Trio-Tech International (NYSE MKT:TRT) today announced financial
results for the third quarter and the first nine months of fiscal 2014.
"We are pleased by the steadily improving performance of our core
semiconductor manufacturing equipment and semiconductor testing services
businesses, both of which delivered solid revenue growth for the third
quarter and first nine months of fiscal 2014 compared to the same
periods of fiscal 2013. Gross margin, operating income, and net income
also increased versus the same periods of the prior year. We believe our
solid performance reflects our focus on customer service and operating
efficiency, and we are optimistic about the outlook for the period
ahead," said S.W. Yong, Trio-Tech's CEO.
Third Quarter Results
For the three months ended March 31, 2014, revenue increased 24.5% to
$8,039,000, compared to revenue of $6,458,000 for the third quarter of
fiscal 2013. Products revenue increased 12.5% to $3,394,000 compared to
$3,018,000 for last year's third fiscal quarter, and semiconductor
testing services revenue increased 35.0% to $4,599,000 compared to
$3,407,000 for the third quarter of fiscal 2013.
Gross margin for this year's fiscal third quarter increased to
$1,967,000, or 24.5% of revenue, compared to $1,267,000, or 19.6% of
revenue, for the third quarter of fiscal 2013.
Operating expenses for the third quarter of fiscal 2014 of $1,946,000,
or 24.2% of revenue, included non-cash stock option expense of $8,000.
For the third quarter of fiscal 2013, operating expenses of $1,780,000,
or 27.6% of revenue, included non-cash stock option expense of $21,000.
Income from operations for the third quarter of fiscal 2014 increased to
$21,000 compared to an operating loss of $513,000 for the same period a
year ago.
Net income attributable to Trio-Tech common shareholders for the third
quarter of fiscal 2014 increased to $157,000, or $0.05 per diluted
share, which included income from the discontinued fabrication services
business of $34,000, or $0.01 per share. In comparison, for the third
quarter of fiscal 2013, the net loss attributable to Trio-Tech common
shareholders was $543,000, or $0.16 per share, which included a loss
from the discontinued fabrication business of $52,000, or $0.01 per
share. Trio-Tech terminated its fabrication facilities lease in December
2012 and discontinued this segment in the fourth quarter of fiscal 2013.
Nine Months Results
For the nine months ended March 31, 2014, revenue increased 15.6% to
$26,875,000 compared to revenue of $23,254,000 for the first nine months
of fiscal 2013. Products revenue increased 11.8% to $13,495,000 compared
to $12,073,000 for the first nine months of fiscal 2013, and
semiconductor testing services revenue increased 19.5% to $13,244,000
compared to $11,085,000 for the same period last year.
Gross margin for the first nine months of fiscal 2014 increased to
$6,045,000, or 22.5% of revenue, compared to $4,654,000, or 20.0% of
revenue, for the same period last year.
Operating expenses for the first nine months of fiscal 2014 increased
9.8% to $6,143,000, or 22.9% of revenue, including a non-cash stock
option expense of $208,000. For the same period last year, operating
expenses of $5,592,000, or 24.0% of revenue, included non-cash stock
option expense of $40,000.
The operating loss for the first nine months of fiscal 2014 of $98,000
narrowed significantly from the operating loss of $938,000 for the first
nine months of fiscal 2013.
The net loss attributable to Trio-Tech common shareholders for the first
nine months of fiscal 2014 was $225,000, or $0.06 per share, which
included a loss from the discontinued fabrication services business of
$38,000, or $0.00 per share. In comparison, for the first nine months of
fiscal 2013, the net loss attributable to Trio-Tech common shareholders
was $1,065,000, or $0.32 per share, including a loss from the
discontinued fabrication business of $541,000, or $0.08 per share.
Cash provided by operations for the first nine months of fiscal 2014 was
$3,154,000, compared to cash provided by operations for the first nine
months of fiscal 2013 of $4,104,000.
Shareholders' equity at March 31, 2014 was $20,583,000, or $5.86 per
outstanding share, compared to $20,606,000, or $6.20 per outstanding
share, at June 30, 2013. There were approximately 3,513,000 common
shares outstanding for the first nine months of fiscal 2014, compared to
approximately 3,322,000 common shares outstanding for the same period
last year.
