EX-99.1 2 a25204exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
     
(TRIO-TECH LOGO)
  LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI
         
 
  Company Contact:   Investor Contact:
FOR IMMEDIATE RELEASE
  A. Charles Wilson
Chairman
(818) 787-7000 		  Berkman Associates
(310) 826-5051
info@BerkmanAssociates.com
Trio-Tech Fiscal 2007 First Quarter Net Income Increased
to $0.23 Per Share Versus A Net Loss of $0.08 Per Share
Revenue Increased 73%
     Van Nuys, CA, — November 9, 2006 — Trio-Tech International (AMEX:TRT) today announced financial results for the first quarter of fiscal 2007.
     “Trio-Tech’s solid first quarter performance is the latest sign that our strategy to focus our operations in Asia has set the company on a path for growth,” said Chief Executive Officer S.W. Yong. “In the first quarter we were able to substantially increase our revenue and income despite continued pressure on pricing. Our tight control over costs is particularly noteworthy in view of the expansion initiatives we have implemented in China. Because our target markets are and will remain intensely competitive, the discipline we adhere to on the cost side and our dedication to enhancing productivity are important elements of our success.”
     “We have long supported our multinational customers’ test and burn-in requirements from our facilities in Singapore, Malaysia and Thailand, where we have steadily invested in new capacity and new technology. To increase our share of business from long-term and potential new customers, during fiscal 2006 we entered the Chinese market with the acquisition of a semiconductor test and burn-in business based in Shanghai and the establishment of a factory in the densely populated and rapidly growing Yangtze River Delta area. We are pleased by the performance of our new operations in China.
     “By taking advantage of our strong financial position, our world-class technology, our low-cost manufacturing know-how, and our outstanding reputation for quality and reliability, we are building a robust platform for the future,” Yong said.
Fiscal 2007 First Quarter Results
     For the three months ended September 30, 2006, revenue increased 73% to $9,876,000 compared to $5,705,000 for the same period of the prior fiscal year. Revenue from products sales nearly tripled to $5,978,000 from $2,160,000 for the first quarter of fiscal 2006, driven by an increase in demand for the Company’s proprietary burn-in systems resulting from continued growth in a major customer’s share of the semiconductor market. The testing services segment revenue increased 10% to $3,898,000 from $3,545,000 last year.
     Gross margin for this year’s first quarter was 25.2% compared to gross margin of 32.0% for the same period a year earlier. Gross margin in products sales declined to 19.8% from 21.5% last year, primarily the result of a shift in the mix of sales. The testing services segment gross margin decreased to 33.6% from 38.3%, reflecting continued pressure on selling prices.
(more)
14731 Califa Street, Van Nuys, CA 91411, USA • TEL: (818) 787-7000 • FAX (818) 787-9130

 

 

Trio-Tech Fiscal 2007 First Quarter Net Income Increased to $0.23 Per Share Versus A Net Loss of $0.08 Per Share Revenue Increased 73%
 
November 9, 2006
Page Two
     Operating expenses rose 4% to $1,670,000 compared to $1,606,000 for the same period last year. Income from operations increased to $821,000 for the first quarter of fiscal 2007 compared to $218,000 for the first quarter of fiscal 2006.
     Net income for this year’s first quarter was $756,000, or $0.23 per diluted share. This compares to a net loss for the first quarter of fiscal 2006 of $214,000, or $0.08 per share.
     Total backlog at September 30, 2006 more than doubled to $17,743,000 from $8,478,000 a year earlier, including testing services backlog of $9,515,000 and products backlog of $8,228,000.
     At September 30, 2006, cash and cash equivalents were $10,932,000, working capital was $13,568,000, and shareholders’ equity was $18,181,000. At June 30, 2006, cash and cash equivalents were $10,390,000, working capital was $13,268,000, and shareholders’ equity was $17,392,000.
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
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED, IN THOUSANDS, EXCEPT (LOSS) EARNINGS PER SHARE)
                 
    Three Months Ended  
    September 30,  
    2006     2005  
    (Unaudited)     (Unaudited)  
Revenues
                
Products
   $ 5,978     $ 2,160  
Services
     3,898       3,545  
 
            
 
     9,876       5,705  
 
            
 
                
Costs of Sales
                
Cost of products sold
     4,796       1,695  
Cost of service rendered
     2,589       2,186  
 
            
 
     7,385       3,881  
 
            
 
                
Gross Margin
     2,491       1,824  
 
                
Operating Expenses:
                
General and administrative
     1,391       1,289  
Selling
     262       285  
Research and development
     17       17  
Impairment loss
     —       15  
 
            
Total operating expenses
     1,670       1,606  
 
            
Income from Operations
     821       218  
 
                
Other Income (Expenses)
                
Interest expense
     (29 )     (35 )
Other income
     37       30  
 
            
Total other income
     8       (5 )
 
            
Income from Continuing Operations before Income Taxes
     829       213  
 
                
Income Tax Provision
     26       73  
 
            
Income from Continuing Operations before Minority Interest
     803       140  
 
                
Minority Interest
     (47 )     24  
 
            
Income from continuing operations
     756       164  
 
                
Loss from discontinued operations
     —       (378 )
 
