EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

LOS ANGELES
SINGAPORE
KUALA LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING

 FOR IMMEDIATE RELEASE
 
 
Company Contact:       Investor Contact:
 A. Charles Wilson         Berkman Associates
 Chairman                        (310) 477-3118
 (818) 787-7000            info@BerkmanAssociates.com
 
 
 
Trio-Tech Reports Sharply Narrower Second Quarter Net Loss
As Revenue Increases 11.1%

    Van Nuys, CA -- February 14, 2013 -- Trio-Tech International (NYSE MKT:TRT) today announced financial results for the second quarter and first half of fiscal 2013.
 
    For the three months ended December 31, 2012, revenue increased 11.1% to $7,351,000 compared $6,619,000 for last year's second quarter.  The net loss attributable to Trio-Tech common shareholders for the second quarter of fiscal 2013 decreased to $506,000, or $0.15 per share.  This compares to a net loss for the second quarter of fiscal 2012 of $1,203,000, or $0.36 per share.
 
    For the six months ended December 31, 2012, revenue increased 10.9% to $17,098,000, compared $15,418,000 for last year's first half.  The net loss attributable to Trio-Tech common shareholders for the first six months of fiscal 2013 narrowed to $523,000, or $0.16 per share, compared to a net loss for the first six months of fiscal 2012 of $2,007,000, or $0.60 per share. Cash provided by operations for the first six months of fiscal 2013 was $3,646,000, compared to cash used by operations for the first six months of fiscal 2012 of $1,754,000.  Shareholders' equity at December 31, 2012 was $21,132,000, or $6.36 per outstanding share, compared to $20,556,000, or $6.25 per outstanding share, at June 30, 2012.
 
    "Our core operations performed well in the second quarter, and our cash position is improving.  Revenue from semiconductor testing services was up 33.9%, driven by higher testing volume in our Malaysia, Thailand and China operations, while sales of semiconductor test products increased 3.6%.  Benefitting from the growth in revenue, gross margin for this year's second quarter improved to 18.3% compared to 11.4% a year ago, while operating expenses decreased 18.2%, reflecting our commitment to control costs.  We are optimistic about the outlook for our testing business, especially in China," said SW Yong, Trio-Tech's CEO.
 
    As previously announced, effective on December 31, 2012, the Company terminated the lease on the yard in Batam, Indonesia used for its oil and gas equipment fabrication business.  Yong noted that this will contribute to further cost reductions beginning in the current quarter.
 
    About Trio-Tech
 
    Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, oil and gas equipment fabrication and real estate.  Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com, www.universalfareast.com, www.shi-international.com and www.ttsolar.com.
 
 
 
 

 
 
Trio-Tech Reports Sharply Narrower Second Quarter Net Loss As Revenue Increases 11.1%
February 14, 2013
Page Two
 
Forward-Looking Statements
 
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company.  In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward-looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Southeast Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this Quarterly Report are forward-looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward-looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology.  Forward-looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions.
 
 
(tables attached)
 
 
 

 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
       
             
   
Three Months Ended
   
Six Months Ended
 
 
December 31,
   
December 31,
 
         
 
             
Revenue
 
2012
   
2011
   
2012
   
2011
 
Products
  $ 3,419     $ 3,301     $ 9,055     $ 6,417  
Testing Services
    3,769       2,815       7,678       6,106  
Fabrication Services
    130       455       302       2,800  
Other
    33       48       63       95  
                                 
      7,351       6,619       17,098       15,418  
Costs of Sales
                               
Cost of products sold
    2,799       2,743       7,825       5,350  
Cost of testing services rendered
    2,842       2,566       5,519       5,200  
Cost of fabrication services rendered
    331       528       578       2,660  
Other
    32       26       65       52  
                                 
      6,004       5,863       13,987       13,262  
                                 
Gross Margin
    1,347       756       3,111       2,156  
                                 
Operating Expenses:
                               
General and administrative
    1,731       2,166       3,555       4,264  
Selling
    129       123       262       267  
Research and development
    72       73       145       148  
(Gain) Loss on disposal of property, plant and equipment
    --       --       (3 )     4  
                                 
Total operating expenses
    1,932       2,362       3,959       4,683  
                                 
Loss from Operations
    (585 )     (1,606 )     (848 )     (2,527 )
                                 
Other Income (Expenses)
                               
Interest expense
    (82 )     (70 )     (167 )     (131 )
Other income, net
    75       (23 )     257       21  
                                 
Total other (expenses) income
    (7 )     (93 )     90       (110 )
                                 
Loss from Continuing Operations before Income Taxes
    (592 )     (1,699 )     (758 )     (2,637 )
                                 
