California
|
95-2086631
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
|
16139 Wyandotte Street
|
||
Van Nuys, California
|
91406
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Name of each exchange
|
||
Title of each class
|
On which registered
|
|
Common Stock, no par value
|
NYSE MKT
|
Large Accelerated Filer | [ ] | Accelerated Filer | [ ] |
Non-Accelerated Filer | [ ] | Smaller Reporting Company | [X] |
Page
|
||
Part I
|
||
Item 1
|
1
|
|
Item 1A | Risk factors | 6 |
Item 1B | Unresolved staff comments | 6 |
Item 2
|
6
|
|
Item 3
|
8
|
|
Item 4
|
8
|
|
Part II
|
||
Item 5
|
8
|
|
Item 6
|
9
|
|
Item 7
|
9
|
|
Item 7A
|
25
|
|
Item 8
|
25
|
|
Item 9
|
25
|
|
Item 9A
|
25
|
|
Item 9B | Other information |
26
|
Part III
|
||
Item 10
|
26
|
|
Item 11
|
26
|
|
Item 12
|
26
|
|
Item 13
|
26
|
|
Item 14
|
26
|
|
Part IV
|
||
Item 15
|
26
|
|
Exhibits
|
|
|
Signatures
|
|
|
F-1
|
||
F-2
|
||
F-3
|
||
F-4
|
||
F-5
|
||
F-6
|
2008
|
Trio-Tech (Suzhou) achieved ISO 9001:2000 certification.
Universal (Far East) Pte. Ltd. achieved ISO/IEC 17025:2005 accreditation under SAC-SINGLAS for the field of Calibration and Measurement.
Universal (Far East) Pte. Ltd. achieved ISO 9001:2000 certification.
Trio-Tech Singapore scaled down its facility in Singapore due to the loss of one of its major customers.
|
2009
|
Trio-Tech Singapore, Trio-Tech Malaysia, Trio-Tech (Suzhou) and Trio-Tech (Bangkok) were re-certified to ISO 9001-2008 standards.
Trio-Tech Singapore was recertified to ISP 14001:2004 standards.
Trio-Tech Singapore established a subsidiary, SHI International Pte. Ltd. in Singapore.
|
2010
|
SHI International Pte. Ltd. acquired 100% interest in PT SHI Indonesia, located in Indonesia.
Trio-Tech Singapore achieved biz SAFE Level 3 workplace safety and health standard.
Trio-Tech Singapore established a subsidiary, Trio-Tech (Tianjin) Co., Ltd. in China.
Trio-Tech (Tianjin) Co., Ltd. achieved ISO 9001-2008 certification.
|
2011
|
SHI International Pte. Ltd. achieved ISO 9001:2008 certification.
Universal (Far East) Pte. Ltd. was recertified to ISO 9001:2008 standards.
Trio-Tech (Tianjin) Co., Ltd. was certified for ISO/TS 16949:2009 standards.
|
2012
|
Trio-Tech Tianjin acquired TS16949 certification.
|
June 30,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
Manufacturing backlog
|
$ | 4,321 | $ | 2,079 | ||||
Testing services backlog
|
2,292 | 870 | ||||||
Distribution backlog
|
290 | 317 | ||||||
Real estate backlog*
|
127 | 223 | ||||||
Fabrication services backlog
|
247 | 1,935 | ||||||
$ | 7,277 | $ | 5,424 |
Owned (O)
|
|||||
Approx.
|
or Leased (L)
|
||||
Sq. Ft.
|
& Expiration
|
||||
Location
|
Segment
|
Occupied
|
Date
|
||
16139 Wyandotte Street, Van Nuys, CA 91406, United States of America
|
Corporate
Testing Services/ Manufacturing
|
5,200 |
(L) Dec. 2014
|
||
1004, Toa Payoh North, Singapore
|
|||||
Unit No. HEX 07-01/07,
|
Testing Services
|
6,864 |
(L) Sept. 2017
|
||
Unit No. HEX 07-01/07, (ancillary site)
|
Testing Services
|
2,339 |
(L) Sept. 2017
|
||
Unit No. HEX 03-01/02/03,
|
Testing Services /Manufacturing
|
2,959 |
(L) Sept. 2017
|
||
Unit No. HEX 01-08/15,
|
Testing Services /Manufacturing
|
6,864 |
(L) Jan. 2017
|
||
Unit No. HEX 01-08/15, (ancillary site)
|
Testing Services /Manufacturing
|
1,980 |
(L) Jan. 2017
|
||
Unit No. HEX 01-16/17,
|
Testing Services
|
1,983 |
(L) Jan. 2017
|
||
Unit No. HEX 03-08/10,
|
Manufacturing
|
2,959 |
(L) May 2013*1
|
||
1008, Toa Payoh North, Singapore
|
|||||
Unit No. HEX 03-09/17,
|
Manufacturing
|
6,099 |
(L) Jan. 2017
|
||
Unit No. HEX 03-09/17, (ancillary site)
|
Manufacturing
|
70 |
(L) Jan. 2017
|
||
Unit No. HEX 07-17/18,
|
Testing Services
|
4,315 |
(L) Nov. 2012*1
|
||
Unit No. HEX 07-17/18, (ancillary site)
|
Testing Services
|
25 |
(L) Nov. 2012*1
|
||
Unit No. HEX 02-17
|
Manufacturing
|
832 |
(L) Jun. 2013*1
|
||
Unit No. HEX 02-15/16
|
Manufacturing
|
1,400 |
(L) Jul. 2013
|
||
Unit No. HEX 01-09/10/11
|
Manufacturing
|
2,202 |
(L) Nov. 2017
|
||
Unit No. HEX 01-15/16
|
Manufacturing
|
1,400 |
(L) Sept. 2014*4
|
||
Unit No. HEX 01-08
|
Manufacturing
|
603 |
(L) Jun. 2017
|
||
Unit No. HEX 01-12/14
|
Manufacturing
|
1664 |
(L) Jul. 2016
|
||
Plot 1A, Phase 1
|
Manufacturing
|
42,013 |
(O)*2
|
||
Bayan Lepas Free Trade Zone
|
|||||
11900 Penang
|
|
||||
Lot No. 11A, Jalan SS8/2,
|
Testing Services
|
78,706 |
(O)
|
||
Sungai Way Free Industrial Zone,
|
|||||
47300 Petaling Jaya,
|
|||||
Selangor Darul Ehsan, Malaysia
|
|
||||
Lot No. 4, Kawasan MIEL
|
Testing Services
|
37,457 |
(L) Nov. 2013*3
|
||
Sungai Way Baru Free Industrial Zone,
|
|||||
Phsdr
Phase III, Selangor Darul Ehsan, Malaysia
|
|||||
327, Chalongkrung Road,
|
Testing Services
|
34,433 |
(O)
|
||
Lamplathew, Lat Krabang,
|
|||||
Bangkok 10520, Thailand
|
|||||
No. 5, Xing Han Street, Block A
|
Testing Services
|
932 |
(L) Dec 2012*1
|
||
#04-15/16, Suzhou Industrial Park
|
|||||
China 215021
|
|||||
27-05, Huang Jin Fu Pan.
|
Real Estate
|
970 |
(L) Aug. 2015
|
||
No. 26 Huang Jin Qiao Street
|
|||||
Hechuan District Chongqing China 401520
|
|||||
Jl Brigjen Katamso Km.5
|
Fabrication Services
|
597,096 |
(L) Aug 2013
|
||
Tanjung Uncang, Sekupang
|
|||||
Batam 29400, Indonesia
|
|||||
B7-2, Xiqing Economic Development
|
Testing Services
|
45,949 |
(L) April 2021
|
||
Area International Industrial Park | |||||
Tianjin City, China 300385. |
*1
|
With respect to the various leases that expire during fiscal 2013, the Company anticipates that the landlord will offer similar terms on each such lease at renewal and does not believe that material expenses will be incurred.
|
*2
|
The property was held as assets held for sale pursuant to the Sales and Purchase agreement entered in the fourth quarter of fiscal 2011, which sale remains pending as of the date of the filing of this Form 10-K.
|
*3
|
The premises are sublet to third party.
|
ITEM 5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
High
|
Low
|
|||||||
Fiscal Year Ended June 30, 2011 | ||||||||
Quarter ended September 30, 2010 | $ | 4.72 | $ | 3.50 | ||||
Quarter ended December 31, 2010 | $ | 6.27 | $ | 4.17 | ||||
Quarter ended March 31, 2011 | $ | 5.15 | $ | 4.16 | ||||
Quarter ended June 30, 2011 | $ | 4.71 | $ | 3.29 | ||||
Fiscal Year Ended June 30, 2012
|
||||||||
Quarter ended September 30, 2011 | $ | 3.90 | $ | 2.70 | ||||
Quarter ended December 31, 2011 | $ | 2.99 | $ | 2.19 | ||||
Quarter ended March 31, 2012 | $ | 2.56 | $ | 2.00 | ||||
Quarter ended June 30, 2012 | $ | 2.25 | $ | 1.40 |
·
|
Total revenue decreased by $1,324, or 3.7 %, to $34,211 in fiscal 2012 compared to $35,535 in fiscal 2011.
|
·
|
Manufacturing segment revenue decreased by $2,537, or 13%, to $16,955 in fiscal 2012 compared to $19,492 in fiscal 2011.
|
·
|
Testing services segment revenue decreased by $204, or 1.6%, to $12,922 in fiscal 2012 compared to $13,126 in fiscal 2011.
|
·
|
Distribution segment revenue increased by $120, or 12.6%, to $1,075 in fiscal 2012 compared to $955 in fiscal 2011.
|
·
|
Real estate segment revenue decreased by $914, or 86.1%, to $148 in fiscal 2012 compared to $1,062 in fiscal 2011.
|
·
|
Fabrication services segment revenue increased by $2,211, or 245.7%, to $3,111 in fiscal 2012 compared to $900 in fiscal 2011.
|
·
|
Gross profit margins decreased by 10.0% to 13.4% in fiscal 2012 compared to 23.4% in fiscal 2011.
|
·
|
General and administrative expenses decreased by $482, or 5.9%, to $7,737 in fiscal 2012 compared to $8,219 in fiscal 2011.
|
·
|
Impairment loss increased by $144 to $216 in fiscal 2012 compared to $72 in fiscal 2011.
|
·
|
Research and Development expenses increased by $45, or 18%, to $295 in fiscal 2012 from $250 in fiscal 2011.
|
·
|
Stock option expense decreased by $426 to $204 in fiscal 2012 as compared to $630 in fiscal 2011.
|
·
|
Loss from operations increased by $ 3,714 to $4,300 in fiscal 2012 compared to $586 in fiscal 2011.
|
·
|
Losses from continuing operations before income tax increased by $4,298, to $4,425 in fiscal 2012 compared to $127 in fiscal 2011.
|
·
|
Total assets increased by $1,694 or 4.7%, to $38,050 as of June 30, 2012 compared to $36,356 as of June 30, 2011.
|
·
|
Working capital decreased by $2,060, or 28.4%, to $ 5,196 as of June 30, 2012 compared to $7,256 as of June 30, 2011.
