Trio-Tech International (NYSE MKT:TRT) today announced financial
results for the fourth quarter and fiscal 2014. For the fourth quarter,
revenue increased 10.2% compared to the same fiscal period last year,
and net income increased to $0.07 per share compared to $0.01 per share
in the same fiscal period last year. For the year, revenue increased
14.1% compared to the prior year, and net income increased to $0.01 per
share compared to a loss of $0.31 per share for fiscal 2013
"We believe that Trio-Tech is on the right path. Revenue increased for
the fourth quarter and fiscal 2014 compared to the same periods of the
prior fiscal year, as did gross margin and net income. Cash from
operations also increased in fiscal 2014 compared to fiscal 2013. By
focusing on our core businesses and working diligently to improve our
operations, Trio-Tech's semiconductor manufacturing equipment and
semiconductor testing services business are running efficiently,
generating solid margins, and offering the broad menu of products and
services that our international customers demand. We are working to take
advantage of opportunities we see for additional revenue growth and
operational enhancements. We believe these achievements will continue
serving us well in the years to come, and we look forward to the future
with confidence," said S.W. Yong, Trio-Tech's CEO.
Fourth Quarter Results
For the three months ended June 30, 2014, revenue increased 10.2% to
$9,387,000, compared to revenue of $8,516,000 for the fourth quarter of
fiscal 2013. Products revenue increased 21% to $4,573,000 compared to
$4,536,000 for the fourth quarter of fiscal 2013, and semiconductor
testing services revenue increased 21.0% to $4,773,000 compared to
$3,944,000 for the fourth quarter of fiscal 2013.
Gross margin for the fourth quarter of fiscal 2014 increased 31.3% to
$2,254,000, or 24.0% of revenue, compared to $1,717,000, or 20.2% of
revenue, for the fourth quarter of fiscal 2013.
Operating expenses for the fourth quarter of fiscal 2014 of $2,158,000,
or 23.0% of revenue, included non cash stock option expenses of $8,000.
For the fourth quarter of fiscal 2013, operating expenses of $1,620,000,
or 19.0% of revenue, included non-cash stock option expenses of $2,000.
Income from operations for the fourth quarter of fiscal 2014 was $96,000
compared to $97,000 for the fourth quarter of the prior fiscal year.
Net income attributable to Trio-Tech common shareholders for the fourth
quarter of fiscal 2014 increased to $282,000, or $0.07 per diluted
share, which included a loss from the discontinued fabrication services
business of $3,000, or $0.01 per share. In comparison, for the fourth
quarter of fiscal 2013, net income attributable to Trio-Tech common
shareholders was $46,000, or $0.01 per share, which included a loss from
the discontinued fabrication business of $114,000, or $0.03 per share.
Trio-Tech terminated its fabrication facilities lease in December 2012
and discontinued this segment in the fourth quarter of fiscal 2013.
Twelve Months Results
For the twelve months ended June 30, 2014, revenue increased 14.1% to
$36,262,000 compared to revenue of $31,770,000 for fiscal 2013. Products
revenue increased 8.8% to $18,068,000 compared to $16,609,000 for fiscal
2013, and semiconductor testing services revenue increased 19.9% to
$18,017,000 compared to $15,029,000 for the prior year.
Gross margin for fiscal 2014 increased 30.7% to $8,299,000, or 22.9% of
revenue, compared to $6,351,000, or 20.0% of revenue, for fiscal 2013.
Operating expenses for fiscal 2014 increased 15.1% to $8,301,000, or
22.9% of revenue, including non-cash stock option expense of $216,000.
For fiscal 2013, operating expenses of $7,212,000, or 22.7% of revenue,
included non-cash stock option expense of $42,000.
The operating loss for fiscal 2014 narrowed to just $2,000, compared to
an operating loss of $861,000 for fiscal 2013.
Net income attributable to Trio-Tech common shareholders for fiscal 2014
was $57,000, or $0.01 per share, which included a loss from the
discontinued fabrication services business of $24,000, or $0.01 per
share. In comparison, for fiscal 2013, the net loss attributable to
Trio-Tech common shareholders was $1,019,000, or $0.31 per share,
including a loss from the discontinued fabrication business of $348,000,
or $0.11 per share.
