COSTA MESA, Calif., Oct. 8 /PRNewswire-FirstCall/ -- TROY Group, Inc. (Pink Sheets: TROY) today announced that financial results for the third quarter of fiscal year 2007 which ended August 31, 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 third 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 three months ended August 31, 2007 increased to $11.5 million compared to revenue for the three months ended August 31, 2006 of $9.9 million. Earnings from continuing operations for the three months ended August 31, 2007 were $0.09 per share compared to earnings from continuing operations for the three months ended August 31, 2006 of $0.07 per share.
Revenue for the nine months ended August 31, 2007 increased to $36.5 million compared to revenue for the nine months ended August 31, 2006 of $33.2 million. Earnings from continuing operations for the nine months ended August 31, 2007 and the nine months ended August 31, 2006 were $0.28 per share.
The consolidated balance sheet and consolidated statements of income are attached to this press release. For further analysis and detail see the above sites.
FINANCIAL STATEMENTS TROY GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) Assets August 31, November 30, 2007 2006 (unaudited) Current assets: Cash and cash equivalents $ 584 $ 350 Investment in available-for-sale securities 14,250 9,650 Accounts receivable, net of allowance for doubtful accounts 2007 $277; 2006 $322 5,064 5,788 Inventories 3,549 3,980 Prepaid expenses and other 984 917 Deferred tax assets 806 874 Total current assets 25,237 21,559 Equipment and leasehold improvements, net 1,804 2,126 Goodwill 281 281 Other assets, including receivables from stockholders of $1,903 3,295 3,324 Total assets $ 30,617 $ 27,290 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,917 $ 4,310 Accrued expenses 2,193 3,171 Deferred revenue 3,128 1,994 Total current liabilities 8,238 9,475 Long-term liability 669 -- 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 106 106 Additional paid-in capital 21,403 20,510 Retained earnings (deficit) 201 (2,801) Total stockholders' equity 21,710 17,815 Total liabilities and stockholders' equity $ 30,617 $ 27,290 See Notes to Condensed Consolidated Financial Statements TROY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share amounts) Three Months Ended Nine Months Ended August 31, August 31, August 31, August 31, 2007 2006 2007 2006 Net sales $ 11,472 $ 9,883 $ 36,472 $ 33,174 Cost of goods sold 6,692 21,386 19,097 5,797 Gross profit 4,780 15,086 14,077 4,086 Operating expenses: Selling, general and administrative 2,681 2,453 8,460 7,799 Research and development 732 2,324 2,162 744 Amortization of intangible assets -- -- -- 10 Total operating expenses 3,413 3,197 10,784 9,971 Operating income 1,367 889 4,302 4,106 Interest income 176 218 463 617 Income from continuing operations before income taxes 1,543 1,107 4,765 4,723 Provision for income taxes 563 421 1,763 1,795 Income from continuing operations 980 686 3,002 2,928 Loss from discontinued operations, net of tax -- -- -- (44) Gains on disposal of discontinued operations, net of tax -- -- -- 4,984 Discontinued operations, net of tax -- -- -- 4,940 Net income $ 980 $ 686 $ 3,002 $ 7,868 Net income per share: Basic income from continuing operations $ 0.09 $ 0.07 $ 0.28 $ 0.28 Basic income from discontinued operations -- -- -- 0.47 Basic income $ 0.09 $ 0.07 $ 0.28 $ 0.75 Diluted income from continuing operations $ 0.09 $ 0.07 $ 0.28 $ 0.28 Diluted income from discontinued operations -- -- -- 0.47 Diluted income $ 0.09 $ 0.07 $ 0.28 $ 0.75 Weighted average shares outstanding: Basic 10,564 10,468 10,564 10,462 Diluted 10,631 10,508 10,595 10,496 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.
Contact: Dennis C. Fairchild Vice President & CFO (714) 241-4760 (714) 241-4762
