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 AND CHANGE IN DIRECTORS
WAUKESHA, WISCONSIN, October 19, 2007 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its third quarter 2007 results. Sales for the quarter were
$518,477 compared to $507,038 for the 2006 third quarter. The net earnings for
the quarter were $5,761 or less than $0.01 per Class A common share, compared to
a net loss of $170,809 or $0.07 per Class A common share for the third quarter
of 2006.
Sales for the first nine months of 2007 were $1,616,983 compared to 2006 nine
month sales of $1,806,406. The loss for the first nine months of 2007 was
$235,592 or $0.09 per Class A Share, compared to a loss of $311,049 or $0.12 per
Class A share for the first nine months of 2006.
ETC also reported the resignation of four of its Directors and the election of
new Directors to its Board. Resigning were J. Huelsman, J. Johns, R. Gabriel,
and C. Goodkind. Appointed to the Board to fill vacancies until the annual
meeting in May were Joe Voight, Vice President of Sales and Marketing and
Elizabeth Danner, Controller.
Commenting on the results and events, ETC President Dean Danner said, “The third
quarter showed improvement in all areas, resulting in a small profit for the
quarter. The nine month results reflect a slow start to the year and include a
one time charge of $95,272 related to the closing of our Atlanta office. As for
the Board changes, none of the departing members cited any disagreement with
management on any matter relating to ETC’s operations, policies or practices in
their letters of resignation.”
Electronic Tele-Communications supplies voice announcers and Voice Application
Platforms to domestic and foreign telephone utilities under the Audichron® and
Digicept® brand names. ETC also supports a network of Time Weather and
Temperature systems installed throughout the United States. 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 Nine Months Ended
September 30 September 30
2007 2006 2007 2006
Net sales 518,477 507,038 1,616,983 1,806,406
Cost of products sold 291,170 314,976 945,820 1,079,257
Gross profit 227,307 192,062 671,163 727,149
Operating expenses:
General and administrative 61,906 118,524 277,515 386,908
Marketing and selling 105,740 104,986 322,632 360,049
Research and development 46,297 118,628 190,157 260,011
One time charges 0 0 95,272 0
213,943 342,138 885,576 1,006,968
Earnings (loss) from operations 13,364 (150,076) (214,413) (279,819)
Other income (expense) (7,603) (20,733) (21,179) (31,230)
Earnings (loss) before
income taxes 5,761 (170,809) (235,592) (311,049)
Income taxes 0 0 0 0
Net earnings (loss) 5,761 (170,809) (235,592) (311,049)
Basic and diluted earnings (loss) per share:
Class A common 0.00 (0.07) (0.09) (0.12)
Class B common 0.00 (0.07) (0.09) (0.12)
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)
Sep 30 Dec 31
2007 2006
Current assets 691,783 742,452
Total assets 812,289 893,529
Current liabilities 1,084,758 911,406
Total liabilities 1,192,416 1,038,063
Stockholders' equity (380,127) (144,534)
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