For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600
ETC ANNOUNCES 2ND QUARTER 1997 RESULTS
WAUKESHA, WISCONSIN, July 23, 1997 The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA (Electel)
Electronic Tele-Communications, Inc. (ETC) reported sales of $3,052,554 for the
second quarter of 1997, compared to $2,773,906 for the second quarter of 1996.
ETC reported earnings of $14,621 or $.01 per Class A share for the 1997
quarter, compared to a loss of $128,485 or $.05 per share in the 1996 quarter.
Sales for the first six months of 1997 were $6,552,433, compared to 1996 six
month sales of $5,644,039. Earnings for the six month periods were $92,551 or
$.05 per Class A share in 1997, compared to a loss of $289,259 or $.10 per
share in 1996.
Commenting on the financial results, Dean Danner, President of ETC said,
"Improved sales in 1997, coupled with cost containment programs, have resulted
in earnings in 1997, instead of the losses reported in 1996. At the same time,
our product mix continues to shift to our newer Audichron 410 and Digicept 2000
Voice Application Platforms."
"Orders for the Digicept 2002, a basic component of our partitioned
architecture, have risen in the last two months. The Digicept 2000 family
provides our customers with a cost effective and reliable family of products
for the Advanced Intelligent Network (AIN), including custom messages needed
with Local Number Portability (LNP)."
"ETC is continuing to expand our Digicept 2000 and Audichron 410 product lines,
and is receiving positive feedback from our customers who have moved to the new
systems. We recently introduced a Media Module to the Digicept 2000 product
line, and will add a Media Module to the Audichron 410 product line during the
third quarter. The Media Module provides a state-of-the-art means to quickly
back systems up onto an electronic disk instead of magnetic tape," Danner said.
Electronic Tele-Communications is a supplier of Voice Application Processing
Platforms to telephone utilities around the world, in addition to supplying
systems to large corporations and small businesses. 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, has operations in
Atlanta, Georgia and Pleasanton, California.
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Electronic Tele-Communications, Inc. and Subsidiary
Consolidated Statements of Operations
Three-Month and Six-Month Periods Ended June 30, 1997 and 1996
(Unaudited)
Three Months Six Months
1997 1996 1997 1996
---------- ---------- ---------- ----------
NET SALES 3,052,554 2,773,906 6,552,433 5,644,039
COST OF PRODUCTS SOLD 1,585,219 1,416,079 3,536,128 2,874,131
---------- ---------- ---------- ----------
GROSS PROFIT 1,467,335 1,357,827 3,016,305 2,769,908
OPERATING EXPENSES:
General and administrative 417,373 388,553 844,595 818,716
Marketing and selling 581,385 598,493 1,132,635 1,236,190
Research and development 431,732 519,405 885,130 1,082,840
---------- ---------- ---------- ----------
1,430,490 1,506,451 2,862,360 3,137,746
---------- ---------- ---------- ----------
EARNINGS (LOSS) FROM OPERATIONS 36,845 (148,624) 153,945 (367,838)
OTHER INCOME (EXPENSE):
Interest expense (7,795) (66) (7,815) (1,157)
Interest income 1,885 51 7,308 102
Miscellaneous (8,414) (10,146) (17,987) (5,266)
---------- ---------- ---------- ----------
(14,324) (10,161) (18,494) (6,321)
---------- ---------- ---------- ----------
EARNINGS (LOSS) BEFORE
INCOME TAXES 22,521 (158,785) 135,451 (374,159)
Income taxes (benefit) 7,900 (30,300) 42,900 (84,900)
---------- ---------- ---------- ----------
NET EARNINGS (LOSS) 14,621 (128,485) 92,551 (289,259)
========== ========== ========== ==========
EARNINGS (LOSS) PER SHARE:
Class A common 0.01 (0.05) 0.05 (0.10)
Class B common 0.01 (0.05) (0.01) (0.16)
Weighted average common
shares outstanding 2,503,949 2,503,949 2,503,949 2,503,949
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