ETC Announces First Quarter 2000 ResultsWaukesha, WI—April 24, 2000 For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, April 24, 2000 The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported first quarter 2000 earnings of $76,678 or $0.03 per Class A share on sales of $3,096,412 compared to first quarter 1999 earnings of $177,858 or $0.08 per Class A share on sales of $3,269,107. Commenting on the 2000 results, ETC President Dean Danner said, "ETC is pleased to return to profitability in 2000 after a very disappointing effect of Y2K on the fourth quarter of 1999 and the year ended December 31, 1999. In line with our projections, our sales began to return to normal levels as we moved away from the first of the year and finished the quarter strong. Our backlog of orders has improved and we have increased production levels to meet the increased demand for our systems." "The DNA Voice Platform continues to enjoy solid demand as an announcement platform for local telephone companies, cellular telephone companies, long distance carriers, and other providers of telecommunications services. The DNA product is helping to set the standards for TTY compatible announcements on the telephone network for the hearing impaired. Our new Emcee family of products takes this industry leading approach and extends it further into both classic telephony operations and the newly emerging Internet telephony operations," Danner said. Electronic Tele-Communications is a supplier of Voice Application Processing Platforms to domestic and foreign telephone utilities and of messaging systems to the commercial market. ETC's equipment, compatible with most telephone systems, provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet. ETC, with corporate headquarters in Waukesha, Wisconsin also has operations in Atlanta, Georgia and Pleasanton, California. Certain statements in this press release which are not historical facts are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Any "forward-looking" statements are provided in compliance with the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995. "Forward-looking" statements involve a number of risks and uncertainties including, but not limited to, technology changes, backlog, acquisitions, status of the economy, governmental regulations, sources of supply, expense structure, product mix, major customers, level of order flow, competition, litigation, and other risk factors detailed in the Company's filings with the Securities and Exchange Commission. Investors are encouraged to consider the risks and uncertainties included in those filings. Electronic Tele-Communications, Inc. Consolidated Statements of Operations: Three Months Ended March 31
2000 1999
Net sales 3,096,412 3,269,107
Cost of product sold 1,655,399 1,583,745
Gross profit 1,441,013 1,685,362
Operating expenses:
General and administrative 339,264 354,311
Marketing and selling 571,335 641,027
Research and development 434,564 434,117
1,345,163 1,429,455
Earnings from operations 95,850 255,907 Other income (expense) (7,972) 951 Earnings before income taxes 87,878 256,858 Income taxes 11,200 79,000 Net earnings 76,678 177,858 Basic and diluted earnings per share: Class A common 0.03 0.08 Class B common 0.03 0.04 Weighted average shares outstanding for basic and diluted 2,509,105 2,508,947 Selected Balance Sheet Data:
Mar 31 Dec 31
2000 1999
Current assets 3,835,148 3,245,415
Total assets 7,189,366 6,679,675
Current liabilities 1,377,769 945,056
Total liabilities 1,377,769 945,056
Stockholders' equity 5,811,597 5,734,619
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