Triant Reports 2008 Second Quarter Financial Results



    VANCOUVER, Aug. 8 /CNW/ - Triant Holdings Inc. (TSX: TNT) reports
financial results for the second quarter ended June 30, 2008 (expressed in
Canadian dollars), which will also be posted on Triant's website at
www.triant.com and available on SEDAR at www.sedar.com.
    Revenue for the second quarter ended June 30, 2008 was $663,293 compared
to $1,011,803 for the second quarter ended June 30, 2007. Triant's revenue is
derived principally from the sale of ModelWare software licenses, hardware
products and related services, including software updates and maintenance
services provided pursuant to annual service agreements, man-on-site
agreements, and systems integration services. Included in revenue for the
second quarter of 2008 were $88,701 (or 13%) from the sale of licenses and
products and $574,592 (or 87%) from services and maintenance compared to
$323,473 (or 32%) and $688,330 (or 68%), respectively, for the second quarter
of 2007. The decrease in revenue for the second quarter of 2008 compared to
the second quarter of 2007 was primarily attributable to the decrease in
revenue from licenses and products due to the relative timing of orders in the
comparative first and second quarters and related revenue recognition.
    During the second quarter of 2008, Triant received $0.7 million in new
orders compared to $0.7 million for the second quarter of 2007. At June 30,
2008, Triant had $0.4 million in total of deferred revenue and backlog
compared to $0.6 million at June 30, 2007. (The definition of new orders is
the total amount invoiced to customers during the year plus the change in
backlog during the quarter. The definition of backlog is the unbilled portions
of purchase orders received from customers during the quarter. The definitions
of new orders and backlog are not standard measures and may not be comparable
to other companies.)
    In light of the current uncertain macroeconomic environment and the
semiconductor industry slowdown in particular, Triant has noted a continued
hesitancy among semiconductor manufacturers to commit to major capital
projects. It is uncertain whether Triant can generate enough revenue in the
near term to sustain its operations in the absence of additional financing,
which is problematic given the current state of capital markets, or in the
absence of corporate restructuring or concluding a strategic initiative.
Triant's strategy continues to be pursuing sales of fab-wide licenses of
ModelWare and service and maintenance contracts and related products with
primarily Asian semiconductor and flat panel display manufacturers, as well as
to other adjacent markets.
    Operating expenses for the second quarter ended June 30, 2008 were
$1,125,766 compared to $1,119,641 for the second quarter ended June 30, 2007.
The less than 1% increase in operating expenses for the second quarter of 2008
compared to the second quarter of 2007 was attributable to both selling,
general and administrative expenses and research and development expenses
being slightly higher.
    For the second quarter ended June 30, 2008, loss from operations was
$650,437 compared to $399,659 for the second quarter ended June 30, 2007. This
increase in loss from operations for the second quarter of 2008 compared to
the second quarter of 2007 was primarily the result of lower revenue.
    For the second quarter ended June 30, 2008, net loss was $678,115
compared to $510,915 for the second quarter ended June 30, 2007. This increase
in net loss was primarily the result of a higher loss from operations, as well
as the net favourable combined effect of non-operating income items for the
second quarter of 2008 compared to the second quarter of 2007, which included
lower interest and other income and lower foreign exchange losses.
    For the second quarter ended June 30, 2008, loss per share was $0.16
compared to $0.12 for the second quarter ended June 30, 2007.
    Revenue for the six months ended June 30, 2008 was $2,006,871 compared to
$1,831,724 for the six months ended June 30, 2007. Included in revenue for the
six months ended June 30, 2008 were $849,949 (or 42%) from the sale of
licenses and products and $1,156,922 (or 58%) from services and maintenance
provided by Triant's systems integration and customer support groups, compared
to $413,721 (or 23%) and $1,418,003 (or 77%), respectively, for the six months
ended June 30, 2007.
    During the six months ended June 30, 2008, Triant received $1.9 million
in new orders compared to $1.8 million for the six months ended June 30, 2007.
    Operating expenses for the six months ended June 30, 2008 were $2,228,626
compared to $2,424,668 for the six months ended June 30, 2007. The 8% decrease
in operating expenses for the six months ended June 30, 2008 compared to the
six months ended June 30, 2007 was attributable to both selling, general and
administrative expenses and research and development expenses being lower.
    For the six months ended June 30, 2008, loss from operations was $790,449
compared to $1,106,987 for the six months ended June 30, 2007. This decrease
in loss from operations for the six months ended June 30, 2008 compared to the
six months ended June 30, 2007 was the result of both higher revenue and lower
operating expenses.
    Net loss for the six months ended June 30, 2008 was $764,464 compared to
net loss of $843,809 for the six months ended June 30, 2007. This decrease in
net loss was primarily the result of a lower loss from operations, partially
offset by net lower non-operating income items for the first quarter of 2008
compared to the first quarter of 2007 (which included a gain on sale of
marketable securities of $334,143).
    Loss per share for the six months ended June 30, 2008 were $0.18 compared
to a loss per share of $0.20 for the six months ended June 30, 2007.
    As at June 30, 2008, Triant had a $1.0 million balance for cash, cash
equivalents, restricted cash and accounts receivable compared to a
$1.7 million balance as at December 31, 2007.

