TROY Group, Inc. Posts First Quarter 2009 Results

COSTA MESA, Calif., March 27  /PRNewswire-FirstCall/ -- TROY Group, Inc. (Pink Sheets: TROY) announced today that financial results for the first quarter of fiscal 2009, which ended February 28, 2009, have been posted on the company's web-site at http://www.troygroup.com/.  To access the report, click on About TROY Group then click on Financials. TROY's financial results are also posted at http://www.pinksheets.com/.  Enter TROY in the symbol field then click on Financial Report.

Revenue for the three months ended February 28, 2009 decreased to $8.4 million compared to revenue for the three months ended February 29, 2008 of $10.6 million largely due to turmoil in the financial markets and the affect on our major customers in the financial industry.  Earnings from continuing operations for the three months ended February 28, 2009 decreased to $0.01 per share compared to $0.07 per share for the three months ended February 29, 2008.

The consolidated balance sheet and consolidated statement of income are attached to this press release.  Please refer to the quarterly report including financial statements for more detailed information.

                            FINANCIAL STATEMENTS
                              TROY GROUP, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                     Assets                 February 28,      November 30,
                                                2009              2008
                                            (unaudited)
  Current assets:
  Cash and cash equivalents                 $1,143,000        $10,879,000
  Investment in available-for-sale
   securities                                5,674,000          5,037,000
  Accounts receivable, net of
   allowances 2009 $264,000;
   2008 $333,000                             3,532,000          3,977,000
  Inventories                                2,911,000          2,697,000
  Prepaid expenses and other                 1,235,000          1,161,000
  Deferred tax assets                          397,000            446,000
  Total current assets                      14,892,000         24,197,000
  Equipment and leasehold
   improvements, net                         1,234,000          1,373,000
  Goodwill                                     281,000            281,000
  Other assets, including
   receivables from stockholders;
   $1,899,000 in 2009 and 2008               3,568,000          3,588,000
  Total assets                             $19,975,000        $29,439,000

                    Liabilities and Stockholders' Equity

  Current liabilities:
  Accounts payable                          $1,467,000         $1,544,000
  Accrued expenses                           1,699,000          1,621,000
  Dividend payable                                   -          9,676,000
  Deferred revenue                           1,507,000          1,390,000
  Total current liabilities                  4,673,000         14,231,000
  Non-current liabilities                    1,209,000          1,229,000
  Total liabilities                          5,882,000         15,460,000

  Commitments and contingencies
  Stockholders' equity:
  Preferred stock, no par value,
   authorized 100,000 shares;
   issued none                                       -                  -
  Common stock, par value $0.01
   per share; authorized 13,000,000
   shares; issued  9,676,351 shares;
   outstanding 9,676,351 shares                 97,000             97,000
  Additional paid-in capital                18,278,000         18,218,000
  Retained earnings                         (4,282,000)        (4,336,000)
  Total stockholders' equity                14,093,000         13,979,000
  Total liabilities and
   stockholders' equity                    $19,975,000        $29,439,000





                               TROY GROUP, INC.
                      CONDENSED CONSOLIDATED STATEMENTS
                                  OF INCOME
                                 (unaudited)

                                                 Three  Months Ended
                                              February 28,   February 29,
                                                  2009           2008

  Net sales                                   $8,420,000     $10,553,000
  Cost of goods sold                           5,175,000       6,343,000
  Gross profit                                 3,245,000       4,210,000

  Operating expenses:
  Selling, general and administrative          2,594,000       2,709,000
  Research and development                       584,000         622,000
  Total operating  expenses                    3,178,000       3,331,000
  Operating income                                67,000         879,000
  Interest income                                 18,000         178,000
  Income from continuing operations
    before income taxes                           85,000       1,057,000
  Provision for income taxes                      31,000         391,000
  Income from continuing operations               54,000         666,000
  Loss from discontinued operations, net
   of tax                                              -         (73,000)
  Gains on disposal of discontinued
   operations, net of tax                              -       1,647,000
  Discontinued operations, net of tax                  -       1,574,000
  Net income                                     $54,000      $2,240,000

  Net income per share:
  Basic income from continuing
   operations                                      $0.01           $0.07
  Basic income from discontinued
   operations                                          -            0.16
  Basic income                                     $0.01           $0.23
  Diluted income from continuing
   operations                                      $0.01           $0.07
  Diluted income from discontinued
   operations                                          -            0.15
  Diluted income                                   $0.01           $0.22
  Weighted average shares outstanding:
  Basic                                        9,676,000       9,850,000
  Diluted                                      9,676,000      10,045,000


  About TROY Group


TROY Group, Inc. ("TROY") is a worldwide leader of secure on-demand printing solutions. TROY solutions manage, secure and simplify end-to-end enterprise printing environments. TROY offers application software, security printing hardware and specialized consumables for securely printing checks, money orders, transcripts, prescriptions and other important documents. TROY solutions are used by small and medium size businesses as well as large enterprises and governmental organizations to manage fraud, operational risk and comply with government regulations related to protecting information privacy. As a Gold Solutions Partner to Hewlett Packard, TROY is the only company in the world authorized by HP to enhance HP printers and consumables for use in secure printing workflows. Only TROY MICR and Security printers and HP compatible MICR Toner cartridges are certified by Hewlett Packard for quality and reliability.  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 sell investments when needed, 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.
  940 South Coast Drive, Suite 200
  Costa Mesa, CA 92626
  [phone]
  [phone] Fax

  Contact: Myra Erickson
       Investor Relations


DATASOURCE: TROY Group, Inc.



CONTACT:  Investor Relations, Myra Erickson, [phone], Fax,

[phone], for TROY Group, Inc.



Web Site:  http://www.troygroup.com/ 

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