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WAUKESHA, Wis. - Electronic Tele-Communications, Inc.
on Thursday reported continuing challenges to its business, but said in its second quarter report that it has been able to meet its cash flow needs.
The company, which supplies voice application processing platforms to domestic and foreign telephone utilities and of messaging systems to the commercial market, said sales for the second quarter were $647,438 compared to $1,022,982 for the 2004 second quarter.
The net loss was $196,951 or $0.08 per Class A common share, compared to net earnings of $22,153 or $0.01 per Class A common share for the second quarter of 2004.
Sales for the first six months of 2005 were $1,396,771, compared to 2004 six-month sales of $1,839,655. The loss for the first six months of 2005 was $367,654 or $0.15 per Class A Share, compared to a loss of $72,897 or $0.03 per Class A share for the first six months of 2004.
Company president Dean Danner, commenting on the second-quarter results, said, "2005 has seen capital spending in our market segment revert back to the levels of 2003. Our customers have delayed office upgrade and replacement projects, expending their resources on fiber optics and related equipment to compete with the cable industry. Although we are working with a number of customers on a number of projects, we don't anticipate significant improvement until the fourth quarter of 2005 and into 2006."
"In spite of the poor sales performance of the first half of 2005, cash reserves coupled with some sales of existing inventory and our services business, has enabled ETC to meet our cash flow needs without borrowing against our line of credit," Danner said. "As we have over the last several years, we continue to exert tight control over our overhead and capital expenditures while continuing to evolve and expand the capabilities of our Emcee system."
ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet. ETC, with corporate headquarters in Waukesha, also has operations in Norcross, Ga.