August 6, 2009
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES SECOND QUARTER 2009 RESULTS
WAUKESHA, WISCONSIN, August 6, 2009 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2009 results. Sales for the quarter were $462,963 compared to $550,507 for the 2008 second quarter. The net loss for the quarter was $59,430 or $0.02 per Class A common share, compared to net earnings of $24,932 or $0.01 per Class A common share for the second quarter of 2008.
Sales for the first six months of 2009 were $846,436 compared to sales of $975,071 in the first six months of 2008. The loss for the first six months of 2009 was $185,475 or $.07 per Class A common share, compared to a loss of $41,583 or $.02 per Class A common share for the first six months of 2008.
Commenting on the results, ETC President Dean Danner said, “Sales improved from the first quarter of 2009 but still lag 2008 sales for the quarter and six months. The national economic problems continue to have an effect on ETC’s market segment. Our customers have had to cope with revenue and budget issues, partially the result of changes in the mix between wireline and wireless telephone usage. Many customers have reduced services, implemented temporary repairs, or delayed infrastructure projects to defer capital expenses into future fiscal periods. We continue to work with our customers to identify economic solutions to our mutual benefit and hope to see improvement in sales and earnings as the year progresses.”
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.
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Electronic Tele-Communications, Inc.
Statements of Operations:
(unreviewed) (unreviewed)
Three Months Ended Six Months Ended
June 30 June 30
2009 2008 2009 2008
Net sales 462,963 550,507 846,436 975,071
Cost of products sold 287,492 282,977 538,809 562,983
Gross profit 175,471 267,530 307,627 412,088
Operating expenses:
General and administrative 69,286 75,712 151,453 91,380
Marketing and selling 89,962 100,674 184,791 203,080
Research and development 68,885 60,452 146,145 147,925
228,133 236,838 482,389 442,385
Earnings (loss) from operations (52,662) 30,692 (174,762) (30,297)
Other income (expense) (6,768) (5,760) (10,713) (11,286)
Earnings (loss) before
income taxes (59,430) 24,932 (185,475) (41,583)
Income taxes 0 0 0 0
Net earnings (loss) (59,430) 24,932 (185,475) (41,583)
Basic and diluted earnings (loss) per share:
Class A common (0.02) 0.01 (0.07) (0.02)
Class B common (0.02) 0.01 (0.07) (0.02)
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)
Jun 30 Dec 31
2009 2008
Current assets 574,258 568,878
Total assets 612,910 759,167
Current liabilities 1,038,233 968,570
Total liabilities 1,101,560 1,044,563
Stockholders' equity (488,650) (285,396)
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