For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600
ETC ANNOUNCES 1996 YEAR END RESULTS & 1997 DIVIDEND
WAUKESHA, WISCONSIN, March 3, 1997 NASDAQ National Market
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA (Electel)
Electronic Tele-Communications, Inc. (ETC) today reported 1996 sales of
$12,913,830 and earnings of $256,566 or $0.12 per Class A share, compared to
1995 sales of $12,902,268 and a 1995 loss of $230,716 or $0.08 per Class A
share. For the 1996 fourth quarter, ETC reported earnings of $438,235 or $0.18
per Class A share on sales of $4,052,410, compared to fourth quarter 1995
earnings of $122,006 or $0.05 per Class A share on sales of $3,203,366.
ETC also announced that its Board of Directors has declared a dividend for the
twelfth straight year since its initial public offering. The 1997 dividend will
be $.12 per Class A share payable in two $.06 installments. The first payment
will be made on March 31, 1997 to shareholders of record on March 14, 1997.
The second payment will be on September 30, 1997 to shareholders of record on
September 1, 1997.
Commenting on the 1996 results, ETC President Dean Danner said,"1996 began
slowly as product mix difficulties that began in 1995 continued and created
losses in the first and second quarters. As the year progressed, our business
improved, especially in the international markets. Both the third and fourth
quarters were profitable, as was the full year."
Commenting further, Danner said, "We are continuing our search for a strategic
merger or acquisition, in addition to the development activities on our newer
Digicept 2000 and Audichron 410 products. The Digicept 2000 family of Voice
Processing Platforms is designed for the telephone switching center market,
providing enhanced features for today's telephone network. The Audichron 410 is
designed for smaller telephone network applications and business applications.
In addition, the Audichron 410 will form the updated foundation of ETC's
nationally recognized Audichron "Time Weather Temperature" services and "USA
Time" services."
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, 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 Twelve-Month Periods Ended December 31, 1996 and 1995
(Unaudited)
Fourth Quarter Twelve Months
1996 1995 1996 1995
---------- ---------- ----------- -----------
NET SALES 4,052,410 3,203,366 12,913,830 12,902,268
COST OF PRODUCTS SOLD 1,953,536 1,449,171 6,503,886 6,159,220
---------- ---------- ----------- -----------
GROSS PROFIT 2,098,874 1,754,195 6,409,944 6,743,048
OPERATING EXPENSES:
General and administrative 451,363 377,854 1,661,419 1,691,228
Marketing and selling 545,770 622,093 2,332,151 2,784,829
Research and development 408,249 548,056 1,980,856 2,533,422
---------- ---------- ----------- -----------
1,405,382 1,548,003 5,974,426 7,009,479
---------- ---------- ----------- -----------
EARNINGS (LOSS) FROM OPERATIONS 693,492 206,192 435,518 (266,431)
OTHER INCOME (EXPENSE):
Interest expense (783) (561) (1,859) (11,052)
Interest income 11,086 56 23,963 1,191
Miscellaneous (24,060) (10,981) (39,656) (31,124)
---------- ---------- ----------- -----------
(13,757) (11,486) (17,552) (40,985)
---------- ---------- ----------- -----------
EARNINGS (LOSS) BEFORE
INCOME TAXES 679,735 194,706 417,966 (307,416)
Income taxes (benefit) 241,500 72,700 161,400 (76,700)
---------- ---------- ----------- -----------
NET EARNINGS (LOSS) 438,235 122,006 256,566 (230,716)
========== ========== =========== ===========
EARNINGS (LOSS) PER SHARE:
Class A common 0.18 0.05 0.12 (0.08)
Class B common 0.18 0.05 0.04 (0.16)
Weighted average common
shares outstanding 2,503,949 2,503,949 2,503,949 2,503,949
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