August 6, 2010
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES SECOND QUARTER 2010 RESULTS WAUKESHA, WISCONSIN, August 6, 2010 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its second quarter
2010 results. Sales for the quarter were $313,191 compared to $462,963 for the
2009 second quarter. The net loss for the quarter was $69,428 or $0.03 per Class
A common share, compared to a net loss of $59,430 or $0.02 per Class A common
share for the second quarter of 2009.
Sales for the first six months of 2010 were $783,222 compared to sales of $846,436 in the first six months of 2009. The loss for the first six months of 2010 was $121,822 or $0.05 per Class A common share, compared to a loss of $185,475 or $0.07 per Class A common share for the first six months of 2009.
Commenting on the results, ETC President Dean Danner said, “Continuing weakness in both the telecommunications equipment market and the time / temperature announcement services market was evident throughout the quarter. Steps taken in the 2010 first quarter to reduce our fixed operating costs, including a reduction in our workforce, helped minimize the loss for the quarter. We project sales to continue to be erratic throughout the balance of the year. When the economic recovery begins to stabilize the market, we anticipate our customers will begin to implement programs to replace obsolete equipment in their networks. We believe that these programs coupled with the full effect of our cost reductions will position the Company to return to positive earnings.”
Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.
From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the adverse effects of the recent worldwide recession and the timing and strength of a subsequent recovery, the Company’s ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, government regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.
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Electronic Tele-Communications, Inc. Statements of Operations: (unreviewed) (unreviewed) Three Months Ended Six Months Ended June 30 June 30 2010 2009 2010 2009 Net sales 313,191 462,963 783,222 846,436 Cost of products sold 194,973 287,492 463,989 538,809 Gross profit 118,218 175,471 319,233 307,627 Operating expenses: General and administrative 71,381 69,286 148,600 151,453 Marketing and selling 47,712 89,962 113,116 184,791 Research and development 59,843 68,885 127,374 146,145 Restructuring Charge 0 0 35,151 0 178,936 228,133 424,241 482,389 Earnings (loss) from operations (60,718) (52,662) (105,008) (174,762) Other income (expense) (8,710) (6,768) (16,814) (10,713) Earnings (loss) before income taxes (69,428) (59,430) (121,822) (185,475) Income taxes 0 0 0 0 Net earnings (loss) (69,428) (59,430) (121,822) (185,475) Basic and diluted earnings (loss) per share: Class A common (0.03) (0.02) (0.05) (0.07) Class B common (0.03) (0.02) (0.05) (0.07) Weighted average shares outstanding for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147 Selected Balance Sheet Data: (unreviewed) Jun 30 Dec 31 2010 2009 Current assets 426,553 512,673 Total assets 437,409 533,655 Current liabilities 1,198,977 1,112,312 Total liabilities 1,236,972 1,162,973 Stockholders' equity (799,563) (629,318) # # #
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