TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES IMPROVED FIRST QUARTER RESULTS
CONCORD, MA, February 1, 2000 – Technical Communications Corporation (NASDAQ: TCCO) today reported that revenues for its first fiscal quarter ended January 1, 2000 were $2,253,000 compared to $1,071,000 in the same quarter a year ago. The Company reported net income of $107,000 or $0.08 per share, compared to a net loss of $(988,000) or $(0.79) per share in the first quarter of fiscal 1999 which included a previously reported one-time charge of approximately $475,000. Order backlog at the end of the quarter was $1,085,000 as compare to the fourth quarter 1999 amount of $2,048,000.
TCC’s President and Chief Executive Officer Carl Guild stated that “Although we are encouraged by the first quarter results, we remain cautious about the outlook going forward. The improvement over the past couple of quarters has been positive for TCC with our worldwide markets, particularly our traditional areas of strength, such as the Middle East, showing signs of steady but slow progress. We are encouraged by the increased flow of orders, but we still expect sales volumes to be variable and unpredictable through the end of this fiscal year."
Continuing, Mr. Guild said “During this quarter, our sales and marketing teams have introduced our CipherONE™ family of Internet and Frame Relay security products to potential international users. These product introductions will continue with the objective of capturing international enterprise programs that demand high security solutions which meet unique user requirements.”
About Technical Communications Corporation
Technical Communications Corporation's products and systems secure mission-critical networks for governments, corporations and financial institutions around the world. With over 38 years of experience, TCC is the trusted supplier for organizations that place a high value on their data and its successful transmission.
MATTERS DISCUSSED IN THIS NEWS RELEASE, INCLUDING ANY DISCUSSION OF OR IMPACT, EXPRESSED OR IMPLIED, ON TECHNICAL COMMUNICATIONS CORPORATION'S (THE COMPANY) 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. THESE AND OTHER RISKS ARE DETAILED FROM TIME TO TIME IN THE COMPANY’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE FORM 10-K FOR THE FISCAL YEAR ENDED OCTOBER 2, 1999.
Technical Communications Corporation
Comparative Financial Information
January 1, 2000 January 2, 1999
First quarter ended:
Net sales $ 2,253,000 $ 1,071,000
Net income (loss) 107,000 (988,000)
Net income per share
Basic $0.08 $(0.79)
Diluted $0.08 $(0.79)
|