Technical Communications Corporation Reports Second Fiscal Quarter 2013 Results; Announces $3.6 Million Contract

  Technical Communications Corporation Reports Second Fiscal Quarter 2013
  Results; Announces $3.6 Million Contract

Business Wire

CONCORD, Mass. -- May 06, 2013

Technical Communications Corporation (NasdaqCM: TCCO) today announced its
results for the three and six months ended March 30, 2013. For the second
quarter of the Company’s 2013 fiscal year, the Company reported a net loss of
($328,000), or ($0.18) per share, on revenue of $546,000, compared to a net
loss of ($366,000), or ($0.20) per share, on revenue of $1,617,000 for the
quarter ended March 24, 2012. For the six months ended March 30, 2013, the
Company reported a net loss of ($638,000), or ($0.35) per share, on revenue of
$2,142,000, compared to net income of $563,000, or $0.31 per share, on revenue
of $6,057,000 for the six months ended March 24, 2012.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief
Executive Officer of TCC, said, “Our results are consistent with previously
announced expectations of slower growth related to the delay of certain
expected contracts. Although we do see some improvement in securing new
business, some contract delays are still expected. With the substantial
completion of certain product development efforts, we have increased our
emphasis on marketing and have received positive responses. We expect to see
increased field demonstrations and operational testing of our new radio and
network security products during the remainder of 2013 and throughout the
following year.”

Contract Award

Mr. Guild added, “Additionally, we are pleased to announce that on May 4,
2013, we received a $3.6 million foreign military sales (FMS) contract from
the U.S. Army Communications and Electronics Command (CECOM) to upgrade the
DSD 72A-SP military bulk encryption system currently in use securing
strategic-level, military communications for the Government of Egypt.

Under this contract, TCC will provide upgrade kits which enable the DSD 72A-SP
to function with next-generation radios. The upgrade also enables the 72A
Crypto Management System to communicate via an Ethernet IP link. TCC will also
provide test equipment and training services both at TCC’s facility in
Concord, MA as well as in-country. Delivery of the equipment is expected to be
completed by the end of this fiscal year. Future follow-on sales are expected
as this customer proceeds to upgrade the balance of its network. These feature
and performance upgrades are expected to expand the capability of the DSD
72A-SP encryption system and are available to all new and existing customers.”

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 rely on TCC's proven security to protect their
communications. Learn more:

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 its Quarterly Report on Form 10-Q for the
quarter ended December 29, 2012 and the Company's Annual Report on Form 10-K
for the fiscal year ended September 29, 2012.

Technical Communications Corporation
Condensed consolidated income statements
                                         Quarter Ended

                                  03/30/2013     03/24/2012
Net sales                          $ 546,000      $ 1,617,000
Gross profit                       489,000        1,334,000
S, G & A expense                   693,000        749,000
Product development costs          789,000        878,000
Operating loss                     (993,000)      (293,000)
Income tax (benefit) expense       (656,000)      76,000
Net (loss) income                  (328,000)      (366,000)
Net (loss) income per share:                     
Basic                              $ (0.18)       $ (0.20)
Diluted                            $ (0.18)       $ (0.20)

                                         Six Months Ended

                                  03/30/2013      03/24/2012
Net sales                          $ 2,142,000     $ 6,057,000
Gross profit                       1,591,000       4,639,000
S, G & A expense                   1,471,000       1,737,000
Product development costs          1,645,000       1,949,000
Operating (loss) income            (1,524,000)     953,000
Income tax (benefit) expense       (870,000)       393,000
Net (loss) income                  (638,000)       563,000
Net (loss) income per share:                      
Basic                              $ (0.35)        $ 0.31
Diluted                            $ (0.35)        $ 0.30

Condensed consolidated balance
                                            03/30/2013           (derived from
                                     (Unaudited)      audited
Cash and marketable securities        $ 5,945,000      $ 6,725,000
Accounts receivable, net              840,000          1,381,000
Inventory                             2,573,000        2,633,000
Deferred & refundable income          1,992,000        1,477,000
Other current assets                  287,000          171,000
Total current assets                  11,637,000       12,387,000
Property and equipment, net           401,000          453,000
Total assets                          $ 12,038,000     $ 12,840,000
Accounts payable                      142,000          167,000
Accrued expenses and other            460,000          546,000
current liabilities
Total current liabilities             602,000          713,000
Total stockholders’ equity            11,436,000       12,127,000
Total liabilities and                 $ 12,038,000     $ 12,840,000
stockholders’ equity


Technical Communications Corporation
Michael P. Malone, 978-287-5100
Chief Financial Officer
Press spacebar to pause and continue. Press esc to stop.