ETC Announces Second Quarter 2014 Results

July 30, 2014

For Further Information contact: Dean Danner, President
                                 Boni Danner, VP Eng. & Treasurer
                                 (262) 542-5600 *


WAUKESHA, WISCONSIN, July 30,2014 	OTC – Pink Sheets

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2014 results. Sales for the quarter were $451,262 compared to $489,259 for the 2013 second quarter. The net earnings for the quarter were $6,163 or $0.00 per Class A common share, compared to earnings of $108,054 or $0.04 per Class A common share for the second quarter of 2013.

Sales for the first six months of 2014 were $943,997 compared to sales of $925,123 in the first six months of 2013. Earnings for the first six months of 2014 were $22,247 or $0.01 per Class A common share, compared to earnings of $108,187 or $0.04 per Class A common share for the first six months of 2013.

Results for the three and six months ended June 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for both periods. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan. Without the investment gain, the net income for the three and six months ended June 30, 2013 would have been $17,979 and $18,112 respectively, or $.01 per Class A share.

Commenting on the results, ETC President Dean Danner said, “Sales slowed slightly in the second quarter but were still ahead of 2013 for the first six months of 2014. Earnings were impacted by lower margins on system sales partially offset by lower operating expenses. ETC anticipates that the second half of 2014 will continue to generate positive earnings in spite of product certification expenses expected in the second half of the year.”

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     Six Months Ended
                                        June 30               June 30
                                    2014       2013       2014       2013
Net sales                          451,262    489,259    943,997    925,123
Cost of products sold              247,678    246,444    515,336    473,325
Gross profit                       203,584    242,815    428,661    451,798

Operating expenses:
 General and administrative         80,309     86,346    161,292    162,983
 Marketing and selling              56,811     65,377    117,581    118,810
 Research and development           54,432     67,348    115,838    139,170
                                   191,552    219,071    394,711    420,963

Earnings (loss) from operations     12,032     23,744     33,950     30,835
Other income (expense)              (5,869)    84,310    (11,703)    77,352

Earnings (loss) before
 income taxes                        6,163    108,054     22,247    108,187
Income taxes                             0          0          0          0
Net earnings (loss)                  6,163    108,054     22,247    108,187

Basic and diluted earnings (loss) per share:
  Class A common                      0.00       0.04       0.01       0.04
  Class B common                      0.00       0.04       0.01       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:
                                   Jun 30     Dec 31
                                    2014       2013
Current assets                     473,604    508,656
Total assets                       520,680    551,948
Current liabilities                841,630    873,003
Total liabilities                  863,771    917,286
Stockholders' equity              (343,091)  (365,338)

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