EX-99.1 2 ex99-1.htm PRESS RELEASE OF TRIO-TECH INTERNATIONAL DATED NOVEMBER 18, 2014 ex99-1.htm
Exhibit 99.1
 
 
LOS ANGELES
SINGAPORE
KUALA LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING

FOR IMMEDIATE RELEASE
 
 
Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000                                           
Investor Contact:
Berkman Associates
(310) 477-3118
info@BerkmanAssociates.com

Trio-Tech Reports Fiscal 2015 First Quarter Results

Van Nuys, CA - November 18, 2014 - Trio-Tech International (NYSE MKT:TRT) today announced financial results for the first quarter of fiscal 2015.
For the three months ended September 30, 2014, revenue decreased to $8,093,000 compared to revenue of $9,497,000 for the first quarter of fiscal 2014.  Semiconductor testing services revenue increased 14.1% to $4,618,000 for this year's first quarter compared to $4,048,000 for the same period last fiscal year, but this growth was offset by a 36.5% decrease in products revenue to $3,432,000 for the first quarter of fiscal 2015 compared to $5,405,000 for the same period in fiscal 2014.  The decrease in products revenue was primarily due to the postponement of order deliveries as requested by a customer in Singapore and a customer in the United States.  Products revenue was also affected by reduced capital spending by customers for facility and equipment upgrades, compared to the same period in fiscal 2014.
The net loss attributable to Trio-Tech common shareholders for the first quarter of fiscal 2015 was $136,000, or $0.04 per basic and diluted share, which included income from the discontinued fabrication services business of $14,000, or $0.00 per share.  This compares to a net loss attributable to Trio-Tech common shareholders of $17,000, or $0.01 per basic and diluted share, in the first quarter of fiscal 2014, which included a loss from the discontinued fabrication services business of $23,000, or $0.01 per share. Trio-Tech terminated its fabrication facilities lease in December 2012 and discontinued this segment in the fourth quarter of fiscal 2013.
Gross margin for this year's first quarter was 22.2% compared to 22.0% for the same period in fiscal 2014.  Operating expenses decreased to $1,931,000 for the first quarter of fiscal 2015 compared to $2,104,000 for the same period last fiscal year, primarily because of a $105,000 reduction in stock option expense for this year's first quarter versus the same period in fiscal 2014.
The loss from operations for the first quarter of fiscal 2015 was $134,000.  This compares to a loss from operations for the first quarter of fiscal 2014 of $13,000.
Cash provided by operations for the first quarter of fiscal 2015 was $466,000.  This compares to cash provided by operations for the first quarter of fiscal 2014 of $1,213,000.
Shareholders' equity at September 30, 2014 was $20,922,000, or $5.96 per outstanding share, compared to $20,833,000, or $5.93 per outstanding share, at June 30, 2014.  There were approximately 3,513,000 common shares outstanding at September 30, 2014 and June 30, 2014.
S.W. Yong, Trio-Tech's CEO, said, "While we were disappointed by the postponement of two orders for equipment from customers in this year's first quarter, we expect to ship these orders during the second or third quarter this year and we remain optimistic about the outlook for Trio-Tech.  Our core semiconductor manufacturing equipment and semiconductor testing services businesses continued to run efficiently in the first quarter, as evidenced by the slight improvement in gross margin and solid cash flow despite the decline in revenue compared to the same period in fiscal 2014.


(more)

 
 
 

Trio-Tech Reports Fiscal 2015 First Quarter Results
November 18, 2014
Page Two




"We remain attentive to the evolving needs of our international customers and strive to further refine our operations.  This formula has proven its worth in the past, and we believe will continue to support our success in the future."

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, and www.ttsolar.com.

Forward Looking Statements
This press release contains statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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)
$4967

 
 
 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
  
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
  
       
 
Three Months Ended
  
 
September 30,
  
Revenue
  
2014
    
2013
  
Products
   $ 3,432     $ 5,405  
Testing Services
     4,618       4,048  
Other
     43       44  
                 
      8,093       9,497  
Costs of Sales
                
Cost of products sold
     3,213       4,346  
Cost of testing services rendered
     3,049       3,025  
Other
     34       35  
      6,296       7,406  
Gross Margin
     1,797       2,091  
                 
Operating Expenses:
                
General and administrative
     1,738       1,834  
Selling
     131       205  
Research and development
     47       52  
Impairment loss on property, plant and equipment
     15       --  
Loss on disposal of property, plant and equipment
     --       13  
                 
