Trio-Tech International (NYSE MKT: TRT) today announced
financial results for the first quarter of fiscal 2021 ended
September 30, 2020.
Total revenue for the three months ended September 30, 2020
decreased 30% to $6,841,000. This compares to total revenue of
$9,823,000 for the first quarter of fiscal 2020. Revenue in each of
the Company’s operating segments — manufacturing, testing services,
and distribution — decreased in this year’s first quarter versus
the same period of last fiscal year, primarily reflecting the
impact of the global Covid-19 pandemic.
Overall gross margin decreased to $1,518,000, or 22% of revenue,
compared to $2,252,000, or 23% of revenue, for the first quarter
last fiscal year.
Operating expenses for the first quarter of fiscal 2021
decreased 9% to $1,845,000, or 27% of revenue, compared to
$2,030,000, or 21% of revenue, for the first quarter of fiscal
2020.
The operating loss for this year’s first quarter was $327,000.
This compares to operating income of $222,000 for the same quarter
a year ago.
Total other income was $174,000 for the first quarter of fiscal
2021 compared to $42,000 for the same quarter last year. Other
income for this year’s first quarter included government assistance
of $142,000 for Trio-Tech’s Singapore and Malaysia operations to
mitigate the adverse impact on the business from the pandemic.
There was no such assistance in the same quarter last year.
The net loss for the first quarter of fiscal 2021 was $8,000, or
$0.00 per share. This compares to net income for the first quarter
of fiscal 2020 of $273,000, or $0.07 per diluted share.
Shareholders' equity at September 30, 2020 was $25,538,000, or
$6.93 per outstanding share, compared to $25,146,000, or $6.84 per
outstanding share, at June 30, 2020. There were approximately
3,685,555 and 3,673,055 common shares outstanding at September 30,
2020 and June 30, 2020, respectively.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "The global Covid-19 pandemic
had a dramatic impact on Trio-Tech’s first quarter performance.
While we posted a small net loss in this difficult operating
environment, our significant accomplishments include improvements
in gross margins in the manufacturing and distribution segments and
positive cash flow for the quarter. As the pandemic has yet to run
its course, we will continue to adjust operating expenses wherever
possible to insure Trio-Tech’s future success.”
About Trio‑Tech
Established in 1958, Trio-Tech International is located in Van
Nuys, California, with its Principal Executive Office and regional
headquarter in Singapore. Trio-Tech International is a diversified
business group with interests in semiconductor testing services,
manufacturing and distribution of semiconductor testing equipment,
and real estate. Our subsidiary locations include Tianjin, Suzhou,
Chongqing in China, as well as Kuala Lumpur Malaysia and Bangkok
Thailand. Further information about Trio-Tech's semiconductor
products and services can be obtained from the Company's Web site
at www.triotech.com and www.universalfareast.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; public health issues
related to the COVID-19 pandemic; 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
2020
2019
Manufacturing
$
2,625
$
3,317
Testing services
2,954
4,390
Distribution
1,258
2,099
Real estate
4
17
6,841
9,823
Cost of Sales
Cost of manufactured products sold
1,937
2,555
Cost of testing services rendered
2,322
3,191
Cost of distribution
1,047
1,807
Cost of real estate
17
18
5,323
7,571
Gross Margin
1,518
2,252
Operating Expenses:
General and administrative
1,660
1,788
Selling
111
190
Research and development
75
76
Gain on disposal of property, plant and
equipment
(1
)
(24
)
Total operating expenses
1,845
2,030
(Loss) Income from Operations
(327
)
222
Other Income (Expenses)
Interest expenses
(37
)
(68
)
Other income, net
211
110
Total other income
174
42
(Loss) Income from Continuing Operations
before Income Taxes
(153
)
264
Income Tax Expense
(7
)
--
(Loss) Income from Continuing Operations
before Non-controlling Interest, net of tax
(160
)
264
Loss from discontinued operations, net of
tax
(6
)
(1
)
NET (LOSS) INCOME
(166
)
263
Less: Net loss attributable to the
non-controlling interest
(158
)
(10
)
Net (Loss) Income attributable to
Trio-Tech International
(8
)
273
Net (Loss) Income Attributable to
Trio-Tech International:
(Loss) Income from continuing operations,
net of tax
(5
)
274
Loss from discontinued operations, net of
tax
(3
)
(1
)
Net (Loss) Income Attributable to
Trio-Tech International
$
(8
)
$
273
Earnings per share
Basic earnings per share
$
0.00
$
0.07
Diluted earnings per share
$
0.00
$
0.07
Weighted Average Shares Outstanding -
Basic
3,686
3,673
Weighted Average Shares Outstanding -
Diluted
3,766
3,690
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
September 30,
2020
2019
Comprehensive (Loss) Income Attributable
to Trio-Tech International:
Net (loss) income
$
(166
)
$
263
Foreign currency translation, net of
tax
640
(563
)
Comprehensive Income (Loss)
474
(300
)
Less: comprehensive (loss) income
attributable to non-controlling interests
(122
)
9
Comprehensive Income (Loss) Attributable
to Trio-Tech International
$
596
$
(309
)
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF
SHARES)
Sep. 30,
Jun. 30,
2020
2020
ASSETS
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
4,849
$
4,150
Short-term deposits
6,678
6,697
Trade accounts receivable, net
5,745
5,951
Other receivables
905
998
Inventories, net
1,872
1,922
Prepaid expenses and other current
assets
417
482
Total current assets
20,466
20,200
Deferred tax assets
276
247
Investment properties, net
699
690
Property, plant and equipment, net
10,135
10,310
Operating lease right-of-use assets
819
944
Other assets
1,738
1,609
Restricted term deposits
1,695
1,660
Total non-current assets
15,362
15,460
TOTAL ASSETS
$
35,828
$
35,660
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Lines of credit
$
--
$
172
Accounts payable
2,024
2,590
Accrued expenses
3,549
3,005
Income taxes payable
360
344
Current portion of bank loans payable
425
370
Current portion of finance leases
224
231
Current portion of operating leases
425
477
Current portion of PPP loan
121
54
Total current liabilities
7,128
7,243
Bank loans payable, net of current
portion
1,956
1,836
Finance leases, net of current portion
394
435
Operating leases, net of current
portion
394
467
Income taxes payable
385
430
PPP loan, net of current portion
--
67
Other non-current liabilities
33
36
Total non-current liabilities
3,162
3,271
TOTAL LIABILITIES
10,290
10,514
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS'
EQUITY:
Common stock, no par value, 15,000,000
shares authorized; 3,685,555 and 3,673,055 shares
issued and outstanding at September 30,
2020 and June 30, 2020, respectively
11,458
11,424
Paid-in capital
3,369
3,363
Accumulated retained earnings
8,028
8,036
Accumulated other comprehensive
gain-translation adjustments
1,747
1,143
Total Trio-Tech International
shareholders' equity
24,602
23,966
Non-controlling interest
936
1,180
TOTAL EQUITY
25,538
25,146
TOTAL LIABILITIES AND EQUITY
$
35,828
$
35,660
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version on businesswire.com: https://www.businesswire.com/news/home/20201113005199/en/
Company Contact: A. Charles Wilson Chairman (818)
787-7000
Investor Contact: Berkman Associates (310) 927-3108
info@BerkmanAssociates.com
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