Transcrypt Reports Improved 1st Quarter Performance

Apr 23, 2001, 01:00 ET from Transcrypt International, Inc.

    LINCOLN, Neb., April 23 /PRNewswire Interactive News Release/ --
 Transcrypt International, Inc. (OTC Bulletin Board:   TRII) today announced a
 loss for the quarter ended March 31, 2001 of $0.8 million, or $0.06 per share,
 compared to a net loss of $3.3 million, or $0.25 per share, for the comparable
 period last year. First quarter revenues were $9.6 million, compared to $11.4
 million for the first quarter of 2000. Revenues at the EFJohnson subsidiary
 and Transcrypt Secured Technologies division were $8.3 million and $1.3
 million, respectively, in the first quarter, compared to $9.7 million and $1.7
 million, respectively, in the same quarter of 2000.
     The Company had cash and cash equivalents of $11.5 million on March 31,
 2001, of which $10.0 million was pledged to secure the Company's revolving
 line of credit. At March 31, 2000, the Company had $8.6 million outstanding
 under its line of credit. As a result the Company had unrestricted cash and
 cash available under its line of credit of $2.9 million at March 31,2001 as
 compared to $2.8 million at December 31,2000.  Cash use and cash management
 during the first quarter was significantly better than anticipated with a net
 cash usage of $0.2 million.
     "We are very pleased with our 1st quarter results as we begin to realize
 the benefits of changes that were implemented during the second half of 2000.
 The first quarter's gross margin of 38% was at its highest level since 4th
 quarter 1999 and our operating expenses, at $4.5 million, were 17% below the
 corresponding quarter last year," said Michael E. Jalbert, Transcrypt's
 Chairman, and Chief Executive Officer.  "With our enhanced focus on our core
 competencies and effective cost management, we expect to continue our efforts
 to improve our financial performance in the year 2001." Mr. Jalbert concluded.
     Transcrypt International, Inc., designs, manufactures and markets trunked
 and conventional radio system solutions, land mobile radio repeaters and
 mobile and portable radios, and manufactures information security products
 that prevent the unauthorized interception of sensitive voice and data
 communication. Its web address is http://www.transcrypt.com .
 
     Certain matters discussed in this press release constitute forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995. These forward looking statements are subject to certain risks and
 uncertainties that could cause the actual results, performance or achievements
 to differ materially from those expressed, suggested or implied by the forward
 looking statements due to the number of risk factors detailed in the Company's
 reports filed with the Securities & Exchange Commission, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.
 
     (C)2001 Transcrypt International
 
                  TRANSCRYPT INTERNATIONAL, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 For the three months ended March 31, 2001 and 2000
           (Unaudited and in thousands, except share and per share data)
 
                                                         THREE MONTHS ENDED
                                                             MARCH 31,
                                                        2001           2000
 
     Revenues                                          $9,551        $11,360
     Cost of sales                                      5,966          9,812
       Gross profit                                     3,585          1,548
     Operating expenses:
       Research and development                         1,136          1,465
       Sales and marketing                              1,318          1,790
       General and administrative                       2,003          2,126
         Total operating expenses                       4,457          5,381
 
         Income (loss) from operations                   (872)        (3,833)
 
     Other income                                          67            472
     Interest income                                      136            242
     Interest expense                                    (129)          (132)
       Income (loss) before income taxes                 (798)        (3,251)
     Income tax provision                                   -              -
       Net income (loss)                                $(798)       $(3,251)
 
     Net income (loss) per share - Basic and Diluted   $(0.06)        $(0.25)
 
     Weighted average common shares -
      Basic and Diluted                            14,423,913     12,956,871
 
 
                TRANSCRYPT INTERNATIONAL, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                      March 31, 2001 and December 31, 2000
                                 (in thousands)
 
 
                                                     MARCH 31,   DECEMBER 31,
                  ASSETS                               2001            2000
                                                   (unaudited)
     Current assets:
       Cash and cash equivalents                      $11,488        $11,409
       Accounts receivable, net of allowance for
        returns and doubtful accounts of
        $763 and $823 respectively                      5,052          3,837
       Receivables - other                                161            366
       Cost in excess of billings on
        uncompleted contracts                           2,528          1,700
       Inventory, net of reserve of $3,119
        and $3,156 respectively                        12,977         15,125
       Prepaid expenses                                   368            337
         Total current assets                          32,574         32,774
     Property, plant and equipment, net                 2,034          2,294
     Intangible assets, net of
      accumulated amortization                         11,081         11,387
     Other assets                                         299            539
                                                      $45,988        $46,994
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Revolving line of credit                        $8,600         $8,280
       Current portion of capitalized
        lease obligations                                  43             42
       Accounts payable                                 4,213          4,144
       Billings in excess of cost on
        uncompleted contracts                             686          1,378
       Deferred revenue                                 1,108            847
       Accrued expenses                                 1,844          1,973
     Total current liabilities                         16,494         16,664
     Provision for litigation settlement                4,197          4,197
     Capitalized lease obligations,
      net of current portion                                7             19
     Deferred revenue                                     318            344
                                                       21,016         21,224
 
     Stockholders' equity:
       Common stock                                       143            143
       Additional paid-in capital                      92,188         92,188
       Accumulated deficit                            (67,359)       (66,561)
                                                       24,972         25,770
                                                      $45,988        $46,994
 
