EX-99.1 2 ex99-1.htm PRESS RELEASE Blueprint
 
Exhibit 99.1
 
 
LOS ANGELES
SINGAPORE
KUALA LUMPUR
 
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 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)
 
 
 
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
 
2016
 
 
2015
 
 
 
 
 
 
 
 
Products
 $3,671 
 $3,140 
Testing services
  4,157 
  3,783 
Distribution
  1,104 
  975 
Other
  39 
  32 
 
  8,971 
  7,930 
Cost of Sales
    
    
Cost of products sold
  2,795 
  2,109 
Cost of testing services rendered
  2,814 
  2,758 
Distribution
  991 
  853 
Other
  13 
  32 
 
  6,613 
  5,752 
 
    
    
Gross Margin
  2,358 
  2,178 
 
    
    
Operating Expenses:
    
    
General and administrative
  1,743 
  1,662 
Selling
  185 
  171 
Research and development
  53 
  46 
Total operating expenses
  1,981 
  1,879 
 
    
    
Income from Operations
  377 
  299 
 
    
    
Other Income (Expenses)
    
    
Interest expense
  (58)
  (53)
Other income, net
  110 
  208 
 
    
    
Total other income
  52 
  155 
 
    
    
Income from Continuing Operations before Income Taxes
  429 
  454 
Income Tax (Expense)
  (83)
  (67)
 
    
    
Income from Continuing Operations before Non-controlling Interest, net of tax
  346 
  387 
 
    
    
Loss (income) from discontinued operations, net of tax
  1 
  (10)
 
    
    
NET INCOME
  347 
  377 
 
    
    
Less: Net income attributable to the non-controlling interest
  44 
  118 
Net Income attributable to Trio-Tech International
 $303 
 $259 
 
    
    
Net Income (Loss) Attributable to Trio-Tech International:
    
    
Income from continuing operations, net of tax
  303 
  264 
(Loss) from discontinued operations, net of tax
  -- 
  (5)
 
    
    
Net Income Attributable to Trio-Tech International
 $303 
 $259 
 
    
    
Earnings per share
    
    
Basic earnings per share
 $0.09 
 $0.08 
Diluted earnings per share
 $0.08 
 $0.08 
 
    
    
Weighted Average Shares Outstanding - Basic
  3,513 
  3,513 
Weighted Average Shares Outstanding - Diluted
  3,579 
  3,521 
 
 
 
 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
 
 
Three Months Ended
September 30,
 
Comprehensive Income (Loss)  Attributable to Trio-Tech International:
 
2016
 
 
2015
 
 
 
 
 
 
 
 
Net income
 $347 
 $377 
Foreign currency translation, net of tax
  (283)
  (1,425)
Comprehensive (Loss) Income
  64 
  (1,048)
 
    
    
Less: Comprehensive (Loss) attributable to non-controlling interests
  (21)
  (252)
 
    
    
Comprehensive Income (Loss) Attributable to Trio-Tech International
 $85 
 $(796)
 
 
 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
 
 
Sep. 30,
 
 
June 30,
 
 
 
2016
 
 
2016
 
ASSETS
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
  Cash and cash equivalents
 $4,216 
 $3,807 
  Short-term deposits
  702 
  295 
  Trade accounts receivable, net
  8,109 
  8,826 
  Other receivables
  354 
  596 
  Inventories, net
  1,179 
  1,460 
  Prepaid expenses and other current assets
  313 
  264 
  Assets held for sale
  89 
  92 
     Total current assets
  14,962 
  15,340 
 
    
    
Deferred tax assets
  401 
  401 
Investment properties, net
  1,309 
  1,340 
Property, plant and equipment, net
  11,032 
  11,283 
Other assets
  1,786 
  1,788 
Restricted term deposits
  2,041 
  2,067 
     Total non-current assets
  16,569 
  16,879 
TOTAL ASSETS
 $31,531 
 $32,219 
 
    
    
LIABILITIES AND SHAREHOLDER'S EQUITY
    
    
 
    
    
CURRENT LIABILITIES:
    
    
  Lines of credit
 $1,531 
 $2,491 
  Accounts payable
  3,311 
  2,921 
  Accrued expenses
  2,681 
  2,642 
  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 
 
    
    
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 
TOTAL LIABILITIES
  10,595 
  11,348 
 
    
    
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, 2016 and June 30, 2016, respectively
  10,882 
  10,882 
  Paid-in capital
  3,189 
  3,188 
  Accumulated retained earnings
  3,328 
  3,025 
  Accumulated other comprehensive gain-translation adjustments
  1,944 
  2,162 
     Total Trio-Tech International shareholders' equity
  19,343 
  19,257 
Non-controlling interest
  1,593 
  1,614 
TOTAL EQUITY
  20,936 
  20,871 
TOTAL LIABILITIES AND EQUITY
 $31,531 
 $32,219 
 
 
16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130