EXHIBIT 99.1
Technical Communications Corporation Reports Results for the Fiscal Quarter Ended December 26, 2020 and Acceptance for Trading on the OTCQB
CONCORD, Mass., Feb. 05, 2021 (GLOBE NEWSWIRE) -- Technical Communications Corporation (OTCQB: TCCO) today announced its results for the fiscal quarter ended December 26, 2020. For the quarter ended December 26, 2020, the Company reported a net loss of $(342,000), or $(0.19) per share, on revenue of $167,000, compared to a net loss of $(480,000), or $(0.26) per share, on revenue of $666,000 for the quarter ended December 28, 2019.
Carl H. Guild Jr., President and CEO of Technical Communications Corporation, commented, “As previously noted, the COVID-19 pandemic continues to delay several projects that are in the pipeline, and those delays continue although recently we have experienced some limited progress toward the resumption of the procurement process. TCC and our customers have implemented substantial video communications in an effort to move projects forward. We have seen evidence that certain countries are beginning to loosen restrictions, and TCC is preparing to increase its business development efforts as soon as it is allowed and safe.
Assisting these efforts is the $474,000 loan TCC received under the U.S. Small Business Administration’s Paycheck Protection Program on February 1, 2021. The entire TCC team is committed to doing what is necessary to stay prepared for an expected business upturn in fiscal 2021.”
The Company also announced that shares of its common stock were approved for trading on the OTCQB® Venture Market ("OTCQB"). The shares will continue to trade under the symbol "TCCO" and trading on the OTCQB was effective at the opening of the market on Monday, February 1, 2021.
OTCQB is a venture market operated by the OTC Markets Group, Inc. To be eligible for quotation on the OTCQB, companies must be current in their reporting and undergo an annual verification and management certification process. Companies must also meet a minimum bid price test and other financial conditions. OTCQB is recognized by the U.S. Securities and Exchange Commission as an established public market for the purpose of determining the public market price when registering securities for resale with the SEC, and it provides current public information to investors that need to analyze, value, and trade securities. Investors can find real-time quotes and market information for the company on https://www.otcmarkets.com/stock/IAIC/overview.
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 the “Risk Factors” section included therein.
Technical Communications Corporation
Condensed consolidated statements of operations
| | Quarter Ended |
| | | 12/26/2020
(Unaudited)
| | | 12/28/2019
(Unaudited) | |
| Net revenue | $ | 167,000 | | $ | 666,000 | |
| Gross profit | | 123,000 | | | 309,000 | |
| S, G & A expense | | 545,000 | | | 583,000 | |
| Product development costs | | 392,000 | | | 205,000 | |
| Operating loss | | (814,000 | ) | | (480,000 | ) |
| Other income, net | | 472,000 | | | - | |
| Net loss | | (342,000 | ) | | (480,000 | ) |
| Net loss per share: | | |
| Basic | $ | (0.19 | ) | $ | (0.26 | ) |
| Diluted | $ | (0.19 | ) | $ | (0.26 | ) |
| | | | | | | |
Condensed consolidated balance sheets
| | 12/26/2020
(Unaudited)
| 9/26/2020
(derived from audited
Financial statements) |
| Cash and cash equivalents | $ | 666,000 | $ | 1,514,000 |
| Accounts receivable - trade | | 148,000 | | 134,000 |
| Inventory | | 966,000 | | 902,000 |
| Other current assets | | 129,000 | | 153,000 |
| Total current assets | | 1,909,000 | | 2,704,000 |
| | | |
| Property and equipment, net | | 15,000 | | 19,000 |
| Right-of-use asset | | 521,000 | | 559,00 |
| | | |
| Total assets | $ | 2,445,000 | $ | 3,281,000 |
| | | |
| Current operating lease liability | $ | 154,000 | $ | 152,000 |
| Deferred income | | - | | 474,000 |
| Current portion of long-term debt | | 1,000 | | - |
| Accounts payable | | 179,000 | | 66,000 |
| Customer deposits | | 227,000 | | 162,000 |
| Accrued expenses and other current liabilities | | 331,000 | | 506,000 |
| Total current liabilities | | 892,000 | | 1,360,000 |
| | | |
| Long term operating lease liability | | 368,000 | | 407,000 |
| Notes payable | | 149,000 | | 150,000 |
| | | |
| Total liabilities | | 1,409,000 | | 1,917,000 |
| Total stockholders’ equity | | 1,036,000 | | 1,364,000 |
| Total liabilities and stockholders’ equity | $ | 2,445,000 | $ | 3,281,000 |
| | | | | |
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
