Revenue from JDL’s sales to small and medium sized commercial businesses (SMBs) increased by 48% to $538,000 as a result of JDL’s continued successful marketing and sales efforts. JDL Technologies’ 2014 first quarter gross margin dollars increased 7% to $791,000 compared to $740,000 in the comparable 2013 period, reflecting the fact that a significant portion of its 2013 revenue was hardware-based, rather than its more traditional value-added service.

          We expect volatility in JDL’s revenues to continue in 2014 and future years. Accordingly, in order to reduce its dependence on government funding, JDL continues to aggressively pursue opportunities to provide managed services, migration to the cloud, virtualization and other network services to SMBs with a focus on healthcare, legal and financial services markets.

Further Information

          Effective January 1, 2014, the Company realigned financial reporting in regard to operations of its business units to better reflect its move to a holding company business structure that supports self-sustaining business units and to provide increased focus on opportunities to cut indirect corporate charges. As a result of this realignment, all corporate general and administrative expenses that were previously categorized as “Other” are now included within the business unit level as fully allocated costs. In order to conform to the 2014 presentation, the Company has reclassified the previously non-allocated 2013 Corporate expenses within the business segments. Further information regarding the Company’s results and related matters will be provided in the Company’s Form 10-Q report for the three months ended March 31, 2014, which will be filed on May 8, 2014.

Cautionary Statement

          From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are often preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the SEC, which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.

About Communications Systems

          Communications Systems, Inc. provides physical connectivity infrastructure and services for global deployments of broadband networks. Focusing on innovative, cost-effective solutions, CSI provides customers the ability to deliver, manage, and optimize their broadband network services and architecture. From the integration of fiber optics in any application and environment to efficient home voice and data deployments to optimization of data and application access, CSI provides the tools for maximum utilization of the network from the edge to the user. With partners and customers in over 50 countries, CSI has built a reputation as a reliable global innovator focusing on quality and customer service.