ETC Announces Second Quarter 2004 Results
Waukesha, WI -- August 3, 2004
For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, August 3, 2004 OTC Bulletin Board ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc.
(ETC) today reported its second quarter 2004 results. Sales for the
quarter were $1,022,982 compared to $628,466 for the 2003 second quarter.
Net earnings were $22,153 or $0.01 per Class A common share, compared to a
net loss of $238,829 or $0.10 per Class A common share for the second
quarter of 2003.
Sales for the first six months of 2004 were $1,839,655, compared to 2003
six month sales of $1,348,410. The loss for the first six months of 2004
was $72,897 or $0.03 per Class A Share, compared to a loss of $598,419 or
$0.24 per Class A share for the first six months of 2003.
Commenting on the second quarter results, ETC President Dean Danner said,
“Sales in 2004 continue to improve over the comparable periods in 2003. We
believe that this modest sales improvement is an indication that our
industry segment is slowly recovering and relieving some of its pent-up
demand from over three years of recession. It is our hope that continued
improvement in sales will enable ETC to be profitable in the upcoming
quarters.”
"The sales of existing inventory, coupled with our line of credit to
purchase new inventory, have enabled ETC to meet our customer’s delivery
requirements within our cash flow capabilities. In addition, overhead and
capital expenditures have been controlled. We believe these factors
position ETC for continued improvement in 2004 assuming sales in our
market segment improve.”
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.
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Electronic Tele-Communications, Inc.
Statements of Operations:
(unaudited) (unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Net sales 1,022,982 628,466 1,839,655 1,348,410
Cost of products sold 548,466 383,342 1,000,852 824,693
Gross profit 474,516 245,124 838,803 523,717
Operating expenses:
General and administrative 150,880 162,527 314,715 344,606
Marketing and selling 192,004 191,525 377,897 409,739
Research and development 107,386 126,317 214,904 362,315
450,270 480,369 907,516 1,116,660
Earnings (loss) from operations 24,246 (235,245) (68,713) (592,943)
Other income (expense) (1,093) (2,584) (2,184) (3,476)
Earnings (loss) before
income taxes 23,153 (237,829) (70,897) (596,419)
Income taxes 1,000 1,000 2,000 2,000
Net earnings (loss) 22,153 (238,829) (72,897) (598,419)
Basic and diluted earnings (loss) per share:
Class A common 0.01 (0.10) (0.03) (0.24)
Class B common 0.01 (0.10) (0.03) (0.24)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147
Selected Balance Sheet Data:
(unaudited)
Jun 30 Dec 31
2004 2003
Current assets 1,543,475 1,512,830
Total assets 2,690,045 2,734,197
Current liabilities 851,371 778,289
Total liabilities 1,073,055 1,044,310
Stockholders' equity 1,616,990 1,689,887
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