UNITED STATES SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 10, 2006
(Exact name of registrant as specified in its charter)
Delaware 0-17893 59-2937938 (State or other jurisdiction
2150 WHITFIELD INDUSTRIAL WAY, SARASOTA, FLORIDA
(Address of principal executive offices)
Registrant's telephone number, including area code: (941) 753-5000
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On May 10, 2006, the Registrant issued a press release announcing its financial results for the quarter ended March 31, 2006. A copy of the Registrants press release is attached as Exhibit 99 to this Current Report.
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
99 Press Release dated May 10, 2006.
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 10, 2006 By: /s/ RUSSELL R. LEE III
Russell R. Lee III
Vice President Finance and
Chief Financial Officer
Description 99 Press Release dated May 10, 2006.
FOR IMMEDIATE RELEASE Contacts: Ewen R. Cameron, President & CEO
IDEAS THAT COMMUNICATE
2150 Whitfield Industrial Way
Sarasota, FL 34243-4046
TELTRONICS ANNOUNCES FIRST QUARTER RESULTS
Teltronics looks forward to large customer's release of projects
under multi-million dollar contract commencing in second quarter 2006.
SARASOTA, Fla., May 10, 2006 - Teltronics, Inc. (OTCBB: TELT) today announced its financial results for the three months ended March 31, 2006.
Sales for the three months ended March 31, 2006 were $10.3 million as compared to $9.8 million reported for the same period in 2005. Gross profit margin for the three months ended March 31, 2006 decreased to 38.9% from 43.6% reported for the same period in 2005. Operating expenses for the three months ended March 31, 2006 were $4.3 million as compared to $4.7 million reported for the same period in 2005. The net loss for the three months ended March 31, 2006 was $560,000 as compared to a net loss of $237,000, which included a one-time gain on the sale of certain patents of $495,000, reported for the same period in 2005. The net loss available to common shareholders for the three months ended March 31, 2006 was $723,000 as compared to $396,000 reported for the same period in 2005. Our diluted net loss per share for the three months ended March 31, 2006 was $0.08 as compared to a diluted net loss per share of $0.05 reported for the same period in 2005.
"We are pleased to see that one of our large customers has started, in the second quarter, to release some of the projects associated with the $20 plus million contract that Teltronics was awarded in the first quarter of 2005," said Ewen Cameron, Teltronics' President and Chief Executive Officer. "Release of these projects will allow us to build-out a significant piece of our backlog over the next two years which will have a positive impact on sales and earnings during that period," explained Cameron.
- more -
Teltronics, Inc. is a leading global provider of communications solutions and services that help businesses excel. The Company manufactures telephone switching systems and software for small-to-large size businesses and government facilities. Teltronics' Enhanced 911 solutions provide lifesaving information to public safety communications centers. Teltronics offers a full suite of Contact Center solutions - software, services and support to help their clients satisfy customer interactions. Teltronics also provides remote maintenance hardware and software solutions to help large organizations and regional telephone companies effectively monitor and maintain their voice and data networks. The Company serves as an electronic contract-manufacturing partner to customers in the U.S. and overseas. Further information regarding Teltronics can be found on 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 can generally be identified as such because the context of the statement will include words such as we "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, strategies or goals are also forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the timely development and market acceptance of products and technologies, competitive market conditions, payment of the consideration under our acquisition agreements, successful integration of acquisitions and the failure to realize the expected benefits of such acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses ,the ability to make payments under our outstanding indebtedness, the ability to pay dividends on our preferred stock, risks relating to foreign currency translations, and other factors described in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
See Tables Below
TELTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
in thousands, except shares and per share amounts
|Cash and cash equivalents||$||1,148||$||1,150|
|Accounts receivable, net of allowance for doubtful accounts||7,871||6,568|
|Costs and estimated earnings in excess of billings|
|on uncompleted contracts||283||418|
|Other current assets||615||953|
|Total current assets||15,407||15,059|
Property and equipment, net
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
|Line of credit||$||5,864||$||5,112|
|Current portion of long-term debt and capital|
|Other current liabilities||4,396||3,788|
|Total current liabilities||17,605||15,385|
|Long-term debt and capital lease obligations, net of|
|Total long-term liabilities||2,886||4,181|
|Commitments and contingencies|
|Additional paid-in capital||24,672||24,658|
|Accumulated deficit and other comprehensive loss||(27,987||)||(27,253||)|
|Total shareholders' deficiency||(3,306||)||(2,586||)|
|Total liabilities and shareholders' deficiency||$||17,185||$||16,980|
TELTRONICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except shares and per share amounts
|Three Months Ended March 31,|
|Product sales and installation||$||6,915||$||6,529|
|Maintenance and service||3,376||3,233|
|Cost of goods sold||6,286||5,501|
|General and administrative||1,321||1,465|
|Sales and marketing||1,888||1,986|
|Research and development||927||1,030|
|Loss from operations||(250||)||(394||)|
Other income (expense):
|Loss before income taxes||(543||)||(232||)|
|Dividends on Preferred Series B and C Convertible stock||163||159|
|Net loss available to common shareholders||$||(723||)||$||(396||)|
|Net loss per share:|
|Basic and Diluted||$||(0.08||)||$||(0.05|
|Weighted average shares outstanding:|
|Basic and Diluted||8,636,539||7,869,617|
|0000097052-06-000008.txt||Complete submission text file||121904|