WAUKESHA, Wis.--(BUSINESS WIRE)--Electronic Tele-Communications, Inc. (ETC)(Pink Sheets:ETCIA) today reports second quarter results for 2017. Sales for the quarter were $141,813 compared to $190,733 for the second quarter of 2016. The net earnings for the quarter were $2,386 or $0.00 per Class A common share, compared to a net loss of $8,211 or $0.00 per Class A common share for the second quarter of 2016.
Sales for the first six months of 2017 were $327,013, compared to $519,986 for the first six months of 2016. The net earnings for the first six months of 2017 were $23,629 or $0.01 per Class A common share, compared to $84,638 or $0.03 per Class A common share for the first six months of 2016.
ETC President Elizabeth Danner commented on the results saying, "Second quarter 2017 saw our sales lag slightly behind projections. Even so, we were still able to break even for the quarter and remain slightly profitable for 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 systems 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 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: | |||||||||||||
| (unreviewed) | (unreviewed) | ||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30 | June 30 | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||
| Net sales | 141,813 | 190,733 | 327,013 | 519,986 | |||||||||
| Cost of products sold | 65,157 | 96,374 | 151,525 | 241,020 | |||||||||
| Gross profit | 76,656 | 94,359 | 175,488 | 278,966 | |||||||||
| Operating expenses: | |||||||||||||
| General and administrative | 32,729 | 40,642 | 66,897 | 81,608 | |||||||||
| Marketing and selling | 9,503 | 30,137 | 21,760 | 48,251 | |||||||||
| Research and development | 27,239 | 26,819 | 53,656 | 54,549 | |||||||||
| 69,471 | 97,598 | 142,313 | 184,408 | ||||||||||
| Earnings (loss) from operations | 7,185 | (3,239 | ) | 33,175 | 94,558 | ||||||||
| Other income (expense) | (4,799 | ) | (4,972 | ) | (9,546 | ) | (9,920 | ) | |||||
| Earnings (loss) before | |||||||||||||
| income taxes | 2,386 | (8,211 | ) | 23,629 | 84,638 | ||||||||
| Income taxes | 0 | 0 | 0 | 0 | |||||||||
| Net earnings (loss) | 2,386 | (8,211 | ) | 23,629 | 84,638 | ||||||||
| Basic and diluted earnings (loss) per share: | |||||||||||||
| Class A common | 0.00 | 0.00 | 0.01 | 0.03 | |||||||||
| Class B common | 0.00 | 0.00 | 0.01 | 0.03 | |||||||||
| Weighted average shares outstanding | |||||||||||||
| for basic and diluted | 2,509,147 | 2,509,147 | 2,509,147 | 2,509,147 | |||||||||
| Selected Balance Sheet Data: | ||||||
| (unreviewed) | (unreviewed) | |||||
| Jun 30 | Dec 31 | |||||
| 2017 | 2016 | |||||
| Current assets | 267,752 | 297,901 | ||||
| Total assets | 281,302 | 308,364 | ||||
| Current liabilities | 661,008 | 681,699 | ||||
| Total liabilities | 811,008 | 861,699 | ||||
| Stockholders' equity | (529,706 | ) | (553,335 | ) | ||
