Exhibit 99.1
TECHNOLOGY RESEARCH CORPORATION
SIGNS AGREEMENT WITH MAJOR AIR CONDITIONER MANUFACTURER
AND REPORTS SECOND QUARTER SHIPMENT DELAY
CLEARWATER, FLORIDA, October 11, 2004 - Jerry T. Kendall, President and Chief
Executive Officer of Technology Research Corporation (TRC), (NASDAQ:TRCI),
announced today that the Company has entered into a three year agreement with a
major appliance manufacturer under which TRC will be the exclusive supplier of
cord fire protection products for this year’s room air conditioner "RAC"
manufacturing cycle. The current estimate of the value of product to be
shipped in the first year of the agreement is $4.3 million. Shipments are
expected to commence in October 2004 with most units shipped in the December
2004 through May 2005 time frame. Revenue for years two and three of the
agreement will be based on the customer’s volume requirement plus meeting
certain contractual performance and pricing conditions.
Kendall said, "We are pleased that the Company has been selected to supply its
Fire Shield® LCDI technology for cord fire prevention on RAC units by another
major appliance manufacturer. He added, "This brings our total announced
volume for this application to approximately $8.3 million, which is consistent
with our expectations for orders in this timeframe. The Company continues to
have on-going negotiations with other room air conditioner manufacturers for
significant additional volume."
At the same time, the Company announced that due to (i) four days of lost work
at its Clearwater facility, together with shipping and logistical issues it
faced from multiple hurricanes that struck Florida during the Company’s second
fiscal quarter; and (ii) unanticipated delays in the production startup process
for the room air conditioner application, the Company was unable to ship
approximately $1.6 million of scheduled orders for its second fiscal quarter.
Certain operating expenses applicable to the delayed shipments were in place
during the second quarter. As a result of these unanticipated delays and
increased operating expenses, the Company expects to report lower than planned
revenue and profit for its fiscal second quarter which ended September 30,
2004. These orders become part of the Company’s backlog for its third fiscal
quarter ending December 31, 2004. The Company expects that the increase in
manufacturing capacity at its Honduras facility and at its Far East contract
manufacturers will support a higher volume of shipments in fiscal third quarter.
Technology Research Corporation designs, manufactures and markets electrical
safety products that save lives, protect people from serious injury from
electrical shock and prevent electrical fires in the home and workplace. These
products have worldwide application. The Company also supplies power
monitoring and control equipment to the United States Military and its prime
contractors.
"Safe Harbor" Statement: Certain statements made in this press release are
forward looking in nature and, accordingly, are subject to risks and
uncertainties. The actual results may differ materially from those described
or contemplated.