November 12, 2014
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES THIRD QUARTER 2014 RESULTS WAUKESHA, WISCONSIN, November 12,2014 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2014 results. Sales for the quarter were $276,586 compared to $358,173 for the 2013 third quarter. The net loss for the quarter was $67,704 or $0.03 per Class A common share, compared to earnings of $3,628 or $0.00 per Class A common share for the third quarter of 2013.
Sales for the first nine months of 2014 were $1,220,583 compared to sales of $1,283,296 in the first nine months of 2013. The loss for the first nine months of 2014 was $45,457 or $0.02 per Class A common share, compared to earnings of $111,815 or $0.04 per Class A common share for the first nine months of 2013.
Results for the nine months ended September 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for the period. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan.
Commenting on the results, ETC President Dean Danner said, “Sales continued to slow in the third quarter in both equipment sales and recurring revenue. Earnings were impacted by the lower sales and increases in health and benefit costs. ETC anticipates that sales for the remainder of 2014 will continue to be slow. Earnings will also continue to be impacted by higher benefit costs and ongoing product certification expenses.”
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 Nine Months Ended September 30 September 30 2014 2013 2014 2013 Net sales 276,586 358,173 1,220,583 1,283,296 Cost of products sold 139,257 182,196 654,593 655,521 Gross profit 137,329 175,977 565,990 627,775 Operating expenses: General and administrative 79,759 65,149 241,051 228,132 Marketing and selling 52,637 47,793 170,218 166,603 Research and development 66,759 53,282 182,597 192,452 199,155 166,224 593,866 587,187 Earnings (loss) from operations (61,826) 9,753 (27,876) 40,588 Other income (expense) (5,878) (6,125) (17,581) 71,227 Earnings (loss) before income taxes (67,704) 3,628 (45,457) 111,815 Income taxes 0 0 0 0 Net earnings (loss) (67,704) 3,628 (45,457) 111,815 Basic and diluted earnings (loss) per share: Class A common (0.03) 0.00 (0.02) 0.04 Class B common (0.03) 0.00 (0.02) 0.04 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) Sep 30 Dec 31 2014 2013 Current assets 385,610 508,656 Total assets 428,113 551,948 Current liabilities 827,837 873,003 Total liabilities 838,908 917,286 Stockholders' equity (410,795) (365,338) # # #
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