EX-99.1 2 a09219exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

     
(TRIO TECH LETTERHEAD)


Trio-Tech Reports Fiscal 2005 Third Quarter
and Nine Month Results

Third Quarter Testing Service Revenue Increased 37%
Testing Service Backlog Increased 83% to $8.1 Million from $4.4 Million

     Van Nuys, CA, — May 10, 2005 — Trio-Tech International (AMEX:TRT) today announced financial results for the third quarter and first nine months of fiscal 2005, highlighted by a 37% increase in revenue from semiconductor testing services for the third quarter. The company also reported that Testing Service backlog increased 83% to $8.1 million at March 31, 2005 compared to $4.4 million at March 31, 2004.

     “While conditions in the global semiconductor industry remain highly volatile and difficult to predict, the sharp increase in Testing Service backlog shows that we are beginning to see the ramp-up in burn-in demand that we have long anticipated. The investments we have made and continue to make in our burn-in business to expand capacity, increase automation and reduce costs will help us to compete more effectively in today’s tough pricing environment,” said President and Chief Executive Officer S.W. Yong.

Third Quarter Results

     For the three months ended March 31, 2005, total revenue increased 21% to $6,117,000 from $5,042,000 for the third quarter of fiscal 2004. Testing Service revenue increased 37% to $3,079,000 from $2,244,000 a year earlier. Selling, general and administrative expenses increased 36%, reflecting higher staffing to support increased demand for burn-in services in Singapore and in the company’s recently acquired operation in Malaysia. “We are pleased by the performance of our new Malaysia operation, and we are continuing to seek opportunities to expand our burn-in business into additional geographic markets in Asia,” Yong said. The net income for this year’s third quarter was $22,000, or $0.01 per share. This compares to net income of $168,000, or $0.06 per diluted share, for the same period a year earlier.

     Yong added, “Our Manufacturing segment posted an increase in revenue for the third quarter, to $2,245,000 from $1,938,000 for the third quarter of fiscal 2004, but generated an operating loss of $178,000 this quarter versus an operating profit of $52,000 for the same period last year, primarily because of an unfavorable product mix. We remain committed to this business, however, as we are beginning to see attractive opportunities for growth in several of our product lines. With the consolidation of our manufacturing operations into our Singapore facility, we believe we can maintain tight control over costs while we pursue these opportunities.”

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Trio-Tech Reports Fiscal 2005 Third Quarter and Nine Month Results
May 10, 2005
Page Two

     Revenue for the company’s Distribution segment declined to $793,000 from $860,000 for the third quarter of fiscal 2004. Operating income was $8,000 for this year’s third quarter compared to an operating loss of $17,000 a year ago.

Nine Month Results

     For the nine months ended March 31, 2005, revenue increased 41% to $19,650,000 from $13,948,000 for the first nine months of fiscal 2004. Testing Service revenue increased 28% to $8,775,000 from $6,877,000, Manufacturing revenue increased 90% to $8,648,000 and Distribution revenue slid by 11% to $2,227,000. Net income for this year’s first nine months was $159,000, or $0.05 per diluted share. This compares to net income for last year’s first nine months of $121,000, or $0.04 per share.

     Total backlog at March 31, 2005 increased 57% to $10,844,000 from $6,898,000 at March 31, 2004.

     Shareholders’ equity was $9,402,000 at March 31, 2005, up from $9,024,000 at June 30, 2004. Cash and short-term deposits decreased to $4,592,000 at March 31, 2005 from $7,006,000 at June 30, 2004, primarily because of scheduled payments for the company’s acquisition of the semiconductor burn-in division in Malaysia and to the expansion of burn-in capacity in Singapore.

About Trio-Tech

     Founded in 1958, Trio-Tech International provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. Headquartered in Van Nuys, California, the Company also designs, manufactures and markets equipment and systems used in the testing and production of semiconductors, and distributes semiconductor processing and testing equipment manufactured by others. For further information or to request quotations for any of Trio-Tech’s complete line of semiconductor test equipment, please visit the Company’s Web site at www.triotech.com.

