Exhibit
99.1
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LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING
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FOR IMMEDIATE RELEASE
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Company
Contact: Investor
Contact:
A.
Charles
Wilson
Berkman Associates
Chairman
(310) 477-3118
(818)
787-7000 info@BerkmanAssociates.com
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Trio-Tech
Second Quarter Net Income $0.09 Per Diluted Share
First Half Net Income $0.11 Per Diluted Share
Van Nuys, CA – February 13, 2019
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
second quarter and first six months of fiscal 2019.
Fiscal
2019 Second Quarter Results
For the
three months ended December 31, 2018, revenue decreased 8% to
$9,690,000 compared to revenue of $10,552,000 for the same quarter
last year. Manufacturing revenue was $3,352,000, a 16% decline
compared to $3,973,000 for the same quarter last year.
Semiconductor testing services revenue was $4,393,000, an 11%
decline compared to $4,936,000 in the same quarter last year.
Distribution revenue was $1,916,000, a 19% increase compared to
$1,606,000 for the same quarter last year.
Gross
margin for the second quarter of fiscal 2019 was $2,258,000, or 23%
of revenue, compared to $2,795,000, or 26% of revenue, for the same
quarter last year, reflecting lower sales and a less favorable
product mix in manufacturing and testing services.
Operating expenses
declined 3% to $2,031,000, or 21% of revenue, from $2,097,000, or
20% of revenue, primarily due to reduced selling
expenses.
Net
income attributable to Trio-Tech common shareholders for the fiscal
2019 second quarter was $348,000, or $0.09 per diluted share. This
compares to net income attributable to Trio-Tech common
shareholders for the second quarter of fiscal 2018 of $673,000, or
$0.18 per diluted share.
Net
income for the second quarter of fiscal 2019 benefitted from
adjustments related to the finalization of the One-Time Mandatory
Repatriation Tax expense of $900,000 which was recognized in the
third quarter of fiscal 2018. Upon finalization of the accounting
analysis, Trio-Tech recorded a reversal of $145,000 from provision
of income tax to reduce the tax liability related to the one-time
transition tax to $755,000. This estimated tax is payable over a
period of eight years at no interest and is not expected to have a
material effect on the Company’s working capital
position.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "We are glad to report higher
profitability for the second quarter of fiscal 2019 compared to the
year’s first quarter and are working diligently to improve
the Company’s financial performance in the second half of
fiscal 2019. Our state-of-the-art products and services, in many
cases, are available only from Trio-Tech. Based on customer
inquiries and follow-up meetings, we believe Trio-Tech has a
competitive advantage in today’s complex and increasingly
competitive semiconductor manufacturing and testing
environment."
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech
Fiscal 2019 Second Quarter Net Income $0.09 Per Diluted
Share
February 13,
2019
Page
Two
Fiscal
2019 First Half Results
For the
six months ended December 31, 2018, revenue decreased 8% to
$19,735,000 compared to revenue of $21,497,000 for the first half
of fiscal 2018. Manufacturing revenue decreased 20% to $6,989,000
compared to $8,738,000 last year. Semiconductor testing services
revenue was down 7% to $8,830,000 compared to $9,541,000 a year
ago, while distribution revenue increased 23% to $3,860,000
compared to $3,142,000.
Gross
margin for the first six months of fiscal 2019 decreased 22% to
$4,359,000, or 22% of revenue, compared to $5,555,000, or 26% of
revenue, for last year’s first six months.
Operating expenses
for the first six months of fiscal 2019 decreased 7% to $4,009,000
compared to $4,310,000 for the same period last year. Operating
expenses were 20% of revenue in both periods.
Net
income attributable to Trio-Tech common shareholders for the first
six months of fiscal 2019 was $413,000, or $0.11 per diluted share,
compared to $1,248,000, or $0.34 per diluted share, for the first
six months of fiscal 2018.
Shareholders'
equity at December 31, 2018 was $23,511,000, or $6.40 per
outstanding share, compared to $23,501,000, or $6.61 per
outstanding share, at June 30, 2018. There were approximately
3,673,055 Trio-Tech International common shares outstanding at
December 31, 2018.
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 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.
