November 12, 2014
For Further Information contact: Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES THIRD QUARTER 2014 RESULTS
WAUKESHA, WISCONSIN, November 12,2014 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2014 results. Sales for the quarter were $276,586 compared to $358,173 for the 2013 third quarter. The net loss for the quarter was $67,704 or $0.03 per Class A common share, compared to earnings of $3,628 or $0.00 per Class A common share for the third quarter of 2013.
Sales for the first nine months of 2014 were $1,220,583 compared to sales of $1,283,296 in the first nine months of 2013. The loss for the first nine months of 2014 was $45,457 or $0.02 per Class A common share, compared to earnings of $111,815 or $0.04 per Class A common share for the first nine months of 2013.
Results for the nine months ended September 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for the period. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan.
Commenting on the results, ETC President Dean Danner said, “Sales continued to slow in the third quarter in both equipment sales and recurring revenue. Earnings were impacted by the lower sales and increases in health and benefit costs. ETC anticipates that sales for the remainder of 2014 will continue to be slow. Earnings will also continue to be impacted by higher benefit costs and ongoing product certification expenses.”
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
2014 2013 2014 2013
Net sales 276,586 358,173 1,220,583 1,283,296
Cost of products sold 139,257 182,196 654,593 655,521
Gross profit 137,329 175,977 565,990 627,775
Operating expenses:
General and administrative 79,759 65,149 241,051 228,132
Marketing and selling 52,637 47,793 170,218 166,603
Research and development 66,759 53,282 182,597 192,452
199,155 166,224 593,866 587,187
Earnings (loss) from operations (61,826) 9,753 (27,876) 40,588
Other income (expense) (5,878) (6,125) (17,581) 71,227
Earnings (loss) before
income taxes (67,704) 3,628 (45,457) 111,815
Income taxes 0 0 0 0
Net earnings (loss) (67,704) 3,628 (45,457) 111,815
Basic and diluted earnings (loss) per share:
Class A common (0.03) 0.00 (0.02) 0.04
Class B common (0.03) 0.00 (0.02) 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
2014 2013
Current assets 385,610 508,656
Total assets 428,113 551,948
Current liabilities 827,837 873,003
Total liabilities 838,908 917,286
Stockholders' equity (410,795) (365,338)
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