NEW YORK, April 2, 2004 (PRIMEZONE) -- TRBY (OTCBB:TRBY) announces that un-audited management analysis of Q1, 2004 accounts indicates that TRBY's US subsidiary, Designer Appliances Inc, made net operating profits in January, February and March. Consequently TRBY, on the basis of monthly operating costs, broke-even in March 2004.
Shipments and receivables amounted to just over $80,000 for the quarter, excluding a billable backlog of almost $3,000. This is the first time that the company has operated with a quarter end backlog. Q1 Gross Profit Margin is estimated at 83.43% and Net Profit Margin of 23.47% (All figures are subject to audit and potentially to adjustment).
Order intake for March was the highest month yet at almost $40,000 (bookings and billings), which meant that within the month of March 2004, TRBY generated more income than operating liabilities, which is herein described as a "notional operating profit" of 7-1/2 percent, for that specific month, for the purpose of reporting the event.
Sales of the company's Virtually Hands Free Mousing System are steadily increasing and now represent about 20% of the overall business and over a third of sales to end users. The average invoice value on end user system sales, including shipping, is $180, as most include a Quill-Well mouse with their order.
Tom Large, President & CEO stated, "I thought it inappropriate to put these figures out yesterday (April 1st) and now do so simply as an indicator of the direction of the business, which I believe people will want to be made aware of with the company at our present stage. The detail of such an event will become buried and negated in the consolidated accounts which will be filed. It should be clearly understood that we are reporting an event and not forecasting a trend and that this release should only be considered for investment purposes in conjunction with our statutory fillings."
"Some significance of these figures is provided by the fact that they include the increase in overheads associated with our new office and an escalation in marketing activity, which during the quarter included the costs of attending the CSUN exhibition in LA. We have monthly placements in two corporate ergonomic magazines, ergonomic websites and have just signed up for a year for a full-page color ad in the Mac Directory."
"The Arthritis Foundation (AF) has launched a major PR campaign for their Ease of Use product suppliers, which has been distributed nationally on the NAPS system and also to AARP "The Magazine", Web MD, HealthDay.com, HealthNewsDigest.com, Prevention, Woman's Day, Vitality and HealthAtoZ.com. We are being promoted alongside products like the "Oreck" Vacuum Cleaner, Advil and Aleve. We have already seen sales from the AF commendation and one phone call, in regards to employees with arthritis from a safety officer with a large US Oil company, resulted in a multiple mouse order the next day."
"The operational break-even estimation for Torbay is notional insofar as the company still carries a debt burden, which at the end of this month includes repayments under the Debenture Settlement Agreement. Nonetheless it is most gratifying and I look at it as a 'half-milestone', believing it indicates how far we have to go, not how far we have come! Should last month's business level be sustained and built upon and the first day of the new quarter order intake maintains momentum, then the possibility will exist that all existing debt will be repayable from income. The Q1 accounts are prepared and, as the impact did not hit until this quarter so is not in year-end accounts, they will reflect a significant improvement in the balance sheet as a result of the Debenture Settlement Agreement. Q1, 2004 indicates an increasing and potentially profitable business in which any new investment can be applied to developing the future, not refinancing debt from the past."
"Strategically we have been taking those steps, ahead of procuring 'business development capital' that demonstrate the viability of our business model and improve our balance sheet strength. In this way we are endeavoring to find investors who are interested in investing in our business and not just in our stock. We have received a number of approaches from both individuals and institutional investors. During the next month we will develop the offers on the table and our selection will be made on the basis of working with those who will work with us to build value in the long term and not in the short!"