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SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
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or Rule 14a-12
TECHNICAL COMMUNICATIONS CORPORATION
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(Name of Registrant as Specified in Its Charter)
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(3) Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule 0-11:1
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1) Set forth the amount on which the filing fee is calculated and state how it
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TECHNICAL COMMUNICATIONS CORPORATION ANNOUNCES THIRD
QUARTER FISCAL 1998 RESULTS
CONCORD, Mass.--(BUSINESS WIRE)--July 15, 1998--Technical Communications
Corporation (NASDAQ:TCCO) announced sales of $3,281,399 and a net profit of
$222,415 or $0.17 per share, for the third fiscal quarter ending June 27,
1998. This compares to sales of $2,027,070 and a net loss of $998,674 or
$(0.78) per share for the third fiscal quarter ended June 28, 1997.
For the first nine months of the current fiscal year, sales were $9,621,904
with a net profit of $271,838 or $0.21 per share versus $9,139,532 and a net
loss of $840,799 or $(0.66) per share for the first nine months a year
earlier.
TCC's backlog as of June 27, 1998 was $4.2 million, as compared to $1.4
million at June 28, 1997. TCC expects to ship substantially all of its
backlog in fiscal 1998.
TCC's Chairman and CEO, Carl H. Guild, Jr., stated, "We are very pleased with
the continued improvement to profitability. This is our second consecutive
profitable quarter and the results reflect the management team's focus on
improving operational performance and product development efficiency. We have
successfully delivered, on time, major portions of a large custom-developed
crypto system for an international customer, and we expect to deliver the
balance of the order by the end of this fiscal year. In the commercial market
area, we have completed the development and have launched our newest system,
KEYNET(TM) 2.0/Cipher X(R) 7100. This system secures information transmitted
over frame relay wide area networks. This network technology is used by many
of the world's largest financial institutions."
Mr. Guild continued, "We continue to take aggressive measures to further
reduce overall operating expenses and improve operating efficiencies. We
expect that these savings will both contribute to profitability and fund the
development of new products for the mission-critical communications security
market. With these initiatives and near-term prospective contracts, TCC will
continue to work to improve its market presence, profitability and
shareholder value."
Technical Communications Corporation's products and systems secure
mission-critical networks for governments, corporations and financial
institutions around the world. With over 35 years of experience, TCC is the
trusted supplier for organizations that place a high value on their data and
its successful transmission.
Matters discussed in this news release, including any discussion of or
impact, expressed or implied, on the Company's anticipated operating results
and future earnings, including statements about the
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Company's ability to achieve long term growth and profitability, contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended. The Company's operating results may
differ significantly from the results indicated by such forward-looking
statements. The Company's operating results may be affected by many factors,
including but not limited to, the fulfillment of customer orders, the
Company's ability to retain and motivate key technical, sales, marketing and
manufacturing personnel, and the possibility of political instability in the
Company's foreign markets. These and other risks are detailed from time to
time in the Company's filings with the Securities & Exchange Commission.
TECHNICAL COMMUNICATIONS CORPORATION
COMPARATIVE FINANCIAL INFORMATION
(UNAUDITED)
<TABLE>
<CAPTION>
Third Quarter Ended
June 27, 1998 June 28, 1997
<S> <C> <C>
Net Sales $ 3,281,399 $ 2,027,070
Net Earnings (Loss) 222,415 (998,674)
Earnings (Loss) Per Share
Basic $ 0.17 $ (0.78)
Diluted $ 0.17 $ (0.78)
<CAPTION>
Nine Months Ended
June 27, 1998 June 28, 1997
<S> <C> <C>
Net Sales $ 9,621,904 $ 9,139,532
Net Earnings (Loss) 271,838 (840,799)
Earnings (Loss) Per Share
Basic $ 0.21 $ (0.66)
Diluted $ 0.21 $ (0.66)
</TABLE>
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CONTACT:
Technical Communications Corporation
Janet LeClair, (978) 287-5100
Web Site: http://www.tccsecure.com
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