For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600
ETC ANNOUNCES 2ND QUARTER 1998 RESULTS
WAUKESHA, WISCONSIN, July 22, 1998 The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA (Electel)
Electronic Tele-Communications, Inc. (ETC) reported sales of $3,209,765
for the second quarter of 1998, compared to $3,052,554 for the second
quarter of 1997. Earnings were $52,034 or $.02 per Class A share for the
1998 quarter, compared to earnings of $14,621 or $.01 per share in the
1997 quarter. Sales for the first six months of 1998 were $5,856,182,
compared to 1997 six month sales of $6,552,433. Results for the six
month periods were a loss of $192,049 or $.07 per Class A share in 1998,
compared to earnings of $92,551 or $.05 per share in 1997.
Commenting on the financial results, Dean Danner, President of ETC said,
"Sales improved in the second quarter of 1998, resulting in positive
earnings for the quarter. Although we are still in a loss position for
the year, we are seeing increased sales activity which should translate
into increased orders as the year progresses."
"The predominant activity centers around the Digicept DNA version of our
Digicept family of enhanced information systems. The Digicept DNA
partitions provide our customers with a cost effective and reliable
product that can be expanded as their requirements dictate. The
Digicept DNA modules also allow for part of the system to be used in a
maintenance mode while keeping the rest of the system on line handling
customer traffic. This maintenance mode is vital for the Advanced
Intelligent Network (AIN), where the Digicept DNA modules become an
integrated part of the telephone network."
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, level of order flow, 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) (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
Net sales 3,209,765 3,052,554 5,856,182 6,552,433
Cost of product sold 1,629,995 1,585,219 3,143,594 3,536,128
Gross profit 1,579,770 1,467,335 2,712,588 3,016,305
Operating expenses:
General and administrative 353,148 417,373 742,469 844,595
Marketing and selling 635,349 581,385 1,240,724 1,132,635
Research and development 438,554 431,732 894,756 885,130
1,427,051 1,430,490 2,877,949 2,862,360
Earnings (loss) from operations 152,719 36,845 (165,361) 153,945
Other income (expense) (28,385) (14,324) (43,988) (18,494)
Earnings (loss) before
income taxes 124,334 22,521 (209,349) 135,451
Income taxes (benefit) 72,300 7,900 (17,300) 42,900
Net earnings (loss) 52,034 14,621 (192,049) 92,551
Basic and diluted earnings
(loss) per share:
Class A common 0.02 0.01 (0.07) 0.05
Class B common 0.02 0.01 (0.11) (0.01)
Weighted average shares outstanding
for basic and diluted 2,508,947 2,503,949 2,508,948 2,503,949
Selected Balance Sheet Data:
(Unaudited)
Jun 30 Dec 31
1998 1997
Current assets 4,682,790 3,934,664
Total assets 8,024,042 7,097,509
Current liabilities 2,319,588 1,080,219
Total liabilities 2,405,923 1,206,979
Stockholders' equity 5,618,119 5,890,530
# # # # # # #