March 10, 2006
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES Fourth QUARTER 2005 RESULTS
WAUKESHA, WISCONSIN, March 10, 2006 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter
and year end 2005 results. Sales for the quarter were $673,726 compared to
$894,537 for the 2004 fourth quarter. The net loss was $901,832 or $0.36 per
Class A common share, compared to net earnings of $13,025 or $0.01 per Class A
common share for the fourth quarter of 2004. Sales for the 2005 year were
$2,689,269, compared to 2004 sales of $3,671,208. The loss for 2005 was
$1,438,374 or $0.58 per Class A Share, compared to a loss of $31,354 or $0.01
per Class A share for 2004. Included in both the fourth quarter and year end
numbers for 2005 is an impairment adjustment to goodwill of $790,596 or $0.32
per class A common share.
Commenting on the results, ETC President Dean Danner said, “The Board of
Directors decided in December that ETC should eliminate the “goodwill” on its
Balance Sheet. The “goodwill” amounts originated from acquisitions ETC made in
1989 and 1991. Based on our lower operating levels and past losses, it was no
longer appropriate to carry this item as an asset on our Balance Sheet. As a
result of this decision we wrote off $790,596.00 of “goodwill” in the fourth
quarter.”
Electronic Tele-Communications and its affiliates have been supplying voice
announcers and Voice Application Platforms to domestic and foreign telephone
utilities for over 70 years 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 Twelve Months Ended
December 31 December 31
2005 2004 2005 2004
Net sales 673,726 894,537 2,689,269 3,671,208
Cost of products sold 424,233 458,109 1,699,725 1,972,033
Gross profit 249,493 436,428 989,544 1,699,175
Operating expenses:
General and administrative 145,780 143,854 627,354 599,141
Marketing and selling 142,826 200,303 700,408 775,219
Research and development 69,981 78,246 306,519 349,633
Goodwill Impairment 790,596 0 790,596 0
1,149,183 422,403 2,424,877 1,723,993
Earnings (loss) from operations (899,690) 14,025 (1,435,333) (24,818)
Other income (expense) (2,142) - (3,041) (2,536)
Earnings (loss) before
income taxes (901,832) 14,025 (1,438,374) (27,354)
Income taxes 0 1,000 0 4,000
Net earnings (loss) (901,832) 13,025 (1,438,374) (31,354)
Basic and diluted earnings (loss) per share:
Class A common (0.36) 0.01 (0.58) (0.01)
Class B common (0.36) 0.01 (0.58) (0.01)
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
2005 2004
Current assets 983,309 1,446,212
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