Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 29, 2012 and Announces a

Technical Communications Corporation Reports Results for the Fiscal Year and
Quarter Ended September 29, 2012 and Announces a Dividend of $0.10 Per Share

CONCORD, Mass., Dec. 10, 2012 (GLOBE NEWSWIRE) -- Technical Communications
Corporation (Nasdaq:TCCO) today announced its results for the fiscal year and
quarter ended September 29, 2012. For the year ended September 29, 2012, the
Company reported a net loss of $(841,000), or $(0.46) per share, on revenue of
$8,117,000, as compared to net income of $2,269,000, or $1.24 per share, on
revenue of $12,102,000 for the year ended September 24, 2011. For the quarter
ended September 29, 2012, the Company reported a net loss of $(489,000), or
$(0.27) per share, on revenue of $1,326,000, as compared net income of
$255,000, or $0.14 per share, on revenue of $2,237,000 for the quarter ended
September 24, 2011.

The Company also announced that on December 6, 2012, its Board of Directors
declared a dividend of $0.10 per share of common stock outstanding. The
dividend is payable in cash on December 28, 2012 to all shareholders of record
on December 20, 2012.

The Board of Directors further decided on December 6, 2012 that it would
suspend consideration of future dividends until such time as the Company's
revenue and profit performance justified it. This decision was made in
consideration of the fact that the Company generated a loss in fiscal 2012 and
that the timing of critical market recoveries, although expected, is not
certain. TCC believes that the Company's resources should be focused on
developing new technologies, marketing new products, and expanding its
business, which will provide stable financial growth and capital appreciation.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief
Executive Officer of TCC, said, "During fiscal 2012, TCC delivered its DSP9000
universal radio encryption system for use in Afghanistan, DSD72A-SP military
grade network encryptors for use in Taiwan and TCC CX series encryptors for
use in private satellite communications systems. TCC also continued its
commitment to internal product development by completing key milestones in the
expansion of our SONET/STM and IP network product lines."

As noted, revenues in fiscal 2012 were $8,117,000 with a net loss of $841,000
or $0.46 per share. The fiscal 2012 results are largely due to the continuing
slowdown in sales of our encryption products for foreign military networks,
partially offset by strong sales for radio applications. TCC's backlog at the
end of the year was $315,000 and was $1,773,000 as of December 7, 2012.

In fiscal 2012, TCC delivered $5.7 million of its DSP 9000 universal radio
encryption systems for use by both the coalition and indigenous forces in
Afghanistan. TCC's DSP 9000 family of radio encryption products is a large
success in many countries where the need for high quality, ruggedized
encryption is required for secure communication over the HF, UHF and VHF radio
bands. The DSP 9000 products have the very attractive feature of mating to a
wide variety of radios, providing end-to-end security between differing
regions, vehicles and forces that may be using radios produced by different
manufacturers. We believe that the DSP 9000 system provides a universal
encryption solution that is readily deployable, cost effective and adaptable
to meet unique user requirements.

TCC also delivered $1.2 million of network encryptors to Raytheon Company for
deployment in the Republic of China (Taiwan) with the Patriot Air Defense
System in fiscal 2012. This equipment is from TCC's DSD 72A-SP product line of
high performance encryptors used worldwide in tactical and strategic networks
requiring strong encryption security and high reliability. The equipment
delivered for Taiwan provides network encryption equipment for system

Finally, the Company sold a modest amount of its TCC CX series encryptors for
use in private satellite communications systems during its 2012 fiscal year.
These sales were made to multiple customers throughout the year and included
sales of the Cipher X 7200 and 7201 systems in our secure network application
product line.

Revenues from these sales during fiscal 2012 were used to fund the Company's
planned increase in research and development that began in fiscal 2011.This
increased internal product development was focused on the development of new
products to provide platforms for future growth and a basis for collaboration
with OEMs.

TCC initiated the development of a low cost, battery-powered, pocket encryptor
to be compatible with our DSP 9000 system and capable of interoperating with
essentially all VHF and HF radios during the year. This encryptor, called the
HSE 6000, is designed to respond to the many customer requests for a man-borne
solution that provides universal encryption capability. The development
occurred during 2012 and the HSE 6000 is now available as a commercially
available solution for military, border patrol, and police forces.

TCC also completed development of new DSD 72A-SP equipment upgrades that allow
customers to use new radios, multiplexers and switches in its 2012 fiscal
year. In 2011, a new multi-interface system designed to give users the
capability of matching a single encryptor to a multiple interface radio was
successfully tested by a major user. Procurement of this system upgrade was
expected in 2012 but, as mentioned above, has been delayed due to political
unrest. Current expectations are that the procurement will proceed in 2013.

For future military network security requirements, TCC has developed a very
high-speed version of the DSD 72A capable of speeds of 155mbs and 622mbs (STM1
and STM4) over fiber optic and electrical interfaces. Customer field tests of
TCC's new STM encryptors were successfully completed in fiscal 2012 and we
expect that users of the DSD 72A system will consider these devices for their
upcoming network expansions.

