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
of 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.
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.
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
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version on businesswire.com: http://www.businesswire.com/news/home/20161114005591/en/
for Trio-Tech InternationalCompany Contact:A. Charles
Wilson, 818-787-7000ChairmanorInvestor Contact:Berkman
Associates310-477-3118info@BerkmanAssociates.com
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