Trio-Tech International (NYSE MKT: TRT) today announced
financial results for the second quarter and first six months of
fiscal 2022.
Fiscal 2022 Second Quarter Results
Revenue for the three months ended December 31, 2021 increased
33% to $10,922,000 compared to $8,201,000 for the same quarter last
year, driven by a 39% increase in testing services revenue and a
127% increase in distribution revenue.
Overall gross margin for the second quarter increased to 26% of
revenue compared to 23% of revenue for the same quarter last year.
Operating income increased to $656,000 compared to an operating
loss of $37,000 for last year’s second quarter.
Net income for the second quarter of fiscal 2022 increased 264%
to $855,000, or $0.20 per diluted share, compared to net income of
$235,000, or $0.06 per diluted share, for the second quarter of
fiscal 2021.
Shareholders' equity at December 31, 2021 increased to
$27,820,000, or $7.06 per outstanding share, compared to
$26,053,000, or $6.66 per outstanding share, at June 30, 2021.
There were approximately 3,939,180 and 3,913,055 shares of common
stock outstanding at December 31, 2021 and June 30, 2021,
respectively.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, “Compared to the same quarter
last year, the significant increase in net income primarily
reflects the strong second quarter performance of our testing
services and distribution operations. While backlog remains strong
and the Company is focused on expanding our service offerings, we
remain cautiously optimistic regarding the current fiscal third
quarter ending March 31, 2022, typically the weakest quarter of our
fiscal year, due to holidays and vacations related to the
celebration of the Chinese New Year.”
Yong added, “We have successfully established our joint-venture
company and installed the first burn-in system at the new
facilities of Trio-Tech (Jiangsu) Co., Ltd. They are now ready for
qualification and we anticipate commencing volume production in the
coming fourth quarter of fiscal 2022.”
Fiscal 2022 First Half Results
For the first six months of fiscal 2022, revenue increased 40%
to $21,093,000 compared to $15,042,000 for the same period last
year.
Overall gross margin for the first six months of fiscal 2022
increased to $6,069,000, compared to $3,388,000 for the same period
last year and increased to 29% of revenue compared to 23% in the
same period last year.
Net income for the first half of fiscal 2022 increased 681% to
$1,772,000, or $0.43 per diluted share, compared to $227,000, or
$0.06 per diluted share, for the same period last year.
About Trio‑Tech
Established in 1958, Trio-Tech International is located in Van
Nuys, California, with its Principal Executive Office and regional
headquarters 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; on-going public health
issues related to the COVID-19 pandemic; political and trade
tension between U.S and China, other economic, financial and
regulatory factors beyond the Company's control and, uncertainties
relating to our ability to operate our business in China;
uncertainties regarding the enforcement of laws and the fact that
rules and regulation in China can change quickly with little
advance notice, along with the risk that the Chinese government may
intervene or influence our operation at any time, or may exert more
control over offerings conducted overseas and/or foreign investment
in China-based issuers could result in a material change in our
operations, financial performance and/or the value of our common
stock or impair our ability to raise money. 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 (LOSS)
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
Six Months Ended
December 31,
December 31,
Revenue
2021
2020
2021
2020
Manufacturing
$ 3,528
$ 3,569
$ 7,090
$ 6,194
Testing services
4,966
3,560
9,566
6,514
Distribution
2,420
1,065
4,418
2,323
Real estate
8
7
19
11
10,922
8,201
21,093
15,042
Cost of Sales
Cost of manufactured products sold
2,874
2,770
5,308
4,707
Cost of testing services rendered
3,089
2,678
5,972
5,000
Cost of distribution
2,050
861
3,706
1,908
Cost of real estate
19
22
38
39
8,032
6,331
15,024
11,654
Gross Margin
2,890
1,870
6,069
3,388
Operating Expenses:
General and administrative
