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Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 28, 2013



  Technical Communications Corporation Reports Results for the Fiscal Year and
  Quarter Ended September 28, 2013

Business Wire

CONCORD, Mass. -- December 9, 2013

Technical Communications Corporation (NasdaqCM: TCCO) today announced its
results for the fiscal year and quarter ended September 28, 2013. For the
quarter ended September 28, 2013, the Company reported net income of $446,000,
or $0.24 per share, on revenue of $3,138,000, as compared to a net loss of
$(489,000), or $(0.27) per share, on revenue of $1,326,000 for the quarter
ended September 29, 2012. For the year ended September 28, 2013, the Company
reported a net loss of $(714,000), or $(0.39) per share, on revenue of
$6,250,000, as compared to a net loss of $(841,000), or $(0.46) per share, on
revenue of $8,117,000 for the year ended September 29, 2012.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief
Executive Officer of TCC, said, “Sales from the previously announced major
production contract awarded in May 2013 by the U.S. Army Communications and
Electronics Command for the Government of Egypt increased revenues to a
profitable level in the fourth quarter of fiscal 2013. The delay in receiving
this contract, however, had a negative impact on our year-end results. At the
same time, I am pleased to report that we began fiscal 2014 with a $2.28
million backlog.”

Mr. Guild continued, “The majority of our sales continue to be foreign
government procurements, which are affected by the stability of foreign
governments, foreign and domestic economic conditions, government regulations,
and other factors. As a result, our business is often subject to unpredictable
and erratic delays in the processing of procurements and delivery of products,
which challenge both our sales capture teams and our production capabilities.”

“We believe we have a competitive product portfolio designed to meet
increasing demand for high-end communications security solutions in select
applications. To take advantage of the potential market opportunity, we expect
to continue to increase our sales and marketing efforts. With our major new
product development programs now complete, technical development efforts will
focus on solutions for original equipment manufacturers and evolving our
products to meet new application requirements,” added Mr. Guild.

Fiscal Year 2013 Highlights

  * Completed the development of several new products, including the DSD
    72B-SP and DSD 72A-SP (STM) fiber optic data encryption family, the Cipher
    X^® 7211 IP encryptor, and the HSE 6000 squad radio headset and telephone
    encryptor.
  * Delivered products totaling $961,000 under contracts with Datron Worldwide
    Communications, Inc. for DSP 9000 radio encryption systems for use in
    Afghanistan.
  * Received in May 2013 a $3.6 million foreign military sales contract from
    the U.S. Army Communications and Electronics Command to upgrade the DSD
    72A-SP military bulk encryption system currently in use securing
    strategic-level, military communications for the Government of Egypt.
  * Delivered $982,000 of orders for secure radio and telephone encryption
    solutions and customized cryptographic services and tools for a domestic
    prime contractor’s program supporting a government customer in North
    Africa.
  * Performed $1.6 million in billable engineering services work for select
    customers.
  * Delivered network encryption products, including the new Cipher X 7211 IP
    encryptor, under several contracts to a country in the Middle East
    totaling $565,000.

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, 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, the effect of foreign political unrest, domestic and foreign
government policies and economic conditions, 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. These and other risks
are detailed from time to time in the Company's filings with the Securities
and Exchange Commission, including its Quarterly Reports on Form 10-Q for the
quarters ended June 29, 2013, March 30, 2013 and 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
                                                 (Unaudited)
                                                 09/28/2013        09/29/2012
Net sales                                        $ 3,138,000       $ 1,326,000
Gross profit                                     1,956,000         1,067,000
S, G & A expense                                 747,000           785,000
Product development costs                        499,000           1,122,000
Operating income (loss)                          711,000           (840,000)
Income tax expense (benefit )                    270,000           (344,000)
Net income (loss)                                446,000           (489,000)
Net income (loss) per share:                                        
Basic                                            $ 0.24            $ (0.27)
Diluted                                          $ 0.24            $ (0.27)
                                                                    

                                  Year Ended
                                   
                                                    09/29/2012
                                  09/28/2013        (derived from audited
                                  (Unaudited)
                                                    financial statements)
Net sales                         $ 6,250,000       $ 8,117,000
Gross profit                      4,140,000         6,278,000
S, G & A expense                  2,956,000         3,310,000
Product development costs         2,729,000         4,421,000
Operating loss                    (1,546,000)       (1,453,000)
Income tax benefit                (799,000)         (597,000)
Net loss                          (714,000)         (841,000)
Net loss per share:                                  
Basic                             $ (0.39)          $ (0.46)
Diluted                           $ (0.39)          $ (0.46)
                                                   

Condensed consolidated balance sheets                           
                                                                  
                                                                 09/29/2012
                                              09/28/2013         (derived from
                                              (Unaudited)        audited

                                                                 financial
                                                                 statements)
Cash and marketable securities                $ 6,044,000        $ 6,725,000
Accounts receivable, net                      1,376,000          1,381,000
Inventory                                     2,619,000          2,633,000
Deferred & refundable income taxes            1,618,000          1,477,000
Other current assets                          225,000            171,000
Total current assets                          11,882,000         12,387,000
Property and equipment, net                   469,000            453,000
Total assets                                  $ 12,351,000       $ 12,840,000
                                                                  
Accounts payable                              262,000            167,000
Accrued expenses and other current            667,000            546,000
liabilities
Total current liabilities                     929,000            713,000
Total stockholders’ equity                    11,422,000         12,127,000
Total liabilities and stockholders’           $ 12,351,000       $ 12,840,000
equity

Contact:

Technical Communications Corporation
Michael P. Malone, 978-287-5100
Chief Financial Officer
www.tccsecure.com
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