EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES FIRST QUARTER 2003 RESULTS
WAUKESHA, WISCONSIN, April 28, 2003
ELECTRONIC TELE-COMMUNICATIONS, INC.
OTC Bulletin Board - Symbol ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its first quarter 2003
results. Sales for the quarter were $719,944 compared to $1,109,558 for the 2002
first quarter. This yielded a net loss for the quarter of $359,590 or $0.14 per
Class A common share, compared to a loss of $136,432 or $0.05 per share for the
first quarter of 2002.
Commenting on the first quarter results, ETC President Dean Danner said, "Sales
in the first quarter of 2003 were similar to the two previous quarters, and
significantly below expectations. As reported by others in our industry,
telephone carrier spending has not begun to recover. The mild recovery that we
felt in the first half of 2002 fizzled out in the third quarter and has yet to
re-kindle. Although we believe there is an increase in pent-up needs, we are not
yet seeing an increase in spending to satisfy those needs."
"As a result of the continued downturn in the industry, ETC implemented
additional cost reduction measures during the first quarter designed to improve
our financial performance as the year progresses. Unfortunately, these
reductions will affect how quickly we can introduce new products and services
and will impact how quickly ETC can react once the industry recovery really
begins."
"On the positive side, ETC released additional features on its Emcee system in
the first quarter, including additional voice mail features and SS7 signaling
compatibility. We are also releasing new features on our Z-10 TWT (Time Weather
Temperature) systems including support for longer advertisements as requested by
our customers. ETC remains committed to on-going support of these products and
the expansion of their capabilities to meet the needs of the industry."
Electronic Tele-Communications is a supplier of Voice Application Processing
Platforms to domestic and foreign telephone utilities and of messaging systems
to the commercial market. ETC's equipment provides a wide range of audio
information and call handling services via telephone networks, computer
networks, and the Internet. ETC, with corporate headquarters in Waukesha,
Wisconsin also has operations in Norcross, Georgia.
Certain statements in this press release which are not historical facts are
"forward-looking" statements as defined in the Private Securities Litigation
Reform Act of 1995. Any "forward-looking" statements are provided in compliance
with the "Safe Harbor" provision of the Private Securities Litigation Reform Act
of 1995. "Forward-looking" statements involve a number of risks and
uncertainties including, but not limited to, technology changes, backlog,
acquisitions, status of the economy, governmental regulations, sources of
supply, expense structure, product mix, major customers, level of order flow,
competition, litigation, and other risk factors detailed in the Company's
filings with the Securities and Exchange Commission. Investors are encouraged to
consider the risks and uncertainties included in those filings.
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Electronic Tele-Communications, Inc.
Statements of Operations:
<Table>
<Caption>
(unaudited)
Three Months Ended
March 31
2003 2002
Net sales 719,944 1,109,558
Cost of products sold 441,351 542,284
Gross profit 278,593 567,274
Operating expenses:
General and administrative 182,079 192,930
Marketing and selling 218,214 273,822
Research and development 235,998 234,824
636,291 701,576
Earnings (loss) from operations (357,698) (134,302)
Other income (expense) (892) (1,130)
Earnings (loss) before
income taxes (358,590) (135,432)
Income taxes 1,000 1,000
Net earnings (loss) (359,590) (136,432)
Basic and diluted earnings (loss) per share:
Class A common (0.14) (0.05)
Class B common (0.14) (0.05)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147
</Table>
Selected Balance Sheet Data:
<Table>
<Caption>
(unaudited)
Mar 31 Dec 31
2003 2002
Current assets 1,953,141 2,060,129
Total assets 3,350,932 3,558,200
Current liabilities 965,744 797,753
Total liabilities 1,304,770 1,152,448
Stockholders' equity 2,046,162 2,405,752
</Table>
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