May 14, 2011
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES FIRST QUARTER 2011 RESULTS WAUKESHA, WISCONSIN, May 14, 2011 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its first quarter 2011 results. Sales for the quarter were $380,649 compared to $470,031 for the 2010 first quarter. The net loss for the quarter was $25,371 or $0.01 per Class A common share, compared to a net loss of $52,394 or $0.02 per Class A common share for the first quarter of 2010. The first quarter of 2010 did include a restructuring charge of $35,151 while there is no restructuring charge in the first quarter of 2011.
Commenting on the results, ETC President Dean Danner said, “Changes implemented last year enabled ETC to cut its quarterly loss in half even though sales were twenty percent lower than the 2010 first quarter. The lower sales were a result of restricted spending by our customers near the end of the first quarter. Although this slowdown continued into the early part of the second quarter, sales are beginning to improve. We project continued improvements in the marketplace, and 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.
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Electronic Tele-Communications, Inc. Statements of Operations: (unaudited) Three Months Ended March 31 2011 2010 Net sales 380,649 470,031 Cost of products sold 209,595 269,016 Gross profit 171,054 201,015 Operating expenses: General and administrative 71,726 77,219 Marketing and selling 54,138 65,404 Research and development 63,455 67,531 Restructuring Charge 0 35,151 189,319 245,305 Earnings (loss) from operations (18,265) (44,290) Other income (expense) (7,106) (8,104) Earnings (loss) before income taxes (25,371) (52,394) Income taxes 0 0 Net earnings (loss) (25,371) (52,394) Basic and diluted earnings (loss) per share: Class A common (0.01) (0.02) Class B common (0.01) (0.02) Weighted average shares outstanding for basic and diluted 2,509,147 2,509,147 Selected Balance Sheet Data: Mar 31 Dec 31 2011 2010 Current assets 468,477 480,789 Total assets 475,067 487,542 Current liabilities 1,034,775 1,010,789 Total liabilities 1,200,838 1,187,922 Stockholders' equity (725,771) (700,380) # # #
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