COSTA MESA, Calif., Jan. 22 / - 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/.
Source: 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/