TPPP Triple P N.V. (MM)

Triple P N.V. (NASDAQ: TPPP): -- Improved first quarter, break even achieved Triple P N.V. (NASDAQ SCM: TPPP), announced that it closed the first quarter of 2005 with net revenues of EUR 15.0 million and net income of EUR 42,000. Net revenues for the first quarter of 2005 were EUR 15.0 million, a decrease of 13.1% compared to the same period last year. The decrease in net revenues was fully offset by the effects of a cost saving program adopted in 2004. As Triple P is in the process of refocusing its strategy towards higher margin activities, it has deployed resources to focus on analyzing and developing strategic initiatives for these activities and engaging in pre-sales consulting activities. The costs of these efforts are included in the cost of revenues. Principally as a result of these expenditures, gross margin decreased from 16.7% to 15.5%. Operating expenses decreased by EUR 0.8 million, or 25.7%, compared to the same period last year. This decrease is primarily due to the cost savings attributable to the 2004 restructuring. As a result, we recognized a net income of EUR 42,000 at March 31, 2005, an increase of EUR 304,000 compared to the loss of EUR 262,000 in the quarter ending March 31, 2004. -0- *T Key figures for the first quarter 1st quarter 1st quarterDiff. (amounts in millions of euros unless otherwise indicated) 2004 2005 --------------------------------------------------------------------- EUR EUR % --------------------------------------------------------------------- Net revenues 17.3 15.0 -13.1% --------------------------------------------------------------------- Gross margin 16.7% 15.5% - 6.9% --------------------------------------------------------------------- Operating expenses 3.1 2.3 -25.7% --------------------------------------------------------------------- Net income (loss) (0.3) 0.0 n/a --------------------------------------------------------------------- *T Strengthening equity The Company's cash position was EUR 5.0 million at March 31, 2005, compared to EUR 6.5 million at December 31, 2004. The Company continues to evaluate alternatives to improve its cash position. At the annual shareholders meeting to be held in June 2005, we will request that the shareholders approve a proposed subordinated loan of approximately EUR 1.5 million, repayable in 20 quarterly installments. It is expected that shareholders that are not U.S. persons will be provided the right to participate in any such financing. About Triple P Triple P (Nasdaq SCM: TPPP) designs, supplies, builds and manages ICT-solutions that in an efficient way contribute to your company's results. The three p's - people performance and partnership - are the basis for long-lasting and successful relationships with our customers. This release contains a number of forward-looking statements based on current expectations, including potential financing plans and the impact of restructuring plans. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to a number of factors which include, but are not limited to: overall ICT- spending and demand for ICT services in the Netherlands; the timing of significant orders; the ability to hire, train and retain qualified personnel; the total amount of severance and other costs needed to complete the Company's restructuring plans and fierce competition. For a more thorough discussion of these risks and uncertainties, see the Company's filings with the Securities and Exchange Commission, particularly its most recent annual report on Form 20-F. - Tables follow - TRIPLE P N.V. CONSOLIDATED BALANCE SHEETS (in thousands except number of shares and per share amounts) -0- *T December 31, March 31, 2004 2005 -------------- ------------- EUR EUR (Unaudited) (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 6,495 5,027 Restricted cash 12 12 Accounts receivable 9,706 9,838 Inventories 1,948 2,119 Prepaid expenses and other current assets 2,317 2,896 -------------- ------------- Total current assets 20,478 19,892 NON-CURRENT ASSETS: Property and equipment, at cost 2,329 2,355 Less: accumulated depreciation and amortization 1,448 1,584 -------------- ------------- Net property and equipment 881 771 -------------- ------------- Total non-current assets 881 771 -------------- ------------- Total assets 21,359 20,663 ============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term part of long-term liabilities 119 119 Accounts payable 8,105 7,122 Accrued liabilities 6,446 6,877 Customer deposits 1,154 108 Deferred revenue 3,034 4,070 Restructuring reserve 964 557 -------------- ------------- Total current liabilities 19,822 18,853 LONG-TERM LIABILITIES: Pension obligations 434 434 Other long-term liabilities 461 692 -------------- ------------- Total long-term liabilities 895 1,126 -------------- ------------- Total liabilities 20,717 19,979 SHAREHOLDERS' EQUITY: Common Shares, EUR 0.04 par value per share Authorised - 43,750,000 shares Outstanding - 30,469,345 shares 1,219 1,219 Additional paid-in capital 53,293 53,293 Accumulated deficit (53,603) (53,561) Accumulated other comprehensive loss (267) (267) -------------- ------------- Total shareholders' equity 642 684 -------------- ------------- Total liabilities and shareholders' equity 21,359 20,663 ============== ============= *T TRIPLE P N.V. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) -0- *T Three months ended March 31 2004 2005 ----------- ----------- EUR EUR (unaudited) (unaudited) Net revenues 17,255 15,001 Cost of revenues 14,381 12,674 ----------- ----------- Gross profit 2,874 2,327 Sales and marketing expense 1,769 1,397 General and administrative expense 1,338 911 ----------- ----------- Total operating expenses 3,107 2,308 Operating income (loss) (233) 19 Interest income (expense) (9) 6 Other, net (20) 17 ----------- ----------- Total other income (expense), net (29) 23 ----------- ----------- Net income (loss) (262) 42 =========== =========== Net Income per share: Basic (0.01) 0.00 Diluted (0.01) 0.00 Weighted average shares outstanding: Basic 30,469 30,469 Diluted 30,469 30,719 *T