Technical Communications Corporation (OTC BB: TCCO.OB) today announced its results for the fiscal quarter ended March 27, 2010. For the second quarter of the Company’s 2010 fiscal year, the Company reported a net loss of $(87,000), or $(0.05) per share, on revenue of $3,576,000, as compared to net income of $225,000, or $0.16 per share, on revenue of $2,056,000 for the quarter ended March 28, 2009. For the six months ended March 27, 2010, the Company reported net income of $2,269,000, or $1.48 per share, on revenue of $8,340,000, as compared to net income of $431,000, or $0.30 per share, on revenue of $3,900,000 for the six months ended March 28, 2009.
Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC said, “We are pleased that our financial results continue to be positive. The second quarter resulted in an increase in revenue and operating income. There was however a net loss due to the need to record an income tax provision upon the expected utilitzation of our prior year NOL's based on a revised forecast for the fiscal year driven by recent orders. As previously reported, the Company recently received orders valued at approximately $9.7 million for a major expansion of its DSP 9000 RF Encryption System to be deployed in Afghanistan. Net income before income taxes was $923,000 for the quarter ended March 27, 2010 as compared to $225,000 for the quarter ended March 28, 2009.”
Mr. Guild continued, “These new orders have substantially increased our current backlog to $14.8 million. TCC anticipates making shipments on these contracts on an accelerated basis, primarily in fiscal 2010 and early 2011. This will result in record revenue levels for fiscal 2010. Upon completion of these deliveries, our revenue is expected to return to the more modest levels achieved during the recent past. The Company continues to expand its market for the DSP9000 RF Encryption System to new customers which can benefit from a universal security solution which can be applied to their existing radio communications suite of equipment.”