EX-99.1 2 pressrelease.htm PRESS RELEASE pressrelease.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) 787-7000                                            info@BerkmanAssociates.com
 
 
 
Trio-Tech Reports Fourth Quarter and Fiscal 2008 Results


Van Nuys, CA -- September 26, 2008 -- Trio-Tech International (AMEX:TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2008.

Fourth Quarter Results
For the three months ended June 30, 2008, revenue decreased to $6,938,000 compared to $9,194,000 for the fourth quarter of fiscal 2007, primarily due to the previously announced phase-out beginning in the third fiscal 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 $2,986,000 compared to $5,364,000 for last year's fourth quarter.  Revenue from Trio-Tech's products sales decreased to $3,952,000 compared to $3,830,000 for the prior year.
The net loss for the fourth quarter of 2008 was $461,000, or $0.14 per share.  This compares to net income for the fourth quarter of fiscal 2007 of $672,000, or $0.21 per share, and to a net loss for the third quarter of fiscal 2008 of $1,411,000, or $0.44 per share.
Operating expenses for the fourth quarter of fiscal 2008 decreased 1.4% to $1,793,000 compared to $1,818,000 for the fourth quarter of fiscal 2007, and decreased 34.2% sequentially compared to $2,723,000 for the third quarter of fiscal 2008.
"The sequential improvement in our bottom-line results reflected aggressive reductions in operating costs through headcount reductions, cuts in executive salaries and other steps.  We expect to achieve further cost savings in the new fiscal year.  At the same time, we are working hard to win new contracts that will position us for renewed revenue growth in our core testing business.  The increase in testing service backlog to $6,965,000 on June 30, 2008 compared to $6,452,000 a year earlier is an encouraging sign that we are on the right track," said Chief Executive Officer S.W. Yong.

Fiscal Year Results
For the twelve months ended June 30, 2008, revenue decreased to $40,314,000 compared to $46,750,000 for fiscal 2007.  Testing service revenue decreased to $18,172,000 compared to $20,883,000 for the prior year, and product revenue decreased to $22,142,000 compared to $25,867,000 for fiscal 2007.
The net loss for fiscal 2008 was $956,000, or $0.30 per diluted share, which included an impairment loss of $450,000 related to property and equipment, and non-cash, stock-related compensation expenses of $468,000. This compares to net income for fiscal 2007 of $3,308,000, or $1.02 per diluted share.


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

 

Trio-Tech Reports Fourth Quarter and Fiscal 2008 Results
September 26, 2008
Page Two




Balance Sheet Highlights
At June 30, 2008, Trio-Tech reported cash and cash equivalents of $14,346,000, working capital of $15,903,000, and shareholders' equity of $22,141,000, or approximately $6.86 per outstanding share.  At 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.  Cash and short-term deposits in fiscal 2008 were affected by capital expenditures of $3,357,000, the investment of $2,267,000 in Chongqing, China, proceeds from long-term bank loans of $3,822,000 and by the fiscal 2008 net loss of $956,000.

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.


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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
                         
                         
   
Three Months Ended
   
Twelve Months Ended
 
   
June 30,
   
June 30,
 
   
2008
   
2007
   
2008
   
2007
 
Revenue
                       
Products
  $ 3,592     $ 3,830     $ 22,142     $ 25,867  
Services
    2,986       5,364       18,172       20,883  
      6,938       9,194       40,314       46,750  
Cost of Sales
                               
Cost of products sold
    3,100       3,199       18,816       21,679  
Cost of services rendered
    2,609       3,394       12,623       13,049  
      5,709       6,593       31,439       34,728  
                                 
Gross Margin
    1,229       2,601       8,875       12,022  
                                 
Operating Expenses
                               
General and administrative
    1,700       1,673       7,844       6,794  
Selling
    179       127       645       787  
Research and development
    10       17       55       69  
Impairment loss
    (7 )     2       450       176  
(Gain) on disposal of property, plant and equipment
    (89 )     (1 )     (78 )     (1 )
      1,793       1,818       8,916       7,825  
                                 
Income (Loss) from Operations
    (564 )     783       (41 )     4,197  
                                 
Other Income (Expense)
                               
Interest expense
    (39 )     (20 )     (296 )     (139 )
Other income (expense)
    171       23       (53 )     178  
   Total Other Income (Expense)
    132       3       (349 )     39  
                                 
Income (Loss) before Income Tax
    (432 )     786       (390 )     4,236  
                                 
Income Tax Provision (Benefit)
    (52 )     48       216       765  
                                 
Income (Loss) before Minority Interest
    (380 )     738       (606 )     3,471  
                                 
Minority interest
    (81 )     (66 )     (350 )     (163 )
                                 
Net Income (Loss) Attributed to Common Shares
  $ (461 )   $ 672     $ (956 )   $ 3,308  
                                 
Earnings per share:
                               
Basic
  $ (0.14 )   $ 0.21     $ (0.30 )   $ 1.03  
 
Diluted
  $ (0.14 )   $ 0.21     $ (0.30 )   $ 1.02  
                                 
Weighted Average Shares Outstanding
                               
Basic
    3,227       3,223       3,226       3,223  
Diluted
    3,227       3,233       3,226       3,233  
                                 
Comprehensive income: 
                               
Net income
  $ (461 )   $ 672     $ (956 )   $ 3,308  
Foreign currency translation adjustment
    (128 )     (46 )     1,548       911  
                                 
Comprehensive income
  $ (589 )   $ 626     $ 592     $ 4,219  


TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
             
             
   
June 30,
   
June 30,
 
   
2008
   
2007
 
 
ASSETS
           
             
CURRENT ASSETS:
           
Cash
  $ 6,600     $ 7,135  
Short-term deposits
    7,746       7,815  
Trade accounts receivable, net
    5,702       7,410  
Other receivables
    796       245  
Inventories, net
    2,449       1,946  
Prepaid expenses and other current assets
    138       122  
Total current assets
    23,431       24,673  
                 
INVESTMENT IN CHINA
    2,267       --  
PROPERTY, PLANT AND EQUIPMENT, Net
    8,136       7,458  
OTHER INTANGIBLE ASSETS, Net
    112       212  
OTHER ASSETS
    813       445  
                 
TOTAL ASSETS
  $ 34,759     $ 32,788  
                 
                 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
  $ 2,586     $ 2,265  
Accrued expenses
     3,036       4,354  
Income taxes payable
    397       948  
Current portion of notes payable
     1,403       536  
Current portion of capital leases
     106       125  
Total current liabilities
    7,528       8,228  
                 
NOTES PAYABLE, net of current portion
    1,620       139  
CAPITAL LEASES, net of current portion
    143       155  
DEFERRED TAX LIABILITIES
    510       373  
OTHER  NON CURRENT LIABILITIES
    9       --  
                 
TOTAL LIABILITIES
    9,810       8,895  
                 
MINORITY INTEREST
    2,808       2,459  
                 
SHAREHOLDERS' EQUITY:
               
Common stock; no par value, 15,000,000 shares authorized; 3,226,430 and 3,225,930 shares issued and outstanding 
               
 at June 30, 2008 and 2007, respectively
    10,362       10,361  
               
Paid-in capital
    928       460  
Accumulated retained earnings 
    8,825       10,135  
Accumulated other comprehensive loss-translation adjustments
    2,026       478  
Total shareholders' equity 
    22,141       21,434  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 34,759     $ 32,788