|
Year Ended June 30,
|
||||||||
2012
|
2011 | |||||||
Net Sales
|
100 | % | 100 | % | ||||
Cost of sales
|
86.6 | % | 76.6 | % | ||||
Gross Margin
|
13.4 | % | 23.4 | % | ||||
Operating expenses
|
||||||||
General and administrative
|
22.6 | % | 23.1 | % | ||||
Selling
|
1.9 | % | 1.4 | % | ||||
Research and development
|
0.9 | % | 0.7 | % | ||||
Impairment loss
|
0.6 | % | 0.2 | % | ||||
Gain on disposal of PP&E
|
0.0 | % | (0.4 | %) | ||||
Total operating expenses
|
26.0 | % | 25.0 | % | ||||
Loss from Operations
|
(12.6 | %) | (1.6 | %) |
Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Revenues:
|
||||||||
Manufacturing
|
49.6 | % | 54.9 | % | ||||
Testing
|
37.8 | % | 36.9 | % | ||||
Distribution
|
3.1 | % | 2.7 | % | ||||
Real Estate
|
0.4 | % | 3.0 | % | ||||
Fabrication Services
|
9.1 | % | 2.5 | % | ||||
Total
|
100.0 | % | 100.0 | % |
Year Ended June 30,
|
||||||||
(In Thousands)
|
2012
|
2011
|
||||||
General and administrative
|
$ | 7,737 | $ | 8,219 | ||||
Selling
|
633 | 511 | ||||||
Research and development
|
295 | 250 | ||||||
Impairment loss
|
216 | 72 | ||||||
Gain (loss) on disposal of PP&E
|
4 | (147 | ) | |||||
Total operating expenses
|
$ | 8,885 | $ | 8,905 |
Year Ended June 30,
|
||||||||
(In Thousands)
|
2012
|
2011
|
||||||
Interest expenses
|
$ | 301 | $ | 243 |
Year Ended June 30, | ||||||
(In Thousands) | 2012 | 2011 | ||||
Interest income
|
$ | 291 | $ | 187 | ||
Other rental income
|
39 | 51 | ||||
Exchange (loss) gain
|
(431 | ) | 83 | |||
Other miscellaneous income
|
277 | 381 | ||||
Total
|
$ | 176 | $ | 702 |
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Revenue
|
$
|
16,955
|
$
|
19,492
|
|||
Gross margin
|
15.8
|
%
|
13.8
|
%
|
|||
Loss from operations
|
$
|
(390
|
)
|
$
|
(953
|
)
|
Year End June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Revenue
|
$
|
12,922
|
$
|
13,126
|
|||
Gross margin
|
17.5
|
% |
36.5
|
%
|
|||
(Loss) / Income from operations
|
$
|
(1,664
|
) |
$
|
978
|
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Revenue
|
$
|
1,075
|
$
|
955
|
|||
Gross margin
|
15.3
|
%
|
22.4
|
%
|
|||
Income from operations
|
$
|
89
|
$
|
138
|
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Revenue
|
$
|
1488
|
$
|
1,062
|
|||
Gross margin
|
25.7
|
%
|
81.8
|
%
|
|||
(Loss) / Income from operations
|
$
|
(129
|
)
|
$
|
761
|
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Revenue
|
$
|
3,111
|
$
|
900
|
|||
Gross margin
|
(17.8%
|
)
|
(26.9%
|
)
|
|||
Loss from operations
|
$
|
(1,704
|
)
|
$
|
(987
|
)
|
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Loss from operations
|
$
|
(502
|
)
|
$
|
(523
|
)
|
Entity with
|
Type of
|
Interest
|
Expiration
|
Credit
|
Unused
|
|||||||||
Facility
|
Facility
|
Rate
|
Date
|
Limitation
|
Credit
|
|||||||||
Trio-Tech Singapore
|
Line of credit
|
with interest rates ranging
from 1.77% to 6.04%
|
--
|
6,673
|
3,068
|
|||||||||
Total
|
$ | 6,673 | $ | 3,068 |
1.
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
2.
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and
|
3.
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
|
The following financial statements, including notes thereto and the independent auditors' report with respect thereto, are filed as part of this Annual Report on Form 10-K, starting on page F-1 hereof:
|
3.1
|
Articles of Incorporation, as currently in effect. [Incorporated by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for June 30, 1988.]
|
3.2
|
Bylaws, as currently in effect. [Incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for June 30, 1988.]
|
10.1
|
Credit Facility Letter dated January 4, 2001, between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.2
|
1998 Stock Option Plan. [Incorporated by reference to Exhibit 1 to the Company’s proxy statement filed under regulation 14A on October 27, 1997.] **
|
10.3
|
Directors Stock Option Plan. [Incorporated by reference to Exhibit 2 to the Company’s proxy statement filed under regulation 14A on October 27, 1997.] **
|
10.4
|
Real Estate Lease dated February 1, 1999 between Martinvale Development Company and Universal Systems. [Incorporated by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K for June 30, 1999.]
|
10.5
|
Real Estate Lease dated February 16, 2001 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #07-01/07 and #03-01/03. [Incorporated by reference to Exhibit 10.13 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.6
|
Real Estate Lease dated May 13, 1999 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #03-16/17. [Incorporated by reference to Exhibit 10.14 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.7
|
Real Estate Lease dated October 13, 1999 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #01-08/15. [Incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.8
|
Real Estate Lease dated December 7, 2000 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #01-16/17. [Incorporated by reference to Exhibit 10.16 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.9
|
Real Estate Lease dated January 3, 2000 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #03-01/06. [Incorporated by reference to Exhibit 10.17 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.10
|
Real Estate Lease dated October 13, 1999 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #03-09/15 and #03-16/18. [Incorporated by reference to Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.11
|
Real Estate Lease dated May 2, 2000 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #01-08. [Incorporated by reference to Exhibit 10.19 to the Annual Report on Form 10-K for June 30, 2001.]
|
10.12
|
Real Estate Lease dated September 12, 2000 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #07-17/18. [Incorporated by reference to Exhibit 10.20 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.13
|
Real Estate Lease dated October 30, 2000 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #07-01. [Incorporated by reference to Exhibit 10.21 to the Registrant’s Annual Report on Form 10-K for June 30, 2001.]
|
10.14
|
Real Estate Lease dated February 26, 2002 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #02-11/15. [Incorporated by reference to Exhibit 10.14 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.15
|
Real Estate Lease dated June 10, 2002 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #02-08/10. [Incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.16
|
Credit Facility Letter dated November 16, 2001 and June 24, 2002, between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10.16 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.17
|
Credit Facility Letter dated July 24, 2002, between Trio-Tech International Pte. Ltd. and OCBC Bank. [Incorporated by reference to Exhibit 10.17 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.18
|
Credit Facility Letter dated May 21, 2002, between Trio-Tech (M) Sdn Bhd and HSBC Bank Malaysia Berhad. [Incorporated by reference to Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.19
|
Credit Facility Letter dated January 22, 2002, between Trio-Tech (KL) Sdn Bhd and Public Bank Berhad. [Incorporated by reference to Exhibit 10.19 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.20
|
Real Estate Lease dated November 8, 2001 between Elbar Investments, L.P. and Trio-Tech International for 14731 Califa Street, Van Nuys. [Incorporated by reference to Exhibit 23.1 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.]
|
10.21
|
Amendment to the Directors Stock Option Plan [Incorporated by reference to Exhibit 10.21 to the Registrant’s Annual Report on Form 10-K for June 30, 2002.] **
|
10.22
|
Credit Facility Letter dated January 28, 2003, between Trio-Tech (M) Sdn Bhd and HSBC Bank Malaysia Berhad [Incorporated by reference to Exhibit 10.22 to the Registrant’s Annual Report on Form 10-K for June 30, 2003.]
|
10.23
|
Credit Facility Letter dated September 20, 2002, between KTS Incorporated and Bank of America. [Incorporated by reference to Exhibit 10.23 to the Registrant’s Annual Report on Form 10-K for June 30, 2003.]
|
10.24
|
Real Estate Lease dated January 12, 2001 between JTC Corporation and Trio-Tech International Pte. Ltd. for Toa Payoh North #01-S3/S4. [Incorporated by reference to Exhibit 10.24 to the Registrant’s Annual Report on Form 10-K for June 30, 2003.]
|
10.25
|
Sales and Purchase Agreement, dated March 29, 2004 between TS Matrix BHD. and Trio Tech (Malaysia) SDN BHD. [Incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K filed on July 15, 2004.]
|
10.26
|
Real Estate Sublease, dated July 1, 2004 between TS Matrix BHD. and Trio Tech (Malaysia) SDN. BHD. for factory lot no. 11A Kawansan MIEL Sungai Way Baru (FTZ), Phase III Selangor Darul Ehsan. [Incorporated by reference to Exhibit 10.1 to the Registrant’s Amended Form 8-K filed on August 20, 2004.]
|
10.27
|
Real Estate Lease dated April 28, 2004 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #04-14/16 and #04-17.[Incorporated by reference to Exhibit 10.27 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.28
|
Real Estate Lease dated April 28, 2004 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #03-08/10.[Incorporated by reference to Exhibit 10.28 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.29
|
Real Estate Lease dated April 19, 2004 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #02-17.[Incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.30
|
Real Estate Lease dated May 26, 2004 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #02-15/16.[Incorporated by reference to Exhibit 10.30 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.31
|
Credit Facility Letter dated July 7, 2003, between Trio-Tech International Pte. Ltd. and Hong Leong Finance Limited.[Incorporated by reference to Exhibit 10.31 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.32
|
Credit Facility Letter dated October 2, 2003, between Trio-Tech Bangkok and Kasikornbank Public Company Limited. [Incorporated by reference to Exhibit 10.32 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.33
|
Credit Facility Letter dated October 7, 2003, between Trio-Tech International Pte. Ltd, and DBS Bank Ltd. [Incorporated by reference to Exhibit 10.33 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.34
|
Credit Facility Letter dated August 11, 2003 between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10.34 to the Registrant’s Annual Report on Form 10-K for June 30, 2004.]
|
10.35
|
Letter of Offer, dated June 3, 2005 between Globetronics Technology BHD. and Trio Tech International PTE. LTD. [Incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K filed on June 8, 2005.]
|
10.36
|
Real Estate Lease, dated December 1, 2003 between Trio Tech (Malaysia) SDN. BHD. and Amphenol Malaysia Sdn. Bhd. for factory plot no. 1A Phase 1, Bayan Lepas Free Trade Zone, 11900 Pulau Pinang. [Incorporated by reference to Exhibit 10.36 to the Registrant’s Annual Report on Form 10-K for June 30, 2005.]
|
10.37
|
Real Estate Lease dated December 6, 2004 between Malaysian Industrial Estates Berhad and Trio Tech (Malaysia) SDN. BHD. for factory lot no. 4 Kawansan MIEL Sungai Way Baru (FTZ), Phase III Selangor Darul Ehsan. [Incorporated by reference to Exhibit 10.37 to the Registrant’s Annual Report on Form 10-K for June 30, 2005.]
|
10.38
|
Real Estate Lease dated September 28, 2004 between Ascendas-Xinsu Development (Suzhou) Co., Ltd. and Trio Tech (SIP) Co., Ltd. for Block B #05-01/02 room 6 in Suzhou Industrial Park, China 215021. [Incorporated by reference to Exhibit 10.38 to the Registrant’s Annual Report on Form 10-K for June 30, 2005.]
|
10.39
|
Real Estate Lease, dated November 8, 2004 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #03-07/08. [Incorporated by reference to Exhibit 10.39 to the Registrant’s Annual Report on Form 10-K for June 30, 2005.]
|
10.40
|
Real Estate Lease, dated September 10, 2003 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #01-09/11. [Incorporated by reference to Exhibit 10.40 to the Registrant’s Annual Report on Form 10-K for June 30, 2005.]
|
10.41
|
Credit Facility Letter dated May 10, 2005, between Trio-Tech International Pte. Ltd. and DBS Bank Ltd. [Incorporated by reference to Exhibit 10. 41 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.42
|
Real Estate Lease, dated July 5, 2005 between JTC Corporation and Universal (Far East) Pte. Ltd. for Block 1008 Toa Payoh North #01-15/16. [Incorporated by reference to Exhibit 10. 42 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.43
|
Credit Facility Letter dated September 15, 2005 between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10. 43 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.44
|
Real Estate Lease, dated November 11, 2005 between JTC Corporation and Trio-Tech International Pte Ltd. for Block 1004 Toa Payoh North #03-06/07. [Incorporated by reference to Exhibit 10. 44 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.45
|
Real Estate Lease, dated March 10, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #04-05/07. [Incorporated by reference to Exhibit 10. 45 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.46
|
Credit Facility Letter dated April 6, 2006, between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10. 46 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.47
|
Credit Facility Letter dated April 6, 2006, between Trio-Tech International Pte. Ltd, and Standard Chartered Bank. [Incorporated by reference to Exhibit 10. 47 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.48
|
Credit Facility Letter dated July 26, 2006, between Trio-Tech International Pte. Ltd. and DBS Bank Ltd. [Incorporated by reference to Exhibit 10. 48 to the Registrant’s Annual Report on Form 10-K for June 30, 2006.]
