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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