NEW YORK, Jan. 13, 2005 (PRIMEZONE) -- Torbay Holdings, Inc. (OTCBB:TRBY) announced today that preparation of its accounts for audit indicate (unaudited and therefore subject to change and confirmation) that fourth quarter revenues of just over $161,000 resulted in a Gross Profit of $122,000, at a Gross Margin of 76%. TRBY will report a relatively small loss in Q4 attributable to "non cash transactions" relating to amortization of deferred equity based expense and financing costs. Designer Appliances Inc, TRBY's operating subsidiary, achieved a net operating profit of approximately $77,600 for the fourth quarter and a total of $75,800 for the year 2004, which equates to 21% of 2004 total revenues of almost $359,000.
Tom Large, President & CEO stated, "In our opinion these figures indicate achievement that suggests a continuing upward trend in our business, revenues up 81% compared to 2003. The DAI sales subsidiary, operating at a small loss for the first nine months of 2004, delivered meaningful profit in Q4 that provided a net operating profit for the year and would have resulted in a small net corporate profit if not for non cash charges. These are not costs incurred in Q4 but are the impact of prior equity and financing activities. These charges and the residual debt associated with the debenture settlement will disappear from our balance sheet during 2005. We believe that the key business markers lie in a robust Gross Margin alongside of a satisfied customer base and we are an established business preparing for growth. This can be anticipated in positive activity associated with recent announcements including that of Scott Scartozzi, VP Sales appointment and also the clarity over the requirement for Section 508 compliance on government purchases of computer mice. We cannot yet predict a sustainable profit position and becoming cash positive is still the primary objective.
"Following the recent resolution of the Section 508 status of computer mice, the companies products are again listed on the Section 508 website; search 'Designer Appliances Inc' at www.section508.gov. On April 1, 2005, Micropurchases, Government purchases of IT products, typically by credit card of a value less than $2,500, will fall under Section 508 Law. This means that government purchasing officers, even when shopping at a local computer or office supplies store, are required to make that purchase under Section 508 and so acquire a compliant mouse. An awareness campaign to Government purchasing officers is in preparation to be launched in March via print and direct email to a database of over 1,200 government purchasing officers that we have just compiled."
References to issues cited herein, as forward-looking statements, are made in good faith though cannot be relied upon as occurring, achieving an acceptable outcome or contributing toward the business of Torbay Holdings Inc.