Technology

Massive Gains for Technical Communications Corporation (NASDAQ:TCCO)

Technical Communications Corporation (NASDAQ:TCCO)

Concord, MA-based Technical Communications Corporation (NASDAQ:TCCO) have been up over 80% on the back of an earnings report released after the market closed yesterday. TCCO shares closed Thursday at $2.42 and this morning reached a high of $4.40. Volumes have been simply huge for the nano-cap company whose shares typically trade very thinly. The 30-day, daily volume average is listed at just over 10,000. However, by 11:20 AM EST, TCCO shares have traded a whopping 3.14 million times.

Technical Communications Corporation (NASDAQ:TCCO) has been around for over 55 years. The company designs, develops, and commercializes military-grade secure communications platforms. Among their clients are governments, militaries, and corporations that require highly secured voice and transmissions. Technical Communications Corporation (NASDAQ:TCCO) also develops and commercializes network security systems and frame relay networks.

For the six months ended April 1, 2017 Technical Communications Corporation (NASDAQ:TCCO) reported a net loss of (-$567,000) which translates into a per share loss of (-$0.31) on revenue of $2.02 million. However for the same six months of the prior year, the net loss was a wider (-$681,000) which translated into a per share loss of (-$0.37) on $1.57 million in revenues. For Q1, 2017 Technical Communications Corporation (NASDAQ:TCCO) posted net income of $128,000 which translated into $0.07 per share of TCCO. Revenues were $1.39 million. That compares favorably to Q1 2016 when the company posted a net loss of (-$263,000) which translated into (-$-$0.14) per share on revenues of $557,000.

President and Chief Executive Officer of Technical Communications Corporation (NASDAQ:TCCO), Carl Guild, stated that the financial performance for the quarter was expected due to radio encryptor shipments to Afghanistan. These shipments are expected to continue through the third quarter.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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