CONCORD, Mass., Dec. 11, 2017 (GLOBE NEWSWIRE) -- Technical Communications Corporation (Nasdaq:TCCO) today
announced its results for the fiscal year and quarter ended September 30, 2017. For the quarter ended September 30, 2017, the
Company reported a net loss of $(518,000), or $(0.28) per share, on revenue of $1,125,000, compared to a net loss of $(860,000), or
$(0.47) per share, on revenue of $405,000 for the quarter ended October 1, 2016. For the year ended September 30, 2017, the Company
reported a net loss of $(1,429,000), or $(0.78) per share, on revenue of $4,209,000, compared to a net loss of $(2,472,000), or
$(1.34) per share, on revenue of $2,523,000 for the year ended October 1, 2016.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said,
“TCC revenues were lower than anticipated due to delays on key international programs. Our radio encryption product line has
contributed significantly to our 2017 sales with completion of an order from Datron that is destined for use in Afghanistan. We
expect that additional orders will be coming in support of continuing U.S. government activities in Afghanistan but the timing is
unpredictable.
TCC continues to pursue the application of our radio encryption products to new customers requiring voice
communications security for joint air, land and sea operations. Our new HSE6000 SEAL radio encryption system has successfully
completed customer reviews and is participating in field operational testing.
Network encryption solutions are being pursued with the development of a TCC proprietary platform that can be
customized to meet unique customer requirements. This work is still in the development phase but is expected to reach the market in
late 2018.
TCC is committed to returning to profitability in fiscal 2018. We continue to closely monitor and reduce
operating expenses as appropriate, while strategically investing in business development efforts, developing productive
relationships and expanding our sales channel network.”
About Technical Communications Corporation
For over 50 years, TCC has specialized in superior-grade secure communications systems and customized solutions, supporting our
CipherONE® best-in-class criteria, to protect highly sensitive voice, data and
video transmitted over a wide range of networks. Government entities, military agencies and corporate enterprises in 115 countries
have selected TCC's proven security to protect their communications. Learn more: www.tccsecure.com.
Statements made in this press release or as may otherwise be incorporated by reference herein constitute
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements
include but are not limited to statements regarding anticipated operating results, future earnings, and the ability to achieve
growth and profitability. Such forward-looking statements involve known and unknown risks, uncertainties and other factors,
including but not limited to the effect of foreign political unrest; domestic and foreign government policies and economic
conditions; future changes in export laws or regulations; changes in technology; the ability to hire, retain and motivate
technical, management and sales personnel; the risks associated with the technical feasibility and market acceptance of new
products; changes in telecommunications protocols; the effects of changing costs, exchange rates and interest rates; and the
Company's ability to secure adequate capital resources. Such risks, uncertainties and other factors could cause the actual results,
performance or achievements of the Company, or industry results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. For a more detailed discussion of the risks facing the
Company, see the Company’s filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for
the quarters ended December 31, 2016, April 1, 2017 and July 1, 2017 and its Annual Report on Form 10-K for the fiscal year ended
October 1, 2016 filed with the Commission and the “Risk Factors” section included therein.
Technical Communications
Corporation |
|
|
|
Condensed consolidated statements of
operations |
|
|
Quarter
Ended
|
|
|
|
09/30/2017 |
|
10/01/2016 |
|
|
|
(Unaudited) |
|
(derived from audited |
|
|
|
|
|
financial statements) |
|
Net
sales |
$ 1,125,000 |
|
$ 405,000 |
|
Gross profit
(loss) |
|
162,000 |
|
(212,000) |
|
S, G & A
expense |
|
476,000 |
|
544,000 |
|
Product
development costs |
|
206,000 |
|
107,000 |
|
Operating
loss |
|
(520,000) |
|
(863,000) |
|
Net loss |
|
(518,000) |
|
(860,000) |
|
Net loss per
share: |
|
|
Basic |
$(0.28) |
|
$(0.47) |
|
Diluted |
$(0.28) |
|
$(0.47) |
|
|
Year Ended
|
|
|
09/30/2017 |
|
10/01/2016 |
|
|
(Unaudited) |
|
(derived from audited |
|
|
|
|
financial statements) |
|
Net
sales |
$ 4,209,000 |
|
$ 2,523,000 |
|
Gross
profit |
|
2,291,000 |
|
|
509,000 |
|
S, G & A
expense |
|
2,145,000 |
|
|
2,670,000 |
|
Product
development costs |
|
1,584,000 |
|
|
828,000 |
|
Operating
loss |
|
(1,438,000) |
|
|
(2,989,000) |
|
Gain on sale
of investment |
|
- |
|
|
462,000 |
|
Income tax
benefit |
|
- |
|
|
(43,000) |
|
Net loss |
|
(1,429,000) |
|
|
(2,472,000) |
|
Net loss per
share: |
|
|
Basic |
$(0.78) |
|
$(1.34) |
|
Diluted |
$(0.78) |
|
$(1.34) |
|
Condensed consolidated balance
sheets |
|
09/30/2017 |
10/01/2016 |
|
(Unaudited) |
(derived from audited |
|
|
financial statements) |
Cash and marketable securities |
$ 1,657,000 |
$ 2,979,000 |
Accounts
receivable - trade |
|
730,000 |
|
112,000 |
Inventory |
|
1,358,000 |
|
1,644,000 |
Other current
assets |
|
136,000 |
|
214,000 |
Total current
assets |
|
3,881,000 |
|
4,949,000 |
Marketable
securities |
|
- |
|
373,000 |
Property and
equipment, net |
|
54,000 |
|
149,000 |
|
|
|
Total
assets |
$ 3,935,000 |
$ 5,471,000 |
|
|
|
Accounts
payable |
|
109,000 |
|
119,000 |
Accrued
expenses and other current liabilities |
|
326,000 |
|
438,000 |
Total current
liabilities |
|
435,000 |
|
557,000 |
Total
stockholders’ equity |
|
3,500,000 |
|
4,914,000 |
Total
liabilities and stockholders’ equity |
$ 3,935,000 |
$ 5,471,000 |
Technical Communications Corporation 100 Domino Drive Concord, MA 01742 – 2892 Michael P. Malone Chief Financial Officer (978) 287-5100 www.tccsecure.com