Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and three months ended September 27, 2014. For the quarter ended September 27, 2014, the Company reported a net loss of $(299,000), or $(0.16) per share, on revenue of $1,559,000, as compared to a net income of $446,000, or $0.24 per share, on revenue of $3,138,000 for the quarter ended September 28, 2013. For the year ended September 27, 2014, the Company reported a net loss of $(2,565,000), or $(1.39) per share, on revenue of $6,139,000, as compared to a net loss of $(714,000), or $(0.39) per share, on revenue of $6,250,000 for the year ended September 28, 2013. Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, "Delays in the receipt of certain foreign and domestic contracts, coupled with customer and production delivery requirements, resulted in lower than expected revenue for fiscal 2014. I am pleased to report that TCC received the expected major foreign contract of $3.3 million from the Government of Egypt in the first quarter of fiscal 2015." Contract award delays were a result of regional political unrest, which diverted foreign government attention to domestic issues, as well as other factors associated with government procurements that often subject the Company to unpredictable and erratic delays in the processing of procurements and delivery of products. Mr. Guild continued, "Our high-end custom cryptographic services and solutions continue to be an important market niche for the Company, and we believe, a competitive differentiator. In fiscal 2014, custom TCC equipment and services continued to provide recurring revenue opportunities with our established government systems product line, as well as new market opportunities for network encryption. Moving forward, TCC plans to increase our systems design and integration capabilities, and services offering portfolio." Fiscal Year 2014 Highlights
- Delivered on contracts received in fiscal 2013 and fiscal 2014 of $1 million from Datron Worldwide Communications, Inc. for TCC's DSP 9000 radio encryption equipment.
- Delivered on $1.28 million of secure radio and telephone equipment and customized services, tools, and training orders received in fiscal 2013 and fiscal 2014 from a domestic prime contractor supporting a government customer in N. Africa.
- Delivered $1.79 million of additional products and services on a $3.6 million contract received in fiscal 2013 from the U.S. Army Communications and Electronics Command to upgrade the DSD 72A-SP bulk encryption system for the Government of Egypt.
- Delivered $800,000 of an order received in fiscal 2014 from a government in the Middle East for TCC's Cipher X® 7211 IP encryption system with custom-developed capability to secure high-bandwidth satellite communications.
- Delivered on a $323,000 contract for TCC's DLE 7050 link encryption system for deployment into a country in the Middle East. The Company received an additional contract in fiscal 2015 for the DLE 7050 of $432,000 for deployment into this country in the Middle East.
|Technical Communications Corporation|
|Condensed consolidated income statements|
|S, G & A expense||656,000||747,000|
|Product development costs||617,000||499,000|
|Operating( loss) profit||(309,000)||711,000|
|Income tax provision||-||270,000|
|Net (loss) income||(299,000)||446,000|
|Net (loss) income per share:|
|S, G & A expense||2,980,000||2,956,000|
|Product development costs||2,729,000||2,729,000|
|Income tax provision (benefit)||990,000||(799,000)|
|Net loss per share:|
|Condensed consolidated balance sheets|
|(Unaudited)||(derived from auditedfinancial statements)|
|Cash and marketable securities||$||4,938,000||$||4,581,000|
|Accounts receivable, net||403,000||1,376,000|
|Deferred & refundable income taxes||-||1,618,000|
|Other current assets||210,000||225,000|
|Total current assets||8,272,000||10,419,000|
|Property and equipment, net||432,000||469,000|
|Accrued expenses and other current liabilities||568,000||667,000|
|Total current liabilities||741,000||929,000|
|Total stockholders' equity||9,068,000||11,422,000|
|Total liabilities and stockholders' equity||$||9,809,000||$||12,351,000|