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 nine months ended September 30, 1998 was $304,583 (nine months ended September 30, 1997 - $753,261) mainly reflecting revenue recognized from the $300,000 order for the installation of ModelWare/RT at two wafer fabrication plants in Scotland. Expenses for the nine months ended September 30, 1998 were $2,964,958 (nine months ended September 30, 1997 - $2,701,001) and included expenditures on marketing, sales, product development efforts, general and administrative, and restructuring charges. The net loss for the nine months ended September 30, 1998 was $2,660,375 (nine months ended September June 30, 1997 - net loss of $1,947,740) with a loss per share of $0.20 (nine months ended September 30, 1997 - loss per share of $0.17).

During the third quarter, Triant achieved the following:

• 
  completed the restructuring program that had been initiated by its Board of Directors in June 1998 to strengthen the Company, significantly reduce costs, and focus on core product development activities. As a result of this program, expenditures (excluding restructuring charges) for the fiscal quarter ended September 30, 1998 were reduced by approximately 50% compared to prior quarters;
• completed a $459,700 private placement as part of its financing program;
  
• 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;
  
• signed a joint marketing agreement with FASTech Integration, Inc. (which has since been acquired by Brooks Automation, Inc.) to provide the semiconductor industry with an increasingly integrated software solution for factory automation and advanced fault detection;
  
• released 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.

Also during the third quarter and in conjunction with its restructuring program, Triant made the following additional changes to its Board of Directors:

• appointed Michael George as Chairman of the Board and Corporate Governance Committee Chairman. Mr. George is Senior Vice President of Ion Systems, Inc., the world's leading supplier of ionization technology. Formerly, Mr. George was Senior Director of Strategic Business Development for Applied Materials, Inc., the world's largest supplier of semiconductor manufacturing equipment.
  
• appointed Jim Macek, Ph.D., as a Director of the Company. Dr. Macek is President & CEO of Progressive Systems Technologies, Inc., a leading supplier of tool automation and substrate handling equipment to the semiconductor and flat panel display industries. Formerly, Dr. Macek was Executive Vice President of Consilium, Inc. (which has since been acquired by Applied Materials, Inc.). Prior to Consilium, he was Chairman & CEO for the U.S. operations of JENOPTIK INFAB, Inc., and he has also held senior management positions with Advanced Micro Devices, Inc. and Intel Corporation.
  
• appointed Roger Kazanowski as a member of both the Company's Audit Committee and Compensation Committee. Mr. Kazanowski had previously been appointed as a Director of the Company in June 1998 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.

Subsequent to the end of the third quarter, Triant reported that it had:

• completed a $1,025,000 private placement as part of its financing program;
  
• received over $100,000 in orders for its latest release, ModelWare/RT Version 2.9.

The Company is currently involved in legal proceedings with its former President & CEO whose employment was terminated in June 1998. He has filed a statement of claim for wrongful dismissal which includes a claim for $150,000 plus loss of benefits and costs.

Triant's near term plans and business goals include:

• releasing version 3.0 of ModelWare/RT at the end of the year. Version 3.0 is designed to automate the building of equipment models which will significantly enhance the ease-of-use 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 Taiwan and actively supporting Triant's existing 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.

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 and other filings with United States, British Columbia and Ontario securities regulatory authorities.