|
10.49
|
Credit Facility Letter dated April 19, 2007, between Trio-Tech International Pte. Ltd. and Standard Chartered Bank. [Incorporated by reference to Exhibit 10. 49 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.50
|
Real Estate Lease, dated February 20, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #01-08/09/10/11/12/13/14/15 (Ancillary). [Incorporated by reference to Exhibit 10. 50 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.51
|
Real Estate Lease, dated July 31, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #03-06/07 (Ancillary). [Incorporated by reference to Exhibit 10. 51 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.52
|
Real Estate Lease, dated September 26, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #03-01/02/03. [Incorporated by reference to Exhibit 10. 52 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.53
|
Real Estate Lease, dated September 26, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #03-16.
|
10.54
|
Real Estate Lease, dated October 11, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #04-08/09/10. [Incorporated by reference to Exhibit 10. 54 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.55
|
Real Estate Lease, dated October 26, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #07-01/02/03/04/08/06/07 and its ancillary sites. [Incorporated by reference to Exhibit 10. 55 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.56
|
Real Estate Lease, dated May 2, 2007 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1004 Toa Payoh North #04-17, #04-14/15/16 and #03-08/09/10. [Incorporated by reference to Exhibit 10. 56 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.57
|
Real Estate Lease, dated December 20, 2005 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #03-07/08 (Ancillary). [Incorporated by reference to Exhibit 10. 57 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.58
|
Real Estate Lease, dated May 9, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #03-09/10/11/12/14/15/16/17.[Incorporated by reference to Exhibit 10. 58 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.59
|
Real Estate Lease, dated July 20, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #01-08. [Incorporated by reference to Exhibit 10. 59 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.60
|
Real Estate Lease, dated September 22, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #02-03/04/05/06. [Incorporated by reference to Exhibit 10. 60 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.61
|
Real Estate Lease, dated September 22, 2006 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #02-18. [Incorporated by reference to Exhibit 10. 61 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.62
|
Real Estate Lease, dated January 18, 2007 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #07-01. [Incorporated by reference to Exhibit 10. 62 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.63
|
Real Estate Lease, dated January 29, 2007 between JTC Corporation and Trio-Tech International Pte. Ltd. for Block 1008 Toa Payoh North #07-17/18 and its ancillary site. [Incorporated by reference to Exhibit 10. 63 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.64
|
Real Estate Lease, dated February 21, 2007 between JTC Corporation and Universal (Far East) Pte. Ltd. for Block 1008 Toa Payoh North #01-09/10/11. [Incorporated by reference to Exhibit 10. 64 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.65
|
Real Estate Lease, dated August 2, 2007 between JTC Corporation and Universal (Far East) Pte. Ltd. for Block 1008 Toa Payoh North #02-17. [Incorporated by reference to Exhibit 10. 65 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.66
|
Real Estate Lease, dated August 2, 2006 between Ascendas-Xinsu Development (Suzhou) Co., Ltd. and Trio Tech (SIP) Co., Ltd. for Block A #04-13/16 No. 5 Xing Han Street in Suzhou Industrial Park, China 215021. [Incorporated by reference to Exhibit 10. 66 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.67
|
Real Estate Lease, dated August 16, 2006 between Ascendas-Xinsu Development (Suzhou) Co., Ltd. and Trio Tech (SIP) Co., Ltd. for Block A #04-11/12 No. 5 Xing Han Street in Suzhou Industrial Park, China 215021.[Incorporated by reference to Exhibit 10. 67 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.68
|
Credit Facility Letter dated April 4, 2007, between Trio Tech (Malaysia) Sdn Bhd and CIMB Bank (formerly known as Bumiputra-Commerce Bank Berhad) [Incorporated by reference to Exhibit 10. 68 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.69
|
Credit Facility Letter dated May 21, 2007, between Trio Tech (Malaysia) Sdn Bhd and HSBC Bank Malaysia Berhad. [Incorporated by reference to Exhibit 10. 69 to the Registrant’s Annual Report on Form 10-K for June 30, 2007.]
|
10.70
|
Land Development Agreement dated August 27, 2007 between Trio Tech (Chongqing) Co. Ltd. and JiaSheng Real Property Development Ltd. [Incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8K dated August 30, 2007.]
|
10.71
|
Real Estate Lease, dated August 2, 2006 between Charmant Belt Inc. and Trio-Tech International (U.S. office) for 16139 Wyandotte street, Van Nuys, CA 91406. [Incorporated by reference to Exhibit 10. 2 to the Registrant’s Quarterly Report on Form 10-Q for December 31, 2007.]
|
10.72
|
Sales and purchase agreement, dated January 4, 2008, between Trio-Tech (Chongqing) Co., Ltd. and MaoYe Property Ltd. for office units at Jiang Bei No. 21 Road, Chongqing, China. [Incorporated by reference to Exhibit 10. 1 to the Registrant’s Quarterly Report on Form 10-Q for December 31, 2007.]
|
10.73
|
Real Estate Lease dated October 27, 2007 between JTC Corporation and Trio-Tech International Pte. Ltd. for Unit#04-11/12 BLK1004 Toa Payoh North. [Incorporated by reference to Exhibit 10.73 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.74
|
Real Estate Lease dated September 20, 2007 between JTC Corporation and Trio-Tech International Pte. Ltd. for Unit#04-11/12 BLK1004 Toa Payoh North Industry Estate Singapore 318995 [Incorporated by reference to Exhibit 10.74 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.75
|
Real Estate Lease dated August 15, 2007 between Lijing Corporation and Trio-Tech (Chongqing) Co., Ltd. for Unit#26-04/05 in Chongqing China [Incorporated by reference to Exhibit 10.75 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.76
|
Real Estate Lease dated August 31, 2007 between Shanghai (Waigaoqiao) FTZ New Development Company Ltd. and Trio-Tech (ShangHai) Co., Ltd. for No. 273 Debao Road Factory No. 58 in Shanghai China [Incorporated by reference to Exhibit 10.76 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.77
|
Real Estate Lease dated May 9, 2008, between Chongqing JiangBei Weige Bridal and Trio-Tech (Chongqing) Co., Ltd. for JiangBei MaoYe DongFang Square No. 31st floor 15 units of floor space in Shanghai China [Incorporated by reference to Exhibit 10.77 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.78
|
Credit Facility Letter dated August 24, 2008, between Trio-Tech (M) Sdn Bhd. and CIMB Bank Malaysia Berhad [Incorporated by reference to Exhibit 10.78 to the Registrant’s Annual Report on Form 10-K for June 30, 2008.]
|
10.79
|
Sales and purchase agreement, dated January 8, 2009, between Trio-Tech (Malaysia) Co., Ltd. and TS Matrix Properties Sdn, Bhd. for a building located in Selangor, Malaysia. [Incorporated by reference to Exhibit 10.79 to the Registrant’s Annual Report on Form 10-K for June 30, 2011.]
|
10.80
|
Joint venture agreement, dated December 1, 2010 between Trio-Tech (Chongqing) Co. Ltd. and JiaSheng Property Development Co., Ltd. to incorporate Chong Qing Jun Zhou Zhi Ye Co. Ltd. [Incorporated by reference to Exhibit 10.80 to the Registrant’s Annual Report on Form 10-K for June 30, 2011.]
|
10.81
|
Sales and purchase agreement, dated June 17, 2011, between Trio-Tech (Malaysia) Co., Ltd. and Aaeon Technology (M) Sdn, Bhd. for a building located in Penang, Malaysia. [Incorporated by reference to Exhibit 10.81 to the Registrant’s Annual Report on Form 10-K for June 30, 2011.]
|
21.1
|
Subsidiaries of the Registrant (100% owned by the Registrant except as otherwise stated)
|
|
Express Test Corporation (Dormant), a California Corporation
|
|
Trio-Tech Reliability Services (Dormant), a California Corporation
|
|
KTS Incorporated, dba Universal Systems (Dormant), a California Corporation
|
|
European Electronic Test Center. Ltd., a Cayman Islands Corporation (Operation ceased on November 1, 2005)
|
|
Trio-Tech International Pte. Ltd., a Singapore Corporation
|
|
Universal (Far East) Pte. Ltd., a Singapore Corporation
|
|
Trio-Tech International (Thailand) Co., Ltd., a Thailand Corporation
|
|
Trio-Tech (Bangkok) Co., Ltd., a Thailand Corporation
|
|
Trio-Tech (Malaysia) Sdn Bhd., a Malaysia Corporation (55% owned by the subsidiary of Registrant)
|
|
Trio-Tech (Kuala Lumpur) Sdn Bhd., a Malaysia Corporation (100% owned by Trio-Tech Malaysia)
|
|
Prestal Enterprise Sdn. Bhd., a Malaysia Corporation (76% owned by the Registrant)
|
|
Trio-Tech (Suzhou) Co., Ltd., a China Corporation
|
|
Trio-Tech (Shanghai) Co., Ltd., a China Corporation
|
Trio-Tech (ChongQing) Co. Ltd., (100% owned by Trio-Tech International Pte. Ltd., a Singapore Corporation)
|
|
SHI International Pte. Ltd, a Singapore Corporation (55%owned Trio-Tech International Pte. Ltd., a Singapore Corporation)
|
|
PT SHI Indonesia, an Indonesia Corporation (100% owned by SHI International Pte. Ltd., a Singapore Corporation)
|
|
Trio-Tech (Tianjin) Co., Ltd., a China Corporation (100% owned by Trio-Tech International Pte. Ltd., a Singapore Corporation)
|
23.1
|
Consent of Independent Registered Public Accounting Firm*
|
31.1
|
Rule 13a-14(a) Certification of Principal Executive Officer of Registrant*
|
31.2
|
Rule 13a-14(a) Certification of Principal Financial Officer of Registrant*
|
32
|
Section 1350 Certification. *
|
101.XML
|
XBRL Instance Document*
|
|
101.XSD
|
XBRL Taxonomy Extension Schema Document*
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document*
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
* As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
|
TRIO-TECH INTERNATIONAL | |
By: /s/ Victor H.M. Ting | |
VICTOR H.M. TING
Vice President and Chief Financial Officer
Date: October 9, 2012
|
/s/ A. Charles Wilson | |
A. Charles Wilson, Director | |
Chairman of the Board | |
October 9, 2012 | |
/s/ S.W. Yong | |
S.W. Yong, Director | |
President, Chief Executive Officer | |
(Principal Executive Officer) | |
October 9, 2012 | |
/s/ Victor H.M. Ting | |
Victor H.M. Ting | |
Vice President, Chief Financial Officer | |
(Principal Financial Officer) | |
October 9, 2012 | |
/s/ Jason T. Adelman | |
Jason T. Adelman, Director | |
October 9, 2012 | |
/s/ Richard M. Horowitz | |
Richard M. Horowitz, Director | |
October 9, 2012 |
June 30,
2012
|
June 30,
2011
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash & cash equivalents
|
$ | 1,572 | $ | 3,111 | ||||
Short-term deposits
|
250 | 199 | ||||||
Trade accounts receivable, less allowance for doubtful accounts of $122 and $69
|
11,311 | 6,812 | ||||||
Other receivables
|
962 | 309 | ||||||
Loan receivable from property development projects
|
1,101 | 1,083 | ||||||
Inventories, less provision for obsolete inventory of $884 and $937
|
2,324 | 2,430 | ||||||
Prepaid expenses and other current assets
|
406 | 348 | ||||||
Assets held for sale
|
130 | 137 | ||||||
Total current assets
|
18,056 | 14,429 | ||||||
INVESTMENTS
|
765 | 764 | ||||||
INVESTMENT PROPERTY IN CHINA, Net
|
1,815 | 1,238 | ||||||
PROPERTY, PLANT AND EQUIPMENT, Net
|
13,193 | 14,951 | ||||||
OTHER ASSETS
|
776 | 1,412 | ||||||
RESTRICTED TERM DEPOSITS
|
3,445 | 3,562 | ||||||
TOTAL ASSETS
|
$ | 38,050 | $ | 36,356 | ||||
LIABILITIES
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Lines of credit
|
$ | 3,605 | $ | 1,333 | ||||
Accounts payable
|
4,834 | 1,874 | ||||||
Accrued expenses
|
3,011 | 3,179 | ||||||
Income taxes payable
|
469 | 492 | ||||||
Current portion of bank loans payable
|
766 | 147 | ||||||
Current portion of capital leases
|
175 | 148 | ||||||
Total current liabilities
|
12,860 | 7,173 | ||||||
BANK LOANS PAYABLE, net of current portion
|
3,373 | 2,768 | ||||||
CAPITAL LEASES, net of current portion
|
221 | 271 | ||||||
DEFERRED TAX LIABILITIES
|
497 | 677 | ||||||
OTHER NON-CURRENT LIABILITIES
|
543 | 490 | ||||||
TOTAL LIABILITIES
|
$ | 17,494 | $ | 11,379 | ||||
COMMITMENT AND CONTINGENCIES
|
-- | -- | ||||||
EQUITY
|
||||||||
TRIO-TECH INTERNATIONAL’S SHAREHOLDERS' EQUITY:
|
||||||||
Common Stock, no par value, 15,000,000 shares authorized; 3,321,555 shares issued and outstanding as at June 30, 2012 and June 30, 2011.
