TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES RECEIPT OF $2M CONTRACT
CONCORD, MA, September 1, 1999 - Technical Communications Corporation (NASDAQ: TCCO) today reported that it has received a contract to supply encryption equipment for use in the air defense systems of a foreign government. The contact is valued at $2,000,000 and was awarded by a foreign company in support of ongoing requirements. Receipt of this order increases TCC’s current backlog to over $3,000,000. TCC expects to ship this equipment within the next three months.
"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".
Carl Guild, TCC’s President and Chief Executive Officer, stated “The release of this order is an indication that the procurement delays we have experienced during the last two years may be starting to shrink. National budget uncertainties are being reckoned with in certain of TCC’s key Mid-East, Latin American and Asian markets and planned procurements are beginning to proceed. We have a number of foreign projects in the procurement cycle and expect them to progress more rapidly. "
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 and July 3, 1999.
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