Exhibit 99.1
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LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
SUZHOU
TIANJIN
CHONGQING
|
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FOR IMMEDIATE RELEASE
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Company
Contact:
A. Charles Wilson
Chairman
(818) 787-7000
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Investor Contact:
Berkman Associates
(310) 477-3118
info@BerkmanAssociates.com
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Trio-Tech Fiscal 2017 First Quarter Revenue Up 13.1%
Operating Income Up 26.1%
Net Income Up 17.0% Versus Fiscal 2016 First Quarter
Van Nuys, CA -- November 14, 2016
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
first quarter of fiscal 2017:
●
Revenue increased
13.1% compared to the first quarter of fiscal 2016.
●
Operating income
increased 26.1% compared to the first quarter of fiscal
2016.
●
Net income
attributable to Trio-Tech common shareholders increased 17.0%
compared to the first quarter of fiscal 2016.
●
Cash and cash
equivalents increased to $1.20 per share at September 30, 2016
compared to $1.08 per share at June 30, 2016.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "Revenue increased for all of
Trio-Tech's businesses in the first quarter of fiscal 2017 compared
to the first quarter of fiscal 2016, highlighted by double-digit
increases in our manufacturing and distribution segments and near
10% growth in our semiconductor testing services segment. This
growth was driven primarily by increased demand from major
customers in Asia, which is an encouraging sign for the
future."
Yong
noted that the mix of business towards a relatively lower margin
distribution revenue, and higher costs of certain products included
in manufacturing revenue, were responsible for a slight decrease in
gross margin for this year's first quarter, to 26.3% compared to
27.5% for the first quarter of fiscal 2016. "Nevertheless,
operating income, a critical metric we use to monitor the Company's
financial performance, increased 26.1% compared to last year's
first quarter, and net income increased 17.0%, as operating
expenses remained under tight control," he added.
"The
new fiscal year is off to a good start, as our increasingly
efficient operations allowed us to translate solid revenue growth
into an even larger increase in profit. Business conditions were
favorable in the first quarter, and we are guardedly optimistic as
we review the outlook for the year as a whole. We remain focused on
delivering quality products and services to all of our customers."
Yong concluded.
Fiscal
2017 First Quarter Results
For the
three months ended September 30, 2016, revenue increased to
$8,971,000 compared to revenue of $7,930,000 for the same period
last fiscal year. Manufacturing revenue increased 16.9% to
$3,671,000 for first quarter 2017 compared to $3,140,000 in the
same quarter last fiscal year. Revenue from semiconductor testing
services increased 9.9% to $4,157,000 in first quarter 2017,
compared to $3,783,000 for last year's first quarter. Distribution
revenue increased 13.2% to $1,104,000 from $975,000 for the first
quarter of fiscal 2016.
(more)
Trio-Tech Fiscal 2017 First Quarter Revenue Up 13.1%, Operating
Income Up 26.1%, Net
Income Up 17.0% Versus Fiscal 2016 First Quarter
November 14,
2016
Page
Two
Gross
margin for the first quarter of fiscal 2017 increased to $2,358,000
compared to $2,178,000 for the same quarter last year. Higher
materials costs and increased sales of lower margin products at
both the manufacturing and distribution segments, compared to the
same quarter last year, contributed to a 1.2 percentage point
decrease in first quarter fiscal 2017 gross margin compared to the
first quarter of fiscal 2016. This was partially offset by higher
sales and improved gross margin in semiconductor testing services
compared to prior year.
Operating expenses
for the first quarter of fiscal 2017 increased to $1,981,000, or
22.1% of revenue, from $1,879,000, or 23.7% of revenue, a year
earlier. The decrease in operating expenses, as a percent of
revenue, contributed to an increase in operating income to $377,000
from $299,000 for the first quarter of fiscal 2016.
Net
income attributable to Trio-Tech common shareholders for the first
quarter of fiscal 2017 increased to $303,000, or $0.08 per diluted
share. This compares to net income attributable to Trio-Tech common
shareholders for the first quarter of fiscal 2016 of $259,000, or
$0.08 per diluted share.
Shareholders'
equity at September 30, 2016 was $20,936,000, or $5.96 per
outstanding share, compared to $20,871,000, or $5.94 per
outstanding share, at June 30, 2016. There were approximately
3,513,000 common shares outstanding at September 30, 2016 and June
30, 2016.
