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

Management Discussion

Revenue for the six months ended June 30, 1998 was $214,642 (June 30, 1997 - $452,178) mainly reflecting the portion of revenue recognized during the quarter from a $300,000 order for the installation of ModelWare/RT at two wafer fabrication plants in Scotland. Expenses for the six months ended June 30, 1998 were $2,415,503 (June 30, 1997 - $1,772,705) and included increased expenditures on marketing, sales, product development efforts, general and administrative, and a restructuring charge. The net loss for the six months ended June 30, 1998 was $2,200,861 (June 30, 1997 - net loss of $1,320,527) with a loss per share of $0.17 (June 30, 1997 - loss per share of $0.12).

The Annual General Meeting of Triant's shareholders was held on June 18, 1998 during which the shareholders passed a special resolution to increase the authorized capital of the company by 100,000,000 preferred shares without par value.

On June 19, 1998, Triant announced that due to the challenges in establishing a sustainable revenue stream which, in part, is due to the downturn in the semiconductor industry, it had embarked on a significant corporate restructuring program to reduce costs by almost 50% and focus on core product development activities. At the same time, the Company also announced that Paul J. O'Sullivan had replaced David Austin as Triant's President & CEO. Subsequent to this termination of Mr. Austin's employment, he has filed a statement of claim for wrongful dismissal that includes a claim for $150,000 plus other compensation. In response, the Company has filed a statement of defense.

On June 30, 1998 the Company announced the appointment of Roger Kazanowski as a Director to assist the Company in its restructuring program. Mr. Kazanowski has over 20 years of operations and financial experience and is currently President of Cambridge Products Inc. and Chief Financial Officer of Business Television Video Systems Inc., both of which are based in the United States.

Also during the second quarter, the Company announced it had signed an exclusive distribution agreement with Innotech Corporation for the Japanese regional market. Innotech is Japan's leading distributor of semiconductor technology.

Subsequent to end of the second quarter, the Company reported that it had:

• completed its restructuring program that had been instituted in June to strengthen the company and enable it to better weather the severe downturn in the semiconductor industry
  
• completed the $459,700 private placement that had been initiated in June as part of its ongoing financing efforts
  
• signed a joint marketing agreement with FASTech Integration, Inc. to provide the semiconductor industry with an increasingly integrated software solution for factory automation and advanced fault detection
  
• appointed a new Chairman of the Board: Michael George, Senior Vice President of Ion Systems, Inc., the world's leading supplier of ionization technology to manage and mitigate electrostatic discharge in semiconductor, disk drive and flat panel manufacturing environments. Formerly, Mr. George was Senior Director of Strategic Business Development for Applied Materials, Inc., the world's largest supplier of semiconductor manufacturing equipment.
  
• been sponsored for quotation on the OTC Bulletin Board by Knight Securities, Inc., a leading U.S. market making firm that provides a wide range of securities execution services and currently ranks first by share volume in the NASDAQ/OTC rankings
  
• appointed a new Director: Jim Macek, M.B.A., Ph.D and Senior Member of the Institute of Electrical and Electronic Engineers (IEEE), who brings to Triant over 17 years experience in the semiconductor industry, including Executive Vice President of Consilium, Inc., Chairman & CEO for the U.S. operations of JENOPTIK INFAB, Inc., and senior management positions with Advanced Micro Devices and Intel Corporation
  
• scheduled the third quarter release of Triant's ModelWare/RT Version 2.9 with new product capabilities to reduce the effort required to create and maintain Advanced Fault Detection models in production fabs and to provide further insight into process anomalies

Triant's near term plans and business goals include:

• improving ModelWare/RT through two new releases of the product. Version 2.9 will be released in August 1998, and version 3.0 in December 1998. Both versions are the result of customer feedback and are designed to significantly enhance the ease-of-use and installability of the product
  
• building a solid ROI case for the product with help from key customers
  
• establishing a sales distribution channel into the US and actively supporting Triant's partners and distribution channels in Europe, Japan, and Korea
  
• seeking strategic OEM business partners
  
• developing the US investor market and finding long-term investment partners to sustain the company until it achieves profitability

Triant is in the business of providing solutions that improve the effectiveness of semiconductor manufacturing equipment. The industry has recognized the need to improve equipment effectiveness for some time, but it is only now that they are starting to look seriously at ways to achieve this.

During the last two years Triant has made significant progress in establishing ModelWare/RT in the semiconductor industry. It has had an aggressive marketing program that has positioned the Company well in the industry. Triant is considered a leader in this emerging market. Triant's goal is to become the market leader of equipment health monitoring and advanced fault detection software in the semiconductor industry.