    About Triant

    Triant develops and deploys equipment health monitoring and advanced
fault detection solutions. Our primary focus is currently the global
semiconductor industry where we provide innovative software solutions that
enable our customers to improve yield and throughput in their highly
sophisticated semiconductor manufacturing plants. To address the market
opportunity in the semiconductor industry, we have developed ModelWare(R), a
complete equipment health monitoring and advanced fault detection software
solution. Leading semiconductor companies are using ModelWare to improve their
competitive advantage in manufacturing integrated circuits. Triant's ModelWare
product is a commercially available, real-time equipment health monitoring and
advanced fault detection software solution aimed primarily at the
semiconductor industry. ModelWare is the result of many years of experience
Triant has in the development, deployment and application of these types of
software solutions. More information about Triant is available via the
Internet at www.triant.com.

    Forward-looking statements

    This news release contains forward-looking statements about Triant and
its business. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects," "anticipates," "believes," "intends," "estimates," "projects" and
similar expressions, or that events or conditions "would," "may," "could" or
"should" occur. Forward-looking statements are based on the beliefs, opinions
and expectations of Triant's Management at the time they are made, and Triant
does not assume any obligation to update its forward-looking statements if
those beliefs, opinions or expectations, or other circumstances, should
change. Readers should not place undue reliance on forward-looking statements.
The forward-looking statements in this news release are subject to various
risks, uncertainties and other factors that could cause Triant's actual
results or achievements, including the outcome of any business process, to
differ materially from those expressed in or implied by forward-looking
statements. These risks, uncertainties and other factors include, without
limitation: the eligibility for continued listing on TSX, the alternatives
available for maintaining liquidity in a secondary market, the prospects for
success of any business process, the ability of any business process to
enhance shareholder value, whether or not any business process will result in
the consummation of a specific transaction, the ability of Triant to overcome
the hesitancy that Triant has noted among semiconductor manufacturers to
commit to major capital projects in light of the current uncertain
macroeconomic environment and the semiconductor industry slowdown in
particular, the ability of Triant to sustain operations and to continue as a
going concern, the ability of Triant to obtain additional working capital
financing in the near term, and the ability of Triant to raise additional
capital, which is problematic given the current state of capital markets, or
to conclude a strategic initiative.



    
                             TRIANT HOLDINGS INC.
              Summary Consolidated Statement of Operations Data
                       (Expressed in Canadian Dollars)
                                 (Unaudited)

                              Three Months Ended         Six Months Ended
                                    June 30,                  June 30,
                               2008         2007         2008         2007
    ----------------------------------------------  -----------  ------------
    Revenue
      Licenses and
       products           $    88,701  $   323,473  $   849,949  $   413,721
      Services and
       maintenance            574,592      688,330    1,156,922    1,418,003
                                                    -----------  ------------
        Total revenue         663,293    1,011,803    2,006,871    1,831,724
    Cost of revenue           187,964      291,821      568,694      514,043
                                                    -----------  ------------
    Gross margin              475,329      719,982    1,438,177    1,317,681
                                                    -----------  ------------
    Operating expenses
      Selling, general
       and administrative     622,526      620,592    1,266,165    1,387,456
      Research and
       development            503,240      499,049      962,461    1,037,212
                                                    -----------  ------------
        Total operating
         expenses           1,125,766    1,119,641    2,228,626    2,424,668
                                                    -----------  ------------
    Loss from operations     (650,437)    (399,659)    (790,449)  (1,106,987)
    Interest and
     other income               3,011       14,340        9,766       39,241
    Foreign exchange gains    (30,689)    (125,596)      16,219     (110,206)
    Gain on sale of
     marketable securities          -            -            -      334,143
                                                    -----------  ------------
    Net loss and other
     comprehensive income
     for the period       $  (678,115) $  (510,915) $  (764,464) $  (843,809)
                                                    -----------  ------------
                                                    -----------  ------------
    Loss per common
     share                $     (0.16) $     (0.12) $     (0.18) $     (0.20)
                                                    -----------  ------------
                                                    -----------  ------------
    Weighted average
     number of common
     shares outstanding     4,170,399    4,168,346    4,170,399    4,158,008
    Number of common
     shares issued and
     outstanding            4,170,399    4,170,399    4,170,399    4,170,399



                             TRIANT HOLDINGS INC.
                   Summary Consolidated Balance Sheet Data
                       (Expressed in Canadian Dollars)
                                 (Unaudited)
                                                   June 30,     December 31,
                                                     2008           2007
                                                -------------   -------------
    Cash and cash equivalents                    $   410,153     $   995,106
    Restricted cash                                   50,000               -
    Accounts receivable                              599,703         743,477
    Inventory                                        151,389         170,565
    Prepaid expenses                                 147,161         183,408
    Property, plant and equipment                    162,262         183,643
    Total assets                                   1,520,668       2,276,199
    Accounts payable and accrued liabilities         301,908         392,140
    Deferred revenue                                 204,167         146,582
    Total liabilities                                506,075         538,722
    Total shareholders' equity                     1,014,593       1,737,477
    

    %SEDAR: 00023157E




For further information:

For further information: Robert Heath, President & CEO, Mark Stephens,
CFO, Triant Holdings Inc., (604) 697-5090, mail@triant.com

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TRIANT HOLDINGS INC.

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