August 6, 2010
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES SECOND QUARTER 2010 RESULTS
WAUKESHA, WISCONSIN, August 6, 2010 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its second quarter
2010 results. Sales for the quarter were $313,191 compared to $462,963 for the
2009 second quarter. The net loss for the quarter was $69,428 or $0.03 per Class
A common share, compared to a net loss of $59,430 or $0.02 per Class A common
share for the second quarter of 2009.
Sales for the first six months of 2010 were $783,222 compared to sales of
$846,436 in the first six months of 2009. The loss for the first six months of
2010 was $121,822 or $0.05 per Class A common share, compared to a loss of
$185,475 or $0.07 per Class A common share for the first six months of 2009.
Commenting on the results, ETC President Dean Danner said, “Continuing weakness
in both the telecommunications equipment market and the time / temperature
announcement services market was evident throughout the quarter. Steps taken in
the 2010 first quarter to reduce our fixed operating costs, including a
reduction in our workforce, helped minimize the loss for the quarter. We project
sales to continue to be erratic throughout the balance of the year. When the
economic recovery begins to stabilize the market, we anticipate our customers
will begin to implement programs to replace obsolete equipment in their
networks. We believe that these programs coupled with the full effect of our
cost reductions will position the Company to return to positive earnings.”
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.
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Electronic Tele-Communications, Inc.
Statements of Operations:
(unreviewed) (unreviewed)
Three Months Ended Six Months Ended
June 30 June 30
2010 2009 2010 2009
Net sales 313,191 462,963 783,222 846,436
Cost of products sold 194,973 287,492 463,989 538,809
Gross profit 118,218 175,471 319,233 307,627
Operating expenses:
General and administrative 71,381 69,286 148,600 151,453
Marketing and selling 47,712 89,962 113,116 184,791
Research and development 59,843 68,885 127,374 146,145
Restructuring Charge 0 0 35,151 0
178,936 228,133 424,241 482,389
Earnings (loss) from operations (60,718) (52,662) (105,008) (174,762)
Other income (expense) (8,710) (6,768) (16,814) (10,713)
Earnings (loss) before
income taxes (69,428) (59,430) (121,822) (185,475)
Income taxes 0 0 0 0
Net earnings (loss) (69,428) (59,430) (121,822) (185,475)
Basic and diluted earnings (loss) per share:
Class A common (0.03) (0.02) (0.05) (0.07)
Class B common (0.03) (0.02) (0.05) (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)
Jun 30 Dec 31
2010 2009
Current assets 426,553 512,673
Total assets 437,409 533,655
Current liabilities 1,198,977 1,112,312
Total liabilities 1,236,972 1,162,973
Stockholders' equity (799,563) (629,318)
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