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, 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)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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|||||
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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|||||
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
September 30,
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Revenue
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2016
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2015
|
|
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|
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Products
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$3,671
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$3,140
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Testing services
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4,157
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3,783
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Distribution
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1,104
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975
|
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Other
|
39
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32
|
|
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8,971
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7,930
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Cost of Sales
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|
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Cost of products sold
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2,795
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2,109
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Cost of testing services rendered
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2,814
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2,758
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Distribution
|
991
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853
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Other
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13
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32
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|
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6,613
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5,752
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|
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Gross Margin
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2,358
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2,178
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Operating Expenses:
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General and administrative
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1,743
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1,662
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Selling
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185
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171
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Research and development
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53
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46
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Total operating expenses
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1,981
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1,879
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Income
from Operations
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377
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299
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Other Income
(Expenses)
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|
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Interest expense
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(58)
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(53)
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Other income, net
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110
|
208
|
|
|
|
|
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Total other income
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52
|
155
|
|
|
|
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Income from Continuing Operations before Income Taxes
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429
|
454
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Income Tax (Expense)
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(83)
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(67)
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|
|
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Income
from Continuing Operations
before Non-controlling Interest, net of tax
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346
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387
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|
|
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Loss
(income)
from discontinued operations, net of tax
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1
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(10)
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NET INCOME
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347
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377
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Less: Net income attributable to the non-controlling interest
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44
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118
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Net Income attributable to Trio-Tech International
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$303
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$259
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Net Income (Loss) Attributable to Trio-Tech International:
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Income from continuing operations, net of tax
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303
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264
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(Loss)
from discontinued operations, net of tax
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--
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(5)
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Net Income Attributable to Trio-Tech International
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$303
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$259
|
|
|
|
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Earnings per share
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|
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Basic
earnings per share
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$0.09
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$0.08
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Diluted
earnings per share
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$0.08
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$0.08
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|
|
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Weighted Average Shares Outstanding - Basic
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3,513
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3,513
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Weighted Average Shares Outstanding - Diluted
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3,579
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3,521
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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|||||
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
September 30,
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Comprehensive Income (Loss)
Attributable to Trio-Tech International:
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2016
|
2015
|
|
|
|
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Net income
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$347
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$377
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Foreign currency translation, net of tax
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(283)
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(1,425)
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Comprehensive (Loss)
Income
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64
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(1,048)
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Less: Comprehensive
(Loss)
attributable to non-controlling interests
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(21)
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(252)
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Comprehensive Income
(Loss) Attributable to Trio-Tech International
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$85
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$(796)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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|||
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
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|||
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Sep.
30,
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June 30,
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|
|
2016
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2016
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ASSETS
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(unaudited)
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|
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CURRENT ASSETS:
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|
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Cash and cash equivalents
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$4,216
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$3,807
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Short-term deposits
|
702
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295
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|
Trade accounts receivable, net
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8,109
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8,826
|
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Other receivables
|
354
|
596
|
|
Inventories, net
|
1,179
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1,460
|
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Prepaid expenses and other current assets
|
313
|
264
|
|
Assets held for sale
|
89
|
92
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Total current assets
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14,962
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15,340
|
|
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Deferred tax assets
|
401
|
401
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Investment properties, net
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1,309
|
1,340
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Property, plant and equipment, net
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11,032
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11,283
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Other assets
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1,786
|
1,788
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Restricted term deposits
|
2,041
|
2,067
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Total non-current assets
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16,569
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16,879
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TOTAL ASSETS
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$31,531
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$32,219
|
|
|
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LIABILITIES AND SHAREHOLDER'S EQUITY
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|
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CURRENT LIABILITIES:
|
|
|
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Lines of credit
|
$1,531
|
$2,491
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Accounts payable
|
3,311
|
2,921
|
|
Accrued expenses
|
2,681
|
2,642
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|
Income taxes payable
|
202
|
230
|
|
Current portion of bank loans payable
|
295
|
342
|
|
Current portion of capital leases
|
226
|
235
|
|
Total current liabilities
|
8,246
|
8,861
|
|
|
|
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Bank loans payable, net of current portion
|
1,623
|
1,725
|
|
Capital leases, net of current portion
|
437
|
503
|
|
Deferred tax liabilities
|
246
|
216
|
|
Other non-current liabilities
|
43
|
43
|
|
Total non-current liabilities
|
2,349
|
2,487
|
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TOTAL LIABILITIES
|
10,595
|
11,348
|
|
|
|
|
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COMMITMENTS AND CONTINGENCIES
|
--
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--
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EQUITY
|
|
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TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
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|
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Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares
|
|
|
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issued and outstanding at September
30, 2016 and June 30, 2016, respectively
|
10,882
|
10,882
|
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Paid-in capital
|
3,189
|
3,188
|
|
Accumulated retained earnings
|
3,328
|
3,025
|
|
Accumulated other comprehensive gain-translation adjustments
|
1,944
|
2,162
|
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Total Trio-Tech International shareholders' equity
|
19,343
|
19,257
|
|
Non-controlling interest
|
1,593
|
1,614
|
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TOTAL EQUITY
|
20,936
|
20,871
|
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TOTAL LIABILITIES AND EQUITY
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$31,531
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$32,219
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16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130