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 SECOND QUARTER 2003 RESULTS
WAUKESHA, WISCONSIN, July 15, 2003
ELECTRONIC TELE-COMMUNICATIONS, INC.
OTC Bulletin Board - Symbol ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its second quarter
2003 results. Sales for the quarter were $628,466 compared to $1,300,470 for the
2002 second quarter. This yielded a net loss for the quarter of $238,829 or
$0.10 per Class A common share, compared to a profit of $27,811 or $0.01 per
share for the second quarter of 2002.
Commenting on the second quarter results, ETC President Dean Danner said, "Sales
in the second quarter of 2003 continued to reflect steady lease revenues and
limited equipment sales. We have seen an increase in equipment proposals, but
this did not result in firm orders in the second quarter."
"Additional cost reduction measures implemented during the first quarter helped
ETC reduce its quarterly losses. At the same time, we continued to release
additional features on the Emcee system in the quarter, although at a slower
pace than we would like. The Emcee is our premier announcement application
platform, merging traditional telephony with next generation IP technology. ETC
believes it must remain committed to the on-going development of the Emcee
product family to meet the developing needs of the industry and to position ETC
to take advantage of the pent-up demand in 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:
(unaudited) (unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Net sales 628,466 1,300,470 1,348,410 2,410,028
Cost of products sold 383,342 567,326 824,693 1,109,610
Gross profit 245,124 733,144 523,717 1,300,418
Operating expenses:
General and administrative 162,527 181,539 344,606 374,469
Marketing and selling 191,525 302,849 409,739 576,671
Research and development 126,317 218,339 362,315 453,163
480,369 702,727 1,116,660 1,404,303
Earnings (loss) from operations (235,245) 30,417 (592,943) (103,885)
Other income (expense) (2,584) (1,606) (3,476) (2,736)
Earnings (loss) before
income taxes (237,829) 28,811 (596,419) (106,621)
Income taxes 1,000 1,000 2,000 2,000
Net earnings (loss) (238,829) 27,811 (598,419) (108,621)
Basic and diluted earnings (loss) per share:
Class A common (0.10) 0.01 (0.24) (0.04)
Class B common (0.10) 0.01 (0.24) (0.04)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147
Selected Balance Sheet Data:
(unaudited)
Jun 30 Dec 31
2003 2002
Current assets 1,783,331 2,060,129
Total assets 3,099,150 3,558,200
Current liabilities 968,460 797,753
Total liabilities 1,291,817 1,152,448
Stockholders' equity 1,807,333 2,405,752
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