EX-99.1 CHARTER 2 trio_ex9901.htm PRESS RELEASE DATED MAY 15, 2008 trio_ex9901.htm
 
 
 
LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI
 
 
 
 FOR IMMEDIATE RELEASE
 
Company Contact:            Investor Contact:
 A. Charles Wilson              Berkman Associates
 Chairman                  (310) 826-5051
 (818) 787-700                info@BerkmanAssociates.com
 
 
 
 
Trio-Tech Reports Third Quarter and Nine Months Results


Van Nuys, CA -- May 15, 2008 -- Trio-Tech International (AMEX:TRT) today announced financial results for the third quarter and first nine months of fiscal 2008.

Third Quarter Results
For the three months ended March 31, 2008, revenue decreased to $8,455,000 compared to $13,613,000 for the third quarter of fiscal 2007, primarily the result of the previously announced phase-out during this year's third quarter of a semiconductor burn-in program provided for a customer from Trio-Tech's facilities in Singapore and China.  Revenue in the Company's testing segment decreased to $3,973,000 compared to $6,348,000 for last year's third quarter, and products revenue decreased to $4,482,000 compared to $7,265,000 for the prior year.
The net loss for this year's third quarter was $1,411,000, or $0.44 per share, which included an impairment loss of $441,000 primarily related to the phase-out of the burn-in program and non-cash, stock-related compensation expense of $32,000.  For the third quarter of fiscal 2007, net income was $1,081,000, or $0.33 per diluted share, which included non-cash, stock-related compensation expense of $1,000.
"We have taken aggressive steps to reduce our costs in view of the sudden phase-out of a significant burn-in program, including headcount reductions, cuts in executive salaries and other cuts, which will be reflected in our cost structure beginning in the fourth quarter," said Chief Executive Officer S.W. Yong.  "At the same time, our efforts to win new business with existing and new customers are meeting with some success, which is another encouraging sign for the future.  With our solid balance sheet and experienced management team, we are confident that Trio-Tech will deliver improved operating results in the near future."

Balance Sheet Highlights
As of March 31, 2008, cash and cash equivalents were $14,300,000, working capital was $16,503,000, and shareholders' equity was $22,652,000, or approximately $7.02 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 outstanding share.

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14731 Califa Street, Van Nuys, CA 91411,  USA  ●  TEL:  (818) 787-7000  ●  FAX  (818) 787-9130

Trio-Tech Reports Third Quarter and Nine Months Results
May 15, 2008
Page Two




Nine Months Results
For the nine months ended March 31, 2008, revenue decreased to $33,376,000 compared to $37,556,000 for the first nine months of fiscal 2007.  Testing service revenue decreased to $15,186,000 compared to $15,519,000 for the prior year, and product revenue decreased to $18,190,000 compared to $22,037,000.
The net loss for the first nine months of fiscal 2008 was $495,000, or $0.15 per share, which included an impairment loss of $457,000 and non-cash, stock-related compensation expense of $390,000.  For the first nine months of fiscal 2007, net income was $2,636,000, or $0.82 per diluted share, which included non-cash, stock-related compensation expense of $4,000.

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)

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
   
Nine Months Ended
    
Three Months Ended
  
   
March 31,
    
March 31,
  
   
2008
    
2007
    
2008
    
2007
  
                         
Revenue
                        
  Products
   $ 18,190     $ 22,037     $ 4,482     $ 7,265  
  Services
     15,186       15,519       3,973       6,348  
      33,376       37,556       8,455       13,613  
Cost of Sales
                                
Cost of products sold
     15,716       18,480       4,248       6,019  
Cost of services rendered
     10,014       9,655       2,798       3,997  
      25,730       28,135       7,046       10,016  
                                 
Gross Margin
     7,646       9,421       1,409       3,597  
                                 
Operating Expenses
                                
General and administrative
     6,144       5,121       2,075       1,971  
Selling
     466       660       189       262  
Research and development
     45       52       7       18  
Impairment Loss
     457       174       441       2  
Loss on disposal of property, plant & equipment
     11       --       11       --  
Total operating expenses
     7,123       6,007       2,723       2,253  
                                 
Income (Loss ) from Operations
     523       3,414       (1,314 )     1,344  
                                 
Other Income (Expenses)
                                
Interest expense
     (257 )     (119 )     (93 )     (53 )
Other income (expenses)
     (224 )     155       (33 )     45  
Total other (expenses) income
     (481 )     36       (126 )     (8 )
                                 
Income (Loss) Before Income Taxes
     42       3,450       (1,440 )     1,336  
                                 
Income Tax Provision
     268       717       (46 )     239  
                                 
Income (Loss) Before Minority Interest
     (226 )     2,733       (1,394 )     1,097  
Minority interest
     (269 )     (97 )     (17 )     (16 )
                                 
Net Income (Loss) Attributable to Common Shares
   $ (495 )   $ 2,636     $ (1,411 )   $ 1,081  
                                 
Basic earnings (loss) per share
   $ (0.15 )   $ 0.82     $ (0.44 )   $ 0.34  
Diluted earnings (loss) per share
   $ (0.15 )   $ 0.82     $ (0.44 )   $ 0.33  
                                 
Weighted Average Shares Outstanding:
                                
Basic
     3,226       3,225       3,226       3,226  
Diluted
     3,226       3,235       3,226       3,236  
                                 
Comprehensive Income (Loss):
                                
Net income (loss)
   $ (495 )   $ 2,636     $ (1,411 )   $ 1,081  
Foreign currency translation adjustment
     1,676       957       758       449  
                                 
Comprehensive Income (Loss)
   $ 1,181      $ 3,593      $ (653 )   $ 1,530   
 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
 
   
   
March 31,
    
June 30,
  
   
2008
    
2007
  
ASSETS
  
(Unaudited)
        
             
CURRENT ASSETS:
            
Cash
   $ 5,958     $ 7,135  
Short-term deposits
     8,342       7,815  
Trade accounts receivable, net
     7,083       7,410  
Other receivables
     682       245  
Inventories, net
     2,144       1,946  
Prepaid expenses and other current assets
     222       122  
Assets held for sale
     219       --  
                 
Total current assets
     24,650       24,673  
                 
INVESTMENT IN CHINA
     2,931       --  
PROPERTY, PLANT AND EQUIPMENT, Net
     7,713       7,458  
OTHER INTANGIBLE ASSETS, Net
     143       212  
OTHER ASSETS
     645       445  
                 
TOTAL ASSETS
   $ 36,082     $ 32,788  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 2,413     $ 2,265  
Accrued expenses
     3,658       4,354  
Advances from buyer
     22       --  
Income taxes payable
     544       948  
Current portion of notes payable
     1,417       536  
Current portion of capital leases
     93       125  
                 
Total current liabilities
     8,147       8,228  
                 
NOTES PAYABLE, net of current portion
     1,961       139  
CAPITAL LEASES, net of current portion
     95       155  
DEFERRED TAX LIABILITIES
     499       373  
                 
TOTAL LIABILITIES
     10,702       8,895  
                 
MINORITY INTEREST
     2,728       2,459  
                 
SHAREHOLDERS' EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized;
3,226,4930 and 3225,930 shares issued and outstanding
as of March 31, 2008 and June 30, 2007, respectively
     10,362        10,361   
Paid-in capital
     850       460  
Retained earnings
     9,286       10,135  
Accumulated other comprehensive income
     2,154       478  
                 
Total shareholders' equity
     22,652       21,434  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 36,082     $ 32,788