CONCORD, Mass., Dec. 09, 2019 (GLOBE NEWSWIRE) -- Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and quarter ended September 28, 2019. For the quarter ended September 28, 2019, the Company reported net income of $1,032,000, or $0.56 per share, on revenue of $2,749,000, compared to a net loss of $(259,000), or $(0.14) per share, on revenue of $1,137,000 for the quarter ended September 29, 2018. For the year ended September 28, 2019, the Company reported net income of $631,000, or $0.34 per share, on revenue of $7,024,000, compared to a net loss of $(1,480,000), or $(0.80) per share, on revenue of $3,685,000 for the year ended September 29, 2018.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, “The Company experienced a return to profitability in fiscal year 2019. The Company completed delivery of several foreign and domestic contracts for its DSP 9000/HSE 6000 radio encryption products. It also provided significant engineering services under contracts that were completed in fiscal 2019.
“Offering high-end custom cryptographic services and solutions is an established market niche for the Company and we believe an important competitive differentiator. In fiscal 2019, custom TCC equipment and services continued to provide recurring revenue opportunities within the Company’s established government systems product line; such equipment sales consisted primarily of our DSP 9000/HSE 6000 radio encryption and digital encryption CX7211 products, along with custom solution engineering services.”
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 Reports on Form 10-Q for the quarters ended June 29, 2019, March 30, 2019 and December 29, 2018 and its Annual Report on Form 10-K for the fiscal year ended September 29, 2018 and the “Risk Factors” section included therein.
Technical Communications Corporation
Condensed consolidated statements of operations
| Quarter Ended | ||||||
| 09/28/2019 | 09/29/2018 | |||||
| (Unaudited) | (derived from audited financial statements) | |||||
| Net sales | $ | 2,749,000 | $ | 1,137,000 | ||
| Gross profit | 1,714,000 | 243,000 | ||||
| S, G & A expense | 536,000 | 428,000 | ||||
| Product development costs | 146,000 | 78,000 | ||||
| Operating income (loss) | 1,032,000 | (263,000 | ) | |||
| Net income (loss) | 1,032,000 | (259,000 | ) | |||
| Net income (loss) per share: | ||||||
| Basic | $ | 0.56 | $ | (0.14 | ) | |
| Diluted | $ | 0.56 | $ | (0.14 | ) | |
| Year Ended | ||||||
| 09/28/2019 | 09/29/2018 | |||||
| (Unaudited) | (derived from audited financial statements) | |||||
| Net sales | $ | 7,024,000 | $ | 3,685,000 | ||
| Gross profit | 3,358,000 | 972,000 | ||||
| S, G & A expense | 2,407,000 | 1,941,000 | ||||
| Product development costs | 333,000 | 521,000 | ||||
| Operating income (loss) | 618,000 | (1,490,000 | ) | |||
| Net income (loss) | 631,000 | (1,480,000 | ) | |||
| Net income (loss) per share: | ||||||
| Basic | $ | 0.34 | $ | (0.80 | ) | |
| Diluted | $ | 0.34 | $ | (0.80 | ) | |
Condensed consolidated balance sheets
| 09/28/2019 | 09/29/2018 | |||||
| (Unaudited) | (derived from audited financial statements) | |||||
| Cash and marketable securities | $ | 1,593,000 | $ | 1,982,000 | ||
| Accounts receivable - trade | 126,000 | 559,000 | ||||
| Inventory | 1,042,000 | 1,369,000 | ||||
| Other current assets | 118,000 | 142,000 | ||||
| Total current assets | 2,879,000 | 4,053,000 | ||||
| Property and equipment, net | 38,000 | 49,000 | ||||
| Total assets | $ | 2,917,000 | $ | 4,102,000 | ||
| Accounts payable | $ | 355,000 | $ | 188,000 | ||
| Accrued expenses and other current liabilities | 342,000 | 274,000 | ||||
| Deferred revenue | - | 2,107,000 | ||||
| Total current liabilities | 697,000 | 2,569,000 | ||||
| Total stockholders’ equity | 2,220,000 | 1,533,000 | ||||
| Total liabilities and stockholders’ equity | $ | 2,917,000 | $ | 4,102,000 | ||
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
