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ETC Announces 2001 Year End ResultsWaukesha, WI -- March 15, 2002 For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES 2001 RESULTS
WAUKESHA, WISCONSIN, March 15, 2002 OTC Bulletin Board
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its results for the fourth quarter and year 2001. Sales for the fourth quarter 2001 were $1,007,209 compared to $2,412,770 for the 2000 fourth quarter. Net loss for the fourth quarter 2001 was $203,105 or $0.08 per Class A common share, compared to a loss of $91,636 or $0.04 per share for the fourth quarter of 2000. For the year 2001, the net loss was $2,169,853 or $0.86 per share on sales of $4,812,564, compared to a 2000 loss of $512,696 or $0.20 per share on sales of $10,454,180. Commenting on the 2001 results, ETC President Dean Danner said, "During 2001 our industry suffered the worst recession since ETC became a public company and possibly the worst industry recession in the last quarter century. Industry giants like Lucent and Northern Telecom suffered major losses and laid off half of their employees. Capital spending in our industry and our markets virtually stopped and ETC suffered as both a direct supplier of products and as a sub-contractor to the industry giants. The length and depth of the recession made forecasting impossible and forced ETC and others into a mode of repeated cutbacks throughout the year." "The changes and cutbacks we implemented last year will save ETC over $3,000,000 a year on an annualized basis, a large portion related to employment costs. Our engineering staff is focused on the Digicept Emcee and the Audichron Z10 product lines. These product lines are the foundation for our future in the network offices and customer premises markets respectively. Although development plans had to be scaled back and schedules stretched out, we are proceeding with both products and began shipments and installations during the latter part of 2001," 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, 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. # # # Electronic Tele-Communications, Inc.
Statements of Operations:
Three Months Ended Twelve Months Ended
December 31 December 31
2001 2000 2001 2000
Net sales 1,007,209 2,412,770 4,812,564 10,454,180
Cost of products sold 484,435 1,234,988 2,896,443 5,420,193
Gross profit 522,774 1,177,782 1,916,121 5,033,987
Operating expenses:
General and administrative 194,733 279,134 1,015,361 1,273,556
Marketing and selling 284,432 540,594 1,608,089 2,430,033
Research and development 245,714 438,389 1,420,141 1,811,130
724,879 1,258,117 4,043,591 5,514,719
Earnings (loss) from operations (202,105) (80,335)(2,127,470) (480,732)
Other income (expense) 0 (10,301) (38,383) (27,964)
Earnings (loss) before
income taxes (202,105) (90,636)(2,165,853) (508,696)
Income taxes 1,000 1,000 4,000 4,000
Net earnings (loss) (203,105) (91,636)(2,169,853) (512,696)
Basic and diluted earnings
(loss) per share:
Class A common (0.08) (0.04) (0.86) (0.20)
Class B common (0.08) (0.04) (0.86) (0.20)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,137
Selected Balance Sheet Data:
Dec 31 Dec 31
2001 2000
Current assets 2,358,472 3,624,004
Total assets 4,202,923 6,834,502
Current liabilities 733,183 1,612,279
Total liabilities 1,150,553 1,612,279
Stockholders' equity 3,052,370 5,222,223
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