Cash provided by operations for fiscal 2014 was $3,861,000. This
compares to cash provided by operations for fiscal 2013 of $3,491,000.
Shareholders' equity at June 30, 2014 was $20,833,000, or $5.93 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 fiscal 2014, compared to approximately 3,322,000
common shares outstanding for the fiscal 2013.
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.
(tables attached)
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
June 30,
|
|
June 30,
|
Revenue
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Products
|
|
$
|
4,573
|
|
|
$
|
4,536
|
|
|
$
|
18,068
|
|
|
$
|
16,609
|
|
Testing Services
|
|
|
4,773
|
|
|
|
3,944
|
|
|
|
18,017
|
|
|
|
15,029
|
|
Others
|
|
|
41
|
|
|
|
36
|
|
|
|
177
|
|
|
|
132
|
|
|
|
|
9,387
|
|
|
|
8,516
|
|
|
|
36,262
|
|
|
|
31,770
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
3,918
|
|
|
|
4,051
|
|
|
|
15,223
|
|
|
|
14,414
|
|
Cost of testing services rendered
|
|
|
3,181
|
|
|
|
2,734
|
|
|
|
12,601
|
|
|
|
10,874
|
|
Others
|
|
|
34
|
|
|
|
14
|
|
|
|
139
|
|
|
|
131
|
|
|
|
|
7,133
|
|
|
|
6,799
|
|
|
|
27,963
|
|
|
|
25,419
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
2,254
|
|
|
|
1,717
|
|
|
|
8,299
|
|
|
|
6,351
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
1,934
|
|
|
|
1,468
|
|
|
|
7,363
|
|
|
|
6,450
|
|
Selling
|
|
|
179
|
|
|
|
137
|
|
|
|
732
|
|
|
|
537
|
|
Research and development
|
|
|
46
|
|
|
|
64
|
|
|
|
196
|
|
|
|
281
|
|
(Gain) Loss on disposal of property, plant and equipment
|
|
|
(1
|
)
|
|
|
(49
|
)
|
|
|
10
|
|
|
|
(56
|
)
|
Total operating expenses
|
|
|
2,158
|
|
|
|
1,620
|
|
|
|
8,301
|
|
|
|
7,212
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations
|
|
|
96
|
|
|
|
97
|
|
|
|
(2
|
)
|
|
|
(861
|
)
|
|
|
|
|
|
|
|
|
|
Other Income (Expenses)
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
(67
|
)
|
|
|
(61
|
)
|
|
|
(263
|
)
|
|
|
(287
|
)
|
Other income, net
|
|
|
127
|
|
|
|
131
|
|
|
|
163
|
|
|
|
520
|
|
Total other income (expenses)
|
|
|
60
|
|
|
|
70
|
|
|
|
(100
|
)
|
|
|
233
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from continuing operations before Income Taxes
|
|
|
156
|
|
|
|
167
|
|
|
|
(102
|
)
|
|
|
(628
|
)
|
Income Tax Benefits
|
|
|
78
|
|
|
|
165
|
|
|
|
344
|
|
|
|
260
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from continuing operations before non-controlling
interest, net of tax
|
|
|
234
|
|
|
|
332
|
|
|
|
242
|
|
|
|
(368
|
)
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
(3
|
)
|
|
|
(213
|
)
|
|
|
(41
|
)
|
|
|
(734
|
)
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
$
|
231
|
|
|
$
|
119
|
|
|
$
|
201
|
|
|
$
|
(1,102
|
)
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributable to the non-controlling Interest
|
|
|
51
|
|
|
|
(73
|
)
|
|
|
(144
|
)
|
|
|
83
|
|
Net Income (Loss) Attributable to Trio-Tech International Common
Shareholders
|
|
|
282
|
|
|
|
46
|
|
|
|
57
|
|
|
|
(1,019
|
)
|
|
|
|
|
|
|
|
|
|
Amounts Attributable to Trio-Tech International Common Shareholders:
|
|
|
|
|
|
|
|
|
Income (Loss) from continuing operations, net of tax
|
|
|
285
|
|
|
|
160
|
|
|
|
81
|
|
|
|
(671
|
)
|
Loss from discontinued operations, net of tax
|
|
|
(3
|
)
|
|
|
(114
|
)
|
|
|
(24
|
)
|
|
|
(348
|
)
