EX-99.1 2 exhibit99-1.htm PRESS RELEASE exhibit99-1.htm
 
LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI
 
 
FOR IMMEDIATE RELEASE Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000 
Investor Contact:
Berkman Associates
(310) 826-5051
info@BerkmanAssociates.com
 
 
Trio-Tech Reports Fiscal 2011 First Quarter Net Income
of $0.14 Per Share Versus A Loss of $0.13 Per Share
As Revenue Increased 84% to $13.0 Million Versus $7.1 Million
 
    Van Nuys, CA -- November 15, 2010 -- Trio-Tech International (AMEX:TRT) announced today that revenue for the first quarter of fiscal 2011 ended September 30, 2010 increased 84% to $13,029,000 compared to $7,093,000 for the first quarter of fiscal 2010.  Net income for the quarter increased to $491,000, or $0.14 per diluted share, compared to a loss of $422,000, or $0.13 per share, in the first quarter of fiscal 2010.
   
    Revenue from product sales increased to $9,203,000 for the first quarter of fiscal 2011 compared to $3,862,000 a year earlier, primarily the result of higher sales of the Company's proprietary semiconductor test equipment products.  Revenue from testing services for the first quarter of fiscal 2011 increased to $3,474,000 compared to $2,659,000 for the first quarter of fiscal 2010.
 
    "Our core semiconductor test equipment and services businesses continued to perform well in this year's first quarter, generating solid margins and strong cash flow.  While we recently have seen reduced backlogs and shortened lead times for some of our products and services, that may affect our operating results in the second quarter compared to the first, we are bullish about our business and committed to implementing our two-pronged strategy for growth.
 
    "First, we are continuing to build our core semiconductor test equipment and services businesses, working closely with current customers, seeking new customers and steadily upgrading our facilities, technologies and capabilities.  As previously reported, we are in the process of expanding our Malaysia testing operation, including the purchase of additional plant and equipment, to improve efficiency and throughput to meet increasing orders from one of our major customers.  We are also moving forward with our plan to set up a new facility for semiconductor test and burn-in services to support an existing major customer in Tianjin, China. We expect to commence operations in Tianjin towards the end of the third quarter of this fiscal year after qualification by our customer," said SW Yong, Trio-Tech's CEO.
 
    "At the same time, we are adding new sources of revenue and earnings outside of the semiconductor industry that offer significant growth potential, including our ventures into the oil and gas equipment fabrication, solar and real estate business.  We see opportunities for future growth from our investments in these new businesses," Yong said.
 
16139 Wyandotte Street, Van Nuys, CA 91406,  USA  ●  TEL:  (818) 787-7000  ●  FAX  (818) 787-9130
 
 

 

Trio-Tech Reports Fiscal 2011 First Quarter Net Income of $0.14 Per Share Versus Loss
November 15, 2010
Page Two

Revenue from the Company's real estate segment increased to $187,000 for the first quarter of fiscal 2011, compared to $68,000 a year ago.  Revenue at PT SHI Indonesia was $165,000 for this year's first quarter as compared to $504,000 for the first quarter of fiscal 2010.
 
At September 30, 2010, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $7,109,000 ($2.20 per outstanding share), working capital of $9,437,000, and shareholders' equity was $21,684,000 ($6.72 per outstanding share). At June 30, 2010, cash and cash equivalents, restricted term deposits and short-term deposits were $8,205,000 ($2.54 per outstanding share), working capital was $8,665,000, and shareholders' equity was $20,266,000 ($6.28 per outstanding share).

About Trio-Tech
 
Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group pursuing aggressive interest in semiconductor test and manufacturing, oil and gas equipment fabrication, solar products and real estate.  Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com, www.universalfareast.com, www.shi-international.com and www.ttsolar.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
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
       
   
Three Months Ended
 
   
September 30,
 
Revenue
 
2010
   
2009
 
  Products
  $ 9,203     $ 3,862  
  Testing Services
    3,474       2,659  
  Fabrication Services
    165       504  
  Other
    187       68  
      13,029       7,093  
Costs of Sales
               
  Cost of products sold
    7,908       3,287  
  Cost of testing services rendered
    2,109       2,063  
  Cost of fabrication services rendered
    215       495  
  Other
    50       34  
      10,282       5,879  
                 
Gross Margin
    2,747       1,214  
                 
Operating Expenses:
               
  General and administrative
    1,830       1,583  
  Selling
    128       132  
  Research and development
    29       10  
  Loss (gain) on disposal of property, plant and equipment
    7       (1 )
  Total operating expenses
    1,994       1,724  
                 
Income (loss) from Operations
    753       (510 )
                 
