October 25, 2010
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES THIRD QUARTER 2010 RESULTS WAUKESHA, WISCONSIN, October 25, 2010 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter
2010 results. Sales for the quarter were $510,465 compared to $383,102 for the
2009 third quarter. The net earnings for the quarter were $80,311 or $0.03 per
Class A common share, compared to a net loss of $77,274 or $0.03 per Class A
common share for the third quarter of 2009.
Sales for the first nine months of 2010 were $1,293,687 compared to sales of $1,229,538 in the first nine months of 2009. The loss for the first nine months of 2010 was $41,511 or $0.02 per Class A common share, compared to a loss of $262,749 or $0.10 per Class A common share for the first nine months of 2009.
Commenting on the results, ETC President Dean Danner said, “Positive earnings in the third quarter are encouraging, but continuing weakness in both the telecommunications equipment market and the time / temperature announcement services market continues to be a concern. Increased sales of our Emcee systems in the quarter coupled with the cost reduction steps taken earlier in the year contributed to the improved results.”
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 Nine Months Ended September 30 September 30 2010 2009 2010 2009 Net sales 510,465 383,102 1,293,687 1,229,538 Cost of products sold 247,696 230,482 711,685 769,291 Gross profit 262,769 152,620 582,002 460,247 Operating expenses: General and administrative 73,354 71,231 221,954 222,684 Marketing and selling 54,817 85,082 167,933 269,873 Research and development 46,431 66,421 173,805 212,566 Restructuring Charge 0 0 35,151 0 174,602 222,734 598,843 705,123 Earnings (loss) from operations 88,167 (70,114) (16,841) (244,876) Other income (expense) (7,856) (7,160) (24,670) (17,873) Earnings (loss) before income taxes 80,311 (77,274) (41,511) (262,749) Income taxes 0 0 0 0 Net earnings (loss) 80,311 (77,274) (41,511) (262,749) Basic and diluted earnings (loss) per share: Class A common 0.03 (0.03) (0.02) (0.10) Class B common 0.03 (0.03) (0.02) (0.10) 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)(unaudited) Sep 30 Dec 31 2010 2009 Current assets 524,846 512,673 Total assets 533,197 533,655 Current liabilities 1,203,002 1,112,312 Total liabilities 1,251,035 1,162,973 Stockholders' equity (717,838) (629,318) # # #
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