Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 29, 2018
December 10 2018 - 8:30AM
Technical Communications Corporation (NasdaqCM: TCCO) today
announced its results for the fiscal year and quarter ended
September 29, 2018. For the quarter ended September 29, 2018, the
Company reported net income of $228,000, or $0.12 per share, on
revenue of $1,717,000, compared to a net loss of $(518,000), or
$(0.28) per share, on revenue of $1,125,000 for the quarter ended
September 30, 2017. For the year ended September 29, 2018, the
Company reported net income of $105,000, or $0.06 per share, on
revenue of $5,307,000, compared to a net loss of $(1,429,000), or
$(0.78) per share, on revenue of $4,209,000 for the year ended
September 30, 2017.
Commenting on corporate performance, Carl H.
Guild, Jr., President and Chief Executive Officer of TCC, said,
“The Company experienced a return to profitability in fiscal year
2018. While expected major domestic and international
contracts did not materialize during the fiscal year due to long
government procurement cycles, the Company did complete delivery of
several foreign and domestic contracts for its DSP 9000/HSE 6000
radio encryption products. It also provided significant
engineering services under contracts received in the first quarter
of fiscal 2017 and an additional contract received in the third
quarter of fiscal 2018.
Offering high-end custom cryptographic services
and solutions is an established market niche for the Company and we
believe an important competitive differentiator. In fiscal 2018,
custom TCC equipment and services continued to provide recurring
revenue opportunities within the Company’s established government
systems product line; such equipment sales consisted primarily of
the DSP 9000/HSE 6000 radio encryption and digital encryption
CX7211 products, along with custom solution engineering
services.
The market for high-end communications security
systems is competitive and subject to long government procurement
cycles, unpredictable order fulfillment lead times and fluctuating
market conditions. While TCC has a pipeline of potential contracts
and initiatives in development, the timing and outcome of these
potential contracts is unknown. As such, in fiscal 2018, TCC
continued to closely monitor and reduce operating expenses as
appropriate, while strategically investing in business development
efforts.”
About Technical Communications
CorporationFor 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 30, 2017, March 31, 2018 and June 30, 2018 and its Annual
Report on Form 10-K for the fiscal year ended September 30, 2017
filed with the Commission and the “Risk Factors” section included
therein.
|
Technical Communications
Corporation |
Condensed consolidated statements of
operations |
|
Quarter Ended |
|
09/29/2018 |
09/30/2017 |
|
(Unaudited) |
(derived from audited |
|
|
financial statements) |
Net sales |
$ 1,717,000 |
$ 1,125,000 |
Gross profit |
836,000 |
162,000 |
S, G & A expense |
481,000 |
476,000 |
Product development costs |
132,000 |
206,000 |
Operating income (loss) |
223,000 |
(520,000) |
Net income (loss) |
228,000 |
(518,000) |
Net income (loss) per share: |
|
|
Basic |
$ 0.12 |
$ (0.28) |
Diluted |
$ 0.12 |
$ (0.28) |
|
|
|
|
Year Ended |
|
09/29/2018 |
09/30/2017 |
|
(Unaudited) |
(derived from audited |
|
|
financial statements) |
Net sales |
$ 5,307,000 |
$ 4,209,000 |
Gross profit |
2,636,000 |
2,291,000 |
S, G & A expense |
1,994,000 |
2,145,000 |
Product development costs |
547,000 |
1,584,000 |
Operating income (loss) |
95,000 |
(1,438,000) |
Net income (loss) |
105,000 |
(1,429,000) |
Net income (loss) per share: |
|
|
Basic |
$ 0.06 |
$ (0.78) |
Diluted |
$ 0.06 |
$ (0.78) |
|
|
|
Condensed consolidated balance sheets |
|
|
|
09/29/2018 |
09/30/2017 |
|
(Unaudited) |
(derived from audited |
|
|
financial statements) |
Cash and marketable securities |
$ 1,982,000 |
$ 1,657,000 |
Accounts receivable - trade |
559,000 |
730,000 |
Inventory |
1,369,000 |
1,358,000 |
Other current assets |
143,000 |
136,000 |
Total current assets |
4,053,000 |
3,881,000 |
Property and equipment, net |
49,000 |
54,000 |
|
|
|
Total assets |
$ 4,102,000 |
$ 3,935,000 |
|
|
|
Accounts payable |
$ 173,000 |
$ 109,000 |
Accrued expenses and other current liabilities |
327,000 |
326,000 |
Total current liabilities |
500,000 |
435,000 |
Total stockholders’ equity |
3,602,000 |
3,500,000 |
Total liabilities and stockholders’ equity |
$ 4,102,000 |
$ 3,935,000 |
|
|
|
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
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