March 5, 2009
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FOURTH QUARTER 2008 RESULTS
WAUKESHA, WISCONSIN, March 5, 2009 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter and year end 2008 results. Sales for the quarter were $558,775 compared to $692,223 for the 2007 fourth quarter. The net earnings for the quarter were $30,123 or $0.01 per Class A common share, compared to net earnings of $110,320 or $0.04 per Class A common share for the fourth quarter of 2007. Sales for the 2008 year were $1,854,558, compared to 2007 sales of $2,309,206. The loss for 2008 was $138,064 or $0.06 per Class A share, compared to a loss of $125,272 or $0.05 per Class A share for 2007. Included in both the fourth quarter and year end numbers for 2007 is an income tax adjustment of $52,000 or $0.02 per Class A common share.
Commenting on the results, ETC President Dean Danner said, “In an uneven year, plagued by a worldwide recession that ended with the collapse of the mortgage industry, ETC was still able to generate a small fourth quarter profit. For the year, however, sales were twenty percent lower than 2007. In spite of the lower sales levels, our efforts to control costs minimized the loss to approximately the same as 2007.”
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 length and severity of the current worldwide recession and the timing and strength of a subsequent recovery, 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.
- MORE –
Electronic Tele-Communications, Inc.
Statements of Operations:
(unreviewed) (unreviewed)
Three Months Ended Twelve Months Ended
December 31 December 31
2008 2007 2008 2007
Net sales 558,775 692,223 1,854,558 2,309,206
Cost of products sold 303,842 363,061 1,078,742 1,308,881
Gross profit 254,933 329,162 775,816 1,000,325
Operating expenses:
General and administrative 65,910 83,974 232,802 361,489
Marketing and selling 108,231 116,544 391,179 439,176
Research and development 45,072 63,534 270,362 253,691
Relocation Costs 0 (78) 0 95,194
219,213 263,974 894,343 1,149,550
Earnings (loss) from operations 35,720 65,188 (118,527) (149,225)
Other income (expense) (5,597) (6,868) (19,537) (28,047)
Earnings (loss) before
income taxes 30,123 58,320 (138,064) (177,272)
Income taxes 0 (52,000) 0 (52,000)
Net earnings (loss) 30,123 110,320 (138,064) (125,272)
Basic and diluted earnings (loss) per share:
Class A common 0.01 0.04 (0.06) (0.05)
Class B common 0.01 0.04 (0.06) (0.05)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147
Selected Balance Sheet Data:
Dec 31 Dec 31
2008 2007
Current assets 691,352 899,749
Total assets 759,167 1,008,652
Current liabilities 968,570 970,829
Total liabilities 1,044,563 1,072,154
Stockholders' equity (deficit) (285,396) (63,502)
# # #