EX-99.1 2 a38040exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1
         
(TRIO-TECH INTERNATIONAL LOGO)
     
LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI
 
       

FOR IMMEDIATE RELEASE
  Company Contact:  
Investor Contact:
  A. Charles Wilson
Chairman
(818) 787-7000
 
Berkman Associates
(310) 826-5051
info@BerkmanAssociates.com
Trio-Tech Reports Second Quarter and First Half Results
Company Declares Special Cash Dividend of $0.11 Per Share
     Van Nuys, CA — February 12, 2008 — Trio-Tech International (AMEX:TRT) today announced financial results for the second quarter and first six months of fiscal 2008.
     The Company’s Board of Directors also declared a special cash dividend of $0.11 per share, payable on March 25, 2008 to shareholders of record on February 25, 2008.
Second Quarter Results
     For the three months ended December 31, 2007, revenue in the Company’s testing segment increased 7.5% to $5,670,000 compared to $5,273,000 for the second quarter of fiscal 2007, and increased sequentially compared to $5,543,000 reported for the first quarter of fiscal 2008. Products revenue for this year’s second quarter decreased 18.1% to $7,201,000 compared to $8,794,000 for the same period last year, but increased sequentially compared to $6,507,000 reported for the first quarter of fiscal 2008. Total revenue decreased 8.5% to $12,871,000 for the second quarter of fiscal 2008 compared to $14,067,000 for the second quarter of fiscal 2007, but increased sequentially compared to $12,050,000 reported for the first quarter of fiscal 2008.
     Gross margin for this year’s second quarter improved to 24.8% of revenue compared to 23.8% of revenue for the same period a year earlier, reflecting the greater contribution of higher-margin services revenue to the total revenue mix.
     Net income for the second quarter of fiscal 2008 was $165,000, or $0.05 per diluted share, which included non-cash, stock-related compensation expense of $358,000. This compares to net income for the second quarter of fiscal 2007 of $799,000, or $0.25 per diluted share, which included non-cash, stock-related compensation expense of $1,000.
     An increase in the percentage of income generated in Singapore, and subject to higher tax rates, raised the overall second quarter tax rate to 39% of income, compared to 35% of income in the same period last year.
First Half Results
     For the six months ended December 31, 2007, total revenue increased 4.1% to $24,921,000 compared to $23,943,000 for the first six months of fiscal 2007. Revenue in the Company’s testing segment increased 22.3% to $11,213,000 compared to $9,171,000 for the prior year; products revenue decreased 7.2% to $13,708,000 compared to $14,772,000.
     Net income for this year’s first half was $916,000, or $0.28 per diluted share, which included non-cash, stock-related compensation expense of $358,000. This compares to net income for the first half of fiscal 2007 of $1,555,000, or $0.48 per diluted share, which included non-cash, stock-related compensation expense of $2,000.
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Trio-Tech Reports Second Quarter and First Half Results
February xx, 2008
Page Two
Balance Sheet Highlights
     As of December 31, 2007, cash and cash equivalents were $14,206,000, working capital was $18,855,000, and shareholders’ equity was $23,626,000, or approximately $7.32 per outstanding share. As of June 30, 2007, cash and cash equivalents were $14,950,000, working capital was $16,445,000, and shareholders’ equity was $21,434,000, or approximately $6.64 per share.
Expanding Presence in China
     “Demand for our testing services in Asia continued to grow during the second quarter. We are especially pleased by the steady growth we have experienced at the testing operation in Suzhou, China we launched just a year ago. We remain committed to expanding our presence in China,” said Chief Executive Officer S.W. Yong.
     Separately, in January 2008, Trio-Tech (Chongqing) Co. Ltd. purchased for $762,000 an office space in an high-rise office building in Chongqing from MaoYe Property Ltd.
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 AND COMPREHENSIVE INCOME
(UNAUDITED) (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
                                 
    Three Months Ended     Six Months Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Revenue
                               
Products
  $ 7,201     $ 8,794     $ 13,708     $ 14,772  
Services
    5,670       5,273       11,213       9,171  
 
