For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600
ETC ANNOUNCES FIRST QUARTER 1997 RESULTS
WAUKESHA, WISCONSIN, April 28,1997 NASDAQ National Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA (Electel)
Electronic Tele-Communications, Inc. (ETC) today reported results for the first
quarter of 1997. On sales of $3,499,879, ETC reported first quarter 1997
earnings of $77,930 or $0.04 per Class A share, compared to a first quarter
1996 loss of $160,774 or $0.05 per Class A share on sales of $2,870,133.
Commenting on the first quarter results, ETC President and CEO, Dean Danner,
said, "As we have seen in recent years, ETC experiences a soft domestic market
in the first quarter of the year. This year, the trend was offset by strong
international shipments, completing a contract that was entered into in the
third quarter of 1996, coupled with strong controls on expenses."
"ETC's 'Partitioned Architecture', announced earlier this year, is attracting
the attention of our telephone company customers. Currently several telephone
companies and switch manufacturers are conducting lab evaluations of the new
concept. We are hopeful that this new way of providing redundancy on Voice
Announcement Platforms will have a positive impact on both sales and earnings
as the year progresses." Danner said.
ETC will hold its annual meeting at 2:00PM on Friday May 2, 1997, at Merrill
Hills Country Club in Waukesha, Wisconsin.
Electronic Tele-Communications is a supplier of Voice Application Processing
Platforms to domestic and foreign telephone utilities and of messaging systems
to the commercial market. ETC's equipment, compatible with most telephone
systems, is sold or leased to provide a wide range of audio information and
call handling services via the telephone network.
ETC, with corporate headquarters in Waukesha, Wisconsin, also has operations in
Atlanta, Georgia and Pleasanton, California.
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Electronic Tele-Communications, Inc. and Subsidiary
Consolidated Statements of Operations
Three-Month Periods Ended March 31, 1997 and 1996
(Unaudited)
Three Months
1997 1996
----------- -----------
NET SALES 3,499,879 2,870,133
COST OF PRODUCTS SOLD 1,950,909 1,458,052
----------- -----------
GROSS PROFIT 1,548,970 1,412,081
OPERATING EXPENSES:
General and administrative 427,222 430,163
Marketing and selling 551,250 637,697
Research and development 453,398 563,435
----------- -----------
1,431,870 1,631,295
----------- -----------
EARNINGS (LOSS) FROM OPERATIONS 117,100 (219,214)
OTHER INCOME (EXPENSE):
Interest expense (20) (1,091)
Interest income 5,423 51
Miscellaneous (9,573) 4,880
----------- -----------
(4,170) 3,840
----------- -----------
EARNINGS (LOSS) BEFORE
INCOME TAXES 112,930 (215,374)
Income taxes (benefit) 35,000 (54,600)
----------- -----------
NET EARNINGS (LOSS) 77,930 (160,774)
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EARNINGS (LOSS) PER SHARE:
Class A common 0.04 (0.05)
Class B common (0.02) (0.11)
Weighted average common
shares outstanding 2,503,949 2,503,949
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