WAUKESHA, Wis.--(BUSINESS WIRE)--Electronic Tele-Communications, Inc. (ETC)(Pink Sheets: ETCIA) today reported its second quarter 2014 results. Sales for the quarter were $451,262 compared to $489,259 for the 2013 second quarter. The net earnings for the quarter were $6,163 or $0.00 per Class A common share, compared to earnings of $108,054 or $0.04 per Class A common share for the second quarter of 2013.
Sales for the first six months of 2014 were $943,997 compared to sales of $925,123 in the first six months of 2013. Earnings for the first six months of 2014 were $22,247 or $0.01 per Class A common share, compared to earnings of $108,187 or $0.04 per Class A common share for the first six months of 2013.
Results for the three and six months ended June 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for both periods. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan. Without the investment gain, the net income for the three and six months ended June 30, 2013 would have been $17,979 and $18,112 respectively, or $.01 per Class A share.
Commenting on the results, ETC President Dean Danner said, “Sales slowed slightly in the second quarter but were still ahead of 2013 for the first six months of 2014. Earnings were impacted by lower margins on system sales partially offset by lower operating expenses. ETC anticipates that the second half of 2014 will continue to generate positive earnings in spite of product certification expenses expected in the second half of the year.”
Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.
From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the adverse effects of the recent worldwide recession and the timing and strength of a subsequent recovery, the Company’s ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, government regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.
|Electronic Tele-Communications, Inc.|
|Statements of Operations:|
|Three Months Ended||
Six Months Ended
|June 30||June 30|
|Cost of products sold||247,678||246,444||515,336||473,325|
|General and administrative||80,309||86,346||161,292||162,983|
|Marketing and selling||56,811||65,377||117,581||118,810|
|Research and development||54,432||67,348||115,838||139,170|
|Earnings (loss) from operations||12,032||23,744||33,950||30,835|
|Other income (expense)||(5,869||)||84,310||(11,703||)||77,352|
|Earnings (loss) before|
|Net earnings (loss)||6,163||108,054||22,247||108,187|
|Basic and diluted earnings (loss) per share:|
|Class A common||0.00||0.04||0.01||0.04|
|Class B common||0.00||0.04||0.01||0.04|
|Weighted average shares outstanding|
|for basic and diluted||2,509,147||2,509,147||2,509,147||2,509,147|
|Selected Balance Sheet Data:|
|Jun 30||Dec 31|