ETC Announces First Quarter 2011 Results

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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