Technical Communications Corporation Reports Results for the Fiscal Quarter Ended December 28, 2013

  Technical Communications Corporation Reports Results for the Fiscal Quarter
  Ended December 28, 2013

Business Wire

CONCORD, Mass. -- February 7, 2014

Technical Communications Corporation (NasdaqCM:TCCO) today announced its
results for the first quarter of its 2014 fiscal year. For the quarter ended
December 28, 2013, the Company reported net income of $184,000 or $0.10 per
share, on revenue of $2,509,000, compared to a net loss of $(310,000), or
$(0.17) per share, on revenue of $1,597,000 for the quarter ended December 29,
2012.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief
Executive Officer of TCC, said, “During the quarter, we shipped the balance of
our large production contract to the U.S. Army Communications and Electronics
Command to upgrade the DSD 72A-SP military bulk encryption system currently in
use by the Government of Egypt. We also received $955,000 in orders for our
DSP 9000 radio encryption system from a U.S. radio manufacturer for deployment
into Afghanistan.”

“Our traditional government products continue to be in demand and sales of
these products accounted for the majority of revenues during the quarter. At
the same time, we continue to ramp up marketing efforts for our new secure
voice and data products, and have had positive market response to date.”

“Revenues for the balance of fiscal 2014 are difficult to predict due to
delays in the award of certain foreign and domestic procurements currently in
process. We nevertheless remain confident that the release of our new data and
voice products will result in improved future revenue and profitability.”

During fiscal 2014 the Company is focusing technical efforts on three
principal areas: development of solutions that meet the needs of original
equipment manufacturers; product enhancements that include expanded features,
planned capability and applications growth; and custom solutions that tailor
our products to meet the unique needs of our 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 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 Form 10-K for the fiscal year ended September 28,
2013 and the “Risk Factors” section included therein.


Technical Communications Corporation


                                             


Condensed consolidated income statements
                                                    
                                   Quarter Ended
                                   (Unaudited)
                                12/28/2013    12/29/2012 
Net sales                       $ 2,509,000    $ 1,597,000  
Gross profit                     1,720,000     1,102,000  
S, G & A expense                 707,000       778,000    
Product development costs        762,000       855,000    
Operating income (loss)          251,000       (532,000   )
Income tax expense (benefit)     73,000        (214,000   )
Net income (loss)                184,000       (310,000   )
Net income (loss) per share:                  
Basic                           $ 0.10         $ (0.17      )
Diluted                         $ 0.10         $ (0.17      )
                                                                 

                                                   
Condensed consolidated balance sheets


                                        12/28/2013       9/28/2013
                                    (Unaudited)    (derived from audited
                                                         financial statements)
Cash and marketable securities       $ 6,190,000    $      4,581,000
Accounts receivable, net              294,000            1,376,000
Inventory                             2,214,000          2,619,000
Deferred & refundable income          1,546,000          1,618,000
taxes
Other current assets                  158,000            225,000
Total current assets                  10,402,000         10,419,000
Marketable securities                 1,454,000          1,463,000
Property and equipment, net           434,000            469,000
                                                  
Total assets                         $ 12,290,000   $      12,351,000
                                                  
Accounts payable                      214,000            262,000
Accrued expenses and other            436,000            667,000
current liabilities
Total current liabilities             650,000            929,000
Total stockholders’ equity            11,640,000         11,422,000
Total liabilities and                $ 12,290,000   $      12,351,000
stockholders’ equity
                                                         

Contact:

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