Technical Communications Corporation Reports Results for the Third Fiscal Quarter Ended June 27, 2009

CONCORD, Mass.--(BUSINESS WIRE)--July 31, 2009--Technical Communications Corporation (OTC BB: TCCO.OB) today announced its results for its third fiscal quarter ended June 27, 2009. For the third quarter of the Company’s 2009 fiscal year, the Company reported net income of $277,000 or $0.19 per share, on revenue of $2,087,000, as compared to net income of $186,000, or $0.13 per share, on revenue of $1,700,000 for the quarter ended June 28, 2008. For the nine months ended June 27, 2009, the Company reported net income of $708,000, or $0.49 per share, on revenue of $5,987,000 as compared to net income of $1,148,000, or $0.82 per share, on revenue of $5,648,000 for the nine months ended June 28, 2008.

Commenting on corporate performance, Mr. Carl H. Guild, Jr., President and Chief Executive Officer of TCC said, “We are very pleased with this quarter’s financial performance which showed a 24% increase in revenue and a 7% increase in net income growth when compared with the third quarter of fiscal 2008. This financial improvement was achieved while continuing our plan to expand product capabilities and market applications through new and innovative encryption solutions which can be integrated or imbedded into radio, fiber optic and satellite networks. We expect that our increased level of technology investment will continue at approximately the current rate through the balance of FY 2009 and into FY 2010. TCC’s backlog at June 27, 2009 remained strong at $6,417,000 and we expect to deliver these products and services during the remainder of 2009 and 2010.”

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 110 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, as well as statements about the Company’s ability to achieve and sustain growth and profitability and expand product lines and market share, constitute 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 results may differ significantly from the results expressed or implied by such forward-looking statements. The Company’s 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-Q for the fiscal quarters ended March 28, 2009 and December 27, 2008 and the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2008.

Technical Communications Corporation

Condensed consolidated income statements

	Three months ended
	(unaudited)

		6/27/09		6/28/08
Net sales	$	2,087,000	$	1,700,000
Gross profit		1,283,000		1,021,000
S, G & A expense		526,000		659,000
Product development costs		486,000		192,000
Operating income		271,000		170,000
Net income	$	277,000	$	186,000
Net income per share:
Basic	$	0.19	$	0.13
Diluted	$	0.17	$	0.11


	Nine months ended
	(unaudited)

		6/27/09		6/28/08
Net sales	$	5,987,000	$	5,648,000
Gross profit		3,732,000		3,564,000
S, G & A expense		1,784,000		1,709,000
Product development costs		1,277,000		780,000
Operating income		671,000		1,075,000
Net income	$	708,000	$	1,148,000
Net income per share:
Basic	$	0.49	$	0.82
Diluted	$	0.43	$	0.69

Condensed consolidated balance sheets
		6/27/09		9/27/08
	(unaudited)

Cash	$	3,966,000	$	3,623,000
Accounts receivable, net		1,116,000		722,000
Inventory, net		2,361,000		1,921,000
Other current assets		223,000		181,000
Total current assets		7,665,000		6,447,000
Equipment and leasehold improvements, net		347,000		267,000
Total assets	$	8,012,000	$	6,714,000

Accounts payable	$	261,000	$	173,000
Accrued expenses and
other current liabilities		1,291,000		863,000
Total current liabilities		1,552,000		1,036,000
Total stockholders’ equity		6,460,000		5,678,000
Total liabilities and stockholders’ equity	$	8,012,000	$	6,714,000

CONTACT:
Technical Communications Corporation
Michael P. Malone, 978-287-5100
Chief Financial Officer
www.tccsecure.com