COSTA MESA, Calif., April 11 /PRNewswire-FirstCall/ -- TROY Group,
Inc. (Pink Sheets: TROY) announced today that financial results for
the first quarter of fiscal 2008, which ended February 29, 2008,
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 financial results are
also posted at http://www.pinksheets.com/. Enter TROY in the symbol
field then click on Financial Report. Revenue for the three months
ended February 29, 2008 decreased to $10.6 million compared to
revenue for the three months ended February 28, 2007 of $13.1
million largely due to the one time purchase of printers by one
customer included in the first three months of 2007. Earnings from
continuing operations for the three months ended February 29, 2008
decreased to $0.07 per share compared to $0.14 per share for the
three months ended February 28, 2007. As of April 11, 2008 the
majority of the Company's current assets consisted of $14.1 million
in investments that are auction rate securities. These auction rate
securities consist of preferred stock of various closed-end mutual
funds which have an AAA credit rating. The auctions for these
securities have failed since February 13, 2008 resulting in the
investment being illiquid. There has been no default on the
underlying securities, and investment income continues to be
received in a timely manner while we wait for a return of the
market. It's possible that a market for auction rate securities may
not return before the Company has a need to sell its investments,
which would result in TROY having to borrow on its $5 million line
of credit. In addition, a prolonged decline in marketability could
result in a reduced value of the securities. There can be no
assurance when or if the market for these securities will return.
The consolidated balance sheet and consolidated statement of income
are attached to this press release. Please refer to the quarterly
report including financial statements for more detailed
information. FINANCIAL STATEMENTS TROY GROUP, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS February 29, November 30, 2008 2007
Assets (unaudited) Current assets: Cash and cash equivalents
$27,000 $782,000 Investment in available-for-sale securities
14,100,000 11,400,000 Accounts receivable, net of allowances 2008
$343,000; 2007 $293,000 5,406,000 6,302,000 Inventories 3,215,000
3,050,000 Prepaid expenses and other 995,000 840,000 Deferred tax
assets 490,000 734,000 Current assets of discontinued operations
held for sale - 311,000 Total current assets 24,233,000 23,419,000
Equipment and leasehold improvements, net 1,708,000 1,725,000
Goodwill 281,000 281,000 Other assets, including receivables from
stockholders of $1,903,000 3,566,000 3,535,000 Total assets
$29,788,000 $28,960,000 Liabilities and Stockholders' Equity
Current liabilities: Accounts payable $3,178,000 $2,645,000 Accrued
expenses 2,432,000 2,085,000 Deferred revenue 1,319,000 1,286,000
Current liabilities of discontinued operations held for sale -
1,976,000 Total current liabilities 6,929,000 7,992,000 Non-current
liabilities 1,223,000 881,000 Total liabilities 8,152,000 8,873,000
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; outstanding 9,763,235 in 2008 and
9,948,235 in 2007 106,000 106,000 Additional paid-in capital
21,812,000 21,587,000 Retained earnings 3,681,000 1,441,000 Less
cost of treasury stock - 2008 800,466 shares, 2007 615,466 shares
(3,963,000) (3,047,000) Total stockholders' equity 21,636,000
20,087,000 Total liabilities and stockholders' equity $29,788,000
$28,960,000 TROY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (unaudited) Three Months Ended February 29, February 28,
2008 2007 Net sales $10,553,000 $13,087,000 Cost of goods sold
6,343,000 7,658,000 Gross profit 4,210,000 5,429,000 Operating
expenses: Selling, general and administrative 2,709,000 2,722,000
Research and development 622,000 581,000 Total operating expenses
3,331,000 3,303,000 Operating income 879,000 2,126,000 Interest
income 178,000 145,000 Income from continuing operations before
income taxes 1,057,000 2,271,000 Provision for income taxes 391,000
818,000 Income from continuing operations 666,000 1,453,000 Income
(loss) from discontinued operations, net of tax (73,000) (295,000)
Gain on disposal of discontinued operations, net of tax 1,647,000 -
Discontinued operations, net of tax 1,574,000 (295,000) Net income
$2,240,000 $1,158,000 Net income per share: Basic income from
continuing operations $0.07 $0.14 Basic income (loss) from
discontinued operations 0.16 (0.03) Basic income $0.23 $0.11
Diluted income from continuing operations $0.07 $0.14 Diluted
income (loss) from discontinued operations 0.15 (0.03) Diluted
income $0.22 $0.11 Weighted average shares outstanding: Basic 9,850
10,564 Diluted 10,045 10,564 About TROY Group TROY Group, Inc.
("TROY") is a leading provider of on-demand printing solutions.
TROY solutions manage, secure and simplify end-to-end enterprise
printing environments. TROY offers application software, security
printing hardware and specialized consumables for securely printing
checks, money orders, transcripts, prescriptions and other
important documents. TROY solutions are used by enterprises and
governmental organizations to manage fraud, operational risk and
comply with government regulations related to protecting
information privacy. As a Gold Solutions Partner to Hewlett
Packard, TROY is authorized to enhance HP printers and consumables.
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
sell investments when needed, 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. TROY Group, Inc. 940 South Coast Drive, Suite 200
Costa Mesa, CA 92626 (714) 241-4760 (714) 241-4762 Fax
http://www.troygroup.com/ Contact: Myra Erickson Investor Relations
DATASOURCE: TROY Group, Inc. CONTACT: Myra Erickson, Investor
Relations of TROY Group, Inc., +1-714-241-4760, fax,
+1-714-241-4762 Web site: http://www.troygroup.com/
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