Forward-Looking Statements

     This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: the effectiveness of the cost reduction initiatives undertaken by the Company, changes in demand for the Company’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

(tables attached)

#3872

 


 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income
(In Thousands)(Unaudited)

                                 
    Nine Months Ended     Three Months Ended  
    March 31,     March 31,  
    2005     2004     2005     2004  
NET SALES
                               
Product Sales
  $ 10,875     $ 7,071     $ 3,038     $ 2,798  
Services
    8,775       6,877       3,079       2,244  
 
                       
 
    19,650       13,948       6,117       5,042  
 
                       
COST OF SALES
                               
Cost of goods sold
    8,914       5,633       2,510       2,243  
Cost of service rendered
    6,044       4,769       2,138       1,600  
 
                       
 
    14,958       10,402       4,648       3,843  
 
                       
GROSS PROFIT
    4,692       3,546       1,469       1,199  
OPERATING EXPENSES:
                               
General and administrative
    3,613       2,915       1,150       962  
Selling
    889       552       339       135  
Research and development
    77       88       20       29  
Gain on disposal of property, plant and equipment
          (58 )           (62 )
 
                       
Total
    4,579       3,497       1,509       1,064  
 
                       
INCOME (LOSS) FROM OPERATIONS
    113       49       (40 )     135  
OTHER INCOME (EXPENSE)
                               
Interest expense
    (137 )     (95 )     (45 )     (29 )
Other income
    191       263       85       67  
 
                       
Total
    54       168       40       38  
 
                       
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST
    167       217             173  
INCOME TAXES
    25       40       (26 )     7  
 
                       
INCOME BEFORE MINORITY INTEREST
    142       177       26       166  
MINORITY INTEREST
    17       (56 )     (4 )     2  
 
                       
NET INCOME ATTRIBUTABLE TO COMMON SHARES
    159       121       22       168  
 
                       
EARNINGS PER SHARE:
                               
Basic
  $ 0.05     $ 0.04     $ 0.01     $ 0.06  
 
                       
Diluted
  $ 0.05     $ 0.04     $ 0.01     $ 0.06  
 
                       
WEIGHTED AVERAGE NUMBER OF COMMON AND POTENTIAL COMMON SHARES OUTSTANDING
                               
Basic
    2,966       2,931       2,966       2,933  
Diluted
    3,000       2,984       3,025       3,036  
 
COMPREHENSIVE INCOME (LOSS):
                               
Net income
    159       121       22       168  
Unrealized loss on investment
          (45 )            
Foreign currency translation adjustment
    214       242       (64 )     19  
 
                       
COMPREHENSIVE INCOME (LOSS)
  $ 373     $ 318     $ (42 )   $ 187  
 
                       

 


 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Number of Shares)

                 
    (Unaudited)        
    March 31,     June 30,  
    2005     2004  
ASSETS
               
CURRENT ASSETS:
               
Cash
  $ 1,249     $ 1,357  
Short-term deposits
    3,343       5,649  
Trade accounts receivable, net
    3,871       3,695  
Other receivables
    454       562  
Inventories, net
    1,380       1,409  
Prepaid expenses and other current assets
    150       98  
 
           
Total current assets
    10,447       12,770  
PROPERTY, PLANT AND EQUIPMENT, Net
    7,159       5,202  
OTHER INTANGIBLE ASSETS, Net
    411        
OTHER ASSETS
    119       28  
 
           
TOTAL ASSETS
  $ 18,136     $ 18,000  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Line of credit
  $ 151     $ 146  
Accounts payable
    1,500       2,316  
Accrued expenses
    2,692       2,166  
Income taxes payable
    74       49  
Current portion of notes payable
    608       506  
Current portion of capitalized leases
    169       246  
 
           
Total current liabilities
    5,194       5,429  
 
           
NOTES PAYABLE, net of current portion
    702       583  
CAPITALIZED LEASES, net of current portion
    112       210  
DEFERRED INCOME TAXES
    684       644  
 
           
TOTAL LIABILITIES
    6,692       6,866  
 
           
MINORITY INTEREST
    2,042       2,110  
SHAREHOLDERS’ EQUITY:
               
Common stock; no par value, 15,000,000 shares authorized; 2,966,042 and 2,964,542 shares issued and outstanding
    9,532       9,527  
Paid-in capital
    284       284  
Accumulated deficit
    (360 )     (519 )
Accumulated other comprehensive loss-translation adjustments
    (54 )     (268 )
Total shareholders’ equity
    9,402       9,024  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 18,136     $ 18,000