ETC ANNOUNCES THIRD QUARTER 2004 RESULTS
Waukesha, WI -- October 14, 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 – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third
quarter 2004 results. Sales for the quarter were $937,016 compared to
$1,098,163 for the 2003 third quarter. Net income was $28,518 for the
quarter or $0.01 per Class A common share, compared to earnings of
$102,292 or $0.04 per share for the third quarter of 2003. For the nine
month period in 2004 ETC lost $44,379 on sales of $2,776,671, compared to
a 2003 loss of $496,127 on sales of $2,446,573.
Commenting on the third quarter results, ETC President Dean Danner said,
“Equipment sales were down slightly from the second quarter due to weak
summer shipments, but improved as the quarter progressed. Our lease
revenues and continued cost controls coupled with sufficient equipment
sales enabled ETC to generate a profit for a second consecutive quarter.
Although ETC was profitable in both the second and third quarters, low
sales in the first quarter of 2004 still left ETC with a slight loss for
the nine months. Initial bookings for the fourth quarter are ahead of last
year as we continue our efforts to broaden our customer mix and improve
our product offerings,” Danner said.
As previously announced, ETC made a Form 15 filing with the Securities and
Exchange Commission (SEC) on September 14, 2004. This filing effectively
de-registered our Class A stock with the SEC, and caused our stock trading
to move from the OTC Bulletin Board to the OTC Pink Sheets. This filing
was done to relieve the Company from expensive new certifications and
continuing compliance requirements resulting from implementation of the
Sarbanes-Oxley legislation. Although no longer required to comply with the
SEC’s corporate governance rules, ETC does not plan any change in its
current practices and will continue to publish quarterly and annual
financial results to keep our shareholders informed.
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 Nine Months Ended
September 30 September 30
2004 2003 2004 2003
Net sales 937,016 1,098,163 2,776,671 2,446,573
Cost of products sold 513,072 529,012 1,513,924 1,353,705
Gross profit 423,944 569,151 1,262,747 1,092,868
Operating expenses:
General and administrative 140,572 171,358 455,287 515,964
Marketing and selling 197,019 202,690 574,916 612,429
Research and development 56,483 90,078 271,387 452,393
394,074 464,126 1,301,590 1,580,786
Earnings (loss) from operations 29,870 105,025 (38,843) (487,918)
Other income (expense) (352) (1,733) (2,536) (5,209)
Earnings (loss) before
income taxes 29,518 103,292 (41,379) (493,127)
Income taxes 1,000 1,000 3,000 3,000
Net earnings (loss) 28,518 102,292 (44,379) (496,127)
Basic and diluted earnings (loss) per share:
Class A common 0.01 0.04 (0.02) (0.20)
Class B common 0.01 0.04 (0.02) (0.20)
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)
Sep 30 Dec 31
2004 2003
Current assets 1,426,134 1,512,830
Total assets 2,562,336 2,734,197
Current liabilities 717,312 778,289
Total liabilities 916,828 1,044,310
Stockholders' equity 1,645,508 1,689,887
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