November 1, 2013
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES THIRD QUARTER 2013 RESULTS
WAUKESHA, WISCONSIN, November 1, 2013 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2013 results. Sales for the quarter were $358,173 compared to $575,299 for the 2012 third quarter. The net earnings for the quarter were $3,628 or $0.00 per Class A common share, compared to net earnings of $81,783 or $0.03 per Class A common share for the third quarter of 2012.
Sales for the first nine months of 2013 were $1,283,296 compared to sales of $1,379,276 in the first nine months of 2012. Earnings for the first nine months of 2013 were $111,815 or $0.04 per Class A common share, compared to earnings of $100,606 or $0.04 per Class A common share for the first nine months of 2012.
Commenting on the results, ETC President Dean Danner said, “Sales in the third quarter slowed primarily due to timing issues, some of which were a result of government budget issues. In spite of the slowdown we were able to break even for the quarter and earnings for the year are slightly ahead of last year. The fourth quarter has started strong as we processed some of the budget delayed orders. We are cautiously encouraged by the market activity and anticipate positive earnings for the third year in a row.”
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
2013 2012 2013 2012
Net sales 358,173 575,299 1,283,296 1,379,276
Cost of products sold 182,196 277,858 655,521 683,559
Gross profit 175,977 297,441 627,775 695,717
Operating expenses:
General and administrative 65,149 75,823 228,132 228,079
Marketing and selling 47,793 59,115 166,603 166,012
Research and development 53,282 73,255 192,452 178,630
166,224 208,193 587,187 572,721
Earnings from operations 9,753 89,248 40,588 122,996
Other income (expense) (6,125) (7,465) 71,227 (22,390)
Earnings before income taxes 3,628 81,783 111,815 100,606
Income taxes 0 0 0 0
Net earnings 3,628 81,783 111,815 100,606
Basic and diluted earnings per share:
Class A common 0.00 0.03 0.04 0.04
Class B common 0.00 0.03 0.04 0.04
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
2013 2012
Current assets 524,864 695,876
Total assets 565,190 704,447
Current liabilities 910,869 1,061,235
Total liabilities 966,224 1,149,802
Stockholders' equity (401,034) (445,355)
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