Total operating expenses
     1,931       2,104  
                 
Loss from Operations
     (134 )     (13 )
                 
Other (Expenses) Income
                
Interest expense
     (64 )     (68 )
Other income, net
     46       164  
                 
Total other (expenses) income
     (18 )     96  
                 
(Loss) Income from Continuing Operations before Income Taxes
     (152 )     83  
                 
Income Tax Benefit
     46       43  
                 
(Loss) Income from Continuing Operations before Non-controlling Interest, net of tax
     (106 )     126  
                 
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax
     26       (42 )
                 
NET (LOSS) INCOME
   $ (80 )   $ 84  
                 
Less: Net income attributable to the non-controlling interest
     56       101  
                 
Net Loss attributable to Trio-Tech International
     (136 )     (17 )
                 
Net Loss Attributable to Trio-Tech International Common Shareholders:
                
(Loss) income from continuing operations, net of tax
     (150 )     6  
Income (loss) from discontinued operations, net of tax
     14       (23 )
                 
Net Loss Attributable to Trio-Tech International
   $ (136 )   $ (17 )
                 
Comprehensive Income (Loss) Attributable to Trio-Tech Shareholders:
                
                 
Net (loss) income
   $ (80 )   $ 84  
Foreign currency translation, net of tax
     160       (183 )
Comprehensive Income (Loss)
     80       (99 )
Less: Comprehensive income (loss) attributable to non-controlling Interest
     113       (4 )
Comprehensive (Loss) Attributable to Trio-Tech Shareholders
     (33 )     (95 )
                 
Basic and Diluted loss per share from continuing operations
   $ (0.04 )   $ 0.00  
Basic and Diluted loss per share from discontinued operations
     (0.00 )     (0.01 )
Basic and Diluted Loss per Share
   $ (0.04 )   $ (0.01 )
                 
Weighted Average Shares Outstanding - Basic and Diluted
     3,513       3,399  

 
 
 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
  
   
             
 
Sep. 30,
    
Jun. 30,
  
 
2014
    
2014
  
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 2,157     $ 2,938  
Short-term deposits
     104       102  
Trade accounts receivable, net
     7,850       8,625  
Other receivables
     413       311  
Loans receivable from property development projects
     --       --  
Inventories, net
     1,494       1,106  
Prepaid expenses and other current assets
     260       205  
                 
Total current assets
     12,278       13,287  
                 
DEFERRED TAX ASSETS
     382       388  
INVESTMENTS
     --       --  
INVESTMENT PROPERTIES, Net
     1,752       1,765  
PROPERTY, PLANT AND EQUIPMENT, Net
     13,326       13,541  
LOAN RECEIVABLES FROM PROPERTY DEVELOPMENT PROJECTS
     814       805  
OTHER ASSETS
     1,306       1,263  
RESTRICTED TERM DEPOSITS
     3,477       3,541  
                 
TOTAL ASSETS
   $ 33,335     $ 34,590  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Lines of credit
   $ 3,048     $ 3,767  
Accounts payable
     3,244       3,162  
Accrued expenses
     2,685       3,046  
Income taxes payable
     216       214  
Current portion of bank loans payable
     292       448  
Current portion of capital leases
     71       81  
                 
Total current liabilities
     9,556       10,718  
                 
BANK LOANS PAYABLE, net of current portion
     2,504       2,598  
CAPITAL LEASES, net of current portion
     185       200  
DEFERRED TAX LIABILITIES
     129       202  
OTHER NON-CURRENT LIABILITIES
     39       39  
                 
TOTAL LIABILITIES
     12,413       13,757  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
EQUITY
                
                 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
                
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding at September 30, 2014, and June 30, 2014
     10,882       10,882  
Paid-in capital
     2,981       2,972  
Accumulated retained earnings
     1,589       1,725  
Accumulated other comprehensive gain-translation adjustments
     3,625       3,522  
                 
Total Trio-Tech International shareholders' equity 
     19,077       19,101  
                 
NON-CONTROLLING INTEREST
     1,845       1,732  
                 
     TOTAL EQUITY
     20,922       20,833  
                 
TOTAL LIABILITIES AND EQUITY
   $ 33,335     $ 34,590  

16139 Wyandotte Street, Van Nuys, CA 91406,  USA  ●  TEL:  (818) 787-7000  ●  FAX  (818) 787-9130