TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES SECOND QUARTER 1999 RESULTS
CONCORD, MA, May 5, 1999 - Technical Communications Corporation
(NASDAQ:TCCO) today reported that revenues for its second fiscal quarter
ended April 3, 1999 were $1,247,336 compared to $3,405,457 in the same
quarter a year ago. The Company reported net income of $147,100 or $0.11
per share, compared to $178,142 or $0.14 per share in the second quarter of
fiscal 1998. Second quarter FY99 results included a gain on the sale of an
investment in common stock of Visual Networks, Inc. (VNWK) of $1,056,638.
Order backlog increased by approximately $500,000 from the first quarter to
$1,165,297 at the end of the second quarter.
"TCC's performance in the second quarter continues to be adversely affected
by delays in several large international orders." said Carl Guild, TCC
President & C.E.O. "However, during the last quarter there have been
encouraging signs that the mid-east budget concerns are starting to be
relieved with the recovery of oil prices. TCC has made steady progress in
pursuing these sales but customer budget constraints have delayed the award
process. "
Guild further said, "Our development of products for the commercial
encryption security market continues. Expanding upon our CX7100/KEYNET
Triple-DES, 2 megabit frame relay encryptor, we expect to make available a
family of encryption products that will provide optimized system performance
at a significantly reduced cost. These products are expected to be
attractive to the large number of smaller enterprises where acquisition cost
is very important. "
About Technical Communications Corporation
Based in Concord, Massachusetts, Technical Communications
Corporation's products and services provide encryption security for the
mission-critical networks of governments and corporations around the world.
With over 35 years' experience, TCC is the trusted supplier where secure
data transmission is a critical need.
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 and the Company's ability to renegotiate its line of
credit with its banks. 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 a 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.
Technical Communications Corporation
Comparative Financial Information
Second quarter ended:
April 3, 1999 March 28, 1998
Net sales $ 1,247,336 $ 3,405,457
Net income 147,100 178,142
Net income per share
Basic $0.11 $0.14
Diluted $0.11 $0.14
Six months ended:
April 3, 1999 March 28, 1998
Net sales $ 2,318,692 $ 6,340,505
Net income (loss) (841,289) 49,423
Net income (loss) per share
Basic ($0.63) $0.04
Diluted ($0.63) $0.04
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