August 15, 2007
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES SECOND QUARTER 2007 RESULTS
WAUKESHA, WISCONSIN, August 15, 2007 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its second quarter 2007 results. Sales for the quarter were
$524,202 compared to $658,490 for the 2006 second quarter. The net loss was
$178,320 or $0.07 per Class A common share, compared to a net loss of $42,534 or
$0.02 per Class A common share for the second quarter of 2006.
Sales for the first six months of 2007 were $1,098,506 compared to 2006 six
month sales of $1,299,368. The loss for the first six months of 2007 was
$241,353 or $0.10 per Class A Share, compared to a loss of $140,240 or $0.06 per
Class A share for the first six months of 2006.
Commenting on the results, ETC President Dean Danner said, “The results include
a one time charge of $95,272 related to the closing of our Atlanta office. With
the continued lack of spending in our market segment ETC determined that the
costs associated with an office in the Atlanta area were no longer an effective
use of resources. Functions previous carried out in the Atlanta office have been
moved allowing ETC to continue to provide quality service our customers.”
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.
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
2007 2006 2007 2006
Net sales 524,202 658,490 1,098,506 1,299,368
Cost of products sold 313,775 370,927 654,650 764,281
Gross profit 210,427 287,563 443,856 535,087
Operating expenses:
General and administrative 103,154 134,039 215,609 268,384
Marketing and selling 110,595 124,094 216,892 255,063
Research and development 72,611 67,100 143,860 141,383
One Time Charges 95,272 0 95,272 0
381,632 325,233 671,633 664,830
Earnings (loss) from operations (171,205) (37,670) (227,777) (129,743)
Other income (expense) (7,115) (4,864) (13,576) (10,497)
Earnings (loss) before
income taxes (178,320) (42,534) (241,353) (140,240)
Income taxes 0 0 0 0
Net earnings (loss) (178,320) (42,534) (241,353) (140,240)
Basic and diluted earnings (loss) per share:
Class A common (0.07) (0.02) (0.10) (0.06)
Class B common (0.07) (0.02) (0.10) (0.06)
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)
Jun 30 Dec 31
2007 2006
Current assets 716,329 742,452
Total assets 828,088 893,529
Current liabilities 1,099,985 911,406
Total liabilities 1,213,976 1,038,063
Stockholders' equity (385,888) (144,534)
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