Trio-Tech International (NYSE MKT: TRT) announced today
that net income for the first quarter of fiscal 2020 more than
quadrupled to $273,000, or $0.07 per diluted share, compared to
$65,000, or $0.02 per diluted share, for the first quarter of
fiscal 2019.
Total revenue for the three months ended September 30, 2019
decreased 2% to $9,823,000 compared to revenue of $10,045,000 for
the first quarter of fiscal 2019. Manufacturing revenue decreased
9% to $3,317,000 from $3,637,000 last year, primarily related to a
decline in orders at Trio-Tech’s Singapore operations.
Semiconductor testing services revenue decreased 1% to $4,390,000
compared to $4,437,000 last year, reflecting lower orders in
Malaysia and China. Distribution revenue increased 8% to $2,099,000
compared to $1,944,000 in the first quarter last year, driven by an
increase in orders from customers in Singapore.
Gross margin improved for all three of our major business
segments for the first quarter of fiscal 2020 compared to the first
quarter of fiscal 2019, increasing 7% to $2,252,000, or 23% of
sales, compared to $2,101,000, or 21% of sales in the same quarter
last year. As a percent of sales, an improved product mix raised
manufacturing and distribution gross margin to 23%, from 21% and to
14% from 13%, respectively, while cost reductions contributed to an
increase in testing services gross margin to 27% from 24% a year
ago.
Operating expenses for the first quarter of fiscal 2020
increased 3% to $2,030,000, or 21% of sales, compared to
$1,978,000, or 20% of sales, for the first quarter of fiscal
2019.
Operating income increased 80% to $222,000, or 2% of revenue,
compared to $123,000, or 1% of revenue, in the same quarter last
year.
Shareholders' equity at September 30, 2019 was $24,569,000, or
$6.69 per outstanding share, compared to $24,861,000, or $6.77 per
outstanding share, at June 30, 2019. There were approximately
3,673,055 common shares outstanding at September 30, 2019 and June
30, 2019.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "By aggressively managing
costs and implementing programs to improve operating efficiency, we
achieved higher margins and increased profitability in the first
quarter of fiscal 2020 despite the slight decline in revenue. A
favorable product mix in our manufacturing and distribution
operations also contributed to our bottom-line performance.
Although our customers are likely to continue to be affected by
uncertainty associated with ongoing trade disputes, we believe that
the semiconductor industry remains robust with new products and
technologies for communications, defense, automotive and a host of
other applications that create many exciting opportunities for
Trio-Tech’s long-term growth.”
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; trade tension between U.S.
and China; 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
2019
2018
Manufacturing
$
3,317
$
3,637
Testing services
4,390
4,437
Distribution
2,099
1,944
Real estate
17
27
9,823
10,045
Cost of Sales
Cost of manufactured products sold
2,555
2,857
Cost of testing services rendered
3,191
3,383
Cost of distribution
1,807
1,686
Cost of real estate
18
18
7,571
7,944
Gross Margin
2,252
2,101
Operating Expenses:
General and administrative
1,788
1,759
Selling
190
147
Research and development
76
72
Gain on disposal of property, plant and
equipment
(24
)
--
Total operating expenses
2,030
1,978
Income from Operations
222
123
Other Income (Expenses)
Interest expenses
(68
)
(78
)
Other income, net
110
43
Total other income (expenses)
42
(35
)
Income from Continuing Operations before
Income Taxes
264
88
Income Tax Expense
--
(74
)
Income from Continuing Operations before
Non-controlling Interest, net of tax
264
14
Loss from discontinued operations, net of
tax
(1
)
(8
)
NET INCOME
263
6
Less: Net loss attributable to the
non-controlling interest
(10
)
(59
)
Net Income attributable to Trio-Tech
International
273
$
65
Net Income Attributable to Trio-Tech
International:
Income from continuing operations, net of
tax
274
69
Loss from discontinued operations, net of
tax
(1
)
(4
)
Net Income Attributable to Trio-Tech
International
$
273
$
65
Earnings per share
Basic earnings per share
$
0.07
$
0.02
Diluted earnings per share
$
0.07
$
0.02
Weighted Average Shares Outstanding -
Basic
3,673
3,608
Weighted Average Shares Outstanding -
Diluted
3,690
3,732
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
September 30,
2019
2018
Comprehensive Income (Loss) Attributable
to Trio-Tech International:
Net income
$
263
$
6
Foreign currency translation, net of
tax
(563
)
(539
)
Comprehensive Loss
(300
)
(533
)
Less: comprehensive income (loss)
attributable to non-controlling interests
9
(135
)
Comprehensive Loss Attributable to
Trio-Tech International
$
(309
)
$
(398
)
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF
SHARES)
Sep. 30,
Jun. 30,
2019
2019
ASSETS
(unaudited)
(audited)
CURRENT ASSETS:
Cash and cash equivalents
$
3,710
$
4,863
Short-term deposits
5,222
4,144
Trade accounts receivable, net
7,520
7,113
Other receivables
756
817
Inventories, net
1,688
2,427
Prepaid expenses and other current
assets
346
287
Assets held for sale
88
89
Total current assets
19,330
19,740
Deferred tax assets
383
390
Investment properties, net
736
782
Property, plant and equipment, net
11,787
12,159
Operating lease right-of-use assets
614
--
Other assets
1,594
1,750
Restricted term deposits
1,674
1,706
Total non-current assets
16,788
16,787
TOTAL ASSETS
$
36,118
$
36,527
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Lines of credit
$
--
$
187
Accounts payable
3,170
3,272
Accrued expenses
3,374
3,486
Income taxes payable
333
417
Current portion of bank loans payable
360
488
Current portion of finance leases
206
283
Current portion of operating leases
362
--
Total current liabilities
7,805
8,133
Bank loans payable, net of current
portion
2,259
2,292
Finance leases, net of current portion
479
442
Operating leases, net of current
portion
219
--
Deferred tax liabilities
321
327
Income taxes payable
430
439
Other non-current liabilities
36
33
Total non-current liabilities
3,744
3,533
TOTAL LIABILITIES
11,549
11,666
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS'
EQUITY:
Common stock, no par value, 15,000,000
shares authorized; 3,673,055
shares issued and outstanding at September
30, 2019 and June 30, 2019
11.424
11,424
Paid-in capital
3,313
3,305
Accumulated retained earnings
7,343
7,070
Accumulated other comprehensive
gain-translation adjustments
1,285
1,867
Total Trio-Tech International
shareholders' equity
23,365
23,666
Non-controlling interest
1,204
1,195
TOTAL EQUITY
24,569
24,861
TOTAL LIABILITIES AND EQUITY
$
36,118
$
36,527
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191113005208/en/
Company Contact: A. Charles Wilson Chairman (818)
787-7000
Investor Contact: Berkman Associates (310) 927-3108
info@BerkmanAssociates.com
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