March 5, 2010
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FOURTH QUARTER AND YEAR END 2009 RESULTS
WAUKESHA, WISCONSIN, March 5, 2010 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter and year end 2009 results. Sales for the quarter were $331,185 compared to $558,775 for the 2008 fourth quarter. The net loss for the quarter was $84,492 or $0.03 per Class A common share, compared to net earnings of $30,123 or $0.01 per Class A common share for the fourth quarter of 2008. Sales for the 2009 year were $1,560,723 compared to 2008 sales of $1,854,558. The loss for 2009 was $347,241 or $0.14 per Class A common share, compared to a loss of $138,064 or $0.06 per Class A common share for 2008.
Commenting on the results, ETC President Dean Danner said, “Throughout 2009 we commented in connection with our quarterly reports on the fact that sales were lagging the prior year, which ended the year with a 15% reduction in overall sales. This sales reduction was felt across all of our product lines as our customers dealt with the national economic recession. The result of lower sales was an increased loss in 2009 when compared to 2008, and reduced cash flow for the Company. As we enter 2010 we have taken a number of steps to reduce our fixed operating costs, including but not limited to a reduction in our employment. These actions will slowly reduce operating expenses during the year. When combined with projected improvements in the marketplace, we anticipate the Company will return to positive 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 adverse effects of the recent 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, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.
- MORE -
Electronic Tele-Communications, Inc.
Statements of Operations:
(unaudited) (unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
2009 2008 2009 2008
Net sales 331,185 558,775 1,560,723 1,854,558
Cost of products sold 193,679 303,842 962,970 1,078,742
Gross profit 137,506 254,933 597,753 775,816
Operating expenses:
General and administrative 69,488 65,910 292,172 232,802
Marketing and selling 79,805 108,231 349,678 391,179
Research and development 67,069 45,072 279,635 270,362
216,362 219,213 921,485 894,343
Earnings (loss) from operations (78,856) 35,720 (323,732) (118,527)
Other income (expense) (5,636) (5,597) (23,509) (19,537)
Earnings (loss) before
income taxes (84,492) 30,123 (347,241) (138,064)
Income taxes 0 0 0 0
Net earnings (loss) (84,492) 30,123 (347,241) (138,064)
Basic and diluted earnings (loss) per share:
Class A common (0.03) 0.01 (0.14) (0.06)
Class B common (0.03) 0.01 (0.14) (0.06)
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
2009 2008
Current assets 512,673 691,352
Total assets 533,655 759,167
Current liabilities 1,112,312 968,570
Total liabilities 1,162,973 1,044,563
Stockholders' equity (deficit) (629,318) (285,396)
# # #