TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES FOURTH QUARTER and YEAR END 1999 RESULTS
CONCORD, MA, November 23, 1999 - Technical Communications Corporation (NASDAQ: TCCO) today reported that revenues for its fourth fiscal quarter ended October 2, 1999 were $2,753,000 compared to $4,234,000 in the same quarter a year ago. The Company reported net income of $217,000 or $0.17 per share, compared to net income of $210,000 or $0.16 per share in the fourth quarter of fiscal 1998. Revenues for the year ended October 2, 1999 amounted to $6,434,000 with a net loss of $1,219,000 or $0.96 per share as compared to fiscal year 1998 revenue of $13,856,000 with net income of $482,000 or $0.38 per share. Order backlog at the end of the year increased to $2,048,000 from the third quarter amount of $772,000.
Commenting on the results, Carl Guild, TCC’s President and Chief Executive Officer stated that "We are pleased with the fourth quarter’s profitable results and the increase to our backlog. This performance resulted from receipt and delivery of several orders, which had been pending for some time but delayed due to national budget issues. Among those orders was the selection of our high speed link encryption system to expand the air defense system of a European country and a $2 million encryption equipment contract with a foreign customer. Although we are encouraged by the increased flow of orders from the international markets, we still expect recovery to be sporadic and unpredictable for at least the next two quarters."
Guild further said, "We continue the development of the CipherONE Network Security System family of products for the world-wide commercial and government encryption security markets. CipherONE provides a robust security solution for multiple protocols and performance requirements and is designed to adapt to the changing enterprise communications environments by simple software selections via KEYNET, TCC's proprietary system manager. CipherONE allows the Company to become more competitive by offering rapid system adaptability as communications requirements change and a lower cost of operation. With CipherONE, TCC is continuing to aggressively compete for large network systems in the international and domestic markets where high-performance, robust encryption and flexibility is a requirement."
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.
Technical Communications Corporation
Comparative Financial Information
October 2, 1999 October 3, 1998
Fourth quarter ended:
Net sales $ 2,753,000 $ 4,234,000
Net income 217,000 210,000
Net income per share
Basic $0.17 $0.16
Diluted $0.17 $0.16
Year ended:
Net sales $ 6,434,000 $ 13,856,000
Net income (loss) (1,219,000) 482,000
Net income (loss) per share
Basic ($0.96) $0.38
Diluted ($0.96) $0.37
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