|
$ | 10,531 | $ | 10,531 | ||||
Paid-in capital
|
2,431 | 2,227 | ||||||
Accumulated retained earnings
|
2,687 | 5,791 | ||||||
Accumulated other comprehensive gain-translation adjustments
|
3,187 | 3,459 | ||||||
Total Trio-Tech International shareholders' equity
|
18,836 | 22,008 | ||||||
NON-CONTROLLING INTEREST
|
1,720 | 2,969 | ||||||
TOTAL EQUITY
|
$ | 20,556 | $ | 24,977 | ||||
TOTAL LIABILITIES AND EQUITY
|
$ | 38,050 | $ | 36,356 |
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE) |
Year Ended June 30,
|
|||||||
2012
|
2011
|
|||||||
Revenue
|
||||||||
Products
|
$ | 18,030 | $ | 20,447 | ||||
Testing services
|
12,922 | 13,126 | ||||||
Fabrication services
|
3,111 | 900 | ||||||
Others
|
148 | 1,062 | ||||||
34,211 | 35,535 | |||||||
Cost of Sales
|
||||||||
Cost of products sold
|
15,192 | 17,542 | ||||||
Cost of testing services rendered
|
10,659 | 8,339 | ||||||
Cost of fabrication services rendered
|
3,665 | 1,142 | ||||||
Others
|
110 | 193 | ||||||
29,626 | 27,216 | |||||||
Gross Margin
|
4,585 | 8,319 | ||||||
Operating Expenses / (Gains):
|
||||||||
General and administrative
|
7,737 | 8,219 | ||||||
Selling
|
633 | 511 | ||||||
Research and development
|
295 | 250 | ||||||
Impairment loss
|
216 | 72 | ||||||
Loss / (Gain) on disposal of property, plant and equipment
|
4 | (147 | ) | |||||
Total operating expenses
|
8,885 | 8,905 | ||||||
Loss from Operations
|
(4,300 | ) | (586 | ) | ||||
Other (Expenses) / Income
|
||||||||
Interest expense
|
(301 | ) | (243 | ) | ||||
Other income, net
|
176 | 702 | ||||||
Total other (expenses) / income
|
(125 | ) | 459 | |||||
Loss from Continuing Operations before Income Taxes
|
(4,425 | ) | (127 | ) | ||||
Income Tax (Benefit) / Expense
|
(65 | ) | 195 | |||||
Loss from Continuing Operations before Non-controlling Interest, net of tax
|
(4,360 | ) | (322 | ) | ||||
Other Operating Activities
|
||||||||
Equity in loss of unconsolidated joint venture, net of tax
|
(11 | ) | (9 | ) | ||||
Discontinued Operations (Note 21)
|
||||||||
Loss from discontinued operations, net of tax
|
(4 | ) | (4 | ) | ||||
NET LOSS
|
(4,375 | ) | (335 | ) | ||||
Less: net (loss) / income attributable to the non-controlling interest
|
(1,271 | ) | 353 | |||||
Net Loss Attributable to Trio-Tech International Common Shareholders
|
(3,104 | ) | (688 | ) | ||||
Amounts Attributable to Trio-Tech International
Common Shareholders:
|
||||||||
Loss from continuing operations, net of tax
|
(3,100 | ) | (684 | ) | ||||
Loss from discontinued operations, net of tax
|
(4 | ) | (4 | ) | ||||
Net Loss Attributable to Trio-Tech International Common Shareholders
|
(3,104 | ) | (688 | ) | ||||
Comprehensive (Loss) / Income Attributable to Trio-Tech International Common Shareholders:
|
||||||||
Net loss
|
(4,375 | ) | (335 | ) | ||||
Foreign currency translation, net of tax
|
(250 | ) | 1,448 | |||||
Comprehensive (Loss) / Income
|
(4,625 | ) | 1,113 | |||||
Less: Comprehensive (loss) / income attributable to the non-controlling interest
|
(1,249 | ) | 160 | |||||
Comprehensive (Loss) / Income Attributable to Trio-Tech International Common Shareholders
|
(3,376 | ) | 953 | |||||
Basic and Diluted Loss per Share:
|
||||||||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International
|
(0.94 | ) | (0.21 | ) | ||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International
|
(0.00 | ) | (0.00 | ) | ||||
Basic and Diluted Loss per Share from Net Loss Attributable to Trio-Tech International
|
(0.94 | ) | (0.21 | ) | ||||
Weighted average number of common shares outstanding
|
||||||||
Basic
|
3,288 | 3,288 | ||||||
Dilutive effect of stock options
|
-- | -- | ||||||
Number of shares used to compute earnings per share -- diluted
|
3,288 | 3,288 |
Common
Stock
|
Additional Paid-in
|
Accumulated Retained
|
Accumulated Other
Comprehensive
|
Non- Controlling
|
||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income
|
Interest
|
Total
|
||||||||||||||||||||||
Balance at June 30, 2010
|
3,227
|
$ |
10,365
|
$ |
1,597
|
$ |
6,486
|
$ |
1,818
|
$ |
2,809
|
$ |
23,075
|
|||||||||||||||
Cash received from stock options exercised
|
95
|
166
|
- | - | - | - |
166
|
|||||||||||||||||||||
Stock option expenses
|
- | - |
630
|
- | - | - |
630
|
|||||||||||||||||||||
Net (loss)/income
|
- | - | - |
(688
|
)
|
- |
353
|
(335
|
)
|
|||||||||||||||||||
Translation adjustment
|
- | - | - | - |
1,641
|
(193
|
)
|
1,448
|
||||||||||||||||||||
Dividend
|
- | - | - |
(7
|
)
|
- | - |
(7
|
)
|
|||||||||||||||||||
Balance at June 30, 2011
|
3,322
|
10,531
|
2,227
|
5,791
|
3,459
|
2,969
|
24,977
|
|||||||||||||||||||||
Cash received from stock options exercised
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Stock option expenses
|
- | - |
204
|
- | - | - |
204
|
|||||||||||||||||||||
Net loss
|
- | - | - |
(3,104
|
) | - |
(1,271
|
) |
(4,375
|
)
|
||||||||||||||||||
Translation adjustment
|
- | - | - | - |
(272
|
)
|
22
|
(250
|
) | |||||||||||||||||||
Dividend
|
- | - | - |
-
|
- |
-
|
-
|
|||||||||||||||||||||
Balance at June 30, 2012
|
3,322
|
$ |
10,531
|
$ |
2,431
|
$ |
2,687
|
$ |
3,187
|
$ |
1,720
|
$ |
20,556
|
Year Ended June 30
|
||||||||
2012
|
2011
|
|||||||
Cash Flow from Operating Activities
|
||||||||
Net loss
|
$ | (4,375 | ) | $ | (335 | ) | ||
Adjustments to reconcile net loss to net cash flow provided by operating activities
|
||||||||
Depreciation and amortization
|
2,683 | 2,617 | ||||||
Bad debt expense, net
|
113 | 78 | ||||||
Inventory provision
|
(28 | ) | (58 | ) | ||||
Warranty ( recovery)/provision, net
|
32 | (93 | ) | |||||
Accrued interest expense, net of interest income
|
198 | 43 | ||||||
Impairment loss
|
216 | 72 | ||||||
Loss/(Gain) on sale of property-continued operations
|
4 | (147 | ) | |||||
Stock compensation
|
204 | 630 | ||||||
Deferred tax provision
|
(152 | ) | (235 | ) | ||||
Loss in equity of unconsolidated JV
|
11 | 9 | ||||||
Changes in operating assets and liabilities, net of acquisition effects
|
||||||||
Accounts receivables
|
(4,798 | ) | 6,392 | |||||
Other receivables
|
(596 | ) | 534 | |||||
Other assets
|
- | (2 | ) | |||||
Inventories
|
59 | 1,400 | ||||||
Prepaid expenses and other current assets
|
(76 | ) | (12 | ) | ||||
Investment in property development
|
- | 908 | ||||||
Accounts payable and accrued liabilities
|
2,862 | (7,362 | ) | |||||
Income tax payable
|
(17 | ) | 112 | |||||
Other payable
|
- | -- | ||||||
Net cash provided by (used in) operating activities
|
(3,660 | ) | 4,551 | |||||
Cash Flow from Investing Activities
|
||||||||
(Repayment)/Proceeds from unrestricted and restricted term deposits, net
|
(18 | ) | 1,696 | |||||
Proceeds from investment property in China
|
- | 1,032 | ||||||
Return of Investment in property development project, net
|
- | - | ||||||
Loan to property development projects
|
- | (1,055 | ) | |||||
Investment in unconsolidated joint venture
|
- | (752 | ) | |||||
Additions to property, plant and equipment
|
(1,603 | ) | (3,996 | ) | ||||
Investments in restricted & un-restricted deposits
|
- | - | ||||||
Proceeds from disposal of property, plant and equipment
|
7 | 67 | ||||||
Net cash used in investing activities
|
(1,614 | ) | (3,008 | ) | ||||
Cash Flow from Financing Activities
|
||||||||
Borrowings / (repayment) on lines of credit, net
|
2,492 | (1,534 | ) | |||||
Borrowings / (repayment) of bank loans and capital leases, net
|
1,200 | (63 | ) | |||||
Proceeds from stock options exercised
|
- | 166 | ||||||
Net cash (used in) provided by financing activities
|
3,692 | (1,431 | ) | |||||
Effect of Changes in Exchange Rate
|
43 | (245 | ) | |||||
NET DECREASE IN CASH
|
(1,539 | ) | (133 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
3,111 | 3,244 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 1,572 | $ | 3,111 | ||||
Supplementary Information of Cash Flows
|
||||||||
Cash paid / (refund) during the period for:
|
||||||||
Interest
|
$ | 181 | $ | 13 | ||||
Income taxes
|
$ | 75 | $ | (399 | ) | |||
Non-Cash Transactions
|
||||||||
Capital lease of property, plant and equipment
|
$ | 146 | $ | 181 |
1.
|
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
|
Ownership
|
Location
|
||||
Express Test Corporation (Dormant)
|
100
|
%
|
Van Nuys, California
|
||
Trio-Tech Reliability Services (Dormant)
|
100
|
%
|
Van Nuys, California
|
||
KTS Incorporated, dba Universal Systems (Dormant)
|
100
|
%
|
Van Nuys, California
|
||
European Electronic Test Centre
(Operation ceased on November 1, 2005)
|
100
|
%
|
Dublin, Ireland
|
||
Trio-Tech International Pte. Ltd.
|
100
|
%
|
Singapore
|
||
Universal (Far East) Pte. Ltd. *
|
100
|
%
|
Singapore
|
||
Trio-Tech International (Thailand) Co. Ltd.*
|
100
|
%
|
Bangkok, Thailand
|
||
Trio-Tech (Bangkok) Co. Ltd.
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.)
|
100
|
%
|
Bangkok, Thailand
|
||
Trio-Tech (Malaysia) Sdn. Bhd.
(55% owned by Trio-Tech International Pte. Ltd.)
|
55
|
%
|
Penang and Selangor, Malaysia
|
||
Trio-Tech (Kuala Lumpur) Sdn. Bhd.
(100% owned by Trio-Tech Malaysia Sdn. Bhd.)
|
55
|
%
|
Selangor, Malaysia
|
||
Prestal Enterprise Sdn. Bhd.
