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Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 28, 2019
[December 09, 2019]

Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 28, 2019


CONCORD, Mass., Dec. 09, 2019 (GLOBE NEWSWIRE) -- Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and quarter ended September 28, 2019. For the quarter ended September 28, 2019, the Company reported net income of $1,032,000, or $0.56 per share, on revenue of $2,749,000, compared to a net loss of $(259,000), or $(0.14) per share, on revenue of $1,137,000 for the quarter ended September 29, 2018. For the year ended September 28, 2019, the Company reported net income of $631,000, or $0.34 per share, on revenue of $7,024,000, compared to a net loss of $(1,480,000), or $(0.80) per share, on revenue of $3,685,000 for the year ended September 29, 2018.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, “The Company experienced a return to profitability in fiscal year 2019.  The Company completed delivery of several foreign and domestic contracts for its DSP 9000/HSE 6000 radio encryption products.  It also provided significant engineering services under contracts that were completed in fiscal 2019.

“Offering high-end custom cryptographic services and solutions is an established market niche for the Company and we believe an important competitive differentiator. In fiscal 2019, custom TCC equipment and services continued to provide recurring revenue opportunities within the Company’s established government systems product line; such equipment sales consisted primarily of our DSP 9000/HSE 6000 radio encryption and digital encryption CX7211 products, along with custom solution engineering services.”

About Technical Communications Corporation

For over 50 years, TCC has specialized in superior-grade secure communications systems and customized solutions, supporting our CipherONE® best-in-class criteria, to protect highly sensitive voice, data and video transmitted over a wide range of networks. Government entities, military agencies and corporate enterprises in 115 countries have selected TCC's proven security to protect their communications. Learn more: www.tccsecure.com.

Statements made in this press release or as may otherwise be incorporated by reference herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to statements regarding anticipated operating results, future earnings, and the ability to achieve growth and profitability. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including but not limited to the effect of foreign political unrest; domestic and foreign government policies and economic conditions; future changes in export laws or regulations; changes in technology; the ability to hire, retain and motivate technical, management and sales personnel; the risks associated with the technical feasibility and market acceptance of new products; changes in telecommunications protocols; the effects of changing costs, exchange rates and interest rates; and the Company's ability to secure adequate capital resources. Such risks, uncertainties and other factors could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of the risks facing the Company, see the Company’s filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for the quarters ended June 29, 2019, March 30, 2019 and December 29, 2018 and its Annual Report on Form 10-K for the fiscal year ended September 29, 2018 and the “Risk Factors” section included therein.


Technical Communications Corporation

     Condensed consolidated statements of operations

 Quarter Ended
 
 09/28/2019
09/29/2018
 
 (Unaudited) 
(derived from audited
financial statements)
 
Net sales$2,749,000$1,137,000  
Gross profit 1,714,000 243,000  
S, G & A expense 536,000 428,000  
Product development costs 146,000 78,000  
Operating income (loss) 1,032,000 (263,000) 
Net income (loss) 1,032,000 (259,000) 
Net income (loss) per share:      
Basic$0.56$(0.14) 
Diluted$0.56$(0.14) 




 Year Ended
 
 09/28/201909/29/2018 
 (Unaudited)(derived from audited
financial statements)
 
Net sales$7,024,000$3,685,000  
Gross profit 3,358,000 972,000  
S, G & A expense 2,407,000 1,941,000  
Product development costs 333,000 521,000  
Operating income (loss) 618,000 (1,490,000) 
Net income (loss) 631,000 (1,480,000) 
Net income (loss) per share:      
Basic$0.34$(0.80) 
Diluted$0.34$(0.80) 


     Condensed consolidated balance sheets


       
 09/28/2019 09/29/2018  
 (Unaudited)(derived from audited
financial statements)

 
Cash and marketable securities$1,593,000$1,982,000  
Accounts receivable - trade 126,000 559,000  
Inventory 1,042,000 1,369,000  
Other current assets  118,000  142,000  
Total current assets 2,879,000 4,053,000  
Property and equipment, net   38,000  49,000  
       
Total assets$ 2,917,000$  4,102,000  
       
Accounts payable$355,000$188,000  
Accrued expenses and other current liabilities 342,000 274,000  
Deferred revenue  -  2,107,000  
Total current liabilities 697,000 2,569,000  
Total stockholders’ equity  2,220,000  1,533,000  
Total liabilities and stockholders’ equity$ 2,917,000$ 4,102,000  
       

Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com


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