Teltronics, Inc. Announces Record Revenues for Year 2000

Revenues Increase 32.5% to $43.2 Million for the Year;

Fourth Quarter Sales Increase 81%



Apr 03, 2001, 01:00 ET from Teltronics, Inc.

    SARASOTA, Fla., April 3 /PRNewswire/ -- Teltronics, Inc. (Nasdaq:   TELT)
 today announced its financial results for the fourth quarter and year ended
 December 31, 2000. Revenues for the year 2000 increased to a record
 $43.2 million a 32.5% increase compared to revenues of $32.6 million in the
 year 1999. Sales for the fourth quarter of 2000 increased 81% to $15.6 million
 from $8.6 million reported in the fourth quarter of 1999.
     "The increase in revenue reflects the positive impact of two major
 acquisitions that we completed in 2000 -- Telident, Inc. and Harris
 Communications' 20-20 product line," said Ewen Cameron, Teltronics' President
 and Chief Executive Officer. "Both acquisitions dramatically expanded the
 Teltronics product lines, customer base and geographic reach." Besides the two
 acquisitions, Teltronics opened a subsidiary in Mexico City during the year
 2000 in order to service the region's large 20-20-switch install base.
     Gross profit for the year 2000 increased 26.9% to $20.3 million compared
 to $16.0 million in the year 1999. Net loss for the year 2000 was $1.5 million
 or $0.36 per share diluted, as compared to a profit of $1.2 million or
 $0.25 per share diluted for the same period in 1999. The Company had a
 one-time charge of $715,000 relating to write offs of wearable computer
 inventory, litigation costs and molds for the Company's subsidiary,
 Interactive Solutions, Inc. (ISI).
      The gross profit for the fourth quarter of 2000 increased 98% to
 $8.1 million from $4.1 million for the comparable quarter a year ago. Net
 income for the fourth quarter of 2000 was $601,000 or $0.12 per diluted share,
 as compared to a net income of $211,000 or $0.04 per diluted share, for the
 fourth quarter of 1999.
     Teltronics' loss for the year was due to the Company's subsidiary ISI,
 which introduced its new iCommunicator system to the market in 2000. Sales
 relating to ISI were $956,000 as compared to $35,000 in 1999 with a loss of
 $2.0 million compared to a loss of $3.2 million for the previous year. The
 Company is currently looking at other options and funding for ISI. Interest in
 ISI's iCommunicator systems -- designed to aid in the education of
 hard-of-hearing, deaf and learning disabled -- built steadily throughout its
 inaugural year and lead to significant orders to begin 2001.
     "Following an extremely strong 1999, this past year presented new
 challenges for the Company. The slowdown that impacted the entire
 telecommunications industry translated into losses for Teltronics as well.
 However, due to the Company's acquisitions and improvements in our core
 business, sales improved significantly in the second half of 2000, and look to
 be strong continuing on into the year 2001," added Cameron. "Overall, we look
 forward to a positive year in 2001, as we reap the rewards of the global
 presence established by the 20-20 switch."
 
     About Teltronics Inc.
     Teltronics, Inc. is dedicated to excellence in the design, development,
 and assembly of electronics equipment and software to enhance the performance
 of telecommunications networks. The Company manufactures telephone switching
 systems and software for small-to-large size businesses, government, and 911
 public safety communications centers. Teltronics provides remote maintenance
 hardware and software solutions to help large organizations and regional
 telephone companies effectively monitor and maintain their telecommunications
 systems. The Company also serves as an electronic contract-manufacturing
 partner to customers in the U.S. and overseas. Interactive Solutions, a
 subsidiary of Teltronics, Inc., designs, manufactures and markets
 technologically advanced systems for the hearing impaired. Teltronics' common
 stock trades on The Nasdaq SmallCap Market tier of The Nasdaq Stock Market
 under the symbol "TELT." Further information regarding Teltronics can be found
 at their web site, www.teltronics.com.
 
     A number of statements contained in this press release are forward-looking
 statements which are made pursuant to the Safe Harbor provisions of the
 Private Securities Litigation Reform Act of 1995. These forward-looking
 statements involve a number of risks and uncertainties, including the timely
 development and market acceptance of products and technologies, competitive
 market conditions, successful integration of acquisitions, the ability to
 secure additional sources of financing, the ability to reduce operating
 expenses, the ability to comply with the rules for inclusion in The Nasdaq
 Stock Market and other factors described in the Company's filings with the
 Securities and Exchange Commission. The actual results that the Company
 achieves may differ materially from any forward-looking statements due to such
 risks and uncertainties.
 