                       
 
    12,871       14,067       24,921       23,943  
 
                       
Cost of Sales
                               
Cost of products sold
    5,939       7,648       11,468       12,461  
Cost of services rendered
    3,737       3,069       7,216       5,658  
 
                       
 
    9,676       10,717       18,684       18,119  
 
                       
Gross Margin
    3,195       3,350       6,237       5,824  
 
                               
Operating Expenses
                               
General and administrative
    2,424       1,704       4,069       3,150  
Selling
    153       207       277       398  
Research and development
    19       17       38       34  
Impairment loss
    16       172       16       172  
 
                       
Total operating expenses
    2,612       2,100       4,400       3,754  
 
                       
Income from Operations
    583       1,250       1,837       2,070  
 
                               
Other Income (Expenses)
                               
Interest expense
    (79 )     (37 )     (164 )     (66 )
Other (expense) income
    (141 )     73       (191 )     110  
 
                       
Total other (expense) income
    (220 )     36       (355 )     44  
 
                       
Income Before Income Taxes
    363       1,286       1,482       2,114  
Income Tax Provision
    142       453       314       478  
 
                       
Income Before Minority Interest
    221       833       1,168       1,636  
Minority interest
    (56 )     (34 )     (252 )     (81 )
 
                       
Net Income Attributed to Common Shares
  $ 165     $ 799     $ 916     $ 1,555  
 
                       
 
                               
EARNINGS PER SHARE:
                               
Basic earnings per share
  $ 0.05     $ 0.25     $ 0.28     $ 0.48  
Diluted earnings per share
  $ 0.05     $ 0.25     $ 0.28     $ 0.48  
Weighted Average Shares Outstanding:
                               
Basic
    3,226       3,221       3,226       3,220  
Diluted
    3,228       3,233       3,259       3,232  
 
                               
Comprehensive Income:
                               
Net income
  $ 165     $ 799     $ 916     $ 1,555  
Foreign currency translation adjustment
    702       482       918       508  
 
                       
Comprehensive Income
  $ 867     $ 1,281     $ 1,834     $ 2,063  
 
                       

 


 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
                 
    June 30,     December 31,  
    2007     2007  
            (Unaudited)  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash
  $ 7,135     $ 5,316  
Short-term deposits
    7,815       8,890  
Trade accounts receivable, net
    7,410       10,633  
Other receivables
    245       364  
Inventories, net
    1,946       2,473  
Prepaid expenses and other current assets
    122       283  
Assets held for sale
          212  
 
           
Total current assets
    24,673       28,171  
 
           
INVESTMENT IN CHINA
          2,057  
PROPERTY, PLANT AND EQUIPMENT, Net
    7,458       7,667  
OTHER INTANGIBLE ASSETS, Net
    212       166  
OTHER ASSETS
    445       404  
 
           
TOTAL ASSETS
  $ 32,788     $ 38,465  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Accounts payable
  $ 2,265     $ 3,386  
Accrued expenses
    4,354       3,533  
Advances from buyer
          21  
Income taxes payable
    948       836  
Current portion of notes payable
    536       1,428  
Current portion of capital leases
    125       112  
 
           
Total current liabilities
    8,228       9,316  
 
           
NOTES PAYABLE, net of current portion
    139       2,179  
CAPITAL LEASES, net of current portion
    155       118  
DEFERRED TAX LIABILITIES
    373       396  
 
           
TOTAL LIABILITIES
    8,895       12,009  
 
               
MINORITY INTEREST
    2,459       2,830  
SHAREHOLDERS’ EQUITY:
               
Common stock; no par value, 15,000,000 shares authorized; 3,225,930 shares issued and outstanding as of December 31, 2007, and at June 30, 2007
    10,361       10,361  
Paid-in capital
    460       818  
Retained earnings
    10,135       11,051  
Accumulated other comprehensive income
    478       1,396  
 
           
Total shareholders’ equity
    21,434       23,626  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 32,788     $ 38,465