October 24, 2008
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES THIRD QUARTER 2008 RESULTS WAUKESHA, WISCONSIN, October 24, 2008 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter
2008 results. Sales for the quarter were $320,712 compared to $518,477 for the
2007 third quarter. ETC had a net loss of $126,604 or $0.05 per Class A common
share for the quarter, compared to net earnings of $5,761 or $0.00 per Class A
common share for the third quarter of 2007.
Sales for the first nine months of 2008 were $1,295,783 compared to sales of $1,616,983 in the first nine months of 2007. The loss for the first nine months of 2008 was $168,187 or $0.07 per Class A common share, compared to a loss of $235,592 or $0.09 per Class A common share for the first nine months of 2007.
Commenting on the results, ETC President Dean Danner said, “Traditionally slow summer sales, numerous national economic issues including uncertainty related to the election year, and a significant tightening in the credit markets combined to adversely impact our sales in the quarter. Although order input has improved recently, we anticipate these national economic problems will continue to affect our business.”
Included in the balance sheet numbers of this report are residual assets in the form of stock holdings associated with a terminated pension plan from one of our former subsidiaries. The status of these residual assets has only recently been clarified. Our research into these residuals indicates they should have been included in our balance sheet since 2001. These residual assets have no impact on our earnings since 2001, and their future value will be adjusted quarterly to reflect market conditions. An unreviewed balance sheet for the past 5 years, adjusted to reflect these residual assets, will be available on our web site.
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 Nine Months Ended September 30 September 30 2008 2007 2008 2007 Net sales 320,712 518,477 1,295,783 1,616,983 Cost of products sold 211,917 291,170 774,900 945,820 Gross profit 108,795 227,307 520,883 671,163 Operating expenses: General and administrative 75,512 61,906 166,892 277,515 Marketing and selling 79,868 105,740 282,948 322,632 Research and development 77,365 46,297 225,290 190,157 Relocation Costs 0 0 0 95,272 232,745 213,943 675,130 885,576 Earnings (loss) from operations (123,950) 13,364 (154,247) (214,413) Other income (expense) (2,654) (7,603) (13,940) (21,179) Earnings (loss) before income taxes (126,604) 5,761 (168,187) (235,592) Income taxes 0 0 0 0 Net earnings (loss) (126,604) 5,761 (168,187) (235,592) Basic and diluted earnings (loss) per share: Class A common (0.05) 0.00 (0.07) (0.09) Class B common (0.05) 0.00 (0.07) (0.09) 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)(unreviewed) Sep 30 Dec 31 2008 2007 Current assets 542,368 693,445 Total assets 810,199 1,008,652 Current liabilities 977,197 970,829 Total liabilities 1,059,523 1,072,154 Stockholders' equity (249,324) (63,502) # # #
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