximately $600,000 through the end of
the fiscal year. The delay in the deliveries on the significant contract
originally anticipated in the second quarter has been resolved and we now
expect that the product will ship by the end of the current fiscal year. The
shortfall in revenues and profits is expected to continue into the third
quarter with some improvement anticipated by the fourth quarter."
Mr. Guild continued, "The long range view of our order pipeline suggests that future fiscal years will provide revenue opportunities that will maintain profitability. Driven by international requirements for upgraded and expanded secure communications, TCC systems are in the process of being qualified for national service in several new countries. We continue to expect that successful completion of these trials in 2005 and 2006 will establish expanded markets for TCC. However, due to the unpredictable nature of our international customers' national budgets and ordering cycles, we anticipate variability in revenues and profits on a quarter to quarter basis."
The Company reported that on
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 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 Report on Form 10-QSB for the fiscal quarter ended December 25, 2004 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
(unaudited)
Net sales $ 555,000 $ 1,106,000
Gross profit 238,000
657,000
S, G & A expense 386,000 320,000
Product development costs 306,000 106,000
Operating income (loss) (454,000) 231,000
Net income
(loss) $ (437,000) $ 265,000
Net income (loss) per share:
Basic $
( 0.32) $ 0.20
Diluted $ (0.32) $ 0.17
Six months
ended
(unaudited)
Net sales $
1,742,000 $ 2,160,000
Gross profit 1,050,000
1,158,000
S, G & A expense 841,000 683,000
Product development costs 555,000 155,000
Operating income (loss) (346,000) 320,000
Net income
(loss) $ (319,000) $ 356,000
Net income (loss) per share:
Basic $
( 0.24) $ 0.27
Diluted $ (0.24) $ 0.22
Condensed
consolidated balance sheets
(unaudited)
Cash $ 1,791,000 $ 2,238,000
Accounts receivable, net 265,000 330,000
Inventory 1,273,000 1,247,000
Other current assets 78,000 178,000
Total current assets 3,407,000 3,993,000
Property and equipment, net 110,000 77,000
Total assets $
3,517,000 $ 4,070,000
Accounts payable $ 119,000 $ 166,000
Accrued expenses and
other
current liabilities 376,000 579,000
Total current liabilities 495,000 745,000
Total stockholders' equity 3,022,000 3,325,000
Total liabilities
and stockholders' equity $ 3,517,000 $
4,070,000