(76% owned by Trio-Tech International Pte. Ltd.)
|
76
|
%
|
Selangor, Malaysia
|
||
Trio-Tech (Suzhou) Co. Ltd. *
|
100
|
%
|
Suzhou, China
|
||
Trio-Tech (Shanghai) Co. Ltd. * (Dormant)
(Operation ceased on January 1, 2010)
|
100
|
%
|
Shanghai, China
|
||
Trio-Tech (Chongqing) Co. Ltd. *
|
100
|
%
|
Chongqing, China
|
||
SHI International Pte. Ltd.
(55% owned by Trio-Tech International Pte. Ltd.)
|
55
|
%
|
Singapore
|
||
PT SHI Indonesia
(100% owned by SHI International Pte. Ltd)
|
55
|
%
|
Batam, Indonesia
|
||
Trio-Tech (Tianjin) Co. Ltd. *
|
100
|
%
|
Tianjin, China
|
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Financial assets utilizing Level 1 inputs include U.S. treasuries, most money market funds, marketable equity securities and our employee deferred compensation plan;
|
Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Financial assets and liabilities utilizing Level 2 inputs include foreign currency forward exchange contracts, most commercial paper and corporate notes and bonds; and
|
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Financial assets utilizing Level 3 inputs primarily include auction rate securities. We use an income approach valuation model to estimate the exit price of the auction rate securities, which is derived as the weighted-average present value of expected cash flows over various periods of illiquidity, using a risk adjusted discount rate that is based on the credit risk and liquidity risk of the securities.
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Raw materials
|
$
|
1,261
|
$
|
1,303
|
||||
Work in progress
|
1,870
|
1,392
|
||||||
Finished goods
|
175
|
213
|
||||||
Less: provision for obsolete inventory
|
(884
|
)
|
(937
|
)
|
||||
Currency translation effect
|
(98
|
)
|
459
|
|||||
$
|
2,324
|
$
|
2,430
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Beginning
|
$
|
937
|
$
|
907
|
||||
Additions charged to expenses
|
31
|
52
|
||||||
Usage - disposition
|
(59
|
)
|
(110
|
)
|
||||
Currency translation effect
|
(25
|
)
|
88
|
|||||
Ending
|
$
|
884
|
$
|
937
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Expected volatility
|
81.17
|
%
|
112.24 - 122.07
|
%
|
||||
Risk-free interest rate
|
0.25
|
%
|
0.66 – 1.06
|
%
|
||||
Expected life (years)
|
2.50
|
2.25 - 3.25
|
Options
|
Weighted- Average
Exercise
Price
|
Weighted - Average Remaining
Contractual
Term (Years)
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Outstanding at July 1, 2011
|
291,875
|
$
|
4.10
|
3.07
|
$
|
178
|
||||||||||
Granted
|
37,500
|
$
|
2.30
|
4.45
|
-
|
|||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited or expired
|
(16,375
|
)
|
(4.76
|
)
|
2.88
|
-
|
||||||||||
Outstanding at June 30, 2012
|
313,000
|
$
|
3.85
|
2.31
|
$
|
-
|
||||||||||
Exercisable at June 30, 2012
|
269,750
|
$
|
3.77
|
2.12
|
$
|
-
|
Weighted-Average Grant-Date
|
||||||||
Options
|
Fair Value
|
|||||||
Non-vested at July 1, 2011
|
132,250
|
$
|
5.29
|
|||||
Granted
|
37,500
|
1.11
|
||||||
Vested
|
(110,125
|
)
|
1.63
|
|||||
Forfeited
|
(16,375
|
)
|
3.28
|
|||||
Non-vested at June 30, 2012
|
43,250
|
$
|
3.29
|
Options
|
Weighted- Average
Exercise
Price
|
Weighted - Average Remaining
Contractual
Term (Years)
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Outstanding at July 1, 2011
|
335,000
|
$
|
4.86
|
3.16
|
$
|
102
|
||||||||||
Granted
|
50,000
|
2.30
|
4.45
|
-
|
||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited or expired
|
-
|
-
|
-
|
-
|
||||||||||||
Outstanding at June 30, 2012
|
385,000
|
$
|
4.52
|
2.45
|
$
|
-
|
||||||||||
Exercisable at June 30, 2012
|
385,000
|
$
|
4.52
|
2.45
|
$
|
-
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Loss attributable to Trio-Tech International common shareholders from continuing operations, net of tax
|
$
|
(3,100
|
)
|
$
|
(684
|
)
|
||
Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax
|
(4
|
)
|
(4
|
)
|
||||
Net loss attributable to Trio-Tech International common shareholders
|
$
|
(3,104
|
)
|
$
|
(688
|
)
|
||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International
|
$
|
(0.94
|
)
|
$
|
(0.21
|
)
|
||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International
|
-
|
-
|
||||||
Basic and diluted loss per share from net loss attributable to Trio-Tech International
|
$
|
(0.94
|
)
|
$
|
(0.21
|
)
|
||
Weighted average number of common shares outstanding – basic
|
3,288
|
3,288
|
||||||
Dilutive effect of stock options
|
-
|
-
|
||||||
Number of shares used to compute earnings per share – diluted
|
3,288
|
3,288
|
Estimated Useful
Life in
|
For the Year Ended June 30,
|
||||||||||
Years
|
2012
|
2011
|
|||||||||
Building and improvements
|
3-20 | $ | 5,210 | $ | 4,859 | ||||||
Leasehold improvements
|
3-27 | 5,540 | 5,012 | ||||||||
Machinery and equipment
|
3-7 | 20,852 | 17,934 | ||||||||
Furniture and fixtures
|
3-5 | 1,089 | 1,023 | ||||||||
Equipment under capital leases
|
3-5 | 577 | 518 | ||||||||
Currency translation effect for fixed asset, gross
|
(1,495 | ) | 2,753 | ||||||||
$ | 31,773 | $ | 32,099 | ||||||||
Less:
|
|||||||||||
Accumulated depreciation
|
19,202 | 15,206 | |||||||||
Accumulated amortization on equipment under capital leases
|
346 | 240 | |||||||||
Currency translation effect
|
(968 | ) | 1,702 | ||||||||
Property, plant and equipment, net
|
$ | 13,193 | $ | 14,951 |
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Beginning
|
$
|
69
|
$
|
91
|
||||
Additions charged to expenses
|
113
|
78
|
||||||
Recovered
|
(59
|
)
|
(107
|
)
|
||||
Currency translation effect
|
(1
|
)
|
7
|
|||||
Ending
|
$
|
122
|
$
|
69
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Payroll and related costs
|
$
|
1,161
|
$
|
1,247
|
||||
Commissions
|
37
|
34
|
||||||
Customer deposits
|
228
|
12
|
||||||
Legal and audit
|
169
|
181
|
||||||
Sales tax
|
19
|
19
|
||||||
Utilities
|
174
|
163
|
||||||
Warranty
|
60
|
29
|
||||||
Accrued purchase of materials and fixed assets
|
769
|
176
|
||||||
Provision for re-instatement
|
197
|
174
|
||||||
Other payables
|
-
|
160
|
||||||
Professional fees
|
117
|
227
|
||||||
Other accrued expenses
|
163
|
442
|
||||||
Currency translation effect
|
(83
|
)
|
315
|
|||||
Total
|
$
|
3,011
|
$
|
3,179
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Beginning
|
$
|
29
|
$
|
113
|
||||
Additions charged to cost and expenses
|
32
|
51
|
||||||
Recovered
|
--
|
(74
|
)
|
|||||
Actual usage
|
--
|
(70
|
)
|
|||||
Currency translation effect
|
(1
|
)
|
9
|
|||||
EndingE Ending
|
$
|
60
|
$
|
29
|
For the Year Ended June 30,
|
|||||||
2012
|
2011
|
||||||
Note payable denominated in Singapore dollars to a commercial bank for expansion plans in Singapore and China, maturing in December 2014, bearing interest at the bank’s prime rate (4.75%, at June 30, 2012 and 0% at June 30, 2011), with monthly payments of principal plus interest of approximately $56, through December 2014. This note payable is secured by equipment with carrying value of $835 on the consolidated balance sheet. (Note payable of $215 maturing in August 2012 was paid off in August 2012.)
|
$
|
1,510
|
$
|
-
|
|||
Note payable denominated in Malaysian ringgit to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s lending rate (6.05% less 1.5% at June 30, 2012 and 2011), with monthly payments of principal plus interest of $29, through August 2024 in fiscal 2012 and monthly payments of principal plus interest of $27 in fiscal 2011. This loan payable is secured by a charge on the property in Malaysia with a carrying value of $5,635 and $4,177 as at June 30, 2012 and June 30, 2011, respectively.
|
2,629
|
2,915
|
|||||
Current portion
|
(766
|
)
|
(147
|
)
|
|||
Long term portion of bank loans payable
|
$
|
3,373
|
$
|
2,768
|
2013
|
$
|
766
|
||
2014
|
773
|
|||
2015
|
407
|
|||
2016
|
160
|
|||
2017
|
169
|
|||
Thereafter
|
1,864
|
|||
Total obligations and commitments
|
$
|
4,139
|
(in thousands)
|
||||
Balance at July 1, 2010
|
$ | (196 | ) | |
Additions based on current year tax positions
|
- | |||
Additions for prior year(s) tax positions
|
(57 | ) | ||
Reductions for prior year(s) tax positions
|
- | |||
Settlements
|
- | |||
Expiration of statute of limitations
|
- | |||
Balance at June 30, 2011
|
$ | (253 | ) | |
Additions based on current year tax positions
|
- | |||
Additions for prior year(s) tax positions
|
- | |||
Reductions for prior year(s) tax positions
|
4 | |||
Settlements
|
- | |||
Expiration of statute of limitations
|
- | |||
Settlements
|
- | |||
Balance at June 30, 2012
|
$ | (249 | ) |
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
U.S.
