EX-99 3 a4391209_ex99.txt TECHNICAL COMMUNICATIONS EXHIBIT 99 Exhibit 99.1 Technical Communications Corporation Reports Results for Second Quarter of Fiscal 2003 CONCORD, Mass.--(BUSINESS WIRE)--May 6, 2003--Technical Communications Corporation (NASDAQ OTC BB: tcco.ob) today reported revenue of $1,015,000 and net income of $84,000 or $0.06 per share for its second fiscal quarter as compared to revenue of $714,000 and a net loss of $(459,000) or $(0.35) per share for the second quarter of fiscal 2002. For the six months ended March 29, 2003 the Company reported net income $147,000 or $0.11 per share on revenue of $2,150,000 as compared to a net loss of $(435,000) or $(0.33) per share on revenue of $2,033,000 for the same period in fiscal 2002. Commenting on the results, TCC President and CEO, Carl Guild, said, "We are encouraged by the continuing profitability of the Company through these difficult times. By reducing operating expenses and maintaining consistent revenue levels over the past three quarters we have been able to achieve this profitability. Although we are optimistic about our future, we remain cautious due to the lagging U.S. and world economy and the long term nature of our contracts." About Technical Communications Corporation TCC designs, manufactures, and supports superior grade secure communications systems that protect highly sensitive information transmitted over a wide range of data, voice and fax networks. TCC's proven security solutions protect information privacy on every continent in over 100 countries. Government agencies, militaries, financial institutions, telecommunications carriers and multinational corporations worldwide rely on TCC to protect their communications networks. Matters discussed in this news release, including any discussion of or impact, expressed or implied, on our anticipated operating results, financial condition and future earnings, including statements about the Company's ability to achieve and sustain growth and profitability, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. Such forward-looking statements, identified by the use of such terms as "anticipates", "believes", "expects", "may", "plans" and "estimates", among others, involve known and unknown risks. The Company's operating results may differ significantly from the results experienced or implied by such forward-looking statements. The Company's operating results may be affected by many factors, including but not limited to future changes in export laws or regulations, changes in technology, the effect of foreign political unrest, 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. These and other risks are detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the fiscal year ended September 28, 2002, the Form 10-QSB for the quarter ended December 28, 2002 and this Form 10-QSB for the quarter ended March 29, 2003. Technical Communications Corporation Condensed consolidated income statements Quarter ended 3/29/03 3/30/02 Net sales $ 1,015,000 $ 714,000 Gross profit 694,000 458,000 S, G & A expense 397,000 510,000 Product development costs 215,000 409,000 Operating income (loss) 82,000 (461,000) Net income (loss) $ 84,000 $ (459,000) Net income (loss) per share: Basic and diluted $ 0.06 $ (0.35) Six Months ended 3/29/03 3/30/02 Net sales $ 2,150,000 $ 2,033,000 Gross profit 1,453,000 1,275,000 S, G & A expense 836,000 1,007,000 Product development costs 476,000 719,000 Operating income (loss) 141,000 (451,000) Net income (loss) $ 147,000 $ (435,000) Net income (loss) per share: Basic and diluted $ 0.11 $ (0.33) Condensed consolidated balance sheets 3/29/03 9/28/02 Cash $ 387,000 $ 438,000 Accounts receivable, net 747,000 272,000 Inventory 1,216,000 1,371,000 Other current assets 87,000 155,000 Total current assets 2,437,000 2,236,000 Property and equipment, net 124,000 184,000 $ 2,561,000 $ 2,420,000 Accounts payable $ 120,000 $ 189,000 Accrued expenses and other current liabilities 567,000 505,000 Total current liabilities 687,000 694,000 Total stockholders' equity 1,874,000 1,726,000 $ 2,561,000 $ 2,420,000 CONTACT: Technical Communications Corporation Michael P. Malone, 978/287 5100 www.tccsecure.com