May 2, 2006
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FIRST QUARTER 2006 RESULTS
WAUKESHA, WISCONSIN, May 2, 2006 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its first quarter 2006 results. Sales for the quarter were
$640,878 compared to $749,333 for the 2005 first quarter. The net loss was
$97,706 or $0.04 per Class A common share, compared to a net loss of $170,703 or
$0.07 per Class A common share for the first quarter of 2005.
Commenting on the results, ETC President Dean Danner said, “ETC has continued to
be adversely effected by limited telecommunications industry purchases of voice
announcement systems. This limited spending in our market is a result of
significant telecommunications spending in other highly competitive areas such
as wireless communications and high speed internet. Our market segment is
further adversely impacted by mergers and divestures as the telecommunications
industry sorts out who will be wireless providers and who will be wireline
providers. It is anticipated that when the industry begins to stabilize the
wireline providers will begin to resume their upgrade programs including voice
announcement systems.”
Electronic Tele-Communications supplies voice announcers and Voice Application
Platforms to domestic and foreign telephone utilities under the Audichron® and
Digicept® brand names. 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.
From time to time, information provided by ETC, statements made by its
employees, and information included in its press releases and other public
statements which are not historical facts are forward-looking in nature and
relate to trends and events that may affect our future financial position and
operating results. Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties including, but not
limited to: business conditions in the telecommunications industry, the
Company’s ability to achieve adequate sales levels or sufficient cash flow or
cash reserves to support operations, technology changes, backlog, status of the
economy, government regulations, sources of supply, expense structure, product
mix, major customers, competition, litigation, and other risk factors. Investors
are encouraged to consider these risks and uncertainties.
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Electronic Tele-Communications, Inc.
Statements of Operations:
(unaudited)
Three Months Ended
March 31
2006 2005
Net sales 640,878 749,333
Cost of products sold 393,354 472,780
Gross profit 247,524 276,553
Operating expenses:
General and administrative 134,345 161,018
Marketing and selling 130,969 200,704
Research and development 74,283 85,534
339,597 447,256
Earnings (loss) from operations (92,073) (170,703)
Other income (expense) (5,633) -
Earnings (loss) before
income taxes (97,706) (170,703)
Income taxes 0 0
Net earnings (loss) (97,706) (170,703)
Basic and diluted earnings (loss) per share:
Class A common (0.04) (0.07)
Class B common (0.04) (0.07)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147
Selected Balance Sheet Data:
Mar 31 Dec 31
2006 2005
Current assets 924,629 983,309
Total assets 1,135,580 1,217,790
Current liabilities 931,844 845,619
Total liabilities 1,013,128 997,631
Stockholders' equity 122,452 220,159
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