|
$
|
(206
|
)
|
$
|
(413
|
)
|
||
Foreign
|
(4,219
|
)
|
286
|
|||||
Total
|
$
|
(4,425
|
)
|
$
|
(127
|
)
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Current:
|
||||||||
Federal
|
$
|
-
|
$
|
-
|
||||
State
|
8
|
2
|
||||||
Foreign
|
(473)
|
|
428
|
|||||
$
|
(465)
|
|
$
|
430
|
||||
Deferred:
|
||||||||
Federal
|
$
|
-
|
$
|
-
|
||||
State
|
-
|
-
|
||||||
Foreign
|
400
|
(235
|
)
|
|||||
$
|
400
|
$
|
(235
|
)
|
||||
Total provision
|
$
|
(65)
|
|
$
|
195
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Statutory federal tax rate
|
(34)
|
%
|
(34)
|
%
|
||||
State taxes, net of federal benefit
|
(6)
|
|
(6)
|
|||||
Foreign tax related to profits making subsidiaries
|
36
|
64
|
||||||
Other
|
3
|
24
|
||||||
Changes in valuation allowance
|
0
|
107
|
||||||
Effective rate
|
(1)
|
%
|
155
|
%
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Deferred tax assets:
|
||||||||
Net operating losses and credits
|
$
|
1,086
|
$
|
998
|
||||
Inventory valuation
|
99
|
112
|
||||||
Depreciation
|
-
|
-
|
||||||
Provision for bad debts
|
53
|
2
|
||||||
Accrued vacation
|
15
|
12
|
||||||
Accrued expenses
|
(103
|
)
|
314
|
|||||
Other
|
24
|
(31
|
)
|
|||||
Total deferred tax assets
|
$
|
1,174
|
$
|
1,407
|
||||
Deferred tax liabilities:
|
||||||||
Depreciation
|
(714
|
)
|
(630
|
)
|
||||
Other
|
(2
|
)
|
-
|
|||||
Total deferred income tax liabilities
|
$
|
(716
|
)
|
$
|
(630
|
)
|
||
Subtotal
|
458
|
777
|
||||||
Valuation allowance
|
(1,342
|
)
|
(1,261
|
)
|
||||
Net deferred tax liabilities
|
$
|
(884
|
)
|
$
|
(484
|
)
|
For the Year Ending June 30, |
Capital
Leases
|
Operating
Leases
|
Sub-lease
Rental Income
|
Net
Operating Leases
|
||||||||||||
2013
|
$ | 175 | $ | 1,263 | $ | 65 | $ | 1,198 | ||||||||
2014
|
85 | 545 | - | 545 | ||||||||||||
2015
|
44 | 443 | - | 443 | ||||||||||||
Thereafter
|
92 | 1,146 | - | 1,146 | ||||||||||||
Total future minimum lease payments
|
$ | 396 | $ | 3,397 | $ | 65 | $ | 3,332 | ||||||||
Less amount representing interest
|
- | |||||||||||||||
Present value of net minimum lease payments
|
396 | |||||||||||||||
Less current portion of capital lease obligations
|
(175 | ) | ||||||||||||||
Long-term obligations under capital leases
|
$ | 221 | ||||||||||||||
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Sales
|
51.1 %
|
67.0
|
%
|
|||||
-Customer A
|
||||||||
Account Receivable
|
||||||||
- Customer A
|
63.0 %
|
56.8
|
%
|
Investment Date | Investment Amount (RMB) |
Investment Amount
(U.S. Dollars)
|
|||||||
Investment in developments - JiaSheng
|
08/27/2007
|
10,000 | 1,564 | ||||||
Investment in developments - JiaSheng
|
12/27/2007
|
5,000 | 782 | ||||||
Return of investment in developments - JiaSheng
|
06/26/2008
|
(5,000 | ) | (782 | ) | ||||
Return of investment in developments - JiaSheng
|
10/23/2008
|
(1,988 | ) | (311 | ) | ||||
Return of investment in developments - JiaSheng
|
11/20/2009
|
(1,988 | ) | (311 | |||||
Return of investment in developments - JiaSheng
|
11/03/2010
|
(2,651 | ) | (415 | ) | ||||
Return of investment in developments - JiaSheng
|
11/08/2010
|
(723 | ) | (113 | ) | ||||
Return of investment in developments – JiaSheng
|
11/09/2010
|
(301 | ) | (47 | ) | ||||
Return of investment in developments – JiaSheng
|
11/10/2010
|
(1,807 | ) | (283 | ) | ||||
Return of investment in developments - JiaSheng
|
11/12/2010
|
(542 | ) | (84 | ) | ||||
Total: Investment in property developments – Jia Sheng (project B-48 Phase 1)
|
-- | -- |
Investment
Amount
|
Investment Amount
|
||||||||
Investment Date |
(RMB)
|
(U.S. Dollars)
|
|||||||
Purchase of rental property – MaoYe
|
01/04/2008
|
5,554
|
874
|
||||||
Purchase of rental property - JiaSheng
|
10/23/2008
|
7,042
|
1,089
|
||||||
Additional cost of rental property - JiaSheng
|
12/01/2009
|
209
|
32
|
||||||
Investment rental property disposed - JiaSheng
|
02/05/2010
|
(579
|
)
|
(89
|
)
|
||||
Purchase of rental property – JiangHuai
|
01/06/2010
|
3,600
|
566
|
||||||
Purchase of rental property – FuLi
|
01/04/2012
|
4,025
|
633
|
||||||
Investment rental property disposed - JiaSheng
|
03/04/2011
|
(6,672
|
)
|
(1,032
|
)
|
||||
Gross investment in rental property
|
13,179
|
2,073
|
|||||||
Accumulated depreciation on rental property
|
06/30/2012
|
(1,643
|
)
|
(258
|
)
|
||||
Net investment in property - China
|
11,536
|
1,815
|
Loan Date
|
Loan Amount
(RMB) |
Loan Amount
(U.S. Dollars) |
|||||||
Investment in JiaSheng (Project B-48 Phase 2)
|
11/1/2011
|
5,000
|
786
|
||||||
Investment in JiangHuai (Project - Yu Jin Jiang An )
|
11/1/2011
|
2,000
|
315
|
||||||
Net loan receivable from property development projects
|
7,000
|
1,101
|
Year Ended June 30,
|
|||||||
(In Thousands)
|
2012
|
2011
|
|||||
Interest income
|
$ | 291 | $ | 187 | |||
Other rental income
|
39 | 51 | |||||
Exchange (loss) gain
|
(431 | ) | 83 | ||||
Other miscellaneous income
|
277 | 381 | |||||
Total
|
$ | 176 | $ | 702 |
For the Year Ended June 30.
|
||||||||
2012
|
2011
|
|||||||
Revenue
|
$
|
-
|
$
|
-
|
||||
Cost of sales
|
-
|
-
|
||||||
Gross loss
|
-
|
-
|
||||||
Operating expenses
|
||||||||
General and administrative expenses
|
4
|
4
|
||||||
Total
|
4
|
4
|
||||||
Loss from discontinued operation
|
(4
|
)
|
(4
|
)
|
||||
Other income
|
-
|
-
|
||||||
Loss from discontinued operation
|
$
|
(4
|
)
|
$
|
( 4
|
)
|
Year Ended
|
Net
|
Operating
(Loss)
|
Total
|
Depr.
and
|
Capital
|
||||||||||||||||
June 30
|
Sales
|
Income
|
Assets
|
Amort.
|
Expenditures
|
||||||||||||||||
Manufacturing
|
2012
|
$
|
16,955
|
$
|
(390
|
)
|
$
|
13,478
|
$
|
207
|
$
|
13
|
|||||||||
2011
|
19,492
|
(953
|
)
|
3,161
|
250
|
151
|
|||||||||||||||
Testing Services
|
2012
|
12,922
|
(1,664
|
)
|
19,210
|
2,222
|
1,543
|
||||||||||||||
2011
|
13,126
|
978
|
26,835
|
2,014
|
3,738
|
||||||||||||||||
Distribution
|
2012
|
1,075
|
89
|
420
|
4
|
-
|
|||||||||||||||
2011
|
955
|
138
|
275
|
1
|
-
|
||||||||||||||||
Real Estate
|
2012
|
148
|
(129
|
)
|
4,127
|
82
|
634
|
||||||||||||||
2011
|
1,062
|
761
|
4,584
|
112
|
3
|
||||||||||||||||
Fabrication
|
2012
|
3,111
|
(1,704
|
)
|
744
|
168
|
31
|
||||||||||||||
Services
|
2011
|
900
|
(987
|
)
|
1,430
|
240
|
104
|
||||||||||||||
Corporate &
|
2012
|
-
|
(502
|
)
|
71
|
-
|
-
|
||||||||||||||
Unallocated
|
2011
|
-
|
(523
|
)
|
71
|
-
|
-
|
||||||||||||||
Total Company
|
2012
|
$
|
34,211
|
$
|
(4,300
|
)
|
$
|
38,050
|
$
|
2,683
|
$
|
2,221
|
|||||||||
2011
|
$
|
35,535
|
$
|
(586
|
)
|
$
|
36,356
|
$
|
2,617
|
$
|
3,996
|
Entity with
|
Type of
|
Interest
|
Expiration
|
Credit
|
Unused
|
|||||||||
Facility
|
Facility
|
Rate
|
Date
|
Limitation
|
Credit
|
|||||||||
Trio-Tech Singapore
|
Line of Credit
|
With interest rates ranging from 1.77% to 6.04%
|
-- | $ | 6,673 | $ | 3,068 |
Basis of Fair Value Measurements
|
||||||||||||||||
As of
June 30, 2012
|
Quoted Prices in Active Markets for Identical Assets
Level 1
|
Significant Other Observable Inputs
Level 2
|
Significant Unobservable Inputs
Level 3
|
|||||||||||||
Assets
|
||||||||||||||||
Short-term deposits
|
$
|
250
|
$
|
250
|
$
|
--
|
$
|
--
|
||||||||
Restricted term deposits
|
$
|
3,445
|
$
|
3,445
|
$
|
--
|
$
|
--
|
||||||||
Total assets measured at fair value
|
$
|
38,050
|
$
|
38,050
|
$
|
--
|
$
|
--
|
||||||||
Percentage of total assets
|
9.7
|
%
|
9.7
|
%
|
--
|
--
|
For the Year Ended June 30,
|
||||||||
Non-controlling interest
|
2012
|
2011
|
||||||
Beginning balance
|
$
|
2,969
|
$
|
2,809
|
||||
Net income/(loss)
|
(1,271
|
)
|
353
|
|||||
Translation adjustment
|
(22
|
)
|
(193
|
)
|
||||
Ending balance
|
$
|
1,720
|
$
|
2,969
|
For the Year Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Investment property in China
|
$
|
1,238
|
$
|
1,416
|
||||
Addition during the year
|
633
|
--
|
||||||
Depreciation charge for the year
|
(77
|
)
|
(178
|
)
|
||||
Translation adjustment
|
21
|
--
|
||||||
Net investment in operating leases
|
$
|
1,815
|
$
|
1,238
|
For the Year Ended June 30,
|
Amount
|
|||
2013
|
$ | 126 | ||
2014
|
46 | |||
2015
|
3 | |||
$ | 175 |
For the Year Ended June 30,
|
||||||||
2012 | 2011 | |||||||
Short-term deposits
|
$ | 250 | $ | 199 | ||||
Restricted term deposits
|
3,445 | 3,562 | ||||||
Total
|
$ | 3,695 | $ | 3,761 |
|
/s/ S.W. Yong
S.W. Yong,
Chief Executive
Officer and President (Principal Executive Officer)
|
|
/s/ Victor H.M. Ting
Victor H. M. Ting,Chief Financial Officer and Vice President (Principal Financial Officer)
|
/s/ S.W. Yong
Name: S. W. Yong
Title: President and Chief Executive Officer
Date: October 9, 2012
/s/ Victor H.M. Ting
Name: Victor H. M. Ting
Title: Vice President and Chief Financial Officer
Date: October 9, 2012
|
INVENTORIES (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in provision for obsolete inventory | The following table represents the changes in provision for obsolete inventory:
|
OTHER INCOME (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income, net for fiscal years 2012 and 2011 was as follows:
|
INCOME TAXES (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income or loss before income taxes and non-controlling interest | The summarized income or loss before income taxes and non-controlling interest in the U.S. and foreign countries for fiscal 2012 and 2011 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Companys net income tax provisions (benefits) | On a consolidated basis, the Companys net income tax provisions (benefits) were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation between the U.S. federal tax rate and the effective income tax rate | The reconciliation between the U.S. federal tax rate and the effective income tax rate was as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income tax assets (liabilities) | The components of deferred income tax assets (liabilities) were as follows:
|
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operation And Corresponding Restructuring Plan Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations | Loss from discontinued operations for the year ended June 30, 2012 and 2011 was as follows:
|
OPERATING LEASES (Details) (USD $)
|
12 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Leases [Abstract] | ||
Investment property in China | $ 1,238 | $ 1,416 |
Addition during the year | 633 | |
Depreciation charge for the year | (77) | (178) |
Net investment in operating leases | $ 1,815 | $ 1,238 |
BANK LOANS PAYABLE (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Loans Payable Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans payable | Bank loans payable consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum payments | Future minimum payments (excluding interest) as of June 30, 2012 were as follows:
|
OPERATING LEASES
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 27. OPERATING LEASES (In Thousands) | Operating leases arise from the leasing of the Companys commercial and residential real estate investment property in China. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $77 and $106 for fiscal years 2012 and 2011, respectively.
