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 2004 RESULTS
WAUKESHA, WISCONSIN, May 4, 2004
ELECTRONIC TELE-COMMUNICATIONS, INC.
OTC Bulletin Board - Symbol ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its first quarter 2004
results. Sales for the quarter were $816,673 compared to $719,944 for the 2003
first quarter. This yielded a net loss for the quarter of $95,050 or $0.04 per
Class A common share, compared to a loss of $359,590 or $0.14 per share for the
first quarter of 2003.
Commenting on the first quarter results, ETC President Dean Danner said, "Sales
in the first quarter of 2004 were still slow, but improved over the last quarter
and improved over the first quarter of last year. We believe the modest sales
improvement, coupled with an increase in proposal activity, is an indication
that our industry segment is again attempting a recovery. We continue to believe
that there is pent-up need for the types of products we manufacture, and are
optimistic that the increase in activity will lead to an increase in spending to
satisfy those needs."
"The first quarter's sales included the sale of some inventory previously
manufactured. Use of existing inventory coupled with our line of credit enabled
ETC to meet our cash flow needs. The balance sheet reflects an increase in
accounts receivable and a decrease in inventory, both a result of the improved
sales in the quarter. Our overhead expenses are down slightly from last year and
we continue to have minimal debt. We believe ETC is positioned for improvement
in 2004 as sales in our market segment improve."
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)
Three Months Ended
March 31
2004 2003
Net sales 816,673 719,944
Cost of products sold 452,386 441,351
Gross profit 364,287 278,593
Operating expenses:
General and administrative 163,835 182,079
Marketing and selling 185,893 218,214
Research and development 107,518 235,998
457,246 636,291
Earnings (loss) from operations (92,959) (357,698)
Other income (expense) (1,091) (892)
Earnings (loss) before
income taxes (94,050) (358,590)
Income taxes 1,000 1,000
Net earnings (loss) (95,050) (359,590)
Basic and diluted earnings (loss) per share:
Class A common (0.04) (0.14)
Class B common (0.04) (0.14)
Weighted average shares outstanding
for basic and diluted 2,509,147 2,509,147
Selected Balance Sheet Data:
(unaudited)
Mar 31 Dec 31
2004 2003
Current assets 1,474,673 1,512,830
Total assets 2,667,311 2,734,197
Current liabilities 828,621 778,289
Total liabilities 1,072,474 1,044,310
Stockholders' equity 1,594,837 1,689,887
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