Technical Communications Corporation Reports Results for the Three and Six Months Ended March 29, 2014 Business Wire CONCORD, Mass. -- May 13, 2014 Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the three and six months ended March 29, 2014. For the second quarter of the Company’s 2014 fiscal year, the Company reported a net loss of ($1,467,000), or ($0.80) per share, on revenue of $1,293,000, compared to a net loss of ($328,000), or ($0.18) per share, on revenue of $546,000 for the quarter ended March 30, 2013. For the six months ended March 29, 2014, the Company reported a net loss of ($1,282,000), or ($0.70) per share, on revenue of $3,802,000, compared to a net loss of ($638,000), or ($0.35) per share, on revenue of $2,142,000 for the six months ended March 30, 2013. The higher than expected loss for the second quarter of fiscal 2014 was primarily attributable to a tax provision in the amount of $821,000, a result of cumulative losses over the previous 10 quarters leading to the establishment of a valuation allowance against deferred tax assets during the quarter ended March 29, 2014. This compares to a tax benefit in the amount of $656,000 for the quarter ended March 30, 2013. Carl H. Guild, Jr., President and CEO of TCC, commented, “Delays in the receipt of certain foreign and domestic contracts negatively impacted our profitability for the quarter. We believe that these delays, coupled with customer and production delivery requirements, will result in lower than expected revenue for the remainder of fiscal 2014.” “Despite these setbacks, we ended the second quarter of fiscal 2014 with a $1 million backlog and a healthy pipeline of potential contracts. We have also continued marketing our new voice and data network encryption systems, and remain optimistic about expanded market opportunities for long-term growth,” concluded Guild. Activity highlights during the quarter included shipping the balance of orders from a domestic radio manufacturer for our DSP 9000 secure radio system for deployment to Afghanistan. TCC also continued the delivery of secure radio systems and training orders to a domestic prime contractor supporting a government customer in North Africa. 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 Quarterly Report on Form 10-Q for the quarter ended December 28, 2013, and its Annual Report on 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) 03/29/2014 03/30/2013 Net sales $ 1,293,000 $ 546,000 Gross profit 956,000 489,000 S, G & A expense 842,000 693,000 Product development costs 766,000 789,000 Operating loss (652,000) (993,000) Income tax provision (benefit) 821,000 (656,000) Net loss (1,467,000) (328,000) Net loss per share: Basic $ (0.80) $ (0.18) Diluted $ (0.80) $ (0.18) Six Months Ended (Unaudited) 03/29/2014 03/30/2013 Net sales $ 3,802,000 $ 2,142,000 Gross profit 2,676,000 1,591,000 S, G & A expense 1,549,000 1,471,000 Product development costs 1,528,000 1,645,000 Operating loss (401,000) (1,524,000) Income tax provision (benefit) 894,000 (870,000) Net loss (1,282,000) (638,000) Net loss per share: Basic $ (0.70) $ (0.35) Diluted $ (0.70) $ (0.35) Condensed consolidated balance sheets 03/29/2014 9/28/2013 (Unaudited) (derived from audited financial statements) Cash and marketable securities $ 5,938,000 $ 4,581,000 Accounts receivable, net 251,000 1,376,000 Inventory 2,129,000 2,619,000 Deferred & refundable income taxes 729,000 1,618,000 Other current assets 234,000 225,000 Total current assets 9,281,000 10,419,000 Marketable securities 1,335,000 1,463,000 Property and equipment, net 474,000 469,000 Total assets $ 11,090,000 $ 12,351,000 Accounts payable 159,000 262,000 Accrued expenses and other current 658,000 667,000 liabilities Total current liabilities 817,000 929,000 Total stockholders’ equity 10,273,000 11,422,000 Total liabilities and stockholders’ $ 11,090,000 $ 12,351,000 equity Contact: Technical Communications Corporation Michael P. Malone, 978-287-5100 Chief Financial Officer www.tccsecure.com
Technical Communications Corporation Reports Results for the Three and Six Months Ended March 29, 2014
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