GlobeNewswire Inc | Aug 7, 2020 04:45PM EDT

August 07, 2020

CONCORD, Mass., Aug. 07, 2020 (GLOBE NEWSWIRE) -- Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the quarter and nine months ended June 27, 2020. For the quarter ended June 27, 2020, the Company reported a net loss of $(482,000), or $(0.26) per share, on revenue of $599,000, compared to a net loss of $(326,000), or $(0.18) per share, on revenue of $1,234,000 for the quarter ended June 29, 2019. For the nine months ended June 27, 2020, the Company reported a net loss of $(1,324,000), or $(0.72) per share, on revenue of $1,987,000, compared to a net loss of $(401,000), or $(0.22) per share, on revenue of $4,275,000 for the quarter ended June 29, 2019.

Carl H. Guild Jr., President and CEO of Technical Communications Corporation, commented, As stated in our previous quarters earnings report, the COVID-19 pandemic had delayed several projects that are in the pipeline, and those delays continue with some limited progress toward the resumption of the procurement process. At this point, the inability to conduct in-person meetings and demonstrations is slowing progress. We do see that certain countries are beginning to open up, and TCC is preparing to increase its level of business development pursuit as soon as it is allowed and safe.

TCC is currently producing DSP 9000 and HSE 6000 radio security equipment for a foreign military sales contract that was received in May, 2020. It is expected that most of that equipment will be delivered by the end of September 2020. This contract is the second annual tranche in a multi-year procurement.

About Technical Communications Corporation

For over 50 years, TCC has specialized in superior-grade secure communications systems and customized solutions, supporting our CipherONEbest-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 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 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 effect of foreign political unrest; domestic and foreign government policies and economic conditions; future 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 Companys filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 28, 2019 and its Quarterly Reports on Form 10-Q for the quarters ended March 28, 2020 and December 28, 2019 and the Risk Factors sections included therein.

Technical Communications Corporation

Condensed consolidated statements of operations

Quarter Ended 6/27/2020 6/29/2019 (Unaudited) (Unaudited)Net revenue $ 599,000 $ 1,234,000 Gross profit 355,000 445,000 S, G & A expense 505,000 732,000 Product development costs 332,000 43,000 Operating loss (483,000) (329,000) Net loss (482,000) (326,000) Net loss per share: Basic $ (0.26) $ (0.18) Diluted $ (0.26) $ (0.18)



Nine Months Ended 6/27/2020 6/29/2019 (Unaudited) (Unaudited)Net revenue $ 1,987,000 $ 4,275,000 Gross profit 973,000 1,644,000 S, G & A expense 1,603,000 1,872,000 Product development costs 695,000 187,000 Operating loss (1,325,000) (414,000) Net loss (1,324,000) (401,000) Net loss per share: Basic $ (0.72) $ (0.22) Diluted $ (0.72) $ (0.22)

Condensed consolidated balance sheets



9/28/2019 6/27/2020 (derived from (Unaudited) audited financial statements)Cash and cah equivalents $ 961,000 $ 1,593,000Accounts receivable - trade 50,000 126,000Inventory 1,136,000 1,042,000Other current assets 148,000 118,000Total current assets 2,295,000 2,879,000 Property and equipment, net 21,000 38,000Right-of-use asset 596,000 - Total assets $ 2,912,000 $ 2,917,000 Current operating lease liability $ 151,000 $ -Deferred income 474,400 -Accounts payable 90,000 355,000Customer deposits 562,000 21,000Accrued expenses and other current 253,000 321,000liabilitiesTotal current liabilities 1,530,000 697,000 Long term operating lease liability 445,000 - Total liabilities 1,975,000 697,000Total stockholders? equity 937,000 2,220,000Total liabilities and stockholders? equity $ 2,912,000 $ 2,917,000



Technical Communications Corporation100 Domino DriveConcord, MA 01742 2892

Michael P. MaloneChief Financial Officer(978) 287-5100www.tccsecure.com