ETC Announces First Quarter 2013 Results

Electronic Tele-Communications, Inc. (ETC) (Pink Sheets:ETCIA) today reported its first quarter 2013 results. Sales for the quarter were $435,864 compared to $481,049 for the 2012 first quarter. The net earnings for the quarter were $133 or $0.00 per Class A common share, compared to net earnings of $46,645 or $0.02 per Class A common share for the first quarter of 2012.

Commenting on the results, ETC President Dean Danner said, “Sales were down 10% during the first quarter of 2013 compared to 2012, but we anticipate improvement in the second quarter. Operating expenses increased during the quarter as we work to obtain additional certifications on our products to re-open market segments we have not participated in for a few years. Even with lower sales and higher product testing expenses we were able to break even for the quarter.”

Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.

From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the adverse effects of the recent worldwide recession and the timing and strength of a subsequent recovery, the Company’s ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, government regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.

Electronic Tele-Communications, Inc.

        
        
        
      
      
        
          Statements of Operations:
        
        
           
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
          (unaudited)
        
        
        
      
      
        
        
        
        
        
          Three Months Ended
        
        
        
      
      
        
        
        
        
        
          March 31
        
        
        
      
      
        
        
        
        
        
          2013
        
        
        
        
          2012
        
        
        
      
      
        
          Net sales
        
        
        
        
          435,864
        
        
        
        
        
        
          481,049
        
        
        
        
        
      
      
        
          Cost of products sold
        
        
        
        
          226,881
        
        
        
        
        
        
          239,454
        
        
        
        
        
      
      
        
          Gross profit
        
        
        
        
          208,983
        
        
        
        
        
        
          241,595
        
        
        
        
        
      
      
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          General and administrative
        
        
        
        
          76,637
        
        
        
        
        
        
          73,709
        
        
        
        
        
      
      
        
          Marketing and selling
        
        
        
        
          53,433
        
        
        
        
        
        
          57,527
        
        
        
        
        
      
      
        
          Research and development
        
        
        
        
          71,822
        
        
        
        
        
        
          56,213
        
        
        
        
        
      
      
        
        
        
        
        
          201,892
        
        
        
        
        
        
          187,449
        
        
        
        
        
      
      
        
        
        
           
        
      
      
        
          Earnings (loss) from operations
        
        
        
        
          7,091
        
        
        
        
        
        
          54,146
        
        
        
        
        
      
      
        
          Other income (expense)
        
        
        
        
          (6,958
        
        
          )
        
        
        
        
          (7,501
        
        
          )
        
        
        
      
      
        
        
        
           
        
      
      
        
          Earnings (loss) before
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          income taxes
        
        
        
        
          133
        
        
        
        
        
        
          46,645
        
        
        
        
        
      
      
        
          Income taxes
        
        
        
        
          0
        
        
        
        
        
        
          0
        
        
        
        
        
      
      
        
          Net earnings (loss)
        
        
        
        
          133
        
        
        
        
        
        
          46,645
        
        
        
        
        
      
      
        
        
        
           
        
      
      
        
          

Basic and diluted earnings (loss) per share:

        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Class A common
        
        
        
        
          0.00
        
        
        
        
        
        
          0.02
        
        
        
        
        
      
      
        
          Class B common
        
        
        
        
          0.00
        
        
        
        
        
        
          0.02
        
        
        
        
        
      
      
        
        
        
           
        
      
      
        
          

Weighted average shares outstanding

for basic and diluted

        
        
        
        
          2,509,147
        
        
        
        
        
        
          2,509,147
        
        
        
        
        
      
      
        
        
        
           
        
      
      
        
          Selected Balance Sheet Data:
        
        
        
        
          (unaudited)
        
        
        
      
      
        
        
        
        
        
          Mar 31
        
        
        
        
          Dec 31
        
        
        
      
      
        
        
        
        
        
          2013
        
        
        
        
          2012
        
        
        
      
      
        
          Current assets
        
        
        
        
          653,221
        
        
        
        
        
        
          695,876
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
          667,415
        
        
        
        
        
        
          704,447
        
        
        
        
        
      
      
        
          Current liabilities
        
        
        
        
          1,024,733
        
        
        
        
        
        
          1,061,235
        
        
        
        
        
      
      
        
          Total liabilities
        
        
        
        
          1,102,228
        
        
        
        
        
        
          1,149,802
        
        
        
        
        
      
      
        
          Stockholders' deficit
        
        
        
        
          (434,813
        
        
          )
        
        
        
        
          (445,355
        
        
          )