UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported) |
December 9, 2013 |
Technical Communications Corporation |
(Exact name of registrant as specified in its charter) |
Massachusetts |
001-34816 |
04-2295040 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
100 Domino Drive, Concord, MA |
01742 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code |
(978) 287-5100 |
Not Applicable |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 |
Results of Operations and Financial Condition. |
On December 9, 2013, Technical Communications Corporation announced its financial results for the fiscal year and quarter ended September 28, 2013. A copy of the press release dated December 9, 2013 describing such results is attached as Exhibit 99.1 to this report and incorporated herein.
Item 9.01 |
Financial Statements and Exhibits. |
a. |
Financial statements of business acquired. Not applicable. |
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b. |
Pro forma financial information. Not applicable. |
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c. |
Shell company transactions. Not applicable |
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d. |
Exhibits. |
The following exhibit is furnished pursuant to Item 2.02 hereof, and the information contained in this report and such exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly stated therein. |
Exhibit No. |
Title |
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99.1 |
Press Release dated December 9, 2013 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Technical Communications Corporation |
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Dated: |
December 9, 2013 | By: |
/s/ Carl H. Guild, Jr. |
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Carl H. Guild, Jr. |
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President and Chief Executive Officer |
Exhibit 99.1
Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 28, 2013
CONCORD, Mass.--(BUSINESS WIRE)--December 9, 2013--Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and quarter ended September 28, 2013. For the quarter ended September 28, 2013, the Company reported net income of $446,000, or $0.24 per share, on revenue of $3,138,000, as compared to a net loss of $(489,000), or $(0.27) per share, on revenue of $1,326,000 for the quarter ended September 29, 2012. For the year ended September 28, 2013, the Company reported a net loss of $(714,000), or $(0.39) per share, on revenue of $6,250,000, as compared to a net loss of $(841,000), or $(0.46) per share, on revenue of $8,117,000 for the year ended September 29, 2012.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, “Sales from the previously announced major production contract awarded in May 2013 by the U.S. Army Communications and Electronics Command for the Government of Egypt increased revenues to a profitable level in the fourth quarter of fiscal 2013. The delay in receiving this contract, however, had a negative impact on our year-end results. At the same time, I am pleased to report that we began fiscal 2014 with a $2.28 million backlog.”
Mr. Guild continued, “The majority of our sales continue to be foreign government procurements, which are affected by the stability of foreign governments, foreign and domestic economic conditions, government regulations, and other factors. As a result, our business is often subject to unpredictable and erratic delays in the processing of procurements and delivery of products, which challenge both our sales capture teams and our production capabilities.”
“We believe we have a competitive product portfolio designed to meet increasing demand for high-end communications security solutions in select applications. To take advantage of the potential market opportunity, we expect to continue to increase our sales and marketing efforts. With our major new product development programs now complete, technical development efforts will focus on solutions for original equipment manufacturers and evolving our products to meet new application requirements,” added Mr. Guild.
Fiscal Year 2013 Highlights
About Technical Communications Corporation
For over 50 years, TCC has specialized in superior-grade secure communications systems and customized solutions, supporting our CipherONE® best-in-class criteria, to protect highly sensitive voice, data and video transmitted over a wide range of networks. Government entities, military agencies and corporate enterprises in 115 countries have selected TCC's proven security to protect their communications. Learn more: www.tccsecure.com.
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 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, the effect of foreign political unrest, domestic and foreign government policies and economic conditions, changes in technology, 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 its Quarterly Reports on Form 10-Q for the quarters ended June 29, 2013, March 30, 2013 and December 29, 2012 and the Company's Annual Report on Form 10-K for the fiscal year ended September 29, 2012.
Technical Communications Corporation |
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Condensed consolidated income statements |
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Quarter Ended |
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(Unaudited) |
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09/28/2013 |
09/29/2012 |
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Net sales | $ 3,138,000 | $ 1,326,000 | |||||||
Gross profit | 1,956,000 | 1,067,000 | |||||||
S, G & A expense | 747,000 | 785,000 | |||||||
Product development costs | 499,000 | 1,122,000 | |||||||
Operating income (loss) | 711,000 | (840,000) | |||||||
Income tax expense (benefit ) | 270,000 | (344,000) | |||||||
Net income (loss) | 446,000 | (489,000) | |||||||
Net income (loss) per share: | |||||||||
Basic | $ 0.24 | $ (0.27) | |||||||
Diluted | $ 0.24 | $ (0.27) | |||||||
Year Ended |
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09/28/2013 |
09/29/2012 financial statements) |
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Net sales |
$ 6,250,000 |
$ 8,117,000 |
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Gross profit | 4,140,000 | 6,278,000 | |||||||
S, G & A expense | 2,956,000 | 3,310,000 | |||||||
Product development costs | 2,729,000 | 4,421,000 | |||||||
Operating loss | (1,546,000) | (1,453,000) | |||||||
Income tax benefit | (799,000) | (597,000) | |||||||
Net loss | (714,000) | (841,000) | |||||||
Net loss per share: | |||||||||
Basic | $ (0.39) | $ (0.46) | |||||||
Diluted | $ (0.39) | $ (0.46) | |||||||
Condensed consolidated balance sheets |
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09/28/2013
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09/29/2012 financial statements) |
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Cash and marketable securities | $ 6,044,000 | $ 6,725,000 | |||||||
Accounts receivable, net | 1,376,000 | 1,381,000 | |||||||
Inventory | 2,619,000 | 2,633,000 | |||||||
Deferred & refundable income taxes | 1,618,000 | 1,477,000 | |||||||
Other current assets | 225,000 | 171,000 | |||||||
Total current assets | 11,882,000 | 12,387,000 | |||||||
Property and equipment, net | 469,000 | 453,000 | |||||||
Total assets | $ 12,351,000 | $ 12,840,000 | |||||||
Accounts payable | 262,000 | 167,000 | |||||||
Accrued expenses and other current liabilities | 667,000 | 546,000 | |||||||
Total current liabilities | 929,000 | 713,000 | |||||||
Total stockholders’ equity | 11,422,000 | 12,127,000 | |||||||
Total liabilities and stockholders’ equity | $ 12,351,000 | $ 12,840,000 |
CONTACT:
Technical Communications Corporation
Michael P. Malone,
978-287-5100
Chief Financial Officer
www.tccsecure.com