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Technical Communications Corporation Reports Results for the Three and Nine Months Ended June 29, 2019

CONCORD, Mass., Aug. 09, 2019 (GLOBE NEWSWIRE) -- Technical Communications Corporation (TCCO) today announced its results for the three and nine month periods ended June 29, 2019. For the three months ended June 29, 2019, the Company reported a net loss of $(326,000), or $(0.18) per share, on revenue of $1,235,000, compared to a net loss of $(450,000), or $(0.24) per share, on revenue of $907,000 for the quarter ended June 30, 2018.  For the nine months ended June 29, 2019, the Company reported a net loss of $(401,000), or $(0.22) per share, on revenue of $4,275,000, compared to a net loss of $(1,221,000), or $(0.66) per share, on revenue of $2,548,000 for the nine months ended June 30, 2018. The Company restated its unaudited consolidated financial statements as of and for the three and nine months ended June 30, 2018; the information set forth herein reflects such restatements.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC said, “During the Company’s third quarter ended June 29, 2019, we achieved some improvement in our financial performance. The Company is in the final stages of completing a significant engineering services contract received in fiscal 2017. In addition, we began initial shipments during the third fiscal quarter under orders we received valued at $2.7 million from ADS, Inc. for the company’s DSP9000 and HSE6000 voice encryption systems. We expect to ship the majority of the remaining items during our fourth fiscal quarter ending September 28, 2019.”

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 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
  06/29/2019  06/30/2018
    (As restated)
Net revenue   $ 1,235,000     $ 907,000  
Gross profit     445,000       194,000  
S, G and A expense     732,000       522,000  
Product development costs     43,000       124,000  
Operating loss     (330,000 )     (452,000 )
Net loss     (326,000 )     (450,000 )
Net loss per share:    
Basic   $ (0.18 )   $ (0.24 )
Diluted   $ (0.18 )   $ (0.24 )


  Nine Months Ended
  06/29/2019 06/30/2018
    (As restated)
Net revenue   $ 4,275,000     $ 2,548,000  
Gross profit     1,644,000       729,000  
S, G and A expense     1,872,000       1,513,000  
Product development costs     187,000       442,000  
Operating loss     (414,000 )     (1,226,000 )
Net loss     (401,000 )     (1,221,000 )
Net loss per share:    
Basic   $ (0.22 )   $ (0.66 )
Diluted   $ (0.222 )   $ (0.66 )

Condensed consolidated balance sheets

  06/29/2019 09/29/2018
  (Unaudited) (derived from audited
    financial statements)
Cash and cash equivalents   $ 765,000     $ 1,982,000  
Accounts receivable - trade     44,000       560,000  
Inventory, net     1,082,000       1,369,000  
Other current assets     123,000       142,000  
Total current assets     2,014,000       4,053,000  
Property and equipment, net      44,000       49,000  
Total assets   $ 2,058,000     $ 4,102,000  
Accounts payable   $ 318,000     $ 188,000  
Deferred revenue     338,000       2,107,000  
Accrued expenses and other current liabilities     227,000       274,000  
Total current liabilities     883,000       2,569,000  
Total stockholders’ equity     1,175,000       1,533,000  
Total liabilities and stockholders’ equity   $ 2,058,000     $ 4,102,000  

Technical Communications Corporation
100 Domino Drive
Concord, MA 01742 – 2892

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