ETC Announces Third Quarter 2009 Results

October 16, 2009


For Further Information contact: Dean Danner, President
                                 Boni Danner, VP Eng. & Treasurer
                                 (262) 542-5600 * http://www.etcia.com

ETC ANNOUNCES THIRD QUARTER 2009 RESULTS

WAUKESHA, WISCONSIN, October 16, 2009 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2009 results. Sales for the quarter were $383,102 compared to $320,712 for the 2008 third quarter. The net loss for the quarter was $77,274 or $0.03 per Class A common share, compared to a net loss of $126,604 or $0.05 per Class A common share for the third quarter of 2008.

Sales for the first nine months of 2009 were $1,229,538 compared to sales of $1,295,783 in the first nine months of 2008. The loss for the first nine months of 2009 was $262,749 or $0.10 per Class A common share, compared to a loss of $168,187 or $0.07 per Class A common share for the first nine months of 2008.

Commenting on the results, ETC President Dean Danner said, “Quarterly sales improved slightly from 2008, while nine month sales continue to lag 2008. Although it is disappointing that neither the economy nor our telecommunications equipment market have improved significantly, we are encouraged by recent system sales in an area of telecommunications with which we previously were not heavily involved.”

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     Nine Months Ended
                                      September 30          September 30
                                    2009       2008       2009       2008
Net sales                          383,102    320,712  1,229,538  1,295,783
Cost of products sold              230,482    211,917    769,291    774,900
Gross profit                       152,620    108,795    460,247    520,883

Operating expenses:
 General and administrative         71,231     75,512    222,684    166,892
 Marketing and selling              85,082     79,868    269,873    282,948
 Research and development           66,421     77,365    212,566    225,290
                                   222,734    232,745    705,123    675,130

Earnings (loss) from operations    (70,114)  (123,950)  (244,876)  (154,247)
Other income (expense)              (7,160)    (2,654)   (17,873)   (13,940)

Earnings (loss) before
 income taxes                      (77,274)  (126,604)  (262,749)  (168,187)
Income taxes                             0          0          0          0
Net earnings (loss)                (77,274)  (126,604)  (262,749)  (168,187)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.03)     (0.05)     (0.10)     (0.07)
  Class B common                     (0.03)     (0.05)     (0.10)     (0.07)

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)
                                   Sep 30     Dec 31
                                    2009       2008
Current assets                     576,937    568,878
Total assets                       604,957    759,167
Current liabilities              1,085,649    968,570
Total liabilities                1,142,643  1,044,563
Stockholders' equity              (537,686)  (285,396)


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