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ETC Announces First Quarter 2001 ResultsWaukesha, WIApril 27, 2001 For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, April 27, 2001 The NASDAQ Stock Market ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA Electronic Tele-Communications, Inc. (ETC) today reported a first quarter 2001 loss of $707,249 or $0.28 per Class A share on sales of $1,671,825 compared to first quarter 2000 earnings of $76,678 or $0.03 per Class A share on sales of $3,096,412. Commenting on the 2001 results, ETC President Dean Danner said, “The economic slowdown that began last year deepened through the first quarter of 2001 as evidenced by the drop in the stock market. The telecommunications and high tech segments of the marketplace have been especially hard hit. ETC’s sales of voice platforms is dependent on new and/or upgraded telecommunications voice facilities and services, and this market segment is depressed. Many of our customers have delayed expansion and upgrade programs and therefore delayed the purchase of voice platforms.” “To help offset the sales shortfall ETC has implemented a number of cost saving measures including extended layoffs in manufacturing in addition to a 10% staff reduction. At the same time, we are continuing our development of applications for our Emcee system. The Windows based Emcee system is the foundation of the next generation of voice platforms that can work in both the emerging IP (Internet Protocol) and soft switch markets as well as traditional telephone switch markets. It is vital that ETC be ready with as many applications as possible on the Emcee system when the economy and telecommunications markets recover.” 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 Norcross, 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:
(unaudited)
Three Months Ended
March 31
2001 2000
Net sales 1,671,825 3,096,412
Cost of products sold 1,005,689 1,655,399
Gross profit 666,136 1,441,013
Operating expenses:
General and administrative 301,314 339,264
Marketing and selling 539,673 571,335
Research and development 516,829 434,564
1,357,816 1,345,163
Earnings (loss) from operations (691,680) 95,850 Other income (expense) (14,569) (7,972) Earnings (loss) before income taxes (706,249) 87,878 Income taxes 1,000 11,200 Net loss (707,249) 76,678 Basic and diluted earnings (loss) per share: Class A common (0.28) 0.03 Class B common (0.28) 0.03 Weighted average shares outstanding for basic and diluted 2,509,147 2,509,105 Selected Balance Sheet Data:
(unaudited)
Mar 31 Dec 31
2001 2000
Current assets 2,973,149 3,624,004
Total assets 6,055,972 6,834,502
Current liabilities 1,540,998 1,612,279
Total liabilities 1,540,998 1,612,279
Stockholders' equity 4,514,974 5,222,223
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