WAUKESHA, Wis.--(BUSINESS WIRE)--Electronic Tele-Communications, Inc. (ETC) (Pink Sheets: ETCIA) today reported its fourth quarter 2014 results. Sales for the quarter were $256,165 compared to $431,846 for the 2013 fourth quarter. The net loss for the quarter was $51,678 or $0.02 per Class A common share, compared to net earnings of $35,696 or $0.01 per Class A common share for the fourth quarter of 2013.
Sales for the 2014 year were $1,476,748 compared to 2013 sales of $1,715,142. The net loss for 2014 was $97,135 or $0.04 per Class A common share, compared to earnings of $147,511 or $0.06 per Class A common share for 2013.
Commenting on the results, ETC President Dean Danner said, “2014 was a disappointing year for ETC. Sales lagged 2013 and resulted in a loss for the year after 3 years of positive earnings. In spite of the loss, ETC was able to maintain the general level of our back rent due to an affiliate which continues as our primary liability. Our public telephone network markets stabilized early in the year but slowed significantly as the year progressed. At the same time our government market also slowed down as the mid-term elections brought in congressional change and budget uncertainty. As we enter 2015 we do not expect improvement in either the government market or the public telephone market in the near term. We anticipate a tough 2015 year in both sales and earnings and are taking steps to reduce expenses including but not limited to employment expenses.”
Danner continued, “In June 2015 I will turn 65 and intend to step down as President of ETC. This is not a recent decision, but one that has been planned for many years. At the next Board of Director’s meeting in May, Elizabeth Danner will be nominated to become President of ETC effective July 1, 2015. I will be nominated to become Chairman of the Board and will assume a part time consultant’s role with the Company. ETC is a great Company with wonderful people working for it. I look forward to the future of ETC under Elizabeth’s guidance.”
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 and Comprehensive Income (Loss):|
|Three Months Ended||Twelve Months Ended|
|December 31||December 31|
|Cost of products sold||123,559||209,389||778,152||864,910|
|General and administrative||70,848||65,430||311,899||293,562|
|Marketing and selling||48,800||53,879||219,018||220,482|
|Research and development||58,625||61,412||241,222||253,864|
|Earnings (loss) from operations||(45,667||)||41,736||(73,543||)||82,324|
|Other income (expense)||(6,011||)||(6,040||)||(23,592||)||65,187|
|Earnings (loss) before|
|Net earnings (loss)||(51,678||)||35,696||(97,135||)||147,511|
|Other comprehensive income (loss),|
|net of tax||0||0||0||0|
|Total comprehensive income (loss)||(51,678||)||35,696||(97,135||)||147,511|
|Basic and diluted earnings (loss) per share:|
|Class A common||(0.02||)||0.01||(0.04||)||0.06|
|Class B common||(0.02||)||0.01||(0.04||)||0.06|
|Weighted average shares outstanding|
|for basic and diluted||2,509,147||2,509,147||2,509,147||2,509,147|
|Selected Balance Sheet Data:|
|Dec 31||Dec 31|
|Stockholders' equity (deficit)||(462,473||)||(365,338||)|