October 20, 2011
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES THIRD QUARTER 2011 RESULTS WAUKESHA, WISCONSIN, OCT 20, 2011 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2011 results. Sales for the quarter were $485,633 compared to $510,465 for the 2010 third quarter. The net earnings for the quarter were $61,807 or $0.02 per Class A common share, compared to net earnings of $80,311 or $0.03 per Class A common share for the third quarter of 2010.
Sales for the first nine months of 2011 were $1,170,563 compared to sales of $1,293,687 in the first nine months of 2010. Net earnings for the first nine months of 2011 were $24,304 or $0.01 per Class A common share, compared to a net loss of $41,511 or $0.02 per Class A common share for the first nine months of 2010.
Commenting on the results, ETC President Dean Danner said, “On slightly lower sales compared to 2010, ETC was able to generate a profit in both the third quarter and for the first nine months of 2011 due to ongoing control of overhead expenses and manufacturing costs. There is still weakness and uncertainty in the telecommunications market, but ETC believes that the financial performance of the Company will continue to show improvement. Still, the weakness in parts of the telecommunications market, the ongoing instability in the financial markets, and the sluggishness in the national economy together continue to limit our opportunities for growth.”
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 2011 2010 2011 2010 Net sales 485,633 510,465 1,170,563 1,293,687 Cost of products sold 246,622 247,696 606,535 711,685 Gross profit 239,011 262,769 564,028 582,002 Operating expenses: General and administrative 62,795 73,354 190,997 221,954 Marketing and selling 54,861 54,817 156,552 167,933 Research and development 51,485 46,431 169,612 173,805 Restructuring Charge 0 0 0 35,151 169,141 174,602 517,161 598,843 Earnings (loss) from operations 69,870 88,167 46,867 (16,841) Other income (expense) (7,713) (7,856) (22,213) (24,670) Earnings (loss) before income taxes 62,157 80,311 24,654 (41,511) Income taxes 350 0 350 0 Net earnings (loss) 61,807 80,311 24,304 (41,511) Basic and diluted earnings (loss) per share: Class A common 0.02 0.03 0.01 (0.02) Class B common 0.02 0.03 0.01 (0.02) 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) Sep 30 Dec 31 2011 2010 Current assets 504,225 480,789 Total assets 510,074 487,542 Current liabilities 1,076,509 1,010,789 Total liabilities 1,220,430 1,187,922 Stockholders' equity (710,356) (700,380) # # #
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