Other Income (Expenses)
               
  Interest expense
    (60 )     (19 )
  Other income (expense)
    (40 )     (3 )
  Total other income (expenses)
    (100 )     (22 )
                 
Income (loss) from Continuing Operations before Income Taxes
    653       (532 )
                 
Income Tax Benefit
    4       37  
                 
Income (loss) from Continuing Operations before Non-controlling interest, net of tax
    657       (495 )
                 
LOSS FROM DISCONTINUED OPERATIONS, net of tax
    (2 )     (18 )
                 
NET INCOME (LOSS)
  $ 655     $ (513 )
                 
Less: net income (loss) attributable to the non-controlling interest
    164       (91 )
                 
Net Income (Loss) attributable to Trio-Tech International
    491       (422 )
                 
Net Income (Loss) Attributable to Trio-Tech International Common Shareholders:
               
  Continuing operations, net of tax
    493       (404 )
  Discontinued operations, net of tax
    (2 )     (18 )
                 
Net Income (Loss)
  $ 491     $ (422 )
                 
Comprehensive Income (Loss):
               
                 
Net Income (loss)
  $ 655     $ (513 )
Foreign currency translation, net of tax
    909       229  
Comprehensive Income (Loss)
    1,564       (284 )
Less: Comprehensive Income (Loss) Attributable to Non-controlling Interest
    169       (56 )
Comprehensive Income (Loss) Attributable to Trio-Tech International
    1,395       (228 )
                 
  Basic earnings (loss) per share from continuing operations
  $ 0.15     $ (0.12 )
  Basic loss per share from discontinued operations
    --       (0.01 )
Basic Earnings (Loss) per Share
  $ 0.15     $ (0.13 )
                 
  Diluted earnings (loss) per share from continuing operations
  $ 0.14     $ (0.12 )
  Diluted earnings (loss) per share from discontinued operations
    --       (0.01 )
Diluted Earnings (Loss) per Share
  $ 0.14     $ (0.13 )
                 
Weighted Average Shares Outstanding - Basic
    3,228       3,227  
Weighted Average Shares Outstanding - Diluted
    3,479       3,227  

 
 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
             
   
September 30,
   
June 30,
 
   
2010
   
2010
 
ASSETS
 
(unaudited)
       
             
CURRENT ASSETS:
           
Cash & cash equivalents
  $ 4,338     $ 3,244  
Short-term deposits
    382       2,714  
Trade accounts receivable, net
    13,860       12,142  
Other receivables
    783       778  
Inventories, net
    3,649       3,400  
Investment in property development
    900       887  
Prepaid expenses and other current assets
    483       296  
                 
Total current assets
    24,395       23,461  
                 
INVESTMENT PROPERTY IN CHINA, Net
    2,144       2,141  
PROPERTY, PLANT AND EQUIPMENT, Net
    13,332       12,695  
OTHER ASSETS
    1,406       1,180  
RESTRICTED TERM DEPOSITS
    2,389       2,247  
                 
TOTAL ASSETS
  $ 43,666     $ 41,724  
                 
                 
LIABILITIES AND SHAREHOLDER'S EQUITY
               
                 
CURRENT LIABILITIES:
               
Line of credit
  $ 3,624     $ 2,532  
Accounts payable
    7,055       7,968  
Accrued expenses
    3,443       3,419  
Income taxes payable
    428       342  
Current portion of bank loans payable
    278       478  
Current portion of capital leases
    130       57  
                 
Total current liabilities
    14,958       14,796  
                 
BANK LOANS PAYABLE, net of current portion
    2,676       2,566  
CAPITAL LEASES, net of current portion
    197       --  
DEFERRED TAX LIABILITIES
    702       718  
OTHER NON-CURRENT LIABILITIES
    471       569  
                 
TOTAL LIABILITIES
    19,004       18,649  
                 
COMMITMENTS AND CONTINGENCIES
    --       --  
                 
EQUITY
               
                 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
               
Common stock; no par value, 15,000,000 shares authorized; 3,229,430 and 3,227,430 shares issued and outstanding at September 30, 2010, and June 30, 2010, respectively
    10,369       10,365  
Paid-in capital
    1,616       1,597  
Accumulated retained earnings
    6,977       6,486  
Accumulated other comprehensive loss-translation adjustments
    2,722       1,818  
                 
Total Trio-Tech International shareholders' equity
    21,684       20,266  
                 
NON-CONTROLLING INTEREST
    2,978       2,809  
                 
TOTAL EQUITY
    24,662       23,075  
                 
TOTAL LIABILITIES AND EQUITY
  $ 43,666     $ 41,724