EXHIBIT 99.1
Technical Communications Corporation Reports Results for the Three and Six Months Ended March 26, 2022
CONCORD, Mass., May 06, 2022 (GLOBE NEWSWIRE) -- Technical Communications Corporation (OTCQB: TCCO) today announced its results for the three and six months ended March 26, 2022. The Company reported a net loss of $(522,000), or $(0.28) per share, on revenue of $565,000 for the quarter ended March 26, 2022, compared to a net loss of $(329,000), or $(0.18) per share, on revenue of $617,000 for the quarter ended March 27, 2021. For the six months ended March 26, 2022, the Company reported a net loss of $(1,136,000), or $(0.61) per share, on revenue of $989,000, compared to a net loss of $(671,000), or $(0.36) per share, on revenue of $783,000 for the six months ended March 27, 2021.
Carl H. Guild Jr., President and CEO of Technical Communications Corporation, commented, “The Company continues to be impacted by the international COVID pandemic as customers are just starting to re-engage in the procurement process. Customers had been reluctant to have in-person meetings and performance demonstrations, which are necessary to consummate sales. We expect that this trend will continue and positively affect other program opportunities and allow us to begin recovery in the near future.”
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 25, 2021 and its Quarterly Report on Form 10-Q for the quarter ended December 25, 2021 and the “Risk Factors” section included therein.
Technical Communications Corporation
Condensed consolidated statements of operations
| | Quarter Ended |
| | 3/26/2022 | 3/27/2021 |
| | (Unaudited) | (Unaudited) |
| Net revenue | $ 565,000 | $ 617,000 |
| Gross profit | 75,000 | 264,000 |
| S, G & A expense | 485,000 | 396,000 |
| Product development costs | 84,000 | 194,000 |
| Operating loss | (494,000) | (327,000) |
| Net loss | (522,000) | (329,000) |
| Net loss per share: | | |
| Basic | $(0.28) | $(0.18) |
| Diluted | $(0.28) | $(0.18) |
| | Six Months Ended |
| | 3/26/2022 | 3/27/2021 |
| | (Unaudited) | (Unaudited) |
| Net revenue | $989,000 | $783,000 |
| Gross profit | 141,000 | 387,000 |
| S, G & A expense | 1,047,000 | 942,000 |
| Product development costs | 185,000 | 587,000 |
| Operating loss | (1,091,000) | (1,141,000) |
| Grant income | - | 474,000 |
| Net loss | (1,136,000) | (671,000) |
| Net loss per share: | | |
| Basic | $(0.61) | $(0.36) |
| Diluted | $(0.61) | $(0.36) |
Condensed consolidated balance sheets
| | 03/26/2022 | 9/25/2021 |
| | (Unaudited) | (derived from audited |
| | | Financial statements) |
| Cash and cash equivalents | $ 26,000 | $ 298,000 |
| Accounts receivable - trade | 395,000 | 281,000 |
| Inventory | 1,079,000 | 1,157,000 |
| Other current assets | 180,000 | 170,000 |
| Total current assets | 1,680,000 | 1,906,000 |
| Property and equipment, net | 2,000 | 4,000 |
| Right-of-use asset | 328,000 | 407,000 |
| | | |
| Total assets | $2,010,000 | $2,317,000 |
| | | |
| Current operating lease liability | $ 161,000 | $ 158,000 |
| Current portion of long-term debt | 1,902,000 | 1,000,000 |
| Accounts payable | 123,000 | 106,000 |
| Customer deposits | 4,000 | 45,000 |
| Accrued expenses and other current liabilities | 271,000 | 265,000 |
| Total current liabilities | 2,461,000 | 1,574,000 |
| | | |
| Long term operating lease liability | 167,000 | 248,000 |
| Notes payable | 148,000 | 150,000 |
| | | |
| Total liabilities | 2,776,000 | 1,972,000 |
| Total stockholders’ equity (deficit) | (766,000) | 345,000 |
| Total liabilities and stockholders’ equity | $2,010,000 | $2,317,000 |
Michael P. Malone
Chief Financial Officer
(978) 287-5100
www.tccsecure.com
