May 1, 2007
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FIRST QUARTER 2007 RESULTS
WAUKESHA, WISCONSIN, May 1, 2007 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its first quarter 2007 results. Sales for the quarter were
$574,304 compared to $640,878 for the 2006 first quarter. The net loss was
$63,033 or $0.03 per Class A common share, compared to a net loss of $97,706 or
$0.04 per Class A common share for the first quarter of 2006.
Commenting on the results, ETC President Dean Danner said, “Lower net sales, due
to a customer choosing to no longer provide TWT information as a public service
in their market, coupled with slightly higher interest expenses resulted in a
loss for the first quarter of 2007. ETC is actively working with other customers
to replace this public service and taking steps to further reduce our fixed
operating costs. During the second quarter of 2007 ETC will consolidate its
facilities and eliminate its offices in Atlanta, Georgia. This consolidation
will result in one time charges during the second quarter but will lower ongoing
operating costs for the Company.”
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
March 31
2007 2006
Net sales 574,304 640,878
Cost of products sold 340,875 393,354
Gross profit 233,429 247,524
Operating expenses:
General and administrative 112,455 134,345
Marketing and selling 106,297 130,969
Research and development 71,249 74,283
290,001 339,597
Earnings (loss) from operations (56,572) (92,073)
Other income (expense) (6,461) (5,633)
Earnings (loss) before
income taxes (63,033) (97,706)
Income taxes 0 0
Net earnings (loss) (63,033) (97,706)
Basic and diluted earnings (loss) per share:
Class A common (0.03) (0.04)
Class B common (0.03) (0.04)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147
Selected Balance Sheet Data:
Mar 31 Dec 31
2007 2006
Current assets 839,386 742,452
Total assets 973,681 893,529
Current liabilities 1,060,925 911,406
Total liabilities 1,181,249 1,038,063
Stockholders' equity (207,568) (144,534)
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