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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