1,947
1,662
3,927
3,322
Selling
156
122
303
233
Research and development
131
123
213
198
Gain on disposal of property, plant and
equipment
--
--
--
(1
)
Total operating expenses
2,234
1,907
4,443
3,752
Income (Loss) from Operations
656
(37
)
1,626
(364
)
Other Income (Expenses)
Interest expenses
(28
)
(34
)
(56
)
(71
)
Other income, net
381
143
542
354
Total other income
353
109
486
283
Income (loss) from Continuing Operations
before Income Taxes
1,009
72
2,112
(81
)
Income Tax Expenses
(153
)
--
(333
)
(7
)
Income (loss) from Continuing
Operations
before Non-controlling Interest, Net of
Tax
856
72
1,779
(88
)
(Loss) Income from Discontinued
Operations, Net of Tax
--
(21
)
5
(27
)
NET INCOME (LOSS)
856
51
1,784
(115
)
Less: Income (Loss) Attributable to
Non-controlling Interest
1
(184
)
12
(342
)
Net Income Attributable to Trio-Tech
International
855
235
1,772
227
Net Income Attributable to Trio-Tech
International:
Income from Continuing Operations, Net of
Tax
856
246
1,770
241
(Loss) Income from Discontinued
Operations, Net of Tax
(1
)
(11
)
2
(14
)
Net Income attributable to Trio-Tech
International
$ 855
$ 235
$ 1,772
$ 227
Basic Earnings per Share
$ 0.22
$ 0.06
$ 0.46
$ 0.06
Diluted Earnings per share
$ 0.20
$ 0.06
$ 0.43
$ 0.06
Weighted Average Shares Outstanding -
Basic
3,923
3,710
3,923
3,710
Weighted Average Shares Outstanding -
Diluted
4,242
3,800
4,129
3,793
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
UNAUDITED (IN THOUSANDS, EXCEPT
EARNINGS PER SHARE)
Three Months Ended
Six Months Ended
December 31,
December 31,
2021
2020
2021
2020
Comprehensive Income Attributable to
Trio-Tech International Common Shareholders:
Net income (loss)
$ 856
$ 51
$ 1,784
$ (115
)
Foreign Currency Translation, Net of
Tax
251
943
(38
)
1,583
Comprehensive Income
1,107
994
1,746
1,468
Less: Comprehensive income (loss)
Attributable To Non-controlling Interest
2
(197)
6
(319
)
Comprehensive Income Attributable to
Trio-Tech International Common Shareholders
$ 1,105
$ 1,191
$ 1,740
$ 1,787
TRIO‑TECH INTERNATIONAL AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF
SHARES)
Dec. 31,
Jun. 30,
2021
2021
ASSETS
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$ 7,526
$ 5,836
Short-term deposits
4,997
6,651
Trade accounts receivable, net
9,839
8,293
Other receivables
2,387
662
Inventories, net
2,572
2,080
Prepaid expenses and other current
assets
511
418
Financed Sales Receivable
21
19
Total current assets
27,853
23,959
Deferred tax assets
169
217
Investment properties, net
653
681
Property, plant and equipment, net
9,267
9,531
Operating lease right-of-use assets
2,699
1,876
Other assets
147
262
Restricted term deposits
1,735
1,741
Financed Sales Receivable
29
39
Total non-current assets
14,699
14,347
TOTAL ASSETS
$ 42,552
$ 38,306
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Lines of credit
$ 477
$ 72
Accounts payable
3,961
3,702
Accrued expenses
4,744
3,363
Income taxes payable
351
314
Current portion of bank loans payable
445
439
Current portion of finance leases
163
197
Current portion of operating leases
845
672
Total current liabilities
10,986
8,759
Bank loans payable, net of current
portion
1,386
1,621
Finance leases, net of current portion
178
253
Operating leases, net of current
portion
1,857
1,204
Income taxes payable
281
385
Deferred tax liabilities
15
--
Other non-current liabilities
29
31
Total non-current liabilities
3,746
3,494
TOTAL LIABILITIES
14,732
12,253
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS'
EQUITY:
Common stock, no par value, 15,000,000
shares authorized; 3,939,180 and 3,913,055
shares issued and outstanding at December
31, 2021 and June 30, 2021, respectively
12,178
12,178
Paid-in capital
4,373
4,233
Accumulated retained earnings
8,596
6,824
Accumulated other comprehensive
gain-translation adjustments
2,367
2,399
Total Trio-Tech International
shareholders' equity
27,514
25,634
Non-controlling interest
306
419
TOTAL EQUITY
27,820
26,053
TOTAL LIABILITIES AND EQUITY
$ 42,552
$ 38,306
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220211005461/en/
Company Contact: A. Charles Wilson Chairman (818)
787-7000
Investor Contact: Berkman Associates (310) 927-3108
robert.jacobs@jacobscon.com
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