Also during the third quarter, Triant continued activities for the two strategic relationships announced in the prior quarter:

• Work progressed on the first phase of the two phase $2.0 million purchase order from a leading multinational semiconductor manufacturer for deployment of ModelWare/RT at two of the customer's production fabs. In the first phase, Triant is integrating ModelWare/RT into the customer's existing computer integrated manufacturing (CIM) environment (expected to be completed in the fourth quarter of 1999). In the second phase, Triant will deploy ModelWare/RT mainly on the customer's etch and deposition equipment and provide product training and technical support (expected to be completed in the first half of 2000).
• Work progressed on the further development of Triant's technology under a license agreement with Applied Materials to further enhance their process systems and the FAB300 software offerings of their wholly owned subsidiary, Consilium. Under the terms of the license agreement, Applied Materials has been granted the right to market a future version of Triant's ModelWare/RT with their own products and services. Triant will receive a fee for each license shipped. These joint efforts are focusing on helping customers better address the rapidly increasing requirement for increased overall productivity in their fabs.

Triant's third quarter financial results were as follows:

• Revenue for the nine months ended September 30, 1999 was $776,774 (compared to $304,583 for the comparative period). This 155% increase in revenue was attributable to orders both through our distributors and directly for our principal product, ModelWare/RT, and for related services.
• Costs and expenses for the nine months ended September 30, 1999 were $1,750,385 (compared to $2,964,958 for the comparative period). This 41% decrease in expenses is mainly 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 nine months ended September 30, 1999 were $973,611 (compared to loss from operations and net loss of $2,660,375 for the comparative period). This 63% decrease in loss from operations and net loss reflects the combination of revenue growth and significant decreases in costs and expenses. The loss per share for the nine months ended September 30, 1999 was $0.05 (compared to a loss per share of $0.20 for the comparative period). This 75% decrease in loss per share resulted from the combination of a lower net loss and a higher number of shares outstanding.
• At September 30, 1999, cash and cash equivalents were $2,069,991 (compared to $20,385 at September 30, 1998), working capital was $1,849,103 (compared to working capital of $54,019 at September 30, 1998), assets were $2,440,560 (compared to $1,130,686 at September 30, 1998), and shareholders' equity was $1,439,704 (compared to capital deficiency of $224,188 at September 30, 1998). During the nine months ended September 30, 1999, Triant raised approximately $3.1 million in equity financing, including the $2.2 million strategic investment by Applied Materials.

Subsequent to end of the third quarter, Triant reported that our distributor in Japan, Innotech Corporation, had received their first order from a Japanese semiconductor manufacturer for ModelWare/RT. Innotech believes that there is a large market opportunity for ModelWare/RT in Japan as their customers focus on improving the effectiveness of their wafer manufacturing equipment. Currently, ModelWare/RT is being evaluated at more than ten leading Japanese semiconductor manufacturers.