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 10, 2018
Technical Communications Corporation
(Exact Name of Registrant as Specified in Charter)
| Massachusetts | 001-34816 | 04-2295040 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 100 Domino Drive, Concord, MA 01742 |
| (Address of Principal Executive Offices) (Zip Code) |
(978) 287-5100
(Registrant's telephone number, including area code)
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)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On December 10, 2018, Technical Communications Corporation announced its financial results for the fiscal year and quarter ended September 29, 2018. A copy of the press release dated December 10, 2018 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 businesses acquired. Not applicable. b. Pro forma financial information. Not applicable. c. Shell company transactions. Not applicable 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 99.1 Press Release dated December 10, 2018
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 | ||
| Date: December 10, 2018 | By: | /s/ Carl H. Guild, Jr. |
| Carl H. Guild, Jr. | ||
| President and Chief Executive Officer | ||
EXHIBIT 99.1
Technical Communications Corporation Reports Results for the Fiscal Year and Quarter Ended September 29, 2018
CONCORD, Mass., Dec. 10, 2018 (GLOBE NEWSWIRE) -- Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and quarter ended September 29, 2018. For the quarter ended September 29, 2018, the Company reported net income of $228,000, or $0.12 per share, on revenue of $1,717,000, compared to a net loss of $(518,000), or $(0.28) per share, on revenue of $1,125,000 for the quarter ended September 30, 2017. For the year ended September 29, 2018, the Company reported net income of $105,000, or $0.06 per share, on revenue of $5,307,000, compared to a net loss of $(1,429,000), or $(0.78) per share, on revenue of $4,209,000 for the year ended September 30, 2017.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, “The Company experienced a return to profitability in fiscal year 2018. While expected major domestic and international contracts did not materialize during the fiscal year due to long government procurement cycles, the Company did complete delivery of several foreign and domestic contracts for its DSP 9000/HSE 6000 radio encryption products. It also provided significant engineering services under contracts received in the first quarter of fiscal 2017 and an additional contract received in the third quarter of fiscal 2018.
Offering high-end custom cryptographic services and solutions is an established market niche for the Company and we believe an important competitive differentiator. In fiscal 2018, custom TCC equipment and services continued to provide recurring revenue opportunities within the Company’s established government systems product line; such equipment sales consisted primarily of the DSP 9000/HSE 6000 radio encryption and digital encryption CX7211 products, along with custom solution engineering services.
The market for high-end communications security systems is competitive and subject to long government procurement cycles, unpredictable order fulfillment lead times and fluctuating market conditions. While TCC has a pipeline of potential contracts and initiatives in development, the timing and outcome of these potential contracts is unknown. As such, in fiscal 2018, TCC continued to closely monitor and reduce operating expenses as appropriate, while strategically investing in business development efforts.”
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 or as may otherwise be incorporated by reference herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to statements regarding anticipated operating results, future earnings, and the ability to achieve growth and profitability. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including but not limited to the effect of foreign political unrest; domestic and foreign government policies and economic conditions; future changes in export laws or regulations; 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. Such risks, uncertainties and other factors could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of the risks facing the Company, see the Company’s filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for the quarters ended December 30, 2017, March 31, 2018 and June 30, 2018 and its Annual Report on Form 10-K for the fiscal year ended September 30, 2017 filed with the Commission and the “Risk Factors” section included therein.
| Technical Communications Corporation | ||
| Condensed consolidated statements of operations | ||
| Quarter Ended | ||
| 09/29/2018 | 09/30/2017 | |
| (Unaudited) | (derived from audited | |
| financial statements) | ||
| Net sales | $ 1,717,000 | $ 1,125,000 |
| Gross profit | 836,000 | 162,000 |
| S, G & A expense | 481,000 | 476,000 |
| Product development costs | 132,000 | 206,000 |
| Operating income (loss) | 223,000 | (520,000) |
| Net income (loss) | 228,000 | (518,000) |
| Net income (loss) per share: | ||
| Basic | $ 0.12 | $ (0.28) |
| Diluted | $ 0.12 | $ (0.28) |
| Year Ended | ||
| 09/29/2018 | 09/30/2017 | |
| (Unaudited) | (derived from audited | |
| financial statements) | ||
| Net sales | $ 5,307,000 | $ 4,209,000 |
| Gross profit | 2,636,000 | 2,291,000 |
| S, G & A expense | 1,994,000 | 2,145,000 |
| Product development costs | 547,000 | 1,584,000 |
| Operating income (loss) | 95,000 | (1,438,000) |
| Net income (loss) | 105,000 | (1,429,000) |
| Net income (loss) per share: | ||
| Basic | $ 0.06 | $ (0.78) |
| Diluted | $ 0.06 | $ (0.78) |
| Condensed consolidated balance sheets | ||
| 09/29/2018 | 09/30/2017 | |
| (Unaudited) | (derived from audited | |
| financial statements) | ||
| Cash and marketable securities | $ 1,982,000 | $ 1,657,000 |
| Accounts receivable - trade | 559,000 | 730,000 |
| Inventory | 1,369,000 | 1,358,000 |
| Other current assets | 143,000 | 136,000 |
| Total current assets | 4,053,000 | 3,881,000 |
| Property and equipment, net | 49,000 | 54,000 |
| Total assets | $ 4,102,000 | $ 3,935,000 |
| Accounts payable | $ 173,000 | $ 109,000 |
| Accrued expenses and other current liabilities | 327,000 | 326,000 |
| Total current liabilities | 500,000 | 435,000 |
| Total stockholders’ equity | 3,602,000 | 3,500,000 |
| Total liabilities and stockholders’ equity | $ 4,102,000 | $ 3,935,000 |
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com