ATLANTA - March 3, 2003 - T/R SYSTEMS, INC., a leader in developing innovative solutions for the management and production of digital documents, today announced a 14% increase in revenue for its fourth quarter, which ended January 31, 2003, as compared to the same fiscal quarter a year ago.
Revenue for the quarter ended January 31, 2003 was $3.5 million versus $3.1 million for the same fiscal quarter a year ago. Revenue for the fourth quarter declined 12% from the third quarter.
The revenue increase for the fourth quarter is mainly due to improvements in sales of MicroPress products into the OEM distribution channel. OEM revenue increased 152% to $2.3 million in the fourth quarter, as compared to $900,000 for the same fiscal quarter a year ago. Unit sales into the OEM distribution channel almost tripled over the previous year due to the introduction of the X Series line of MicroPress products in late 2001 and early 2002 and the X Series launch into the Canon® channel in North America in April 2002.
The reported operating loss in the fourth quarter declined 7% to $3.0 million from $3.2 million in the quarter ended January 31, 2002. However, the fourth quarter ended January 31, 2003 contained approximately $1.2 million in special items, including write-downs of equipment that will not be used in future operations, additional reserves for lease costs associated with a vacated facility and severance costs related to staffing reductions during that quarter. Without those items, the operating loss would have been 45% less than the loss for the same fiscal quarter a year ago. The significant decline in the operating loss reflects improved revenue, reductions in product costs, and a decline of approximately $800,000 in all other expense categories.
"The Micropress X Series continues to show signs of market penetration, as evidenced by our year on year growth rates," said Mike Kohlsdorf, President and CEO of T/R Systems. "Additionally, many of our key business metrics in the fourth quarter such as year on year revenue growth, gross margins, days sales outstanding in accounts receivable, and inventory levels have shown significant improvement. Our first priority is cash neutrality, therefore, we believe these trends coupled with our recent expense reductions position T/R favorably in a very uncertain economic environment."
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