N E W S R E L E A S E
FOR IMMEDIATE RELEASE
For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600
ETC ANNOUNCES FIRST QUARTER 1998 RESULTS
WAUKESHA, WISCONSIN, April 24, 1998 NASDAQ National Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA (Electel)
Electronic Tele-Communications, Inc. (ETC) today reported first quarter 1998
sales of $2,646,417 resulting in a loss of $244,083 or $0.09 per Class A share,
compared to first quarter 1997 sales of $3,499,879 and earnings of $77,930 or
$0.04 per Class A share.
Commenting on the results, ETC President Dean Danner said, "As previously
indicated, weak sales early in the quarter resulted in a loss for the first
quarter of 1998. ETC historically has weaker first quarter sales, although the
1997 quarter was boosted by the completion of a large international order.
Equipment sales volumes are now increasing, and our order backlog has increased
since the beginning of the year. Our sales organization is continuing to
implement new sales strategies and we look forward to improved earnings as a
result of these new strategies."
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.
Certain statements in this press release which are not historical facts are
“forward-looking” statements as defined in the Private Securities Litigation
Reform Act of 1995. Any “forward-looking” statements are provided in
compliance with the “Safe Harbor” provision of the Private Securities
Litigation Reform Act of 1995. “Forward-looking” statements involve a number
of risks and uncertainties including, but not limited to, technology changes,
backlog, acquisitions, status of the economy, governmental regulations,
sources of supply, expense structure, product mix, major customers,
competition, litigation, and other risk factors detailed in the Company’s
filings with the Securities and Exchange Commission. Investors are encouraged
to consider the risks and uncertainties included in those filings.
Electronic Tele-Communications, Inc. and Subsidiary
Consolidated Statements of Operations:
(Unaudited)
Three Months Ended
March 31
1998 1997
Net sales 2,646,417 3,499,879
Cost of product sold 1,513,599 1,950,909
Gross profit 1,132,818 1,548,970
Operating expenses:
General and administrative 389,321 427,222
Marketing and selling 605,375 551,250
Research and development 456,202 453,398
1,450,898 1,431,870
Earnings (loss) from operations (318,080) 117,100
Other income (expense) (15,603) (4,170)
Earnings (loss) before
income taxes (333,683) 112,930
Income taxes (benefit) (89,600) 35,000
Net earnings (loss) (244,083) 77,930
Basic and diluted earnings
(loss) per share:
Class A common (0.09) 0.04
Class B common (0.13) (0.02)
Weighted average shares outstanding
for basic and diluted 2,508,948 2,503,949
Selected Balance Sheet Data:
(Unaudited)
Mar 31 Dec 31
1998 1997
Current assets 3,955,476 3,934,664
Total assets 7,209,646 7,097,509
Current liabilities 1,541,580 1,080,219
Total liabilities 1,643,561 1,206,979
Stockholders' equity 5,566,085 5,890,530
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