WAUKESHA, Wis.--(BUSINESS WIRE)--Electronic Tele-Communications, Inc. (ETC) (Pink Sheets: ETCIA) today reported its first quarter 2015 results. Sales for the quarter were $183,110 compared to $492,735 for the 2014 first quarter. The net loss for the quarter was $170,547 or $0.07 per Class A common share, compared to net earnings of $16,084 or $0.01 per Class A common share for the first quarter of 2014.
Commenting on the results, ETC President Dean Danner said, “The drop in sales in both our public telecom and government equipment markets, as previously disclosed in our fourth quarter 2014 earnings release, was the primary cause of the losses in the first quarter of 2015. Until our markets return to historical levels ETC will be under financial pressure to reduce operating expenses. However, we intend to continue the work necessary to obtain product certifications required to supply our flagship products to several large communication service providers.”
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: | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| March 31 | ||||||
| 2015 | 2014 | |||||
| Net sales | 183,110 | 492,735 | ||||
| Cost of products sold | 121,216 | 267,658 | ||||
| Gross profit | 61,894 | 225,077 | ||||
| Operating expenses: | ||||||
| General and administrative | 78,524 | 80,983 | ||||
| Marketing and selling | 47,155 | 60,770 | ||||
| Research and development | 100,378 | 61,406 | ||||
| 226,057 | 203,159 | |||||
| Earnings (loss) from operations | (164,163 | ) | 21,918 | |||
| Other income (expense) | (6,384 | ) | (5,834 | ) | ||
| Earnings (loss) before | ||||||
| income taxes | (170,547 | ) | 16,084 | |||
| Income taxes | 0 | 0 | ||||
| Net earnings (loss) | (170,547 | ) | 16,084 | |||
| Basic and diluted earnings (loss) per share: | ||||||
| Class A common | (0.07 | ) | 0.01 | |||
| Class B common | (0.07 | ) | 0.01 | |||
| Weighted average shares outstanding | ||||||
| for basic and diluted | 2,509,147 | 2,509,147 | ||||
| Selected Balance Sheet Data: | (unaudited) | |||||
| Mar 31 | Dec 31 | |||||
| 2015 | 2014 | |||||
| Current assets | 224,989 | 334,351 | ||||
| Total assets | 264,012 | 372,235 | ||||
| Current liabilities | 897,032 | 834,708 | ||||
| Total liabilities | 897,032 | 834,708 | ||||
| Stockholders' deficit | (633,020 | ) | (462,473 | ) | ||
