SANTA ANA, Calif., Sept. 21 /PRNewswire-FirstCall/ -- TROY Group
Inc. (OTC:TROY) today announced that financial results for the
third quarter of fiscal year 2006, which ended August 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 third quarter 2006
results are also posted at http://www.pinksheets.com/. Enter TROY
in the symbol field then click on Financial Report. Revenue for the
quarter ended August 31, 2006 declined to $9.9 million compared to
revenue for the quarter ended August 31, 2005 of $10.2 million due
to the timing of orders and shipments. Earnings from continuing
operations for the third quarter ended August 31, 2006 declined to
$0.07 per share compared to $0.10 for the quarter ended August 31,
2005. Revenue for the nine months ended August 31, 2006 increased
to $33.2 million compared to $29.8 million for the nine months
ended August 31, 2005 due to new product sales. Earnings for the
nine months ended August 31, 2006 from continuing operations
increased to $0.28 per share compared to $0.16 per share for the
nine months ended August 31, 2005. See the financial statements for
more detail and results of discontinued operations. During the
third quarter the Company was notified that it would receive and
has received several non-recurring orders from one customer. The
Company estimates that it will receive $7 to $11 million from this
customer by the end of its fourth quarter 2006. The bulk of these
orders are anticipated to ship during the Company's fourth quarter.
The balance is expected to ship during its first quarter of 2007.
The Company does not anticipate additional orders of this nature in
the immediate future. The Company does not provide market guidance
and is making this disclosure due to the size of the transaction.
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/ For Additional Information Contact:
Dennis C. Fairchild Vice President & CFO Financial Data Summary
Following 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, 2006 2005 2006 2005 Net sales $9,883 $10,249 $33,174
$29,834 Cost of goods sold 5,797 5,884 19,097 17,843 Gross profit
4,086 4,365 14,077 11,991 Operating expenses: Selling, general and
administrative 2,453 1,944 7,799 7,111 Research and development 744
703 2,162 2,216 Amortization of intangible assets -- 19 10 57 Total
operating expenses 3,197 2,666 9,971 9,384 Operating income 889
1,699 4,106 2,607 Interest income 218 85 617 213 Income from
continuing operations before income taxes 1,107 1,784 4,723 2,820
Provision for income taxes 421 678 1,795 1,070 Income from
continuing operations 686 1,106 2,928 1,750 Loss from discontinued
operations, net of tax -- (473) (44) (840) Gains on disposal of
discontinued operations, net of tax -- -- 4,984 -- Discontinued
operations, net of tax -- (473) 4,940 (840) Net income $686 $633
$7,868 $910 Net income per share: Basic income from continuing
operations $0.07 $0.10 $0.28 $0.16 Basic income (loss) from
discontinued operations -- (0.04) 0.47 (0.08) Basic income $0.07
$0.06 $0.75 $0.08 Diluted income from continuing operations $0.07
$0.10 $0.28 $0.16 Diluted income (loss) from discontinued
operations -- (0.04) 0.47 (0.08) Diluted income $0.07 $0.06 $0.75
$0.08 Weighted average shares outstanding: Basic 10,468 10,640
10,462 10,640 Diluted 10,508 10,640 10,496 10,640 FINANCIAL
STATEMENTS TROY GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts) Assets August
31, November 30, 2006 2005 (unaudited) Current assets: Cash and
cash equivalents $446 $492 Investment in available-for-sale
securities 16,100 12,600 Accounts receivable, net of allowance for
doubtful accounts 2005 $271; 2006 $200 5,585 6,416 Inventories
2,797 3,053 Prepaid expenses and other 979 707 Deferred tax assets
1,130 2,525 Current assets of discontinued operations held for sale
8 3,336 Total current assets 27,045 29,129 Equipment and leasehold
improvements, net 2,121 2,501 Goodwill 281 281 Other assets,
including receivables from stockholders of $1,903 3,045 2,925
Non-current assets of discontinued operations held for sale -- 38
Total assets $32,492 $34,874 Liabilities and Stockholders' Equity
Current liabilities: Accounts payable $2,372 $2,236 Accrued
expenses 3,849 3,439 Deferred revenue 2,094 1,422 Current
liabilities of discontinued operations held for sale 236 1,667
Total current liabilities 8,551 8,764 Commitments and contingencies
Stockholders' equity: Preferred stock, no par value, authorized
100,000 shares; none issued 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
19,838 19,913 Retained earnings 3,922 6,523 Accumulated other
comprehensive income 76 59 Less cost of treasury stock - 2005
201,510 shares -- (492) Total stockholders' equity 23,941 26,110
Total liabilities and stockholders' equity $32,492 $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. DATASOURCE: TROY Group
Inc. CONTACT: Dennis C. Fairchild, Vice President & CFO of TROY
Group Inc., +1-949-250-3280 Web site: http://www.troygroup.com/
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