ATLANTA--Aug. 28, 2002--T/R SYSTEMS, INC., a leader in developing innovative solutions for the management and production of digital documents, today announced financial results for its second quarter and six months ended July 31, 2002. Revenue for the quarter ended July 31, 2002 was $3.9 million, down from $5.6 million in the quarter ended July 31, 2001. However, revenue for the quarter ended July 31, 2002 was up from revenue of $3.3 million in the previous quarter ended April 30, 2002. In the quarter ended July 31, 2002, the operating loss was $6.9 million versus $2.0 million in the quarter ended July 31, 2001. Operating results for the quarter ended July 31, 2002 included $3.7 million in charges that are attributable to the consolidation of facilities, the disposal of certain assets including print engines and other equipment due in part to the facilities consolidation, the write-down of inventory and accounts receivable, and severance for terminated employees. Excluding the effects of the charges, the operating loss for the quarter ended July 31, 2002 would have been $3.2 million as compared to $2.0 million in the prior year. "We remain dedicated to our goal of returning to profitability and cash growth," said Mike Kohlsdorf, President and CEO of T/R Systems. "In a difficult economic environment, we are encouraged that our revenue grew by 20% over the previous quarter." Net loss for the quarter ended July 31, 2002 was $6.9 million, compared to a net loss of $1.1 million for the quarter ended July 31, 2001. In the quarter ended July 31, 2001, T/R Systems recognized a non-cash tax benefit of $632,000 as a result of the pre-tax loss in the period. No such tax benefit was recognized during the quarter ended July 31, 2002. Diluted loss per share for the quarter ended July 31, 2002 was $0.55 per share as compared to a diluted loss per share of $0.09 in the same period of the prior year. Assuming no tax benefit had been recognized in the quarter ended July 31, 2001, the net loss for the quarter would have been $1.8 million, or $0.15 per share, as compared to the actual net loss for the quarter ended July 31, 2002 of $6.9 million, or $0.55 per share. Excluding the effect of the charges taken, the net loss for the quarter ended July 31, 2002 would have been $3.2 million, or $0.26 per share. For the six months ended July 31, 2002, revenue was $7.2 million versus $11.5 million in the six months ended July 31, 2001. The operating loss for the six months ended July 31, 2002 was $10.2 million as compared to an operating loss of $4.6 million last year. The results for the six months ended July 31, 2002 include the charges discussed above.