Investments in operating leases as at June 30:
Future minimum rental income to be received from fiscal 2013 to fiscal 2015 on non-cancelable operating leases are contractually due as follows as of June 30, 2012:
|
BANK LOANS PAYABLE (Details 1) (USD $)
|
Jun. 30, 2012
|
---|---|
Notes to Financial Statements | |
2013 | $ 766 |
2014 | 773 |
2015 | 407 |
2016 | 160 |
2017 | 169 |
Thereafter | 1,864 |
Total obligations and commitments | $ 4,139 |
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
Building and improvements
|
Jun. 30, 2011
Building and improvements
|
Jun. 30, 2012
Building and improvements
Minimum Member
|
Jun. 30, 2012
Building and improvements
Maximum Member
|
Jun. 30, 2012
Leasehold improvements
|
Jun. 30, 2011
Leasehold improvements
|
Jun. 30, 2012
Leasehold improvements
Minimum Member
|
Jun. 30, 2012
Leasehold improvements
Maximum Member
|
Jun. 30, 2012
Machinery and equipment
|
Jun. 30, 2011
Machinery and equipment
|
Jun. 30, 2012
Machinery and equipment
Minimum Member
|
Jun. 30, 2012
Machinery and equipment
Maximum Member
|
Jun. 30, 2012
Furniture and fixtures
|
Jun. 30, 2011
Furniture and fixtures
|
Jun. 30, 2012
Furniture and fixtures
Minimum Member
|
Jun. 30, 2012
Furniture and fixtures
Maximum Member
|
Jun. 30, 2012
Equipment under capital leases
|
Jun. 30, 2011
Equipment under capital leases
|
Jun. 30, 2012
Equipment under capital leases
Minimum Member
|
Jun. 30, 2012
Equipment under capital leases
Maximum Member
|
Jun. 30, 2012
Currency translation effect for fixed asset, gross
|
Jun. 30, 2011
Currency translation effect for fixed asset, gross
|
|
Property, plant and equipment, Gross | $ 31,773 | $ 32,099 | $ 5,210 | $ 4,859 | $ 5,540 | $ 5,012 | $ 20,852 | $ 17,934 | $ 1,089 | $ 1,023 | $ 577 | $ 518 | $ (1,495) | $ 2,753 | ||||||||||
Accumulated depreciation | 19,202 | 15,206 | ||||||||||||||||||||||
Accumulated amortization on equipment under capital leases | 346 | 240 | ||||||||||||||||||||||
Currency translation effect | (968) | 1,702 | ||||||||||||||||||||||
Property, plant and equipment, net | $ 13,193,000 | $ 14,951,000 | ||||||||||||||||||||||
Estimated Useful Life in Years | 3 years | 20 years | 3 years | 27 years | 3 years | 7 years | 3 years | 5 years | 3 years | 5 years |
INVESTMENT IN PROPERTY DEVELOPMENT (Details) (USD $)
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Jun. 30, 2012
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JiaShengInvestmentInDevelopments [Member]
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Investment Date | Aug. 27, 2007 |
Investment Amount (RMB) | $ 10,000 |
Investment Amount (U.S. Dollars) | 1,564 |
JiaShengInvestmentInDevelopments1 [Member]
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Investment Date | Dec. 27, 2007 |
Investment Amount (RMB) | 5,000 |
Investment Amount (U.S. Dollars) | 782 |
JiaShengReturnOfInvestmentInDevelopments [Member]
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Investment Date | Jun. 26, 2008 |
Investment Amount (RMB) | (5,000) |
Investment Amount (U.S. Dollars) | (782) |
JiaShengReturnOfInvestmentInDevelopments1 [Member]
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Investment Date | Oct. 23, 2008 |
Investment Amount (RMB) | (1,988) |
Investment Amount (U.S. Dollars) | (311) |
JiaShengReturnOfInvestmentInDevelopments2 [Member]
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Investment Date | Nov. 20, 2009 |
Investment Amount (RMB) | (1,988) |
Investment Amount (U.S. Dollars) | (311) |
JiaShengReturnOfInvestmentInDevelopments3 [Member]
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Investment Date | Nov. 03, 2010 |
Investment Amount (RMB) | (2,651) |
Investment Amount (U.S. Dollars) | (415) |
JiaShengReturnOfInvestmentInDevelopments4 [Member]
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Investment Date | Nov. 08, 2010 |
Investment Amount (RMB) | (723) |
Investment Amount (U.S. Dollars) | (113) |
JiaShengReturnOfInvestmentInDevelopments5 [Member]
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Investment Date | Nov. 09, 2010 |
Investment Amount (RMB) | (301) |
Investment Amount (U.S. Dollars) | (47) |
JiaShengReturnOfInvestmentInDevelopments6 [Member]
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Investment Date | Nov. 10, 2010 |
Investment Amount (RMB) | (1,807) |
Investment Amount (U.S. Dollars) | (283) |
JiaShengReturnOfInvestmentInDevelopments7 [Member]
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Investment Date | Nov. 12, 2010 |
Investment Amount (RMB) | (542) |
Investment Amount (U.S. Dollars) | $ (84) |
LINE OF CREDIT (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Line Of Credit Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lines of credit | As of June 30, 2012, the Company has certain lines of credit with covenants that were collateralized by restricted deposits.
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ACCRUED EXPENSES (Details) (USD $)
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Jun. 30, 2012
|
Jun. 30, 2011
|
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Notes to Financial Statements | ||
Payroll and related costs | $ 1,161 | $ 1,247 |
Commissions | 37 | 34 |
Customer deposits | 228 | 12 |
Legal and audit | 169 | 181 |
Sales tax | 19 | 19 |
Utilities | 174 | 163 |
Warranty | 60 | 29 |
Accrued purchase of materials and fixed assets | 769 | 176 |
Provision for re-instatement | 197 | 174 |
Other payables | 160 | |
Professional fees | 117 | 227 |
Other accrued expenses | 163 | 442 |
Currency translation effect | (83) | 315 |
Total | $ 3,011 | $ 3,179 |
INCOME TAXES (Details) (USD $)
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12 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Income Tax Disclosure [Abstract] | ||
U.S. | $ (206) | $ (413) |
Foreign | (4,219) | 286 |
Total | $ (4,425) | $ (127) |
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)
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12 Months Ended | |
---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Total rental income from subleases | $ 82 | $ 139 |
Total rental expense on operating leases | 1,393 | 1,400 |
Capital commitments for the purchase of equipment and other related infrastructure costs | 131 | 448 |
Malaysia Ringgit [Member]
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Capital commitments for the purchase of equipment and other related infrastructure costs | 402 | |
RMB [Member]
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Capital commitments for the purchase of equipment and other related infrastructure costs | $ 2,851 |
WARRANTY ACCRUAL (Details) (USD $)
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12 Months Ended | |
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Jun. 30, 2012
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Jun. 30, 2011
|
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Notes to Financial Statements | ||
Beginning | $ 29 | $ 113 |
Additions charged to cost and expenses | 32 | 51 |
Recovered | (74) | |
Actual usage | (70) | |
Currency translation effect | (1) | 9 |
EndingE Ending | $ 60 | $ 29 |
EARNINGS PER SHARE (Details) (USD $)
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12 Months Ended | |
---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Notes to Financial Statements | ||
Loss attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ (3,100) | $ (684) |
Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (4) | (4) |
Net loss attributable to Trio-Tech International common shareholders | $ (3,104) | $ (688) |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | $ (0.94) | $ (0.21) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | $ 0 | |
Basic and diluted loss per share from net loss attributable to Trio-Tech International | $ (0.94) | $ (0.21) |
Weighted average number of common shares outstanding – basic | 3,288 | 3,288 |
Dilutive effect of stock options | ||
Number of shares used to compute earnings per share – diluted | 3,288 | 3,288 |
OTHER INCOME
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Other Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 19. OTHER INCOME (In Thousands) | Other income, net for fiscal years 2012 and 2011 was as follows:
The other miscellaneous income of $277 as at June 30, 2012 mainly included an allowance for obsolete stocks amounting to $32 charged to statement of comprehensive income in fiscal year 2011 which has been utilized during fiscal year 2012 and hence was classified under other income, an amount of $38 charged to a customer for the usage of utility as a one-time order and hence classified as other income, an amount of $79 received for the disposal of the option to purchase 15% of the investment in the joint venture and disposal of scrap amounted to $19 was classified as other incomes . The other miscellaneous income of $381 as at June 30, 2011 included reversal of contingent liability of $111 relating to the termination of a performance bond securing a contract, which bond is no longer required as the contract has been fulfilled, an allowance for stock obsolescence amounting to $110 charged to statement of comprehensive income in fiscal year 2010 which was utilized during fiscal year 2011 and hence was classified under other income, and an amount of $80 charged to a customer for the usage of utility as a one-time order and hence classified as other income. Interest income included approximately $291 for fiscal 2012 as compared to $170 in fiscal 2011, which represented the income from investment, which was reclassified as a loan receivable based on ASC Topic 325.
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CONCENTRATION OF CUSTOMERS (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Concentration Of Customers Tables | ||||||||||||||||||||||||||||||||||||||||||||||
CONCENTRATION OF CUSTOMERS | The Company had one major customer that accounted for the following accounts receivable and sales during the fiscal years ended:
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PROPERTY, PLANT AND EQUIPMENT (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Property Plant And Equipment Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | Property, plant and equipment consisted of the following:
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ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $)
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12 Months Ended | |
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Jun. 30, 2012
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Jun. 30, 2011
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Notes to Financial Statements | ||
Beginning | $ 69 | $ 91 |
Additions charged to expenses | 113 | 78 |
Recovered | (59) | (107) |
Currency translation effect | (1) | 7 |
Ending | $ 122 | $ 69 |
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) (USD $)
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12 Months Ended | |
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Jun. 30, 2012
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Jun. 30, 2011
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Notes to Financial Statements | ||
Revenue | ||
Cost of sales | ||
Gross loss | ||
General and administrative | 4 | 4 |
Total | 4 | 4 |
Loss from discontinued operation | (4) | (4) |
Other income | ||
Loss from discontinued operation | $ (4) | $ (4) |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
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12 Months Ended | ||||||||||||
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Jun. 30, 2012
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Basis Of Presentation And Summary Of Significant Accounting Policies Policies | |||||||||||||
Basis of Presentation and Principles of Consolidation | Trio-Tech International (the Company or TTI hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. TTI conducts business in five business segments: Manufacturing, Distribution, Testing Services, Fabrication Services and Real Estate. |
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Liquidity | The Company incurred a net loss of $3,104 and $688 for fiscal years 2012 and 2011, respectively. The Companys core businesses, manufacturing and distribution and testing services, operate in a volatile industry, whereby its average selling prices and product costs are influenced by competitive factors. These factors create pressures on sales, costs, earnings and cash flows, which will impact liquidity. |
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Foreign Currency Translation and Transactions | The U.S. dollar is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. The Company also operates in Malaysia, Thailand, China and Indonesia, of which the Malaysian ringgit, Thai baht, Chinese remimbi and Indonesian rupiah, respectively, are the national currencies. The Company uses the United States dollar (U.S. dollar) for financial reporting purposes.
The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the statement of operations is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Companys subsidiaries are reflected in income for the reporting period. |
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Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the more significant estimates included in these financial statements are the estimated allowance for doubtful accounts receivable, reserve for obsolete inventory, reserve for warranty, impairments and the deferred income tax asset allowance. Actual results could materially differ from those estimates. |
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Revenue Recognition | Revenue derived from testing services is recognized when testing services are rendered. Revenues generated from sales of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain products sold (in the manufacturing segment) require installation and training to be performed.
Revenue from product sales is also recorded in accordance with the provisions of ASC Topic 605 (Emerging Issues Task Force (EITF) Statement 00-21) Revenue Arrangements with Multiple Deliverables and Staff Accounting Bulletin (SAB) 104 Revenue Recognition in Financial Statements, which generally require revenue earned on product sales involving multiple-elements to be allocated to each element based on the relative fair values of those elements. Accordingly, the Company allocates revenue to each element in a multiple-element arrangement based on the elements respective fair value, with the fair value determined by the price charged when that element is sold and specifically defined in a quotation or contract. The Company allocates a portion of the invoice value to products sold and the remaining portion of invoice value to installation work in proportion to the fair value of products sold and installation work to be performed. Training elements are valued based on hourly rates, which the Company charges for these services when sold apart from product sales. The fair value determination of products sold and the installation and training work is also based on our specific historical experience of the relative fair values of the elements if there is no easily observable market price to be considered. In fiscal years 2012 and 2011, the installation revenues generated in connection with product sales were immaterial and were included in the product sales revenue line on the consolidated statements of operations.
In the fabrication services segment, which makes large and complex structures employed to process oil and gas and for temporary storage, revenue is recognized from long-term, fixed-price contracts using the percentage-of-completion method of accounting: (1) Input measures - measured by multiplying the estimated total contract value by the ratio of actual contract costs incurred to date to the estimated total contract costs, and (2) Output measures measured based completion of contract of milestones. The Company makes significant estimates involving its usage of percentage-of-completion accounting to recognize contract revenues. The Company periodically reviews contracts in process for estimates-to-completion, and revises estimated gross profit accordingly. While the Company believes its estimated gross profit on contracts in process is reasonable, unforeseen events and changes in circumstances can take place in a subsequent accounting period that may cause the Company to revise its estimated gross profit on one or more of its contracts in process. Accordingly, the ultimate gross profit realized upon completion of such contracts can vary significantly from estimated amounts between accounting periods.
