T/R Systems Announces Preliminary Quarterly Results
Wednesday, August 07, 2002
ATLANTA--Aug. 6, 2002--T/R SYSTEMS, a leader in developing innovative solutions for the management and production of digital documents, announced today certain preliminary financial results for its second quarter, which ended July 31, 2002. T/R expects revenue for the quarter will be between $3.7 million and $4.0 million. T/R also announced that its cash balance at July 31, 2002 was between $8.5 million and $8.6 million. Additionally, T/R announced that it expects that its quarterly results will include certain nonrecurring charges primarily as a result of changes in its business model, including a consolidation of its facilities in Norcross, Georgia. In addition to the charges for facilities consolidation, the nonrecurring charges, which are currently expected to be between about $3.3 million and $4.0 million, are attributable to: a liquidation of inventory due to a transition in distribution channels; severance for recently terminated employees; the write down of print engines, office equipment and other property; and an increase in the reserve for certain uncollectible accounts receivable. The inventory and property disposals are expected to be concluded by the end of the current fiscal year. The charges are not expected to cause a decline in cash balances. "We are taking these charges due to changes in strategy and direction," said Lyle Newkirk, Senior Vice President and Chief Financial Officer. "Our focus remains on growing revenue in a difficult economic environment as well as a return to cash and earnings growth."