ETC Announces Second Quarter 2013 Results

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ETC Announces Second Quarter 2013 Results

WAUKESHA, Wis.--(BUSINESS WIRE)-- Electronic Tele-Communications, Inc. (ETC) (Pink Sheets: ETCIA) today reported its second quarter 2013 results. Sales for the quarter were $489,259 compared to $322,928 for the 2012 second quarter. The net earnings for the quarter were $108,054 or $0.04 per Class A common share, compared to a net loss of $27,822 or $0.01 per Class A common share for the second quarter of 2012.

Sales for the first six months of 2013 were $925,123 compared to sales of $803,977 in the first six months of 2012. Earnings for the first six months of 2013 were $108,187 or $0.04 per Class A common share, compared to earnings of $18,823 or $0.01 per Class A common share for the first six months of 2012.


Results for the three and six months ended June 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for both periods. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan. Without the investment gain, the net income for the three and six months ended June 30, 2013 would have been $17,979 and $18,112 respectively, or $.01 per Class A share.

Commenting on the results, ETC President Dean Danner said, "Sales for both the second quarter and the six months were among the best they have been for several years. Improved sales were partially offset by increased operating expenses mostly related to increased sales expenses and work to obtain additional certifications on our products. ETC anticipates that the second half of 2013 will continue to generate positive earnings."

Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.

From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the adverse effects of the recent worldwide recession and the timing and strength of a subsequent recovery, the Company's ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, government regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties, which may cause the Company's actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.

    

Electronic Tele-Communications, Inc.

 

Statements of Operations:

(unreviewed)

(unreviewed)

Three Months Ended

Six Months Ended

June 30

June 30

2013

2012

2013

2012

Net sales489,259322,928925,123803,977
Cost of products sold246,444166,247473,325405,701
Gross profit242,815156,681451,798398,276
 
Operating expenses:
General and administrative86,34678,547162,983152,256
Marketing and selling65,37749,370118,810106,897
Research and development67,34849,162139,170105,375
219,071177,079420,963364,528
 
Earnings (loss) from operations23,744(20,398)30,83533,748
Other income (expense)84,310(7,424)77,352(14,925)
 
Earnings (loss) before
income taxes108,054(27,822)108,18718,823
Income taxes0000
Net earnings (loss)108,054(27,822)108,18718,823
 
Basic and diluted earnings (loss) per share:
Class A common0.04(0.01)0.040.01
Class B common0.04(0.01)0.040.01
 
Weighted average shares outstanding
for basic and diluted2,509,1472,509,1472,509,1472,509,147
 

Selected Balance Sheet Data:

(unreviewed)

Jun 30

Dec 31

2013

2012

Current assets570,891695,876
Total assets589,823704,447
Current liabilities928,0601,061,235
Total liabilities994,4851,149,802
Stockholders' equity(404,662)(445,355)
 



Electronic Tele-Communications, Inc.
Dean Danner, President
Boni Danner, Vice President
(262) 542-5600
http://www.etcia.com

KEYWORDS:   United States  North America  Wisconsin

INDUSTRY KEYWORDS:

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