Technology Research Corporation Reports Second Quarter Financial Results

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Symbol	Price	Change
TRCI	3.60	+0.00

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CLEARWATER, Fla., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Technology Research Corporation ("TRC"), (Nasdaq:TRCI - News), today announced revenue and earnings for its second fiscal quarter ended September 30, 2009.

Revenue was $9.6 million for the fiscal quarter ended September 30, 2009, an increase of $0.3 million from revenue of $9.3 million for the fiscal quarter ended September 30, 2008. Net income for the second fiscal quarter ended September 30, 2009 was $1.2 million or $.20 per diluted common share compared with net income of $0.9 million or $0.16 per diluted common share for the fiscal quarter ended September 30, 2008.

Orders for the second fiscal quarter were $5.1 million, a decrease of $3.4 million from the same fiscal quarter last year. Military orders were $1.2 million, a decrease of $2.4 million from the second fiscal quarter of the previous year and commercial orders were $3.9 million, a decrease of $1.0 million from the second quarter of the prior year.

Net cash and cash equivalents and short-term investments were approximately $11.1 million at September 30, 2009, an increase of approximately $5.1 million from March 31, 2009. Inventories decreased approximately $1.7 million from $8.0 million at March 31, 2009 to $6.3 million at September 30, 2009.

Owen Farren, President & CEO said, "Our second fiscal quarter was strong primarily due to the timing of delivery requirements of our military business being heavily weighted to the first half of our fiscal year. This resulted in increased gross margin due to sales mix as well as improved overhead absorption related to the increased production volume.

"We anticipate that our military revenue will return to prior year levels in the second half of FY10. While we expect our operating results for the second half of FY10 will be profitable, we continue to be impacted on the commercial side by weakness in our traditional markets."

The first quarter dividend of $.02 per share was paid on October 15, 2009 to shareholders of record as of September 30, 2009.

TRC is an internationally recognized leader in electrical safety products that prevent electrocution and electrical fires and protect against serious injury from electrical shock. Based on its core technology in ground fault sensing, products are designed to meet the needs of the consumer, commercial and industrial markets worldwide. The Company also supplies power monitors and control equipment to the United States Military and its prime contractors.

The Technology Research Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6266

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Some of the statements in this report constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These statements are related to future events, other future financial performance or business strategies, and may be identified by terminology such as "may," "will," "should," "expects," "scheduled," "plans," "intends," "anticipates," "believes," "estimates," "potential," or "continue," or the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events as well as results may differ materially. In evaluating these statements, you should specifically consider the factors described throughout this report. We cannot be assured that future results, levels of activity, performance or goals will be achieved.

                  TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (In thousands, except share and per share data)
                                  (Unaudited)

                          Three Months Ended       Six Months Ended
                            September 30,           September 30,
                        ----------------------  ----------------------
                              2009        2008        2009        2008
                              ----        ----        ----        ----
 Revenue:
  Commercial            $    3,679       5,526       7,044      11,088
  Military                   5,901       3,697      12,109       6,685
  Royalty                       47          74         173         155
                        ----------  ----------  ----------  ----------
   Total revenue             9,627       9,297      19,326      17,928
 Cost of sales               5,721       5,773      11,370      11,870
                        ----------  ----------  ----------  ----------
    Gross profit             3,906       3,524       7,956       6,058
                        ----------  ----------  ----------  ----------

 Operating expenses:
  Selling and marketing        608         824       1,280       1,511
  General and
   administrative              994       1,323       1,998       2,570
  Research and
   development                 658         593       1,331       1,130
                        ----------  ----------  ----------  ----------
   Total operating
    expenses                 2,260       2,740       4,609       5,211
                        ----------  ----------  ----------  ----------
    Income from
     operations              1,646         784       3,347         847
                        ----------  ----------  ----------  ----------

 Other income
  (expense):
  Other income, net              2         362           5         380
  Interest expense              --          (4)         --          (4)
                        ----------  ----------  ----------  ----------
    Other income, net            2         358           5         376
                        ----------  ----------  ----------  ----------
 Income before income
  taxes                      1,648       1,142       3,352       1,223
 Income tax expense            431         204         920         227
                        ----------  ----------  ----------  ----------
    Net income          $    1,217         938       2,432         996
                        ==========  ==========  ==========  ==========

 Earnings per share -
  basic                 $     0.20        0.16        0.41        0.17

 Earnings per share -
  diluted               $     0.20        0.16        0.40        0.17

 Shares outstanding -
  basic                  5,891,828   5,890,828   5,891,828   5,890,828

 Shares outstanding -
  diluted                5,985,691   5,899,593   5,944,280   5,901,197

                TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                (Unaudited)

                                                   Sept. 30, March 31,
                   ASSETS                            2009      2009
                                                   --------  --------
 Current assets:
  Cash and cash equivalents                        $  7,068     2,954
  Short-term investments                              4,000     3,996
  Trade and other accounts receivable, net of
   allowance for doubtful accounts of $135 at
   September 30, 2009 and $203 at March 31, 2009      5,421     5,372
  Income taxes receivable                               261       631
  Inventories, net                                    6,306     8,013
  Deferred income taxes                                 753       622
  Prepaid expenses and other current assets             180       265
                                                   --------  --------
   Total current assets                              23,989    21,853

 Property, plant and equipment, net of accumulated
  depreciation of $10,105 and $9,852, respectively    2,736     3,189
 Intangible asset, net of accumulated amortization
   of $208 and $178, respectively                       375       404
 Deferred income taxes                                  100        --
 Other assets                                            33        33
                                                   --------  --------
    Total assets                                   $ 27,233    25,479
                                                   ========  ========

        LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
  Trade accounts payable                           $  1,351     1,309
  Unsettled treasury obligation                          --       998
  Accrued expenses                                    1,507     1,422
  Accrued dividends                                     121       121
                                                   --------  --------
   Total current liabilities                          2,979     3,850

 Income taxes payable                                   330       111
 Deferred income taxes                                   --        37
                                                   --------  --------
    Total liabilities                                 3,309     3,998

 Stockholders' equity:
  Common stock $0.51 par value; 10,000,000 shares
   authorized, 5,913,328 shares and 5,912,328
   issued and 5,891,828 shares and 5,890,828
   outstanding, respectively                          3,016     3,015
  Additional paid-in capital                         10,233     9,982
  Retained earnings                                  10,715     8,524
  Common stock held in treasury, 21,500 shares at
   cost                                                 (40)      (40)
                                                   --------  --------
   Total stockholders' equity                        23,924    21,481
                                                   --------  --------
    Total liabilities and stockholders' equity     $ 27,233    25,479
                                                   ========  ========

Technology Research Corporation
Thomas G. Archbold, Chief Financial Officer
Owen Farren, President and CEO
(727) 812-0659
Fax: (727) 535-9691
5250 140th Avenue North
Clearwater, Florida 33760
www.trci.net