ETC Announces Second Quarter 2017 Results

Electronic Tele-Communications, Inc. (ETC), reports second quarter results for 2017. Sales for the quarter were $141,813 compared to $190,733 for the second quarter of 2016. The net earnings for the quarter were $2,386 or $0.00 per Class A common share, compared to a net loss of $8,211 or $0.00 per Class A common share for the second quarter of 2016.

Sales for the first six months of 2017 were $327,013, compared to $519,986 for the first six months of 2016. The net earnings for the first six months of 2017 were $23,629 or $0.01 per Class A common share, compared to $84,638 or $0.03 per Class A common share for the first six months of 2016.

ETC President Elizabeth Danner commented on the results saying, “Second quarter 2017 saw our sales lag slightly behind projections. Even so, we were still able to break even for the quarter and remain slightly profitable for the year.”

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 systems 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 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.

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Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unreviewed)          (unreviewed)
                                   Three Months Ended     Six Months Ended
                                        June 30               June 30
                                    2017       2016       2017       2016
Net sales                          141,813    190,733    327,013    519,986
Cost of products sold               65,157     96,374    151,525    241,020
Gross profit                        76,656     94,359    175,488    278,966

Operating expenses:
 General and administrative         32,729     40,642     66,897     81,608
 Marketing and selling               9,503     30,137     21,760     48,251
 Research and development           27,239     26,819     53,656     54,549
                                    69,471     97,598    142,313    184,408

Earnings (loss) from operations      7,185     (3,239)    33,175     94,558
Other income (expense)              (4,799)    (4,972)    (9,546)    (9,920)

Earnings (loss) before
 income taxes                        2,386     (8,211)    23,629     84,638
Income taxes                             0          0          0          0
Net earnings (loss)                  2,386     (8,211)    23,629     84,638

Basic and diluted earnings (loss) per share:
  Class A common                      0.00       0.00       0.01       0.03
  Class B common                      0.00       0.00       0.01       0.03

Weighted average shares outstanding
 for basic and diluted           2,509,147  2,509,147  2,509,147  2,509,147

Selected Balance Sheet Data:
                                   Jun 30     Dec 31
                                    2017       2016
Current assets                     267,752    297,901
Total assets                       281,302    308,364
Current liabilities                661,008    681,699
Total liabilities                  811,008    861,699
Stockholders' equity              (529,706)  (553,335)