In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement. If this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. |
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GST / Indirect Taxes | The Companys policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses. |
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Accounts Receivable and Allowance for Doubtful Accounts | During the normal course of business, the Company extends unsecured credit to its customers in all segments. Typically, credit terms require payment to be made between 30 to 90 days from the date of the sale. The Company generally does not require collateral from our customers.
The Companys management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2012 and 2011. |
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Warranty Costs | The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded in its manufacturing segment. The Company estimates warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. |
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Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
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Short Term Deposits | Term deposits consist of bank balances and interest bearing deposits having maturity of 1 to 12 months. As of June 30, 2012, the company held approximately $3,150 of restricted term deposits in the companys 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency and $295 of restricted term deposits in the companys 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia. As of June 30, 2012, the company held approximately $150 of unrestricted term deposits in the companys 100% owned Singapore subsidiary, which were denominated in the currency of Singapore dollars, and approximately $100 in the companys 100% owned Thailand subsidiary, which were denominated in the currency of Thai baht. As of June 30, 2011, the company held approximately $3,259 of restricted term deposits in the companys 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency and $303 of restricted term deposits in the companys 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia. As of June 30, 2011, the company held approximately $199 of unrestricted term deposits in the companys 100% owned Thailand subsidiary, which were denominated in the currency of Thai baht. |
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Inventories | Inventories in the Companys manufacturing and distribution segments consisting principally of raw materials, works in progress, and finished goods which are stated at the lower of cost, using the first-in, first-out (FIFO) method, or market value. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and rapid changes in demand. Provisions for estimated excess and obsolete inventory are based on our regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on salability and obsolescence. |
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Property, Plant and Equipment & Investment Property | Property, plant and equipment and investment property in China are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method.
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to property and equipment are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations. |
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Long-Lived Assets & Impairment | The Companys business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand. In addition, the Company recorded intangible assets with finite lives related to the acquisitions.
The Company evaluates the long-lived assets, including property, plant and equipment and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stick price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change.
The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets to property, plant and equipment, and other intangible assets such as customer relationships. ASC Topic 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. |
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Leases | The Company leased certain property, plant and equipment in the ordinary course of business. The leases had varying terms. Some may have included renewal and/or purchase options, escalation clauses, restrictions, penalties or other obligations that the Company considered in determining minimum lease payments. The leases were classified as either capital leases or operating leases, in accordance with ASC Topic 840, Accounting for Leases. The Company records monthly rental expense equal to the total amount of the payments due in the reporting period over the lease term in accordance with accounting principles accepted by the United States of America. The difference between rental expense recorded and the amount paid is credited or charged to deferred rent, which is included in accrued expenses in the accompanying consolidated balance sheet.
The Companys management expects that in the normal course of business, operating leases will be renewed or replaced by other leases. The future minimum operating lease payments, for which the Company is contractually obligated as of June 30, 2012, are disclosed in the notes to the consolidated financial statements.
Assets under capital leases are capitalized using interest rates appropriate at the inception of each lease and are depreciated over either the estimated useful life of the asset or the lease term on a straight-line basis. The present value of the related lease payments is recorded as a contractual obligation. The future minimum annual capital lease payments are included in the total future contractual obligations as disclosed in the notes to the consolidated financial statements. |
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Comprehensive Income (Loss) | ASC Topic 220, Reporting Comprehensive Income, establishes standards for reporting and presentation of comprehensive income (loss) and its components in a full set of general-purpose financial statements. The Company has chosen to report comprehensive income (loss) in the statements of operations and comprehensive income (loss). Comprehensive income (loss) is comprised of net income (loss) and all changes to shareholders equity except those due to investments by owners and distributions to owners. |
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Income Taxes | The Company accounts for income taxes using the liability method in accordance with Statement of ASC Topic 740, Accounting for Income Taxes. ASC Topic 740 requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expenses or benefits in the period that covers the enactment date.
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. |
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Retained Earnings | It is the intention of the Company to reinvest earnings of its foreign subsidiaries in the operations of those subsidiaries. Accordingly, no provision has been made for U.S. income and foreign withholding taxes that would result if such earnings were repatriated. These taxes are undeterminable at this time. The amount of earnings retained in subsidiaries was $7,474 and $12,187 at June 30, 2012 and 2011, respectively. |
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Research and Development Costs | The Company incurred research and development costs of $295 and $250 in fiscal 2012 and in fiscal 2011, respectively, which were charged to operating expenses as incurred. |
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Stock Based Compensation | The Company adopted the fair value recognition provisions under ASC Topic 718 Share Based Payments, using the modified prospective application method. Under this transition method, compensation cost recognized during the twelve months ended June 30, 2012 included the applicable amounts of: (a) compensation cost of all share-based payments granted prior to, but not yet vested as of July 1, 2005 (based on the grant-date fair value estimated in accordance with the original provisions of ASC Topic 718) and (b) compensation cost for all share-based payments granted subsequent to June 30, 2005. |
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Non-controlling Interests in Consolidated FinancialStatements | The Company adopted ASC 810, Consolidation, regarding non-controlling interests issued by the FASB related to the accounting for non-controlling interests in consolidated financial statements. This guidance establishes accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. This guidance requires that non-controlling interests in subsidiaries be reported in the equity section of the controlling companys balance sheet. It also changes the manner in which the net income of the subsidiary is reported and disclosed in the controlling companys income statement. The adoption of this guidance did not have a material impact on the Companys consolidated financial statements |
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Earnings per Share | Computation of basic earnings per share is conducted by dividing net income available to common shares (numerator) by the weighted average number of common shares outstanding (denominator) during a reporting period. Computation of diluted earnings per share gives effect to all dilutive potential common shares outstanding during a reporting period. In computing diluted earnings per share, the average market price of common shares for a reporting period is used in determining the number of shares assumed to be purchased from the exercise of stock options. In fiscal years 2012 and 2011, all the outstanding options were excluded in the computation of diluted EPS because they were anti-dilutive. |
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Fair Values of Financial Instruments | Carrying value of trade accounts receivable, accounts payable, accrued liabilities, and term deposits approximate their fair value due to their short-term maturities. Carrying values of the Companys lines of credit and long-term debt are considered to approximate their fair value because the interest rates associated with the lines of credit and long-term debt are adjustable in accordance with market situations when the Company borrows funds with similar terms and remaining maturities. See Note 25 for detailed discussion of the fair value measurement of financial instruments.
The Company adopted the provisions of ASC Topic 820 Fair Value Measurement, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
Availability of observable inputs can vary from instrument to instrument and to the extent that valuation is based on inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by our management in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. |
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Concentration of Credit Risk | Financial instruments that subject the Company to credit risk compose accounts receivable. The Company performs ongoing credit evaluations of its customers for potential credit losses. The Company generally does not require collateral. The Company believes that its credit policies do not result in significant adverse risk and historically it has not experienced significant credit related losses. |
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Investment in Unconsolidated Joint Venture | The Company analyzes its investments in joint ventures to determine if the joint venture is a variable interest entity (a VIE) and would require consolidation. The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate a venture that is determined to be a VIE if it was the primary beneficiary. The primary beneficiary of a VIE is determined by a primarily qualitative approach whereby the variable interest holder, if any, has the power to direct the VIEs most significant activities and is the primary beneficiary. To the extent that the joint venture does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the venture should be consolidated. |
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Equity Method | The Company analyzes its investments in joint ventures to determine if the joint venture should be accounted for using the equity method. Management evaluates both Common Stock and in-substance Common Stock whether they give the Company the ability to exercise significant influence over operating and financial policies of the joint venture even though the Company holds less than 50% of the Common Stock and in-substance Common Stock. The net income of the joint venture is reported as Equity in (loss) or earnings of unconsolidated joint ventures, net of tax in the Companys consolidated statements of operations and comprehensive income. |
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Cost Method | Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Companys share of the earnings or losses of such Investee companies is not included in the Consolidated Balance Sheet and Comprehensive income. However, impairment charges are recognized in the Comprehensive income. If circumstances suggest that the value of the Investee company has subsequently recovered, such recovery is not recorded. |
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Loan Receivables from Property Development Projects | The loan receivables from property development projects are classified as current assets carried at face value and are individually evaluated for impairment. The allowance for loan losses reflects managements best estimate of probable losses determined principally on the basis of historical experience and specific allowances for known loan accounts. All loans or portions thereof deemed to be uncollectible or to require an excessive collection cost are written off to the allowance for losses.
Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful. |
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NEW ACCOUNTING PRONOUNCEMENTS | In December 2011, the FASB has issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amendments are effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2011. Entities will not be required to comply with the presentation requirements in ASU No. 2011-05 that ASU No. 2011-12 is deferring. In order to defer only those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in ASU No. 2011-12 supersede certain pending paragraphs in ASU No. 2011-05. The amendments are being made to allow the FASB time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. This update did not have an impact on the Company for presentation of Comprehensive Income commencing for the year ending June 30, 2012.
In September 2011, the FASB issued ASU No. 2011-08, IntangiblesGoodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 is intended to simplify how entities test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350,Intangibles-Goodwill and Other. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this update did not have an impact on our results of operations or financial position, as the Company has fully impaired goodwill in prior fiscal years.
Other new pronouncements issued but not yet effective until after June 30, 2012 are not expected to have a significant effect on the Companys consolidated financial position or results of operations. |
INVESTMENT PROPERTY IN CHINA (Tables)
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Companys investment in the property based on the exchange rate | The following table presents the Companys investment in the property in China as of June 30, 2012. The exchange rate is based on the exchange rate as of June 30, 2012 published by the Monetary Authority of Singapore.
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TERM DEPOSITS (Tables)
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TERM DEPOSITS |
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ADOPTION OF ASC TOPIC 740 (Tables)
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Adoption Of Asc Topic 740 Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized tax benefits | The Company adopted ASC Topic 740 Accounting for Income Taxes - Interpretation of Topic 740, on July 1, 2010. The Company has not made any charges to the beginning balance of retained earnings as a result of implementing ASC Topic 740. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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INVENTORIES
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Note 3- INVENTORIES (In Thousands) | Inventories consisted of the following:
The following table represents the changes in provision for obsolete inventory:
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
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Jun. 30, 2012
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Express Test Corporation (Dormant)
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Ownership | 100.00% |
Location | Van Nuys, California |
Trio-Tech Reliability Services (Dormant)
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Ownership | 100.00% |
Location | Van Nuys, California |
KTS Incorporated, dba Universal Systems (Dormant)
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Ownership | 100.00% |
Location | Van Nuys, California |
European Electronic Test Centre (Operation ceased on November 1, 2005)
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Ownership | 100.00% |
Location | Dublin, Ireland |
Trio-Tech International Pte. Ltd
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Ownership | 100.00% |
Location | Singapore |
Universal (Far East) Pte. Ltd
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Ownership | 100.00% |
Location | Singapore |
Trio-Tech International (Thailand) Co. Ltd
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Ownership | 100.00% |
Location | Bangkok, Thailand |
Trio-Tech (Bangkok) Co. Ltd. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.)
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Ownership | 100.00% |
Location | Bangkok, Thailand |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.)
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Ownership | 55.00% |
Location | Penang and Selangor, Malaysia |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.)
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Ownership | 55.00% |
Location | Selangor, Malaysia |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.)
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Ownership | 76.00% |
Location | Selangor, Malaysia |
Trio-Tech (Suzhou) Co. Ltd.
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Ownership | 100.00% |
Location | Suzhou, China |
Trio-Tech (Shanghai) Co. Ltd.
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Ownership | 100.00% |
Location | Shanghai, China |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd.
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Ownership | 100.00% |
Location | Chongqing, China |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.)
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Ownership | 55.00% |
Location | Singapore |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd)
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Ownership | 55.00% |
Location | Batam, Indonesia |
Trio-Tech (Tianjin) Co. Ltd.
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Ownership | 100.00% |
Location | Tianjin, China |