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, oil and gas equipment fabrication 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
|
|
|
Nine Months Ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
$
|
3,394
|
|
|
|
$
|
3,018
|
|
|
|
$
|
13,495
|
|
|
|
$
|
12,073
|
|
Testing Services
|
|
|
|
4,599
|
|
|
|
|
3,407
|
|
|
|
|
13,244
|
|
|
|
|
11,085
|
|
Other
|
|
|
|
46
|
|
|
|
|
33
|
|
|
|
|
136
|
|
|
|
|
96
|
|
|
|
|
|
8,039
|
|
|
|
|
6,458
|
|
|
|
|
26,875
|
|
|
|
|
23,254
|
|
Costs of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
|
2,895
|
|
|
|
|
2,538
|
|
|
|
|
11,305
|
|
|
|
|
10,363
|
|
Cost of testing services rendered
|
|
|
|
3,142
|
|
|
|
|
2,621
|
|
|
|
|
9,420
|
|
|
|
|
8,140
|
|
Other
|
|
|
|
35
|
|
|
|
|
32
|
|
|
|
|
105
|
|
|
|
|
97
|
|
|
|
|
|
6,072
|
|
|
|
|
5,191
|
|
|
|
|
20,830
|
|
|
|
|
18,600
|
|
Gross Margin
|
|
|
|
1,967
|
|
|
|
|
1,267
|
|
|
|
|
6,045
|
|
|
|
|
4,654
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
1,757
|
|
|
|
|
1,567
|
|
|
|
|
5,429
|
|
|
|
|
4,982
|
|
Selling
|
|
|
|
140
|
|
|
|
|
143
|
|
|
|
|
553
|
|
|
|
|
399
|
|
Research and development
|
|
|
|
49
|
|
|
|
|
72
|
|
|
|
|
150
|
|
|
|
|
217
|
|
(Gain) Loss on disposal of property, plant and equipment
|
|
|
|
--
|
|
|
|
|
(2
|
)
|
|
|
|
11
|
|
|
|
|
(6
|
)
|
Total operating expenses
|
|
|
|
1,946
|
|
|
|
|
1,780
|
|
|
|
|
6,143
|
|
|
|
|
5,592
|
|
Loss (Income) from Operations
|
|
|
|
21
|
|
|
|
|
(513
|
)
|
|
|
|
(98
|
)
|
|
|
|
(938
|
)
|
Other Income (Expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(62
|
)
|
|
|
|
(72
|
)
|
|
|
|
(196
|
)
|
|
|
|
(226
|
)
|
Other income, net
|
|
|
|
77
|
|
|
|
|
78
|
|
|
|
|
36
|
|
|
|
|
388
|
|
Total other income (expenses)
|
|
|
|
15
|
|
|
|
|
6
|
|
|
|
|
(160
|
)
|
|
|
|
162
|
|
Income (loss) from Continuing Operations before Income Taxes
|
|
|
|
36
|
|
|
|
|
(507
|
)
|
|
|
|
(258
|
)
|
|
|
|
(776
|
)
|
Income Tax Benefit (Expense)
|
|
|
|
184
|
|
|
|
|
(28
|
)
|
|
|
|
266
|
|
|
|
|
96
|
|
Income (loss) from Continuing Operations before Non-controlling
Interest, net of tax
|
|
|
|
220
|
|
|
|
|
(535
|
)
|
|
|
|
8
|
|
|
|
|
(680
|
)
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
34
|
|
|
|
|
(52
|
)
|
|
|
|
(38
|
)
|
|
|
|
(541
|
)
|
NET INCOME (LOSS)
|
|
|
$
|
254
|
|
|
|
$
|
(587
|
)
|
|
|
$
|
(30
|
)
|
|
|
$
|
(1,221
|
)
|
Less: Net income (loss) attributable to the non-controlling interest
|
|
|
|
97
|
|
|
|
|
(44
|
)
|
|
|
|
195
|
|
|
|
|
(156
|
)
|
Net Income (loss) attributable to Trio-Tech International
|
|
|
|
157
|
|
|
|
|
(543
|
)
|
|
|
|
(225
|
)
|
|
|
|
(1,065
|
)
|
Net Income (Loss) Attributable to Trio-Tech International:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations, net of tax
|
|
|
|
138
|
|
|
|
|
(530
|
)
|
|
|
|
(204
|
)
|
|
|
|
(810
|
)
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
19
|
|
|
|
|
(13
|
)
|
|
|
|
(21
|
)
|
|
|
|
(255
|
)
|
Net Income (Loss) Attributable to Trio-Tech International
|
|
|
$
|
157
|
|
|
|
$
|
(543
|
)
|
|
|
$
|
(225
|
)
|
|
|
$
|
(1,065
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income (Loss) Attributable to Trio-Tech International
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
254
|
|
|
|
$
|
(587
|
)
|
|
|
$
|
(30
|
)
|
|
|
$
|
(1,221
|
)
|
Foreign currency translation, net of tax
|
|
|
|
(249
|
)
|
|
|
|
(52
|
)
|
|
|
|
(394
|
)
|
|
|
|
665
|
|
Comprehensive Income (Loss)
|
|
|
|
5
|
|
|
|
|
(639