Research and Development

During the years ended September 29, 2012 and September 24, 2011, the Company
spent $4,421,000 and $3,530,000, respectively, on internal product
development. In fiscal 2012, the Company's internal product development
expenses were higher than prior years but in line with its planned commitment
to research and development, and reflected the costs of product testing and
production readiness efforts.It is expected that development expenses will
decrease by about 25% in fiscal 2013 as compared to fiscal 2012.

By the middle of fiscal 2013, the Company anticipates the completed
development of three new products and expects to reorient its development
investment toward collaborative product developments with major OEMs. Initial
work began in 2012 to establish these technical partnerships and we expect
that full-scale development will begin in mid-2013. TCC expects that the
resulting products will be imbedded proprietary encryption solutions that will
significantly enhance the value of the OEMs' products and allow TCC encryption
to be carried to the market by major equipment providers.

In addition to the products discussed above, TCC completed systems testing and
initiated field testing in fiscal 2012 of our high speed, SONET/SDH optical
encryptor called the 72B, which provides full-rate encryption capability at
155mbs and 622mbs speeds. This encryptor is designed to be compliant with the
Federal Information Processing Standard level 140-2 and is being offered in
three configurations covering applications for commercial telecommunications
providers through highly ruggedized military and government requirements. TCC
expects that the 72B encryptor family will provide fully interoperable
operations between office and harsh field environments.

In 2011, TCC began development of an advanced, 100Mbs through 1Gbs family of
IP encryptors and the KeyNet Optical Management system to service private
network markets for government, military and satellite users. This new network
product, named the CipherX 7211, is scheduled for installation with initial
customers in early 2013. The CipherX 7211 is the first IP encryptor that is
expandable, which allows its throughput capacity to be easily increased as
network loads increase. TCC believes this feature makes the CipherX 7211 very
cost-effective for new installations and very easy to expand when the market
demands it.

About Technical Communications Corporation

TCC designs, manufactures, and supports superior grade secure communications
systems that protect highly sensitive information transmitted over a wide
range of data, voice and fax networks. TCC's security solutions protect
information privacy on every continent in over 115 countries. Government
agencies, militaries, financial institutions, telecommunications carriers and
multinational corporations worldwide rely on TCC to protect their
communications networks.

Statements made in this press release, including any discussion of our
anticipated operating results, financial condition and earnings, including
statements about the Company's ability to achieve and sustain growth and
profitability and expand product lines and market share, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements, identified by
the use of such terms as "anticipates," "believes," "expects," "may," "plans"
and "estimates," among others, involve known and unknown risks. The Company's
results may differ significantly from the results expressed or implied by such
forward-looking statements.The Company's results may be affected by many
factors, including but not limited to future changes in export laws or
regulations, changes in technology, the effect of foreign political unrest,
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. These and other risks
are detailed from time to time in the Company's filings with the Securities
and Exchange Commission, including the Company's Quarterly Reports on Form
10-Q for the quarters ended June 23, 2012, March 24, 2012 and December 24,
2011 and its Annual Report on Form 10-K for the fiscal year ended September
24, 2011.

Technical Communications Corporation

Condensed consolidated income statements
                            Quarter Ended
                            9/29/2012   9/24/2011
Net sales                    $1,326,000 $2,237,000
Gross profit                 1,067,000   1,870,000
S, G & A expense             785,000     647,000
Product development costs    1,122,000   794,000
Operating income (loss)      (840,000)   430,000
Income tax expense (benefit) (344,000)   175,000
Net income (loss)            (489,000)   255,000
Net income (loss) per share:            
Basic                        $ (0.27)    $ 0.14
Diluted                      $ (0.27)    $ 0.14

                            Year Ended
                            9/29/2012   9/24/2011
                            (unaudited) (derived from audited
                                       financial statements)
Net sales                    $8,117,000 $12,102,000
Gross profit                 6,278,000   9,810,000
S, G & A expense             3,310,000   2,813,000
Product development costs    4,421,000   3,530,000
Operating income (loss)      (1,453,000) 3,467,000
Income tax expense (benefit) (597,000)   1,200,000
Net income (loss)            (841,000)   2,269,000
Net income (loss) per share:            
Basic                        $ (0.46)    $ 1.24
Diluted                      $ (0.46)    $ 1.21

Condensed consolidated balance sheets                   
                                           9/29/2012    9/24/2011
                                           (unaudited)  (derived from audited
                                                       financial statements)
Cash and marketable securities              $6,725,000  $9,232,000
Accounts receivable, net                    1,381,000    867,000
Inventory                                   2,633,000    3,279,000
Deferred & refundable income taxes          1,477,000    849,000
Other current assets                        171,000     139,000
Total current assets                        12,387,000   14,366,000
Property and equipment, net                 453,000     477,000
Total assets                                $12,840,000 $14,843,000
Accounts payable                            167,000      313,000
Accrued expenses andother current          546,000   1,097,000
Total current liabilities                   713,000      1,410,000
Total stockholders' equity                  12,127,000  13,433,000
Total liabilities and stockholders' equity  $12,840,000 $14,843,000

CONTACT: Michael P. Malone
         Chief Financial Officer
         (978) 287-5100
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