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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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
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Six Months Ended
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December 31,
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December 31,
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Revenue
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2018
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2017
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2018
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2017
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Manufacturing
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$3,352
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$3,973
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$6,989
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$8,738
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Testing services
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4,393
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4,936
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8,830
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9,541
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Distribution
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1,916
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1,606
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3,860
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3,142
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Others
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29
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37
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56
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76
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9,690
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10,552
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19,735
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21,497
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Cost of Sales
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Cost of manufactured products sold
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2,646
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3,068
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5,503
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6,717
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Cost of testing services rendered
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3,106
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3,251
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6,489
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6,390
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Cost of distribution
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1,662
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1,409
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3,348
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2,777
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Others
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18
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29
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36
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58
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7,432
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7,757
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15,376
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15,942
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Gross Margin
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2,258
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2,795
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4,359
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5,555
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Operating Expenses:
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General and administrative
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1,722
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1,727
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3,481
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3,566
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Selling
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187
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252
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334
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431
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Research and development
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122
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118
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194
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302
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Loss
on disposal of property, plant and equipment
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--
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--
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--
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11
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Total operating expenses
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2,031
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2,097
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4,009
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4,310
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Income from Operations
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227
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698
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350
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1,245
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Other (Expenses) Income
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Interest expenses
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(98)
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(52)
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(176)
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(110)
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Other income, net
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49
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42
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92
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200
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Total other (expenses)
income
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(49)
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(10)
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(84)
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90
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Income from Continuing Operations before Income Taxes
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178
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688
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266
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1,335
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Income Tax Benefit
(expenses)
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124
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(13)
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50
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(55)
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Income from Continuing Operations
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before Non-controlling Interest, Net of Tax
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302
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675
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316
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1,280
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Income (Loss)
from Discontinued Operations, Net of Tax
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4
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(2)
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(4)
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(5)
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NET INCOME
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306
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673
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312
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1,275
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Less: Income Attributable to Non-controlling Interest
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(42)
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--
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(101)
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27
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Net Income Attributable to Trio-Tech International
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348
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$673
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413
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$1,248
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Net Income Attributable to Trio-Tech International:
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Income from Continuing Operations, Net of Tax
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346
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678
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415
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1,254
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Income (Loss)
from Discontinued Operations, Net of Tax
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2
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(5)
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(2)
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(6)
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Net Income attributable to Trio-Tech International
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$348
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$673
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$413
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$1,248
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Basic
Earnings per Share
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$0.09
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$0.19
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$0.11
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$0.35
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Diluted Earnings
per share
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$0.09
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$0.18
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$0.11
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$0.34
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Weighted Average Shares Outstanding B Basic
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3,673
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3,548
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3,673
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3,548
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Weighted Average Shares Outstanding B Diluted
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3,781
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3,793
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3,815
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3,770
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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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
December 31,
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Six Months Ended
December 31,
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2018
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2017
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2018
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2017
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Comprehensive Income Attributable to
Trio-Tech International
Common Shareholders:
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Net income
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$306
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$673
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$312
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$1,275
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Foreign Currency Translation, Net of Tax
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(51)
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588
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(590)
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963
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Comprehensive Income
(Loss)
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255
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1,261
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(278)
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2,238
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Less: Comprehensive Income
(Loss)
Attributable
To Non-controlling Interest
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(57)
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88
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(192)
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115
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Comprehensive Income
(Loss) Attributable to
Trio-Tech International
Common Shareholders
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$312
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$1,173
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$(86)
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$2,123
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
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Dec. 31,
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Jun. 30,
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2018
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2018
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ASSETS
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(unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$6,192
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$6,539
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Short-term deposits
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2,121
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653
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Trade accounts receivable, net
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6,996
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7,747
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Other receivables
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991
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881
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Inventories, net
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2,630
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2,930
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Prepaid expenses and other current assets
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279
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208
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Assets held for sale
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486
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91
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Total current assets
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19,695
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19,049
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Deferred tax asset
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335
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400
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Investment properties, net
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678
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1,146
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Property, plant and equipment, net
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12,749
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11,935
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Other assets
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1,750
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2,249
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Restricted term deposits
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1,688
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1,695
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Total non-current assets
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17,200
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17,425
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TOTAL ASSETS
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$36,895
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$36,474
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Lines of credit
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$2,033
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$2,043
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Accounts payable
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2,532
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3,704
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Accrued expenses
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3,978
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3,172
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Income taxes payable
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256
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285
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Current portion of bank loans payable
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480
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367
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Current portion of capital leases
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252
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250
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|
|
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Total current liabilities
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9,531
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9,821
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Bank loans payable, net of current portion
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2,525
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1,437
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Capital leases, net of current portion
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382
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524
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Deferred tax liabilities
|
296
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327
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Income
taxes payable
|
613
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828
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Other non-current liabilities
|
37
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36
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|
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Total non-current liabilities
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3,853
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3,152
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TOTAL LIABILITIES
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$13,384
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$12,973
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|
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EQUITY
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TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
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Common stock, no par value, 15,000,000 shares authorized;
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3,673,055 and
3,553,055 issued and outstanding at
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December
31, 2018 and June 30, 2018,
respectively
|
11,424
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$11,023
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Paid-in capital
|
3,258
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3,249
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Accumulated retained earnings
|
5,938
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5,525
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Accumulated other comprehensive gain-translation adjustments
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1,683
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2,182
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|
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Total Trio-Tech International shareholders' equity
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22,303
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21,979
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|
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Non-controlling interest
|
1,208
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1,522
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TOTAL EQUITY
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$23,511
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$23,501
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|
|
|
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TOTAL LIABILITIES AND EQUITY
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$36,895
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$36,474
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|
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