EXHIBIT 99.1
[TR SYSTEMS LOGO]
News Release
Contact: Lyle Newkirk
T/R Systems, Inc.
Tel: +1 (770) 448-9008
Fax: +1 (770) 448-3202
e-mail: lnewkirk@trsystems.com
For Immediate Release
T/R Systems Announces First Quarter Results
Revenue Increases 17%
ATLANTA, GA - May 27, 2003 - T/R SYSTEMS, INC. (NASDAQ: TRSI), a leader in
developing innovative solutions for the management and production of digital
documents, today announced a 17% increase in revenue for its first quarter,
which ended April 30, 2003. Revenue for the quarter ended April 30, 2003 was
$3.8 million versus $3.3 million in the same quarter a year ago.
The revenue increase is mainly the result of improvements in the sales of the
MicroPress(R) products into the OEM distribution channel. Revenue from those
sales was $2.9 million in the first quarter as compared to $1.5 million a year
ago. Unit sales into the OEM distribution channel increased 86% in the first
quarter compared to the same quarter last year.
In the quarter ended April 30, 2003 the net loss was $1.0 million versus a net
loss of $3.3 million in the quarter ended April 30, 2002. The significant
decline in the net loss is the result of improved revenue, a lowering of product
costs as well as a reduction in all other expense categories.
Loss per common share outstanding was 8 cents versus 27 cents in the same
quarter last year.
"We are encouraged with the improvements in MicroPress sales in the first
quarter," said Mike Kohlsdorf, President and Chief Executive Officer. "We have
worked diligently to improve revenue while reducing our cost structure as we
progress toward our goal of a return to profitability."
Cash and cash equivalents was $5.1 million on April 30, 2003. There was no
outstanding debt.
T/R Systems will hold a conference call at 8:30 a.m. (EST) tomorrow to further
discuss these results. The conference call will be broadcast via the Internet as
well as telephone. To listen over the Internet, participants should visit
www.trsystems.com/investor and follow the directions. Participants wishing to
listen via telephone should call 1-800-992-7413 in the United States or
1-801-303-7424 outside the United States by 8:20 a.m. (EDT) on Wednesday, May
28, 2003 and reference the "T/R Systems First Quarter Earnings Release."
The rebroadcast of the call will be available via the Internet and telephone
from May 28, 2003 at 8:00 p.m. (EST) until midnight on June 13, 2003. To listen
to the rebroadcast via the Internet, participants should visit
www.trsystems.com/investor and follow the directions. To listen to the
rebroadcast via telephone, participants should dial 1-800-839-0860 in the United
States or 1-402-220-1490 outside the United States and enter the identification
number 1415 when prompted.
ABOUT T/R SYSTEMS INC.
T/R Systems (www.trsystems.com) provides the printing and publishing industry
with an integrated software suite that transforms digital copiers and printers
into powerful, scalable print-on-demand systems. Its solutions turn complex
document production tasks into efficient automated business processes.
T/R Systems solutions are used by a broad spectrum of customers, including
corporations, colleges and universities, facilities managers and print-for-pay
service providers. Despite the seemingly different requirements of each of these
groups, the one constant is their desire to provide effective and efficient
document production services to their customers.
For additional information, contact Lyle Newkirk of T/R Systems, Inc. at
1300 Oakbrook Dr., Norcross, Georgia 30093, USA; Phone: +1 770-448-9008;
Fax: +1 770-448-3202; e-mail: lnewkirk@trsystems.com or visit T/R Systems'
home page: http://www.trsystems.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: A number of the matters and subject areas discussed in this press
release that are not historical or current facts deal with potential future
circumstances and developments. The discussion of such matters and subject areas
is qualified by the inherent risks and uncertainties surrounding future
expectations generally, and also may materially differ from T/R Systems' actual
future experience involving any one or more of such matters and subject areas.
Such risks and uncertainties include general economic conditions, demand for our
products, the competitiveness of our products and our markets, and changes in
technology, as well as those that are described in T/R Systems' reports filed
with the SEC from time to time, including the annual report on Form 10-K for the
fiscal year ended January 31, 2003.
All product and company names are trademarks or registered trademarks
and are the property of their owners and are respectfully acknowledged.
T/R SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
APRIL 30,
---------------------------
2003 2002
-------- --------
REVENUE $ 3,805 $ 3,262
OPERATING EXPENSES:
COST OF IMAGING SYSTEMS 1,501 2,098
RESEARCH AND DEVELOPMENT 877 1,441
SALES AND MARKETING 2,036 2,339
GENERAL AND ADMINISTRATIVE 443 693
-------- --------
TOTAL OPERATING EXPENSES 4,857 6,571
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OPERATING LOSS (1,052) (3,309)
INTEREST INCOME 13 46
-------- --------
LOSS BEFORE INCOME TAX BENEFIT (1,039) (3,263)
INCOME TAX BENEFIT -- --
-------- --------
Net loss $ (1,039) $ (3,263)
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NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (0.08) $ (0.27)
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COMMON SHARES OUTSTANDING - BASIC AND DILUTED 12,469 12,303
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T/R SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
APRIL 30, JANUARY 31,
2003 2003
-------- --------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 5,054 $ 7,154
RECEIVABLES, NET 2,236 1,919
INVENTORIES, NET 2,041 2,180
PREPAID EXPENSES AND OTHER 412 305
-------- --------
TOTAL CURRENT ASSETS 9,743 11,558
PROPERTY AND EQUIPMENT, NET 3,378 3,737
-------- --------
$ 13,121 $ 15,295
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
LINE OF CREDIT $ -- $ 220
ACCOUNTS PAYABLE 1,260 1,492
DEFERRED REVENUE 680 673
ACCRUED SALARIES AND WAGES 633 932
OTHER LIABILITIES 2,258 2,649
-------- --------
TOTAL CURRENT LIABILITIES 4,831 5,966
SHAREHOLDERS' EQUITY:
COMMON STOCK 124 124
ADDITIONAL PAID-IN CAPITAL 43,664 43,664
ACCUMULATED DEFICIT (35,498) (34,459)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 8,290 9,329
-------- --------
$ 13,121 $ 15,295
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