August 3, 2006
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES SECOND QUARTER 2006 RESULTS
WAUKESHA, WISCONSIN, August 3, 2006 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its second quarter 2006 results. Sales for the quarter were
$658,490 compared to $647,438 for the 2005 second quarter. The net loss was
$42,534 or $0.02 per Class A common share, compared to a net loss of $196,951 or
$0.08 per Class A common share for the second quarter of 2005.
Sales for the first six months of 2006 were $1,299,368, compared to 2005 six
month sales of $1,396,771. The loss for the first six months of 2006 was
$140,240 or $0.06 per Class A Share, compared to a loss of $367,654 or $0.15 per
Class A share for the first six months of 2005.
Commenting on the results, ETC President Dean Danner said, “Limited spending in
our market segment has been the result of significant spending by our customers
in other areas such as wireless communications and high speed internet, as well
as disruption in their operations as a result of mergers and acquisitions. As
our customers have continued to defer equipment upgrades on their voice
announcement systems, they are nearing the point where it is no longer viable to
repair equipment that is no longer manufactured. We believe that it will then be
necessary for them to upgrade to state of the art equipment which will allow
them to incorporate many of the new services available on our Emcee and Z-10
product lines.”
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:
(unreviewed) (unreviewed)
Three Months Ended Six Months Ended
June 30 June 30
2006 2005 2006 2005
Net sales 658,490 647,438 1,299,368 1,396,771
Cost of products sold 370,927 414,617 764,281 887,397
Gross profit 287,563 232,821 535,087 509,374
Operating expenses:
General and administrative 134,039 165,140 268,384 326,158
Marketing and selling 124,094 195,239 255,063 395,943
Research and development 67,100 69,393 141,383 154,927
325,233 429,772 664,830 877,028
Earnings (loss) from operations (37,670) (196,951) (129,743) (367,654)
Other income (expense) (4,864) - (10,497) -
Earnings (loss) before
income taxes (42,534) (196,951) (140,240) (367,654)
Income taxes 0 0 0 0
Net earnings (loss) (42,534) (196,951) (140,240) (367,654)
Basic and diluted earnings (loss) per share:
Class A common (0.02) (0.08) (0.06) (0.15)
Class B common (0.02) (0.08) (0.06) (0.15)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147
Selected Balance Sheet Data:
(unreviewed) (reviewed)
Jun 30 Dec 31
2006 2005
Current assets 899,218 983,309
Total assets 1,082,701 1,217,790
Current liabilities 926,799 845,619
Total liabilities 1,002,783 997,631
Stockholders' equity 79,918 220,159
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