TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES THIRD QUARTER 1999 RESULTS
CONCORD, MA, August 13, 1999 - Technical Communications Corporation (NASDAQ: TCCO) today reported that revenues for its third fiscal quarter ended July 3, 1999 were $1,361,671 compared to $3,281,399 in the same quarter a year ago. The Company reported a net loss of $593,927 or $0.43 per share, compared to net income of $222,415 or $0.17 per share in the third quarter of fiscal 1998. Order backlog at the end of the third quarter slipped slightly to $772,000 from the second quarter amount of $1,165,000 however it has since increased to a current balance of $1,103,000. This amount is expected to increase to $3,500,000 within the next few weeks as a result of foreign sole source orders released to U.S. for processing.
"TCC’s performance in the third quarter still remains below our expectations." said Carl Guild, President & C.E.O. "However, the worldwide markets, most notably the Middle East, are showing significant signs of increased activity. We are seeing progress on several large orders we have been pursuing for many months and we take this as a sign that overall business in the area is opening up. The pipeline for us has been strong all year and we are starting to see the benefits of our efforts".
Guild further said, "Our development of the CipherONE" Network Encryption System family of products for the commercial encryption security market continues on schedule. Strict development timelines are being adhered to
and the Company is pursuing several opportunities, which look promising for early FY2000. We expect that the CipherONETM product family will allow the Company to become more competitive by offering a broader range of commercial security systems to protect the information transmitted on corporate mission-critical wide area networks (WAN’s)".
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 and April 3, 1999.
Technical Communications Corporation
Comparative Financial Information
Third quarter ended:
July 3, 1999 June 27, 1998
Net sales $ 1,361,671 $ 3,281,399
Net income (loss) (593,927) 222,415
Net income per share
Basic ($0.43) $0.17
Diluted ($0.43) $0.17
Nine months ended:
July 3, 1999 June 27, 1998
Net sales $ 3,680,363 $ 9,621,904
Net income (loss) (1,435,216) 271,838
Net income (loss) per share
Basic ($1.07) $0.21
Diluted ($1.07) $0.21
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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