NEWS RELEASEFor Immediate Release | |
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Technical Communications Corporation |
Contact: Michael P. Malone, |
TCC ANNNOUNCES SALE OF VISUAL NETWORKS STOCK HOLDINGSCONCORD, MA (April 2, 1999) - Technical Communications Corporation (NASDAQ: TCCO) today announced that it has sold the majority of its stock holdings in Visual Networks, Inc. and expects to realize a pre-tax gain of approximately $1,000,000. The stock position was the result of a TCC purchase of privately held Net2Net Corporation common stock in 1995. Visual Networks, Inc. purchased Net2Net in a 1998 stock swap. TCC will report this transaction in the 2nd Quarter of 1999, which will close on April 3, 1999. "We are pleased that our $250,000 investment in Net2Net turned out so well," said Carl Guild, President and C.E.O. of TCC. "The Company expects to use these proceeds to further fund existing product development efforts and current operating needs." Matters discussed in this news release, including any discussion of or impact, expressed or implied, on the Company’s anticipated operating results and future earnings, including statements about the Company’s ability to achieve growth and profitability, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. The Company’s operating results may differ significantly from the results indicated 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, the Company's ability to renegotiate its line of credit with its banks, the correctness of management's judgement that certain expenditures will benefit the Company in the future, and the accuracy of management's estimates of the value of the Company's assets and the adequacy of its reserves. Although the Company’s securities trade on the NASDAQ National Market System, no assurances can be given that the Company will continue to be in compliance with all listing requirements or that the Company’s securities will continue to be listed on NASDAQ National Market or on NASDAQ SmallCap market. The delisting of the Company’s securities from the NASDAQ could have material adverse effect on the market price of the Company’s securities. These and other risks are detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including Form 10-K for the fiscal year ended October 3,1998 and Form 10-Q for the quarter ended January 2, 1999 | |