ATLANTA--Feb. 27, 2002--T/R SYSTEMS. a leader in developing innovative solutions for the management and production of digital documents, today announced financial results for its fourth quarter and full year ended January 31, 2002. Revenue for the quarter ended January 31, 2002 was $3.1 million as compared to $7.0 million in the quarter ended January 31, 2001. In the quarter ended January 31, 2002, the operating loss was $3.2 million versus $1.0 million in the quarter ended January 31, 2001. However, the operating loss for the quarter ended January 31, 2002 was down $2.4 million from the previous quarter's operating loss of $5.6 million on essentially flat revenue for the two quarters. Additionally, operating expenses, excluding cost of imaging systems, were at their lowest level since the third quarter of the last fiscal year. Net loss for the quarter ended January 31, 2002 was $9.2 million compared to net income of $1.9 million for the quarter ended January 31, 2001. In the quarter ended January 31, 2001, T/R Systems recognized a tax benefit of $2.4 million for the balance of the Company's net operating loss carryforward and certain other tax assets due to a history of profitability over the then previous two years. However, the losses of the previous four quarters prompted reversal of tax benefits recorded during last year and this year resulting in tax expense for the quarter ended January 31, 2002 of $6.1 million. In both cases, the tax adjustments had no effect on operating income or loss, cash or on taxes paid or expected to be paid in the future. Diluted loss per share for the quarter ended January 31, 2002 was $0.75 per share as compared to diluted earnings per share of $0.15 in the same quarter of the prior year. Excluding the tax adjustments and assuming an effective tax rate of 36% for both periods, the loss for quarter ended January 31, 2002 would have been $2.0 million, or $0.16 per share, as compared to a loss of $376,000, or $0.03 per share for the quarter ended January 31, 2001. For the fiscal year ended January 31, 2002, revenue was $17.6 million versus $32.2 million for the fiscal year ended January 31, 2001. The operating loss for the fiscal year ended January 31, 2002 was $13.4 million as compared to operating income of $2.5 million last year. Net loss for the fiscal year ended January 31, 2002 was $15.4 million as compared to net income of $6.3 million in the same period in the prior year. Diluted loss per share for the fiscal year ended January 31, 2002 was $1.25 as compared to diluted earnings per share of $0.49 for the fiscal year ended January 31, 2001. Excluding the tax adjustments discussed above and assuming an effective tax rate of 36% for both periods, the loss for year ended January 31, 2002 would have been $8.1 million, or $0.66 per share, as compared to net income of $2.6 million, or $0.20 per diluted share for the year ended January 31, 2001. "Although we are disappointed in our overall performance for our fourth quarter, we are pleased to report a smaller operating loss in the fourth quarter than in the third quarter despite essentially unchanged revenue,'' said Mike Kohlsdorf, President and CEO of T/R Systems. "We are now focusing on the successful launch of our new product strategy into existing channels as well as on our new product launch with Canon.''