May 1, 2008
For Further Information contact: Dean Danner, President
Boni Danner, Vice President
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FIRST QUARTER 2008 RESULTS
WAUKESHA, WISCONSIN, May 1, 2008 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC)
today reported its first quarter 2008 results. Sales for the quarter were
$424,564 compared to $574,304 for the 2007 first quarter. The net loss was
$66,515 or $0.03 per Class A common share, compared to a net loss of $63,033 or
$0.03 per Class A common share for the first quarter of 2007.
Commenting on the results, ETC President Dean Danner said, “First quarter sales
are historically the lowest of the year, and when coupled with the slowdown in
the national economy the results were our lowest quarterly sales in several
years. ETC experienced a slowdown across all of our products and services, but
the greatest decline was in new equipment sales which are more closely tied to
new telephone offices or upgrades to existing offices. Working with our existing
customers we anticipate some improvement as the year progresses. We have also
implemented additional marketing programs to help identify new customers and
opportunities for our products. These efforts coupled with ongoing cost control
activities will help position ETC for improved results.”
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
2008 2007
Net sales 424,564 574,304
Cost of products sold 280,006 340,875
Gross profit 144,558 233,429
Operating expenses:
General and administrative 15,668 112,455
Marketing and selling 102,406 106,297
Research and development 87,473 71,249
205,547 290,001
Earnings (loss) from operations (60,989) (56,572)
Other income (expense) (5,526) (6,461)
Earnings (loss) before
income taxes (66,515) (63,033)
Income taxes 0 0
Net earnings (loss) (66,515) (63,033)
Basic and diluted earnings (loss) per share:
Class A common (0.03) (0.03)
Class B common (0.03) (0.03)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147
Selected Balance Sheet Data:
Mar 31 Dec 31
2008 2007
Current assets 595,576 693,445
Total assets 689,486 802,348
Current liabilities 930,815 970,829
Total liabilities 1,025,807 1,072,154
Stockholders' equity (336,321) (269,806)
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