|
)
|
|
|
|
(424
|
)
|
|
|
|
(556
|
)
|
Less: Comprehensive income (loss) attributable to non-controlling
Interest
|
|
|
|
88
|
|
|
|
|
(61
|
)
|
|
|
|
82
|
|
|
|
|
(8
|
)
|
Comprehensive Loss Attributable to Trio-Tech International
|
|
|
|
(83
|
)
|
|
|
|
(578
|
)
|
|
|
|
(506
|
)
|
|
|
|
(548
|
)
|
Basic and diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.04
|
|
|
|
$
|
(0.15
|
)
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
(0.24
|
)
|
From discontinued operations
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.08
|
)
|
Basic and diluted Earnings (Loss) per Share
|
|
|
$
|
0.05
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
(0.32
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
|
|
|
3,513
|
|
|
|
|
3,322
|
|
|
|
|
3,513
|
|
|
|
|
3,322
|
|
Weighted Average Shares Outstanding - Diluted
|
|
|
|
3,582
|
|
|
|
|
3,322
|
|
|
|
|
3,513
|
|
|
|
|
3,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31
|
|
|
Jun. 30,
|
|
|
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
(Unaudited)
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash & cash equivalents
|
|
|
|
|
$
|
2,549
|
|
|
$
|
2,793
|
Short-term deposits
|
|
|
|
|
|
101
|
|
|
|
104
|
Trade accounts receivable, net
|
|
|
|
|
|
8,163
|
|
|
|
8,728
|
Other receivables
|
|
|
|
|
|
429
|
|
|
|
993
|
Loan receivables from property development projects, net
|
|
|
|
|
|
803
|
|
|
|
1,139
|
Inventories, net
|
|
|
|
|
|
1,823
|
|
|
|
2,463
|
Prepaid expenses and other current assets
|
|
|
|
|
|
294
|
|
|
|
358
|
Total current assets
|
|
|
|
|
|
14,162
|
|
|
|
16,578
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
--
|
|
|
|
791
|
Investment Properties, Net
|
|
|
|
|
|
1,785
|
|
|
|
1,893
|
Property, Plant and Equipment, Net
|
|
|
|
|
|
13,024
|
|
|
|
12,851
|
Other Assets
|
|
|
|
|
|
1,720
|
|
|
|
437
|
Restricted Term Deposits
|
|
|
|
|
|
3,505
|
|
|
|
3,494
|
TOTAL ASSETS
|
|
|
|
|
$
|
34,196
|
|
|
$
|
36,044
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Lines of credit
|
|
|
|
|
$
|
2,875
|
|
|
$
|
3,864
|
Accounts payable
|
|
|
|
|
|
3,591
|
|
|
|
4,136
|
Accrued expenses
|
|
|
|
|
|
3,183
|
|
|
|
3,060
|
Income taxes payable
|
|
|
|
|
|
273
|
|
|
|
459
|
Current portion of bank loans payable
|
|
|
|
|
|
599
|
|
|
|
770
|
Current portion of capital leases
|
|
|
|
|
|
67
|
|
|
|
105
|
Total current liabilities
|
|
|
|
|
|
10,588
|
|
|
|
12,394
|
|
|
|
|
|
|
|
|
|
Bank Loans Payable, net of current portion
|
|
|
|
|
|
2,601
|
|
|
|
2,613
|
Capital Leases, net of current portion
|
|
|
|
|
|
229
|
|
|
|
228
|
Deferred Tax Liabilities
|
|
|
|
|
|
157
|
|
|
|
191
|
Other non-current liabilities
|
|
|
|
|
|
38
|
|
|
|
12
|
TOTAL LIABILITIES
|
|
|
|
|
|
13,613
|
|
|
|
15,438
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized;
3,513,055 and 3,321,555 shares issued and outstanding at March 31,
2014 and June 30, 2013, respectively
|
|
|
|
|
|
10,882
|
|
|
|
10,531
|
Paid-in capital
|
|
|
|
|
|
2,964
|
|
|
|
2,756
|
Accumulated retained earnings
|
|
|
|
|
|
1,443
|
|
|
|
1,668
|
Accumulated other comprehensive gain-translation adjustments
|
|
|
|
|
|
3,399
|
|
|
|
3,680
|
Total Trio-Tech International shareholders' equity
|
|
|
|
|
|
18,688
|
|
|
|
18,635
|
Non-controlling interest
|
|
|
|
|
|
1,895
|
|
|
|
1,971
|
TOTAL EQUITY
|
|
|
|
|
|
20,583
|
|
|
|
20,606
|
TOTAL LIABILITIES AND EQUITY
|
|
|
|
|
$
|
34,196
|
|
|
$
|
36,044
|
Copyright Business Wire 2014