TCCO stock exploded 73% higher in after-hours trading on December 9, 2019 after the company released its quarterly financial report.

TCCO stock exploded 73% higher in after-hours trading (brown shaded area) on December 9, 2019. The stock has liquidity issues as you can see from the chart so it may be hard to get a trade to fill at a decent price without chasing too high and it may be even harder to get out of a trade so don’t trade this stock unless you have experience with trading low liquidity stocks.

Technical Communications Corporation (NasdaqCM: TCCO) today announced its results for the fiscal year and quarter ended September 28, 2019. For the quarter ended September 28, 2019, the Company reported net income of $1,032,000, or $0.56 per share, on revenue of $2,749,000, compared to a net loss of $(259,000), or $(0.14) per share, on revenue of $1,137,000 for the quarter ended September 29, 2018. For the year ended September 28, 2019, the Company reported net income of $631,000, or $0.34 per share, on revenue of $7,024,000, compared to a net loss of $(1,480,000), or $(0.80) per share, on revenue of $3,685,000 for the year ended September 29, 2018.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, “The Company experienced a return to profitability in fiscal year 2019. The Company completed delivery of several foreign and domestic contracts for its DSP 9000/HSE 6000 radio encryption products. It also provided significant engineering services under contracts that were completed in fiscal 2019.

“Offering high-end custom cryptographic services and solutions is an established market niche for the Company and we believe an important competitive differentiator. In fiscal 2019, custom TCC equipment and services continued to provide recurring revenue opportunities within the Company’s established government systems product line; such equipment sales consisted primarily of our DSP 9000/HSE 6000 radio encryption and digital encryption CX7211 products, along with custom solution engineering services.”

The revenue of $1,137,000 is significant in that on October 16, 2019, the stock was almost delisted from the Nasdaq. Technical Communications received notice that the Nasdaq Hearings Panel has granted the company’s request for continued listing on the Nasdaq until December 13, subject to certain conditions. Specifically, on or before December 13, the company must file its Annual Report on Form 10-K for the fiscal year ended September 28, 2019, which shall report over $500K in net income from continuing operations in order to regain compliance. On June 25, the company received notice from Nasdaq that it did not comply with the minimum $2.5M shareholders’ equity requirement or the applicable alternative standards. The company submitted a plan to regain compliance, but it was not accepted by the Nasdaq. The company requested a hearing to discuss the decision and the Panel grants the company until December 13 to demonstrate compliance with the net income alternative standard under the Rule. The company did it! They needed $500K or more in revenue and they achieved $1.1M. Most traders dumped the stock which is why the liquidity dried up but now, look out! This thing could blast higher tomorrow IMO.

finviz dynamic chart for  tcco

Disclosure: We do not hold any position in TCCO stock.

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