Technical Communications Corporation Reports Results for the Quarter and Nine Months Ended June 27, 2020
Technical Communications Corporation (TCCO) reported a net loss of $(482,000), or $(0.26) per share for Q3 of 2020, with revenues at $599,000, down from $1,234,000 in Q3 2019. For the nine months ending June 27, 2020, net loss was $(1,324,000), or $(0.72) per share, compared to $(401,000) loss on $4,275,000 revenue in the same period last year. Ongoing COVID-19 pandemic delays impacted project timelines. Despite these challenges, TCCO is preparing to boost business development efforts and is fulfilling a foreign military contract for DSP 9000 and HSE 6000 radio security equipment, expected by September 2020.
- TCCO is fulfilling a foreign military sales contract for DSP 9000 and HSE 6000 radio security equipment.
- Delivery of the military contract equipment is expected by the end of September 2020.
- Net loss increased to $(482,000) for Q3 2020, compared to $(326,000) in Q3 2019.
- Revenue decreased to $599,000 in Q3 2020 from $1,234,000 in the same quarter last year.
- For the nine months ended June 27, 2020, TCCO's net loss rose to $(1,324,000) from $(401,000) in the previous year.
- Ongoing project delays due to COVID-19 have slowed progress and hindered business development.
CONCORD, Mass., Aug. 07, 2020 (GLOBE NEWSWIRE) -- Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the quarter and nine months ended June 27, 2020. For the quarter ended June 27, 2020, the Company reported a net loss of
Carl H. Guild Jr., President and CEO of Technical Communications Corporation, commented, “As stated in our previous quarter’s earnings report, the COVID-19 pandemic had delayed several projects that are in the pipeline, and those delays continue with some limited progress toward the resumption of the procurement process. At this point, the inability to conduct in-person meetings and demonstrations is slowing progress. We do see that certain countries are beginning to open up, and TCC is preparing to increase its level of business development pursuit as soon as it is allowed and safe.
TCC is currently producing DSP 9000 and HSE 6000 radio security equipment for a foreign military sales contract that was received in May, 2020. It is expected that most of that equipment will be delivered by the end of September 2020. This contract is the second annual tranche in a multi-year procurement.”
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 Annual Report on Form 10-K for the fiscal year ended September 28, 2019 and its Quarterly Reports on Form 10-Q for the quarters ended March 28, 2020 and December 28, 2019 and the “Risk Factors” sections included therein.
Technical Communications Corporation
Condensed consolidated statements of operations
| Quarter Ended | ||||||
| 6/27/2020 (Unaudited) | 6/29/2019 (Unaudited) | |||||
| Net revenue | $ 599,000 | $ 1,234,000 | ||||
| Gross profit | 355,000 | 445,000 | ||||
| S, G & A expense | 505,000 | 732,000 | ||||
| Product development costs | 332,000 | 43,000 | ||||
| Operating loss | (483,000) | (329,000) | ||||
| Net loss | (482,000) | (326,000) | ||||
| Net loss per share: | ||||||
| Basic | ||||||
| Diluted | ||||||
| Nine Months Ended | ||||||
| 6/27/2020 (Unaudited) | 6/29/2019 (Unaudited) | |||||
| Net revenue | $ 1,987,000 | $ 4,275,000 | ||||
| Gross profit | 973,000 | 1,644,000 | ||||
| S, G & A expense | 1,603,000 | 1,872,000 | ||||
| Product development costs | 695,000 | 187,000 | ||||
| Operating loss | (1,325,000) | (414,000) | ||||
| Net loss | (1,324,000) | (401,000) | ||||
| Net loss per share: | ||||||
| Basic | ||||||
| Diluted | ||||||
Condensed consolidated balance sheets
| 6/27/2020 (Unaudited) | 9/28/2019 (derived from audited financial statements) | |||
| Cash and cah equivalents | $ 961,000 | $ 1,593,000 | ||
| Accounts receivable - trade | 50,000 | 126,000 | ||
| Inventory | 1,136,000 | 1,042,000 | ||
| Other current assets | 148,000 | 118,000 | ||
| Total current assets | 2,295,000 | 2,879,000 | ||
| Property and equipment, net | 21,000 | 38,000 | ||
| Right-of-use asset | 596,000 | - | ||
| Total assets | $ 2,912,000 | $ 2,917,000 | ||
| Current operating lease liability | $ 151,000 | $ | - | |
| Deferred income | 474,400 | - | ||
| Accounts payable | 90,000 | 355,000 | ||
| Customer deposits | 562,000 | 21,000 | ||
| Accrued expenses and other current liabilities | 253,000 | 321,000 | ||
| Total current liabilities | 1,530,000 | 697,000 | ||
| Long term operating lease liability | 445,000 | - | ||
| Total liabilities | 1,975,000 | 697,000 | ||
| Total stockholders’ equity | 937,000 | 2,220,000 | ||
| Total liabilities and stockholders’ equity | $ 2,912,000 | $ 2,917,000 | ||
Technical Communications Corporation
100 Domino Drive
Concord, MA 01742 – 2892
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
FAQ
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