Management Discussion
Consolidated Balance Sheets (PDF)
Consolidated Statements of Loss and Deficit (PDF)
Consolidated Statements of Changes in Financial Position(PDF)

Management Discussion

There are clear signs that the industry is finally recovering from the downturn and our outlook is positive. We are seeing an ever-growing interest in our products and technology from semiconductor manufacturers and original equipment manufacturers (OEMs) alike – more so than at any other time in our history. In 1999, we are continuing to focus our efforts on securing major orders, forging strategic relationships, and maintaining our technical leadership in equipment health monitoring and advanced fault detection software solutions.

During the first quarter, Triant released version 3.0 of ModelWare/RT. This version represents a breakthrough in equipment health monitoring and fault detection software as it contains the world’s first software agent to automatically build and maintain equipment fault detection models. This capability simplifies the process of setting-up and deploying ModelWare/RT. In addition to automatic creation of models, automatic maintenance of models can be specified to enable detection of a wider range of faults from sudden catastrophic failures to slow drifts in the operation of wafer processing equipment.

The Company’s management and strategic focus for the foreseeable future is to increase revenue and generate net earnings from the semiconductor industry by being the leading supplier of equipment health monitoring and advanced fault detection software solutions, offering value-added customer support services and leveraging the skills and resources of world-wide distribution channel partners.

Revenue for the three months ended March 31, 1999 was $127,669 (compared to $10,640 for the three months ended March 31, 1998). The increase in revenue was mainly attributable to orders for our principal product, ModelWare/RT, through our European distributor, Metron Technology.

Costs and expenses for the three months ended March 31, 1999 were $527,277 (compared to $957,027 for the three months ended March 31, 1998). This 45% decrease in expenses is a result of the Company’s restructuring decision in mid-1998 to focus on core development activities, eliminate certain direct sales and marketing activities, reduce management, sales and marketing, and non-core product development staff, and close excess facilities.

Loss from operations and net loss for the three months ended March 31, 1999 were $399,608 (compared to loss from operations and net loss of $946,387 for the three months ended March 31, 1998). This 58% decrease in loss from operations and net loss for the three months ended March 31, 1999 reflects the combination of an increase in revenue and a significant decrease in costs and expenses. The loss per share for the three months ended March 31, 1999 was $0.02 (compared to a loss per share of $0.07 for the three months ended March 31, 1998). This 71% decrease in loss per share resulted from the combination of a lower net loss and a higher number of shares outstanding.

At March 31, 1999, cash and cash equivalents were $377,892 (compared to $259,837 at March 31, 1998), working capital deficiency was $13,794 (compared to working capital of $181,360 at March 31, 1998), assets were $627,262 (compared to $903,707 at March 31, 1998), and capital deficiency was $395,899 (compared to shareholders’ equity of $16,420 at March 31, 1998). Since the beginning of 1999, the Company has raised approximately $1.0 million in equity financing (of which $0.7 million was raised during the first quarter and $0.3 was raised subsequent to the first quarter in May 1999).

Triant’s key objectives for 1999 include supporting its distribution partners in Europe, Japan and Asia-Pacific; expanding its distribution channels in other countries such as the U.S., Singapore and Taiwan; seeking out global partners and forming strategic alliances; enhancing current products and developing new products to address the requirements of both semiconductor manufacturers and semiconductor equipment manufacturers; and ongoing strengthening of our financial resources in order to achieve significant growth in revenue and the achievement of sustainable profitability.

Certain of above statements include forward-looking statements involving risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from those implied by such forward-looking statements. Please refer to a discussion of these and other factors in the Company's 20-F, 6-K, Annual Information Form and other filings with United States, British Columbia and Ontario securities regulatory authorities.