EX-99.1 2 a14981exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

 

     
 
  LOS ANGELES
SINGAPORE
DUBLIN
PENANG
KUALA LUMPUR
BANGKOK
         
 
  Company Contact:   Investor Contact:
FOR IMMEDIATE RELEASE
  A. Charles Wilson Chairman (818) 787-7000   Berkman Associates (310) 277-5162 info@BerkmanAssociates.com
Trio-Tech Reports Fiscal 2006 First Quarter Results
     Van Nuys, CA, — November 22, 2005 — Trio-Tech International (AMEX:TRT) today announced financial results for the first quarter of 2006, highlighted by a 27.2% increase in revenue from the Company’s semiconductor testing service segment.
     “Capacity utilization in our semiconductor testing and burn-in business has continued to increase, and volumes are running well ahead of last year and ahead of our expectations of only a few months ago,” said Chief Executive Officer S.W. Yong. “The growth of our testing segment in the first quarter reflected both last year’s acquisition of the semiconductor burn-in business in Malaysia and a steady ramp-up of volume for the newest microprocessor chips at our plant in Singapore, which more than offset reduced volume for older chips. Higher facility utilization and reduced costs contributed to an improvement in gross margin in our testing and burn-in operations to 38.3% for the first quarter of fiscal 2006 from 36.5% a year earlier, despite lower prices for some of our services. Based on customer demand, we are continuing to invest to expand capacity in this business.”
First Quarter Results
     For the three months ended September 30, 2005, testing service revenue rose to $3,545,000 from $2,786,000 for the first quarter of fiscal 2005. However, total revenue for the first quarter of fiscal 2006 declined to $5,705,000 from $7,743,000 for the same period in fiscal 2005, as lower revenue in the Company’s manufacturing and distribution segments more than offset the increase in testing service revenue. Overall gross margin improved to 32% of revenue for the first quarter of fiscal 2006 from 24.6% in the same quarter last fiscal year, reflecting the change in the mix of business.
     Income from continuing operations, net of income taxes, declined to $140,000 for the first quarter of fiscal 2006 from $259,000 for the first quarter of fiscal 2005, consistent with the decline in total revenue.
     As previously announced, on November 1, 2005 Trio-Tech completed the sale of its European Electronic Test Center facility in Dublin, Ireland for €8.85 million in cash (equivalent to approximately $10.62 million based on the exchange rate as of November 1, 2005). Accordingly, the results of the Ireland operation are presented in the first quarter 2006 financial statements as discontinued operations. The loss from discontinued operations for the first quarter of fiscal 2006 was $378,000, which included severance costs and costs associated with closing the Ireland facility of approximately $330,000.
     The net loss for this year’s first quarter was $214,000, or $0.08 per share. This compared to net income for the first quarter of the prior year of $237,000, or $0.08 per share.
(more)

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Trio-Tech Reports Fiscal 2006 First Quarter Results
November 21, 2005
Page Two
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)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except earnings per share)
                 
    Three Months Ended  
    September 30,  
    2005     2004  
NET SALES
                
PRODUCT SALES
   $ 2,160     $ 4,957  
SERVICES
     3,545       2,786  
 
            
 
     5,705       7,743  
 
            
COST OF SALES
                
COST OF GOODS SOLD
     1,695       4,066  
COSTS OF SERVICE RENDERED
     2,186       1,770  
 
            
 
     3,881       5,836  
 
            
GROSS PROFIT
     1,824       1,907  
OPERATING EXPENSES:
                
General and administrative
     1,289       1,257  
Selling
     285       269  
Research and development
     17       33  
Impairment Loss
     15       1  
 
            
Total
     1,606       1,560  
 
            
INCOME FROM OPERATIONS
     218       347  
OTHER INCOME (EXPENSE)
                
Interest expense
     (35 )     (32 )
Other income
     30       55  
 
            
Total
     (5 )     23  
 
            
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
     213       370  
INCOME TAXES
     73       111  
 
            
INCOME FROM CONTINUING OPERATIONS
     140       259  
LOSS FROM DISCONTINUED OPERATION
     (378 )     (9 )
 
            
(LOSS) INCOME BEFORE MINORITY INTEREST
     (238 )     250  
MINORITY INTEREST
     24       (13 )
 
            
NET (LOSS) INCOME
   $ (214 )   $ 237  
 
            
BASIC (LOSS) EARNINGS PER SHARE:
                
Basic earnings per share from Continuing operations
   $ 0.05     $ 0.08  
Basic loss per share from Discontinued operations
     (0.13 )     0.00  
 
            
Net basic (loss) Earnings per share
   $ (0.08 )   $ 0.08  
 
            
DILUTED (LOSS) EARNINGS PER SHARE:
                
Diluted earnings per share from Continuing operations
   $ 0.05     $ 0.08  
Diluted loss per share from Discontinued operations
     (0.13 )     0.00  
 
            
Net diluted (loss) Earnings Per Share
   $ (0.08 )   $ 0.08  
 
            
WEIGHTED AVERAGE NUMBER OF COMMON AND POTENTIAL COMMON SHARES OUTSTANDING
                
Basic
     2,994       2,965  
Diluted
     3,043       3,009  
OTHER COMPREHENSIVE (LOSS) INCOME:
                
Net (loss) income
     (214 )     237  
Foreign currency translation adjustment
     21       38  
 
            
COMPREHENSIVE (LOSS) INCOME
   $ (193 )   $ 275  
 
            

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT NUMBER OF SHARES)
                 
    Sep. 30,     Jun. 30,  
    2005     2005  
    (Unaudited)          
 
                
ASSETS
                
CURRENT ASSETS:
                
Cash
   $ 1,595     $ 1,439  
Restricted cash held in escrow
     1,067       —  
Short-term deposits
     3,494       3,211  
Trade accounts receivable, net
     3,506       4,178  
Other receivables
     232       142  
Inventories, net
     2,215       1,584  
Prepaid expenses and other current assets
     204       91  
Assets held for sale
     261       —  
 
            
Total current assets
     12,574       10,645  
PROPERTY, PLANT AND EQUIPMENT, Net
     6,681       7,176  
OTHER INTANGIBLE ASSETS, Net
     364       386  
OTHER ASSETS
     230       138  
 
            
TOTAL ASSETS
   $ 19,849     $ 18,345  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES:
                
Lines of credit
   $ 285     $ 336  
Accounts payable
     1,710       1,681  
Accrued expenses
     2,950       2,598  
Accrued restructuring costs
     223       —  
Advances from buyer
     1,067       —  
Income tax payable
     195       168  
Current portion of notes payable
     728       655  
Current portion of capital leases
     73       123  
Current portion of deferred tax liabilities
     274       275  
 
            
Total current liabilities
     7,505       5,836  
 
            
NOTES PAYABLE, net of current portion
     590       634  
CAPITAL LEASES, net of current portion
     94       110  
DEFERRED TAX LIABILITIES
     406       407  
 
            
TOTAL LIABILITIES
     8,595       6,987  
 
            
MINORITY INTEREST
     2,052       2,061  
 
                
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized; 2,996,992 shares issued and outstanding as at Sep. 30, 2005, and 2,976,042 shares issued and outstanding as at Jun. 30, 2005, respectively
     9,618       9,554  
Paid-in capital
     318       284  
Accumulated deficit
     (512 )     (298 )
Accumulated other comprehensive loss-translation adjustments
     (222 )     (243 )
 
            
Total shareholders’ equity
     9,202       9,297  
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 19,849     $ 18,345  
 
            

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