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 THIRD QUARTER 2003 RESULTS
WAUKESHA, WISCONSIN, October 21, 2003
ELECTRONIC TELE-COMMUNICATIONS, INC.
OTC Bulletin Board - Symbol ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2003
results. Sales for the quarter were $1,098,163 compared to $728,375 for the 2002
third quarter. Net income was $102,292 for the quarter or $0.04 per Class A
common share, compared to a loss of $235,356 or $0.09 per share for the third
quarter of 2002. For the nine month period in 2003 ETC lost $496,127 on sales of
$2,446,573, compared to a 2002 loss of $343,977 on sales of $3,138,403.
Commenting on the third quarter results, ETC President Dean Danner said,
"Equipment sales improved in the third quarter to their strongest level in over
a year. Improved equipment sales coupled with steady lease revenues and
continued cost controls enabled ETC to generate a profit for the quarter. We are
seeing an increase in equipment proposals, some of which resulted in firm orders
in the third quarter."
"Although ETC was profitable in the third quarter, it was not enough to offset
the effects of low sales in the first half of 2003," Danner said. "ETC is
continuing to control expenses, while trying to broaden our customer mix and
improve our product offerings. In addition to other efforts, ETC is exhibiting
in the USA pavilion at the International Telecom show in Geneva which only
occurs every 4 years. Our Emcee product has multi-lingual capability and is
compatible with many international telephone switches."
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 Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Net sales 1,098,163 728,375 2,446,573 3,138,403
Cost of products sold 529,012 436,990 1,353,705 1,546,600
Gross profit 569,151 291,385 1,092,868 1,591,803
Operating expenses:
General and administrative 171,358 166,071 515,964 540,540
Marketing and selling 202,690 241,392 612,429 818,063
Research and development 90,078 182,278 452,393 635,441
464,126 589,741 1,580,786 1,994,044
Earnings (loss) from operations 105,025 (298,356) (487,918) (402,241)
Other income (expense) (1,733) 0 (5,209) (2,736)
Earnings (loss) before
income taxes 103,292 (298,356) (493,127) (404,977)
Income taxes 1,000 (63,000) 3,000 (61,000)
Net earnings (loss) 102,292 (235,356) (496,127) (343,977)
Basic and diluted earnings (loss) per share:
Class A common 0.04 (0.09) (0.20) (0.14)
Class B common 0.04 (0.09) (0.20) (0.14)
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)
Sep 30 Dec 31
2003 2002
Current assets 1,832,582 2,060,129
Total assets 3,102,977 3,558,200
Current liabilities 885,663 797,753
Total liabilities 1,193,352 1,152,448
Stockholders' equity 1,909,625 2,405,752
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