NEWS RELEASE | |
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Technical Communications Corporation |
Michael P. Malone |
TECHNICAL COMMUNICATIONS CORPORATION ANNOUNCES SECOND QUARTER RESULTSCONCORD, MA, May 12, 2000 – Technical Communications Corporation (NASDAQ: TCCO) today reported that revenues for its second fiscal quarter ended April 1, 2000 were $1,381,000 compared to $1,247,000 in the same quarter a year ago. The Company reported a net loss of $418,000 or $0.32 per share, compared to net income of $147,000 or $0.11 per share in the second quarter of fiscal 1999 which included a previously reported one-time gain on the sale of stock of approximately $1.1 million. Order backlog is currently $450,000 as compare to a year ago amount of $1,165,000. TCC’s President and Chief Executive Officer Carl Guild stated that “The Q2 results, although not impressive, are consistent with our view that sales recovery will be sporadic during fiscal 2000. We anticipated this slow down during the middle part of the year. However, we believe the order pipeline continues to get stronger and we are working toward capturing new orders with the objective of ending the year on an improved outlook." Continuing, Mr. Guild said “During this quarter, our sales and marketing teams have introduced our CipherONE™ family of security products, the Cipher X 7200 Internet Protocol Encrypter and the Cipher X 7100 Frame Relay Encrypter to a number of new potential customers. This product introduction has been met with a great deal of enthusiasm from our international customers resulting in several product demonstration trials that are currently being conducted or planned in eight countries. The increasing public and corporate concern with internet communications security, prompted by the publicized effects of virus attacks and hacking is increasing the demand for solutions. Our worldwide customers are starting to react, turning to TCC for rapidly deployable, trusted solutions for their secure networks. We are encouraged by the interest in our new CipherONE product line and expect it to gain market acceptance over time.” About Technical Communications Corporation TCC designs, manufactures, and supports superior grade secure communications systems that protect highly sensitive information transmitted over a wide range of data, voice and fax networks. TCC’s proven security solutions protect information privacy on every continent in over 100 countries. Government agencies, militaries, financial institutions, telecom carriers and multinational corporations worldwide rely on TCC to protect their communications networks. 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 RATES AND THE COMPANY'S ABILITY TO NEGOTIATE A LINE OF CREDIT WITH ITS BANKS. 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, FORM 10Q FOR THE PERIOD ENDED JANUARY 1, 2000 AND THE FORM 10-Q FOR THE QUARTER ENDED APRIL 1, 2000.
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