            
Net Income (Loss) Attributed to Common Shares
   $ 756     $ (214 )
 
            
 
                
BASIC EARNINGS PER SHARE:
                
Basic earnings per share from continuing operations
   $ 0.23     $ 0.05  
Basic earnings (loss) per share from discontinued operations
     —       (0.13 )
 
            
Basic earnings (loss) per share
   $ 0.23     $ (0.08 )
 
            
 
                
DILUTED EARNINGS PER SHARE:
                
Diluted earnings per share from continuing operations
   $ 0.23     $ 0.05  
Diluted earnings (loss) per share from discontinued operation
     —       (0.13 )
 
            
Diluted earnings (loss) per share
   $ 0.23     $ (0.08 )
 
            
 
                
Weighted Average Shares Outstanding — Basic
     3,220       2,994  
Weighted Average Shares Outstanding — Diluted
     3,239       3,043  
 
                
Comprehensive Income (Loss):
                
Net income (Loss)
   $ 756     $ (214 )
Foreign currency translation adjustment
     27       21  
 
            
Comprehensive Income (Loss)
   $ 783     $ (193 )
 
            

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT NUMBER OF SHARES)
                 
    Sep. 30,     Jun. 30,  
    2006     2006  
    (Unaudited)          
ASSETS
                
 
                
CURRENT ASSETS:
                
Cash
   $ 5,639     $ 2,551  
Short-term deposits
     5,293       7,839  
Trade accounts receivable, net
     7,936       8,518  
Other receivables
     216       306  
Inventories, net
     3,441       2,447  
Prepaid expenses and other current assets
     244       170  
 
            
Total current assets
     22,769       21,831  
 
                
PROPERTY, PLANT AND EQUIPMENT, Net
     6,951       7,073  
OTHER INTANGIBLE ASSETS, Net
     279       311  
OTHER ASSETS
     688       169  
 
            
TOTAL ASSETS
   $ 30,687     $ 29,384  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES:
                
Line of credit
   $ 363     $ 116  
Accounts payable
     3,924       3,809  
Accrued expenses
     3,388       3,045  
Income taxes payable
     444       311  
Current portion of notes payable
     761       856  
Current portion of capital leases
     116       107  
Current portion of deferred tax liabilities
     205       319  
 
            
Total current liabilities
     9,201       8,563  
 
            
 
                
NOTES PAYABLE, net of current portion
     486       644  
CAPITAL LEASES, net of current portion
     224       230  
DEFERRED TAX LIABILITIES
     359       359  
 
            
TOTAL LIABILITIES
     10,270       9,796  
 
            
 
                
MINORITY INTEREST
     2,236       2,196  
 
                
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized; 3,221,157 shares issued and outstanding as at September 30, 2006, and 3,219,407 shares issued and outstanding as at June 30, 2006,
     10,343       10,338  
Paid-in capital
     338       337  
Accumulated retained earnings
     7,906       7,150  
Accumulated other comprehensive loss-translation adjustments
     (406 )     (433 )
 
            
Total shareholders’ equity
     18,181       17,392  
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 30,687     $ 29,384  
 
            

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT NUMBER OF SHARES)
                 
    Mar. 31,     Jun. 30,  
    2006     2005  
    (Unaudited)          
ASSETS
                
 
                
CURRENT ASSETS:
                
Cash
   $ 2,795     $ 1,439  
Short-term deposits
     8,522       3,211  
Trade accounts receivable, net
     5,219       4,178  
Other receivables
     333       142  
Inventories, net
     1,566       1,584  
Prepaid expenses and other current assets
     158       76  
 
            
Total current assets
     18,593       10,630  
 
                
PROPERTY, PLANT AND EQUIPMENT, Net
     7,228       7,176  
OTHER INTANGIBLE ASSETS, Net
     340       386  
OTHER ASSETS
     157       138  
ADVANCES TO SELLER
     —       15  
 
            
TOTAL ASSETS
   $ 26,318     $ 18,345  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES:
                
Lines of credit
   $ 225     $ 336  
Accounts payable
     1,818       1,681  
Accrued expenses
     2,615       2,598  
Income tax payable
     268       168  
Current portion of notes payable
     900       655  
Current portion of capital leases
     127       123  
Current portion of deferred tax liabilities
     287       275  
 
            
Total current liabilities
     6,240       5,836  
 
            
 
                
NOTES PAYABLE, net of current portion
     817       634  
CAPITAL LEASES, net of current portion
     254       110  
DEFERRED TAX LIABILITIES
     453       407  
 
                
 
            
TOTAL LIABILITIES
     7,764       6,987  
 
            
 
                
MINORITY INTEREST
     2,063       2,061  
 
                
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized; 3,219,407 shares issued and outstanding as at Mar. 31, 2006, and 2,976,042 shares issued and outstanding as at Jun. 30, 2005, and
     10,338       9,554  
Paid-in capital
     334       284  
Accumulated retained earnings (deficit)
     6,446       (298 )
Accumulated other comprehensive loss-translation adjustments
     (627 )     (243 )
Total shareholders’ equity
     16,491       9,297  
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 26,318     $ 18,345  
 
            

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