TROY Group, Inc. Announces Sale of ACH Software Product Line
23 Januar 2008 - 1:30AM
PR Newswire (US)
COSTA MESA, Calif., Jan. 22 /PRNewswire-FirstCall/ -- TROY Group,
Inc. (Pink Sheets: TROY) announced today the sale of its ACH
Software Product Line to a significant financial services provider.
The purchase price was $1.5 million, which includes contingent
consideration of $0.4 million and the assumption of liabilities of
approximately $2.3 million. The sale will result in a pretax gain
of approximately $3.0 million assuming the contingent consideration
is collected. The Company's ACH Software Product Line, which
includes server based software for originating and processing ACH
transactions, generated $633,000 in revenue during fiscal 2006 and
$276,000 in revenue for the first three quarters of fiscal 2007.
Cash after reduction for income taxes is estimated to be
approximately $0.6 million assuming contingent consideration is
received and will be used for general corporate purposes. "We are
pleased to announce the sale of our ACH Software Product Line,"
stated Patrick Dirk, CEO and Chairman of TROY Group, Inc. "We
believe this transaction will be good for the ACH Software Product
line customers and employees. The sale of the ACH Software Product
Line will allow TROY to focus on our core printing solutions
business," Dirk added. About TROY Group TROY Group, Inc. ("TROY")
is a worldwide provider of printing solutions. Our security
printing solutions include application software, high security
check printing hardware and specialized consumables for secure
printing and payment applications. We sell and service our products
to major corporations, banks, key government accounts and
distributors worldwide. Visit TROY at http://www.troygroup.com/.
Forward-looking statements of TROY (statements that are not
historical fact) in this news release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may be identified by
terms such as believe, expect, may, will, could and should, and the
negative of these terms or other similar expressions. These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those discussed in the
forward-looking statements. These risks and uncertainties include,
but, are not limited to, the ability to develop new products, the
ability to hire and retain qualified management, technology and
other personnel, the impact of competition from existing and new
technologies and companies and the other factors set forth in our
periodic reports and other documents that we distribute from time
to time which are available in our financial statements under
certain important factors on our website TROYgroup.com or
pinksheets.com. Statements included in this news release are based
upon information known to TROY as of the date of this release, and
TROY assumes no obligation to update information contained in this
news release. TROY Group, Inc. 3535 Hyland Avenue, Suite 200 Costa
Mesa, CA 92626 (714) 241-4760 (714) 241-4762 Fax
http://www.troygroup.com/ Contact: Myra Erickson Investor Relations
DATASOURCE: TROY Group, Inc. CONTACT: Myra Erickson, Investor
Relations of TROY Group, Inc., +1-714-241-4760, fax,
+1-714-241-4762 Web site: http://www.troygroup.com/
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