Troy Group: Changes Mean Lean Times Ahead

Troy Group Inc., which plans to refocus its resources to develop electronic commerce payment and wireless connectivity products, said Thursday it expects “minimal profitability” over the short term.

The Santa Ana maker of financial payment systems said it anticipates significant investments in sales and marketing, but that its new plan could generate high margins in the future.

Troy Group said it sees revenue of about $55 million to $60 million in the current fiscal year. For the year ended Nov. 30, Troy Group earned $5.8 million, or 67 cents a share, on sales of $58.6 million.

For the second quarter ending May 31, Troy said it expects to break even, with revenue totaling $11 million to $12 million.

Analysts estimated earnings of 16 cents a share for the second quarter, according to a survey by First Call/Thomson Financial.

Troy said its ECheck Secure and its collaboration with Hewlett-Packard on its Bluetooth wireless standard, allowing wireless communication between electronic devices, are gaining market share.

The stock dropped $1 a share to $12.75 in Nasdaq trading.