Technical Communications Corporation Reports Results for the Three and Nine Months Ended June 26, 2021
Technical Communications Corporation (OTCQB: TCCO) reported a net loss of $(490,000) or $(0.26) per share for Q2 2021 on revenues of $426,000, compared to $(483,000) and $599,000 a year earlier. For the nine months ending June 26, 2021, the net loss was $(1,161,000) on $1,209,000 in revenue, an improvement from $(1,324,000) on $1,987,000 in the prior year. CEO Carl H. Guild Jr. highlighted ongoing COVID-19 impacts on their customer base, with limited procurement resources. Despite challenges, TCCO is seeing some progress in customer engagement and is actively managing expenses while seeking additional liquidity.
- Improved nine-month net loss from $(1,324,000) to $(1,161,000).
- Revenue increase for nine months, though still lower than previous year.
- Quarterly net loss of $(490,000) reflects ongoing financial struggles.
- Revenue decreased from $599,000 to $426,000 year-over-year.
- COVID-19 continues to adversely affect customer procurement capabilities.
CONCORD, Mass., Aug. 06, 2021 (GLOBE NEWSWIRE) -- Technical Communications Corporation (OTCQB: TCCO) today announced its results for the three and nine months ended June 26, 2021. The Company reported a net loss of
Carl H. Guild Jr., President and CEO of Technical Communications Corporation, commented, “The Covid-19 pandemic continues to adversely affect our customer base as many foreign countries are still struggling with the coronavirus. The resources availabile for security equipment and systems have become more scarce as customers allocate funds to contain the virus.
We have started to see progress in certain countries toward the resumption of the procurement process, including product demonstration requests, remote training and the receipt of formal requests for quotations. We will continue to work closely with these customers in order to be able to move quickly once they are in a position to place orders. In the meantime, TCC continues to closely monitor expenses and is actively pursuing additional sources of liquidity.”
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 over 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 that are not purely historical 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 impact of the COVID-19 pandemic (including on customers) and governmental responses thereto; the effect of domestic and foreign political unrest; domestic and foreign government policies and economic conditions; 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 26, 2020 and its Quarterly Reports on Form 10-Q for the quarters ended December 26, 2020 and March 27, 2021 and the “Risk Factors” section included therein.
Technical Communications Corporation
Condensed consolidated statements of operations
| Quarter Ended | ||||||
| 6/26/2021 | 6/27/2020 | |||||
| (Unaudited) | (Unaudited) | |||||
| Net revenue | $ | 426,000 | $ | 599,000 | ||
| Gross profit | 99,000 | 355,000 | ||||
| S, G & A expense | 478,000 | 505,000 | ||||
| Product development costs | 108,000 | 332,000 | ||||
| Operating loss | (487,000 | ) | (483,000 | ) | ||
| Net loss | (490,000 | ) | (482,000 | ) | ||
| Net loss per share: | ||||||
| Basic | $ | (0.26 | ) | $ | (0.26 | ) |
| Diluted | $ | (0.26 | ) | $ | (0.26 | ) |
| Nine Months Ended | ||||||
| 6/26/2021 | 6/27/2020 | |||||
| (Unaudited) | (Unaudited) | |||||
| Net revenue | $ | 1,209,000 | $ | 1,987,000 | ||
| Gross profit | 486,000 | 973,000 | ||||
| S, G & A expense | 1,420,000 | 1,602,000 | ||||
| Product development costs | 695,000 | 695,000 | ||||
| Operating loss | (1,629,000 | ) | (1,324,000 | ) | ||
| Grant income | 474,000 | - | ||||
| Net loss | (1,161,000 | ) | (1,324,000 | ) | ||
| Net loss per share: | ||||||
| Basic | $ | (0.63 | ) | $ | (0.72 | ) |
| Diluted | $ | (0.63 | ) | $ | (0.72 | ) |
Condensed consolidated balance sheets
| 6/26/2021 | 9/26/2020 | |||||
| (Unaudited) | (derived from audited financial statements) | |||||
| Cash and cash equivalents | $ | 221,000 | $ | 1,514,000 | ||
| Accounts receivable - trade | 168,000 | 134,000 | ||||
| Inventory | 1,300,000 | 902,000 | ||||
| Other current assets | 171,000 | 154,000 | ||||
| Total current assets | 1,860,000 | 2,704,000 | ||||
| Property and equipment, net | 6,000 | 19,000 | ||||
| Right-of-use asset | 445,000 | 559,000 | ||||
| Total assets | $ | 2,311,000 | $ | 3,281,000 | ||
| Current operating lease liability | $ | 157,000 | $ | 152,000 | ||
| Deferred income | 474,000 | 474,000 | ||||
| Note payable – short-term | 451,000 | - | ||||
| Accounts payable | 112,000 | 66,000 | ||||
| Customer deposits | 206,000 | 162,000 | ||||
| Accrued expenses and other current liabilities | 228,000 | 406,000 | ||||
| Total current liabilities | 1,628,000 | 1,360,000 | ||||
| Long term operating lease liability | 289,000 | 407,000 | ||||
| Notes payable | 150,000 | 150,000 | ||||
| Total liabilities | 2,067,000 | 1,917,000 | ||||
| Total stockholders’ equity | 244,000 | 1,364,000 | ||||
| Total liabilities and stockholders’ equity | $ | 2,311,000 | $ | 3,281,000 | ||
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
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