 

SOURCE Teltronics, Inc.
    SARASOTA, Fla., April 3 /PRNewswire/ -- Teltronics, Inc. (Nasdaq:   TELT)
 today announced its financial results for the fourth quarter and year ended
 December 31, 2000. Revenues for the year 2000 increased to a record
 $43.2 million a 32.5% increase compared to revenues of $32.6 million in the
 year 1999. Sales for the fourth quarter of 2000 increased 81% to $15.6 million
 from $8.6 million reported in the fourth quarter of 1999.
     "The increase in revenue reflects the positive impact of two major
 acquisitions that we completed in 2000 -- Telident, Inc. and Harris
 Communications' 20-20 product line," said Ewen Cameron, Teltronics' President
 and Chief Executive Officer. "Both acquisitions dramatically expanded the
 Teltronics product lines, customer base and geographic reach." Besides the two
 acquisitions, Teltronics opened a subsidiary in Mexico City during the year
 2000 in order to service the region's large 20-20-switch install base.
     Gross profit for the year 2000 increased 26.9% to $20.3 million compared
 to $16.0 million in the year 1999. Net loss for the year 2000 was $1.5 million
 or $0.36 per share diluted, as compared to a profit of $1.2 million or
 $0.25 per share diluted for the same period in 1999. The Company had a
 one-time charge of $715,000 relating to write offs of wearable computer
 inventory, litigation costs and molds for the Company's subsidiary,
 Interactive Solutions, Inc. (ISI).
      The gross profit for the fourth quarter of 2000 increased 98% to
 $8.1 million from $4.1 million for the comparable quarter a year ago. Net
 income for the fourth quarter of 2000 was $601,000 or $0.12 per diluted share,
 as compared to a net income of $211,000 or $0.04 per diluted share, for the
 fourth quarter of 1999.
     Teltronics' loss for the year was due to the Company's subsidiary ISI,
 which introduced its new iCommunicator system to the market in 2000. Sales
 relating to ISI were $956,000 as compared to $35,000 in 1999 with a loss of
 $2.0 million compared to a loss of $3.2 million for the previous year. The
 Company is currently looking at other options and funding for ISI. Interest in
 ISI's iCommunicator systems -- designed to aid in the education of
 hard-of-hearing, deaf and learning disabled -- built steadily throughout its
 inaugural year and lead to significant orders to begin 2001.
     "Following an extremely strong 1999, this past year presented new
 challenges for the Company. The slowdown that impacted the entire
 telecommunications industry translated into losses for Teltronics as well.
 However, due to the Company's acquisitions and improvements in our core
 business, sales improved significantly in the second half of 2000, and look to
 be strong continuing on into the year 2001," added Cameron. "Overall, we look
 forward to a positive year in 2001, as we reap the rewards of the global
 presence established by the 20-20 switch."
 
     About Teltronics Inc.
     Teltronics, Inc. is dedicated to excellence in the design, development,
 and assembly of electronics equipment and software to enhance the performance
 of telecommunications networks. The Company manufactures telephone switching
 systems and software for small-to-large size businesses, government, and 911
 public safety communications centers. Teltronics provides remote maintenance
 hardware and software solutions to help large organizations and regional
 telephone companies effectively monitor and maintain their telecommunications
 systems. The Company also serves as an electronic contract-manufacturing
 partner to customers in the U.S. and overseas. Interactive Solutions, a
 subsidiary of Teltronics, Inc., designs, manufactures and markets
 technologically advanced systems for the hearing impaired. Teltronics' common
 stock trades on The Nasdaq SmallCap Market tier of The Nasdaq Stock Market
 under the symbol "TELT." Further information regarding Teltronics can be found
 at their web site, www.teltronics.com.
 
     A number of statements contained in this press release are forward-looking
 statements which are made pursuant to the Safe Harbor provisions of the
 Private Securities Litigation Reform Act of 1995. These forward-looking
 statements involve a number of risks and uncertainties, including the timely
 development and market acceptance of products and technologies, competitive
 market conditions, successful integration of acquisitions, the ability to
 secure additional sources of financing, the ability to reduce operating
 expenses, the ability to comply with the rules for inclusion in The Nasdaq
 Stock Market and other factors described in the Company's filings with the
 Securities and Exchange Commission. The actual results that the Company
 achieves may differ materially from any forward-looking statements due to such
 risks and uncertainties.
 
 SOURCE  Teltronics, Inc.