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SOURCE Transcrypt International, Inc.
    LINCOLN, Neb., April 23 /PRNewswire Interactive News Release/ --
 Transcrypt International, Inc. (OTC Bulletin Board:   TRII) today announced a
 loss for the quarter ended March 31, 2001 of $0.8 million, or $0.06 per share,
 compared to a net loss of $3.3 million, or $0.25 per share, for the comparable
 period last year. First quarter revenues were $9.6 million, compared to $11.4
 million for the first quarter of 2000. Revenues at the EFJohnson subsidiary
 and Transcrypt Secured Technologies division were $8.3 million and $1.3
 million, respectively, in the first quarter, compared to $9.7 million and $1.7
 million, respectively, in the same quarter of 2000.
     The Company had cash and cash equivalents of $11.5 million on March 31,
 2001, of which $10.0 million was pledged to secure the Company's revolving
 line of credit. At March 31, 2000, the Company had $8.6 million outstanding
 under its line of credit. As a result the Company had unrestricted cash and
 cash available under its line of credit of $2.9 million at March 31,2001 as
 compared to $2.8 million at December 31,2000.  Cash use and cash management
 during the first quarter was significantly better than anticipated with a net
 cash usage of $0.2 million.
     "We are very pleased with our 1st quarter results as we begin to realize
 the benefits of changes that were implemented during the second half of 2000.
 The first quarter's gross margin of 38% was at its highest level since 4th
 quarter 1999 and our operating expenses, at $4.5 million, were 17% below the
 corresponding quarter last year," said Michael E. Jalbert, Transcrypt's
 Chairman, and Chief Executive Officer.  "With our enhanced focus on our core
 competencies and effective cost management, we expect to continue our efforts
 to improve our financial performance in the year 2001." Mr. Jalbert concluded.
     Transcrypt International, Inc., designs, manufactures and markets trunked
 and conventional radio system solutions, land mobile radio repeaters and
 mobile and portable radios, and manufactures information security products
 that prevent the unauthorized interception of sensitive voice and data
 communication. Its web address is http://www.transcrypt.com .
 
     Certain matters discussed in this press release constitute forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995. These forward looking statements are subject to certain risks and
 uncertainties that could cause the actual results, performance or achievements
 to differ materially from those expressed, suggested or implied by the forward
 looking statements due to the number of risk factors detailed in the Company's
 reports filed with the Securities & Exchange Commission, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.
 
     (C)2001 Transcrypt International
 
                  TRANSCRYPT INTERNATIONAL, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 For the three months ended March 31, 2001 and 2000
           (Unaudited and in thousands, except share and per share data)
 
                                                         THREE MONTHS ENDED
                                                             MARCH 31,
                                                        2001           2000
 
     Revenues                                          $9,551        $11,360
     Cost of sales                                      5,966          9,812
       Gross profit                                     3,585          1,548
     Operating expenses:
       Research and development                         1,136          1,465
       Sales and marketing                              1,318          1,790
       General and administrative                       2,003          2,126
         Total operating expenses                       4,457          5,381
 
         Income (loss) from operations                   (872)        (3,833)
 
     Other income                                          67            472
     Interest income                                      136            242
     Interest expense                                    (129)          (132)
       Income (loss) before income taxes                 (798)        (3,251)
     Income tax provision                                   -              -
       Net income (loss)                                $(798)       $(3,251)
 
     Net income (loss) per share - Basic and Diluted   $(0.06)        $(0.25)
 
     Weighted average common shares -
      Basic and Diluted                            14,423,913     12,956,871
 
 
                TRANSCRYPT INTERNATIONAL, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                      March 31, 2001 and December 31, 2000
                                 (in thousands)
 
 
                                                     MARCH 31,   DECEMBER 31,
                  ASSETS                               2001            2000
                                                   (unaudited)
     Current assets:
       Cash and cash equivalents                      $11,488        $11,409
       Accounts receivable, net of allowance for
        returns and doubtful accounts of
        $763 and $823 respectively                      5,052          3,837
       Receivables - other                                161            366
       Cost in excess of billings on
        uncompleted contracts                           2,528          1,700
       Inventory, net of reserve of $3,119
        and $3,156 respectively                        12,977         15,125
       Prepaid expenses                                   368            337
         Total current assets                          32,574         32,774
     Property, plant and equipment, net                 2,034          2,294
     Intangible assets, net of
      accumulated amortization                         11,081         11,387
     Other assets                                         299            539
                                                      $45,988        $46,994
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Revolving line of credit                        $8,600         $8,280
       Current portion of capitalized
        lease obligations                                  43             42
       Accounts payable                                 4,213          4,144
       Billings in excess of cost on
        uncompleted contracts                             686          1,378
       Deferred revenue                                 1,108            847
       Accrued expenses                                 1,844          1,973
     Total current liabilities                         16,494         16,664
     Provision for litigation settlement                4,197          4,197
     Capitalized lease obligations,
      net of current portion                                7             19
     Deferred revenue                                     318            344
                                                       21,016         21,224
 
     Stockholders' equity:
       Common stock                                       143            143
       Additional paid-in capital                      92,188         92,188
       Accumulated deficit                            (67,359)       (66,561)
                                                       24,972         25,770
                                                      $45,988        $46,994
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45298583
 
 SOURCE  Transcrypt International, Inc.