SANTA ANA, Calif., April 16 /PRNewswire-FirstCall/ -- TROY Group
Inc. (OTC:TROY) today announced that financial results for the
first quarter of fiscal year 2007, which ended February 28, 2007,
have been posted on the company's Web site at
http://www.troygroup.com/. To access the report, click on About
TROY Group then click on Financials. TROY's first quarter 2007
financial results are also posted at http://www.pinksheets.com/.
Enter TROY in the symbol field then click on Financial Report.
Revenue for the first quarter ended February 28, 2007 increased to
$13.2 million compared to revenue for the first quarter ended
February 28, 2006 of $11.7 million due to a $1.8 million one time
purchase of printers by one customer. Earnings from continuing
operations for the first quarter ended February 28, 2007 and 2006
were $0.11 per share. The first quarter of 2007 included a pre tax
charge of $420,000 for stock compensation compared to $22,000 in
the first quarter of 2006. TROY GROUP, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (unaudited) Three Months Ended February 28,
February 28, 2007 2006 Net sales $13,160,000 $11,745,000 Cost of
goods sold 7,666,000 6,850,000 Gross profit 5,494,000 4,895,000
Operating expenses: Selling, general and administrative 3,081,000
2,524,000 Research and development 748,000 698,000 Amortization of
intangible assets -- 10,000 Total operating expenses 3,829,000
3,232,000 Operating income 1,665,000 1,663,000 Interest income
145,000 213,000 Income from continuing operations before income
taxes 1,810,000 1,876,000 Provision for income taxes 652,000
713,000 Income from continuing operations 1,158,000 1,163,000 Loss
from discontinued operations, net of tax -- (44,000) Gains on
disposal of discontinued operations, net of tax -- 4,984,000
Discontinued operations, net of tax -- 4,940,000 Net income
$1,158,000 $ 6,103,000 Net income per share: Basic income from
continuing operations $0.11 $0.11 Basic income from discontinued
operations -- 0.47 Basic income $0.11 $0.58 Diluted income from
continuing operations $0.11 $0.11 Diluted income from discontinued
operations -- 0.47 Diluted income $0.11 $0.58 Weighted average
shares outstanding: Basic 10,564 10,448 Diluted 10,564 10,463 See
Notes to Condensed Consolidated Financial Statements. TROY GROUP,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS Assets February 28,
November 30, 2007 2006 (unaudited) Current assets: Cash and cash
equivalents $242,000 $350,000 Investment in available-for-sale
securities 11,250,000 9,650,000 Accounts receivable, net of
allowance for doubtful accounts 2007 $279,000; 2006 $322,000
5,851,000 5,788,000 Inventories 3,808,000 3,980,000 Prepaid
expenses and other 703,000 917,000 Deferred tax assets 814,000
874,000 Total current assets 22,668,000 21,559,000 Equipment and
leasehold improvements, net 2,001,000 2,126,000 Goodwill 281,000
281,000 Other assets, including receivables from stockholders of
$1,903,000 3,485,000 3,324,000 Total assets $28,435,000 $27,290,000
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable $3,319,000 $4,310,000 Accrued expenses 2,825,000 3,171,000
Deferred revenue 2,898,000 1,994,000 Total current liabilities
9,042,000 9,475,000 Commitments and contingencies Stockholders'
equity: Preferred stock, no par value, authorized 100,000 shares;
issued none -- -- Common stock, par value $0.01 per share;
authorized 13,000,000 shares; issued 10,563,701 shares 106,000
106,000 Additional paid-in capital 20,930,000 20,510,000
Accumulated deficit (1,643,000) (2,801,000) Total stockholders'
equity 19,393,000 17,815,000 Total liabilities and stockholders'
equity $8,435,000 $27,290,000 See Notes to Condensed Consolidated
Financial Statements. About TROY Group TROY Group, Inc. ("TROY") is
a worldwide provider of secure payment solutions. Our security
printing solutions include application software, high security
check printing hardware and specialized consumables for secure
printing and payment applications. Our ACH (Automated Clearing
House) software includes ACH processing and origination software
and consulting services. We sell and service our products to major
corporations, banks, key government accounts and distributors
worldwide. Visit TROY at http://www.troygroup.com/. Forward-looking
statements of TROY (statements that are not historical fact) in
this news release are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by terms such as
believe, expect, may, will, could and should, and the negative of
these terms or other similar expressions. These statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those discussed in the forward-looking
statements. These risks and uncertainties include, but, are not
limited to, the ability to develop new products, the ability to
hire and retain qualified management, technology and other
personnel, the impact of competition from existing and new
technologies and companies and the other factors set forth in our
periodic reports and other documents that we distribute from time
to time which are available in our financial statements under
certain important factors on our website TROYgroup.com or
pinksheets.com. Statements included in this news release are based
upon information known to TROY as of the date of this release, and
TROY assumes no obligation to update information contained in this
news release. For More Information Contact: TROY Group Inc. 3535
Hyland Ave., Suite 200 Costa Mesa, CA 92626 (714) 241-4760 (714)
241-4762 Facsimile http://www.troygroup.com/ Contact: Dennis C.
Fairchild, Vice President & CFO DATASOURCE: TROY Group Inc.
CONTACT: Dennis C. Fairchild, Vice President & CFO of TROY
Group Inc., +1-714-241-4760, or fax, +1-714-241-4762 Web site:
http://www.troygroup.com/
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