| Technical Communications Corporation
100 Domino Drive Concord, MA 01742–2892 |
Michael P. Malone
Chief Financial Officer (978) 287-5100 |
|
| www.tccsecure.com | ||
CONCORD, MA, May 9, 2011 – Technical Communications Corporation (NasdaqCM: TCCO), today announced its results for the fiscal quarter ended March 26, 2011. For the second quarter of the Company’s 2011 fiscal year, the Company reported net income of $515,000, or $0.28 per share, on revenue of $3,107,000, as compared to a net loss of $(87,000), or $(0.05) per share, on revenue of $3,576,000 for the quarter ended March 27, 2010. For the six months ended March 26, 2011, the Company reported net income of $1,014,000, or $0.56 per share, on revenue of $5,842,000, as compared to net income of $2,269,000, or $1.48 per share, on revenue of $8,340,000 for the six months ended March 27, 2010.
Technical Communications Corporation today also announced that its Board of Directors has declared a dividend of $0.10 per share of common stock outstanding. The dividend is payable in cash on June 15, 2011 to all shareholders of record on June 1, 2011.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC said, “Shipments for the second quarter were largely from our DSP9000 Radio Encryption product family for both man portable and imbedded OEM applications. This product line continues to be an excellent performer for TCC as it provides users with the ability to conduct encrypted communications with dissimilar radios. TCC also completed deliveries of upgrade equipment for our DSD72A-SP Bulk Encryptors employed in an expanding Asian air defense system.
“We are pleased with our second quarter performance, which generated a 17% return on revenues, while we increased our product development investments over the previous quarter and the prior year. We continue to believe that product evolution and new product introduction will expand our traditional markets and open up new ones.”
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 115 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 and expand product lines and market share, constitute 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 Report on Form 10-Q for the quarter ended December 25, 2010 and its Annual Report on Form 10-K for the fiscal year ended September 25, 2010.
Condensed consolidated income statements
Quarter Ended
(Unaudited)
3/26/2011
3/27/2010
|
Net sales |
$ 3,107,000 |
$ 3,576,000 |
|
Gross profit |
2,627,000 |
2,147,000 |
|
S, G & A
expense |
724,000 |
894,000 |
|
Product
development costs |
961,000 |
331,000 |
|
Operating
income |
943,000 |
922,000 |
|
Income tax
expense (benefit) |
428,000 |
1,010,000 |
|
Net income
(loss) |
515,000 |
(87,000) |
|
Net income
(loss) per share: |
|
|
|
Basic |
$ 0.28 |
$( 0.05) |
|
Diluted |
$ 0.27 |
$ (0.05) |
Six Months Ended
(Unaudited)
3/26/2011
3/27/2010
|
Net sales |
$ 5,842,000 |
$ 8,340,000 |
|
Gross profit |
4,682,000 |
5,703,000 |
|
S, G & A
expense |
1,399,000 |
1,631,000 |
|
Product
development costs |
1,857,000 |
858,000 |
|
Operating
income |
1,426,000 |
3,213,000 |
|
Income tax
expense (benefit) |
414,000 |
947,000 |
|
Net income |
1,014,000 |
2,269,000 |
|
Net income per
share: |
|
|
|
Basic |
$ 0.56 |
$ 1.48 |
|
Diluted |
$ 0.54 |
$ 1.31 |
Condensed consolidated balance sheets
3/26/2011
9/25/2010
(unaudited)
(derived from audited
financial statements)
|
Cash |
$ 7,663,000 |
$ 11,034,000 |
|
Accounts
receivable, net |
2,061,000 |
131,000 |
|
Inventory |
2,963,000 |
2,613,000 |
|
Deferred income
taxes |
580,000 |
469,000 |
|
Other current
assets |
135,000 |
154,000 |
|
Total current
assets |
13,402,000 |
14,401,000 |
|
Property and
equipment, net |
523,000 |
425,000 |
|
Total assets |
$ 13,925,000 |
$ 14,826,000 |
|
|
|
|
|
Accounts
payable |
237,000 |
314,000 |
|
Accrued
expenses and other current liabilities |
1,318,000 |
2,927,000 |
|
Total current
liabilities |
1,554,000 |
3,241,000 |
|
Total
stockholders’ equity |
12,370,000 |
11,585,000 |
|
Total
liabilities and stockholders’ equity |
$ 13,925,000 |
$ 14,826,000 |