Income Tax Benefit (Expense)
    (2 )     136       123       99  
                                 
Loss from Continuing Operations before Non-controlling Interest, net of tax
    (594 )     (1,563 )     (635 )     (2,538 )
                                 
Equity in earnings of unconsolidated joint venture, net of tax
    --       --       --       (11 )
                                 
LOSS FROM DISCONTINUED OPERATIONS, net of tax
    --       (1 )     --       (2 )
                                 
NET LOSS
  $ (594 )   $ (1,564 )   $ (635 )   $ (2,551 )
                                 
Less: Net loss attributable to the non-controlling interest
    (88 )     (361 )     (112 )     (544 )
                                 
Net Loss attributable to Trio-Tech International
    (506 )     (1,203 )     (523 )     (2,007 )
                                 
Net Loss Attributable to Trio-Tech International:
                               
Loss from continuing operations, net of tax
    (506 )     (1,202 )     (523 )     (2,005 )
Loss from discontinued operations, net of tax
    --       (1 )     --       (2 )
                                 
Net Loss Attributable to Trio-Tech Intenational
  $ (506 )   $ (1,203 )   $ (523 )   $ (2,007 )
                                 
Comprehensive Income (Loss) Attributable to Trio-Tech:
                               
                                 
Net loss
  $ (594 )   $ (1,564 )   $ (635 )   $ (2,551 )
Foreign currency translation, net of tax
    161       425       716       (109 )
Comprehensive Income (Loss)
    (433 )     (1,139 )     81       (2,660 )
Less: Comprehensive (loss) income attributable to non-controlling Interest
    (46 )     (348 )     52       (566 )
Comprehensive (Loss) Income Attributable to Trio-Tech
    (387 )     (791 )     29       (2,094 )
                                 
Basic and diluted loss per share from continuing operations
  $ (0.15 )   $ (0.36 )   $ (0.16 )   $ (0.60 )
Basic and diluted loss per share from discontinued operations
    --       --       --       --  
Basic and diluted Loss per Share
  $ (0.15 )   $ (0.36 )   $ (0.16 )   $ (0.60 )
                                 
Weighted Average Shares Outstanding - Basic and Diluted
    3322       3,322       3,322       3,322  
 
 
 
 

 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
             
 
Dec. 31,
   
June 30,
 
 
2012
   
2012
 
ASSETS
 
(unaudited)
       
             
CURRENT ASSETS:
           
Cash & cash equivalents
  $ 2,790     $ 1,572  
Short-term deposits
    105       250  
Trade accounts receivable, net
    6,869       11,311  
Other receivables
    560       962  
Loan receivables from property development projects
    1,123       1,101  
Inventories, net
    2,138       2,324  
Prepaid expenses and other current assets
    287       406  
Assets held for sale
    --       130  
                 
Total current assets
    13,872       18,056  
                 
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
    781       765  
INVESTMENT PROPERTIES, Net
    1,933       1,815  
PROPERTY, PLANT AND EQUIPMENT, Net
    13,233       13,193  
OTHER ASSETS
    599       776  
RESTRICTED TERM DEPOSITS
    3,615       3,445  
                 
TOTAL ASSETS
  $ 34,033     $ 38,050  
                 
                 
LIABILITIES AND SHAREHOLDER'S EQUITY
               
                 
CURRENT LIABILITIES:
               
Lines of credit
  $ 2,626     $ 3,605  
Accounts payable
    2,631       4,834  
Accrued expenses
    2,611       3,011  
Income taxes payable
    471       469  
Current portion of bank loans payable
    734       766  
Current portion of capital leases
    151       175  
                 
Total current liabilities
    9,224       12,860  
                 
BANK LOANS PAYABLE, net of current portion
    3,136       3,373  
CAPITAL LEASES, net of current portion
    172       221  
DEFERRED TAX LIABILITIES
    356       497  
OTHER NON-CURRENT LIABILITIES
    13       543  
                 
TOTAL LIABILITIES
    12,901       17,494  
                 
COMMITMENTS 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 at
               
December 31, 2012, and June 30, 2012, respectively
    10,531       10,531  
Paid-in capital
    2,733       2,431  
Accumulated retained earnings
    2,164       2,687  
Accumulated other comprehensive gain-translation adjustments
    3,739       3,187  
                 
Total Trio-Tech International shareholders' equity 
    19,167       18,836  
                 
NON-CONTROLLING INTEREST
    1,965       1,720  
                 
     TOTAL EQUITY
    21,132       20,556  
                 
TOTAL LIABILITIES AND EQUITY
  $ 34,033     $ 38,050