SANTA ANA, Calif., July 3 /PRNewswire-FirstCall/ -- TROY Group Inc. today announced that financial results for the second quarter of fiscal year 2006, which ended May 31, 2006, 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 second quarter 2006 results are also posted at http://www.pinksheets.com/. Enter TROY in the symbol field then click on Financial Report.
Earnings from continuing operations for the second fiscal quarter ended May 31, 2006 were $0.10 per share. Earnings for the six months ended May 31, 2006 from continuing operations were $0.22 per share and discontinued operations including the gain on disposal of the Wireless and Connectivity Solutions business were $0.47 per share.
Summary financial data following
TROY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
May 31, May 31, May 31, May 31,
2006 2005 2006 2005
Net sales $11,546 $10,039 $23,291 $19,585
Cost of goods sold 6,450 6,138 13,300 11,959
Gross profit 5,096 3,901 9,991 7,626
Operating expenses:
Selling, general
and administrative 2,822 2,460 5,346 5,167
Research and development 720 696 1,418 1,513
Amortization of
intangible assets -- 19 10 38
Total operating
expenses 3,542 3,175 6,774 6,718
Operating income 1,554 726 3,217 908
Interest income 186 71 399 128
Income from continuing
operations before
income taxes 1,740 797 3,616 1,036
Provision for
income taxes 661 302 1,374 392
Income from continuing
operations 1,079 495 2,242 644
Loss from discontinued
operations, net of tax -- (366) (44) (367)
Gains on disposal of
discontinued operations,
net of tax -- -- 4,984 --
Discontinued operations,
net of tax -- (366) 4,940 (367)
Net income $1,079 $129 $7,182 $277
Net income per share:
Basic income from
continuing operations $0.10 $0.04 $0.22 $0.06
Basic income (loss)
from discontinued
operations -- (0.03) 0.47 (0.03)
Basic income 0.10 0.01 0.69 0.03
Diluted income from
continuing operations 0.10 0.04 0.21 0.06
Diluted income (loss)
from discontinued
operations -- (0.03) 0.47 (0.03)
Diluted income 0.10 0.01 0.68 0.03
Weighted average
shares outstanding:
Basic 10,468 10,640 10,458 10,640
Diluted 10,518 10,640 10,490 10,640
TROY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
Assets May 31, November 30,
2006 2005
(unaudited)
Current assets:
Cash and cash equivalents $51 $492
Investment in available-for-sale securities 15,750 12,600
Accounts receivable, net of allowance for
doubtful accounts 2005 $271; 2006 $209 5,667 6,416
Inventories 3,110 3,053
Prepaid expenses and other 1,035 707
Deferred tax assets 1,166 2,525
Current assets of discontinued operations
held for sale 43 3,336
Total current assets 26,822 29,129
Equipment and leasehold improvements, net 2,261 2,501
Goodwill 281 281
Other assets, including receivables from
stockholders of $1,903 3,023 2,925
Non-current assets of discontinued operations
held for sale -- 38
Total assets $32,387 $34,874
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,088 $2,236
Accrued expenses 4,761 3,439
Deferred revenue 1,888 1,422
Current liabilities of discontinued operations
held for sale 487 1,667
Total current liabilities 9,224 8,764
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 2005
10,639,877 shares; issued 2006 10,468,367 shares 105 107
Additional paid-in capital 19,743 19,913
Retained earnings 3,236 6,523
Accumulated other comprehensive income 79 59
Less cost of treasury stock - 2005 201,510 shares -- (492)
Total stockholders' equity 23,163 26,110
Total liabilities and stockholders' equity $32,387 $ 34,874
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.
2331 South Pullman Street
Santa Ana, CA 92705
(949) 250-3280
(949) 250-8972 Facsimile
http://www.troygroup.com/
Contact:
Dennis C. Fairchild, Vice President & CFO
