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ETC Announces 2003 ResultsWaukesha, WI — February 20, 2004 For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, February 20, 2004 OTC Bulletin Board ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA Electronic Tele-Communications, Inc. (ETC) today reported its results for the fourth quarter and year 2003. Sales for the fourth quarter 2003 were $579,906 compared to $840,427 for the 2002 fourth quarter. Net loss for the fourth quarter 2003 was $219,738 or $0.09 per Class A common share, compared to a loss of $221,852 or $0.08 per share for the fourth quarter of 2002. For the year 2003, the net loss was $715,865 or $0.29 per share on sales of $3,026,479, compared to a 2002 loss of $565,829 or $0.22 per share on sales of $3,978,830. Commenting on the 2003 results, ETC President Dean Danner said, “The telecommunications equipment market failed to recover in 2003 from its worst recession in the last 50+ years. Although some segments of the telecommunications industry began to stabilize during the year, voice announcement system purchases continued to lag. ETC experienced a profitable third quarter, but then saw sales again fall in the fourth quarter as our customers’ limited budgets began to dry up. This fourth quarter drop off in sales contributed to reduced margins and net losses for both the quarter and the year.” “ETC continues its belief that the telecommunications industry is on the verge of recovery, and we are diligently working to keep our Emcee and Z-10 products up to date with those features we feel will be required when the industry does recover. The pace of first quarter 2004 sales and order activity is stronger than the first quarter of 2003. These early indications coupled with the changes and cutbacks we implemented in the last two and one half years position ETC for improved 2004 results,” 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. 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. - - M O R E - - Electronic Tele-Communications, Inc.
Statements of Operations:
(unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
2003 2002 2003 2002
Net sales 579,906 840,427 3,026,479 3,978,830
Cost of products sold 375,982 477,850 1,729,687 2,024,450
Gross profit 203,924 362,577 1,296,792 1,954,380
Operating expenses:
General and administrative 141,480 171,085 657,444 711,625
Marketing and selling 193,704 217,632 806,133 1,035,695
Research and development 86,369 194,712 538,762 830,153
421,553 583,429 2,002,339 2,577,473
Earnings (loss) from operations (217,629) (220,852) (705,547) (623,093)
Other income (expense) (1,109) - (6,318) (2,736)
Earnings (loss) before
income taxes (218,738) (220,852) (711,865) (625,829)
Income taxes (benefit) 1,000 1,000 4,000 (60,000)
Net earnings (loss) (219,738) (221,852) (715,865) (565,829)
Basic and diluted earnings (loss) per share:
Class A common (0.09) (0.08) (0.29) (0.22)
Class B common (0.09) (0.12) (0.29) (0.26)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147
Selected Balance Sheet Data:
Dec 31 Dec 31
2003 2002
Current assets 1,512,830 2,060,129
Total assets 2,734,197 3,558,200
Current liabilities 778,289 797,753
Total liabilities 1,044,310 1,152,448
Stockholders' equity 1,689,887 2,405,752
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