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 * http://www.etcia.com
ETC ANNOUNCES SECOND QUARTER 1999 RESULTS
WAUKESHA, WISCONSIN, July 20, 1999 The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported second quarter 1999 earnings of
$23,965 or $0.01 per Class A share on sales of $2,875,246 compared to second quarter 1998
earnings of $52,034 or $0.02 per Class A share on sales of $3,209,765. Sales for the first six
months of 1999 were $6,144,353, compared to 1998 six month sales of $5,856,182. Earnings for the
first six months of 1999 were $201,823 compared to a 1998 six month loss of $192,049.
Commenting on the 1999 results, ETC President Dean Danner said, "Sales for the second quarter
were weaker than expected due to the deferral of some Y2K related business. Despite this
shortfall, ETC was profitable for the quarter and the first half of 1999. ETC's largest current
product line, our Digicept DNA family, is approved for use by the largest telephone switch
manufacturers in the United States. In addition, ETC is working with regulators and advocacy
groups in providing access to telecommunications services for the hearing impaired. The DNA
product is 100% compatible to newly emerging requirements for the hearing impaired, and is Y2K
compliant."
At its July meeting the ETC Board of Directors also approved the payment of ETC's second
dividend for 1999. The dividend, $.04 per Class A Share, will be paid on September 30, 1999 to
shareholders of record on September 3, 1999. ETC has paid dividends to its public shareholders
every year since going public in 1985.
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, provides 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:
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
Net sales 2,875,246 3,209,765 6,144,353 5,856,182
Cost of product sold 1,451,053 1,629,995 3,034,798 3,143,594
Gross profit 1,424,193 1,579,770 3,109,555 2,712,588
Operating expenses:
General and administrative 290,670 353,148 637,410 742,469
Marketing and selling 676,088 635,349 1,317,115 1,240,724
Research and development 423,835 438,554 857,952 894,756
1,390,593 1,427,051 2,812,477 2,877,949
Earnings (loss) from operations 33,600 152,719 297,078 (165,361)
Other income (expense) (6,635) (28,385) (13,255) (43,988)
Earnings (loss) before
income taxes 26,965 124,334 283,823 (209,349)
Income taxes (benefit) 3,000 72,300 82,000 (17,300)
Net earnings (loss) 23,965 52,034 201,823 (192,049)
Basic and diluted earnings
(loss) per share:
Class A common 0.01 0.02 0.09 (0.07)
Class B common 0.01 0.02 0.05 (0.11)
Weighted average shares outstanding
for basic and diluted 2,508,947 2,508,947 2,508,947 2,508,948
Selected Balance Sheet Data:
Jun 30 Dec 31
1999 1998
Current assets 3,914,000 5,156,211
Total assets 7,187,725 8,438,766
Current liabilities 1,056,640 2,396,881
Total liabilities 1,076,768 2,449,274
Stockholders' equity 6,110,957 5,989,492
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