EX-99.1 2 a4877264ex991.txt EXHIBIT 99.1 Exhibit 99.1 TECHNICAL COMMUNICATIONS CORPORATION Reports Results for Second Fiscal Quarter Ended March 26, 2005 CONCORD, Mass.--(BUSINESS WIRE)--April 29, 2005--Technical Communications Corporation (OTC BB: TCCO.OB) today announced its results for its second quarter of fiscal 2005. The Company reported revenue of $555,000 and a net loss of $437,000, or $0.32 per share, for the quarter ended March 26, 2005, as compared to revenue of $1,106,000 and net income of $265,000, or $0.20 per share, for the same period in fiscal 2004. For the six months ended March 26, 2005, the Company reported a net loss of $319,000, or $0.24 per share, on revenue of $1,742,000, as compared to net income of $356,000, or $0.27 per share, on revenue of $2,160,000 for the same period in fiscal 2004. Commenting on corporate performance, Mr. Guild said, "Our revenues and profit performance in the second quarter of fiscal 2005, although not adequate, were consistent with our expectations as reported in our first quarter earnings release. The foreign procurement delays we had been experiencing are starting to abate and we believe both current backlog and order flow are improving. During the quarter, TCC received an amendment to an engineering services contract that is expected to generate revenue of approximately $600,000 through the end of the fiscal year. The delay in the deliveries on the significant contract originally anticipated in the second quarter has been resolved and we now expect that the product will ship by the end of the current fiscal year. The shortfall in revenues and profits is expected to continue into the third quarter with some improvement anticipated by the fourth quarter." Mr. Guild continued, "The long range view of our order pipeline suggests that future fiscal years will provide revenue opportunities that will maintain profitability. Driven by international requirements for upgraded and expanded secure communications, TCC systems are in the process of being qualified for national service in several new countries. We continue to expect that successful completion of these trials in 2005 and 2006 will establish expanded markets for TCC. However, due to the unpredictable nature of our international customers' national budgets and ordering cycles, we anticipate variability in revenues and profits on a quarter to quarter basis." The Company reported that on February 7, 2005, at its Annual Shareholders Meeting, TCC displayed its first secure wireless product, CipherTalk(TM)-8000, a high security GSM tri-band cellular phone embedded in a Pocket PC small enough to fit in your shirt pocket. The phone provides end-to-end AES encryption with public key exchange convenience. It is expected that the CipherTalk-8000 will be attractive to the many international governments, agencies and enterprises that have high-valued cellular communications. In the future, TCC expects to expand the wireless product line to both maintain a cutting edge feel and to accommodate those customers who require customized secure communications. 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 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. Statements made in this press release, including any discussion of our anticipated operating results, financial condition and earnings, including statements about the Company's ability to achieve and sustain growth and profitability, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 expressed 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 Company's Quarterly Report on Form 10-QSB for the fiscal quarter ended December 25, 2004 and the Company's Annual Report on Form 10-KSB for the fiscal year ended September 25, 2004. Technical Communications Corporation Condensed consolidated income statements Quarter ended (unaudited) 3/26/05 3/27/04 ------------ ------------ Net sales $ 555,000 $ 1,106,000 Gross profit 238,000 657,000 S, G & A expense 386,000 320,000 Product development costs 306,000 106,000 Operating income (loss) (454,000) 231,000 Net income (loss) $ (437,000) $ 265,000 Net income (loss) per share: Basic $ (0.32) $ 0.20 Diluted $ (0.32) $ 0.17 Six months ended (unaudited) 3/26/05 3/27/04 ------------ ------------ Net sales $ 1,742,000 $ 2,160,000 Gross profit 1,050,000 1,158,000 S, G & A expense 841,000 683,000 Product development costs 555,000 155,000 Operating income (loss) (346,000) 320,000 Net income (loss) $ (319,000) $ 356,000 Net income (loss) per share: Basic $ (0.24) $ 0.20 Diluted $ (0.24) $ 0.17 Condensed consolidated balance sheets 3/26/05 9/25/04 (unaudited) ------------ ------------ Cash $ 1,791,000 $ 2,238,000 Accounts receivable, net 265,000 330,000 Inventory 1,273,000 1,247,000 Other current assets 78,000 178,000 ------------ ------------ Total current assets 3,407,000 3,993,000 Property and equipment, net 110,000 77,000 ------------ ------------ Total assets $ 3,517,000 $4,070,000 ============ ============ Accounts payable $ 119,000 $ 166,000 Accrued expenses and other current liabilities 376,000 579,000 ------------ ------------ Total current liabilities 495,000 745,000 Total stockholders' equity 3,022,000 3,325,000 ------------ ------------ Total liabilities and stockholders' equity $3,517,000 $4,070,000 ============ ============ CONTACT: Technical Communications Corporation Michael P. Malone, 978-287-5100 Chief Financial Officer www.tccsecure.com