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 SECOND QUARTER RESULTS
Loss Narrows
ATLANTA, GA - August 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 3% increase in revenue for its second quarter,
which ended July 31, 2003. Revenue for the quarter ended July 31, 2003 was $4.0
million versus $3.9 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 and improved revenue
from the Digital StoreFront(TM) product. Revenue from sales into the OEM
channel was $2.8 million in the second quarter as compared to $2.4 million a
year ago.
In the quarter ended July 31, 2003, the net loss was $784,000 versus a net loss
of $6.9 million in the quarter ended July 31, 2002. The operating loss for the
quarter that ended July 31, 2002 contained certain restructuring charges of
$3.6 million, principally for inventory and equipment writedowns, severance for
terminated employees and the costs of facility consolidation. The significant
decline in the net loss is the result of a decrease in product costs as well as
a reduction in all other expense categories.
Loss per common share outstanding was 6 cents versus 55 cents in the last
year's comparable quarter.
Cash and cash equivalents were $4.9 million on July 31, 2003, a decline of
$190,000 during the quarter. There was no outstanding debt.
"We are encouraged by our recent financial performance," said Mike Kohlsdorf,
President and Chief Executive Officer. "We are pleased that the actions we have
taken in the previous year to improve revenue while lowering product costs and
overall expenses are beginning to pay off."
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T/R Systems Announces Second Quarter Results
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T/R Systems will hold a conference call at 8:30 a.m. (EDT) 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 1-800-915-4836 in the United States and Canada
or 1-973-317-5319 outside the United States and Canada by 8:20 a.m. (EDT) on
Thursday, August 28, 2003 and reference the "T/R Systems Second Quarter
Earnings Release."
The rebroadcast of the call will be available via the Internet and telephone
from August 28, 2003 at 8:00 p.m. (EDT) until midnight on September 12, 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 1-800-428-6051 in the
United States and Canada or 1-973-709-2089 outside the United States and Canada
and enter the identification number 304486 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 and the subsequent report on Form
10-Q.
ALL PRODUCT AND COMPANY NAMES ARE TRADEMARKS OR REGISTERED TRADEMARKS
AND ARE THE PROPERTY OF THEIR OWNERS AND ARE RESPECTFULLY ACKNOWLEDGED.
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T/R Systems Announces Second Quarter Results
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T/R SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JULY 31, JULY 31,
------------------------- -------------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUE $ 4,023 $ 3,921 $ 7,828 $ 7,183
OPERATING EXPENSES:
COST OF IMAGING SYSTEMS 1,546 3,326 3,047 5,424
RESEARCH AND DEVELOPMENT 873 1,883 1,750 3,324
SALES AND MARKETING 1,929 3,662 3,965 6,001
GENERAL AND ADMINISTRATIVE 466 1,964 909 2,657
-------- -------- -------- --------
TOTAL OPERATING EXPENSES 4,814 10,835 9,671 17,406
-------- -------- -------- --------
OPERATING LOSS (791) (6,914) (1,843) (10,223)
INTEREST INCOME 7 42 20 88
-------- -------- -------- --------
LOSS BEFORE INCOME TAXES (784) (6,872) (1,823) (10,135)
INCOME TAXES -- -- -- --
-------- -------- -------- --------
NET LOSS $ (784) $ (6,872) $ (1,823) $(10,135)
======== ======== ======== ========
NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (0.06) $ (0.55) $ (0.14) $ (0.82)
======== ======== ======== ========
COMMON SHARES OUTSTANDING - BASIC AND DILUTED 12,470 12,400 12,469 12,352
======== ======== ======== ========
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T/R Systems Announces Second Quarter Results
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T/R SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JULY 31, JANUARY 31,
2003 2003
-------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 4,864 $ 7,154
RECEIVABLES, NET 1,856 1,919
INVENTORIES, NET 2,106 2,180
PREPAID EXPENSES AND OTHER 426 305
-------- --------
TOTAL CURRENT ASSETS 9,252 11,558
PROPERTY AND EQUIPMENT, NET 2,775 3,737
-------- --------
$ 12,027 $ 15,295
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
LINE OF CREDIT $ -- $ 220
ACCOUNTS PAYABLE 1,409 1,492
DEFERRED REVENUE 718 673
ACCRUED SALARIES AND WAGES 686 932
OTHER LIABILITIES 1,703 2,649
-------- --------
TOTAL CURRENT LIABILITIES 4,516 5,966
SHAREHOLDERS' EQUITY:
COMMON STOCK 124 124
ADDITIONAL PAID-IN CAPITAL 43,669 43,664
ACCUMULATED DEFICIT (36,282) (34,459)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 7,511 9,329
-------- --------
$ 12,027 $ 15,295
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