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Trio-Tech International Common
Shareholders
|
|
|
282
|
|
|
|
46
|
|
|
|
57
|
|
|
|
(1,019
|
)
|
|
|
|
|
|
|
|
|
|
Comprehensive Income (Loss) Attributable to Trio-Tech International
Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
|
231
|
|
|
$
|
120
|
|
|
$
|
201
|
|
|
$
|
(1,102
|
)
|
|
|
|
|
|
|
|
|
|
Foreign currency translation, net of tax
|
|
|
166
|
|
|
|
(30
|
)
|
|
|
(228
|
)
|
|
|
634
|
|
Comprehensive Income (Loss)
|
|
|
397
|
|
|
|
90
|
|
|
|
(27
|
)
|
|
|
(468
|
)
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive loss (income) attributable to non-controlling
interest
|
|
|
8
|
|
|
|
(67
|
)
|
|
|
74
|
|
|
|
(58
|
)
|
|
|
|
|
|
|
|
|
|
Comprehensive Income (Loss) Attributable to Trio-Tech International
Shareholders
|
|
|
405
|
|
|
|
23
|
|
|
|
(101
|
)
|
|
|
(526
|
)
|
|
|
|
|
|
|
|
|
|
Income (Loss) per Share Attributable to Trio-Tech International
Shareholders:
|
|
|
|
|
|
|
|
|
From continuing operations - basic and diluted
|
|
$
|
0.08
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
(0.20
|
)
|
From discontinued operations - basic and diluted
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.01
|
)
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Trio-Tech International
Shareholders - basic and diluted
|
|
$
|
0.07
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
(0.31
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
3,513
|
|
|
|
3,322
|
|
|
|
3,513
|
|
|
|
3,322
|
|
Weighted average common shares outstanding - diluted
|
|
|
3,549
|
|
|
|
3,322
|
|
|
|
3,549
|
|
|
|
3,322
|
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
|
|
|
|
|
|
|
Year ended
|
|
|
June 30,
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,938
|
|
$
|
2,793
|
Short-term deposits
|
|
|
102
|
|
|
104
|
Trade accounts receivable, net
|
|
|
8,625
|
|
|
8,728
|
Other receivables
|
|
|
311
|
|
|
993
|
Loans receivable from property development projects
|
|
|
--
|
|
|
1,139
|
Inventories, net
|
|
|
1,106
|
|
|
2,463
|
Prepaid expenses and other current assets
|
|
|
205
|
|
|
358
|
|
|
|
|
|
Total current assets
|
|
|
13,287
|
|
|
16,578
|
|
|
|
|
|
DEFERRED TAX ASSETS
|
|
|
388
|
|
|
203
|
INVESTMENTS
|
|
|
--
|
|
|
791
|
INVESTMENT PROPERTIES, Net
|
|
|
1,765
|
|
|
1,893
|
PROPERTY, PLANT AND EQUIPMENT, Net
|
|
|
13,541
|
|
|
12,851
|
LOAN RECEIVABLES FROM PROPERTY DEVELOPMENT PROJECTS
|
|
|
805
|
|
|
--
|
OTHER ASSETS
|
|
|
1,263
|
|
|
234
|
RESTRICTED TERM DEPOSITS
|
|
|
3,541
|
|
|
3,494
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
34,590
|
|
$
|
36,044
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Lines of credit
|
|
$
|
3,767
|
|
$
|
3,864
|
Accounts payable
|
|
|
3,162
|
|
|
4,136
|
Accrued expenses
|
|
|
3,046
|
|
|
3,060
|
Income taxes payable
|
|
|
214
|
|
|
459
|
Current portion of bank loans payable
|
|
|
448
|
|
|
770
|
Current portion of capital leases
|
|
|
81
|
|
|
105
|
|
|
|
|
|
Total current liabilities
|
|
|
10,718
|
|
|
12,394
|
|
|
|
|
|
BANK LOANS PAYABLE, net of current portion
|
|
|
2,598
|
|
|
2,613
|
CAPITAL LEASES, net of current portion
|
|
|
200
|
|
|
228
|
DEFERRED TAX LIABILITIES
|
|
|
202
|
|
|
191
|
OTHER NON-CURRENT LIABILITIES
|
|
|
39
|
|
|
12
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
13,757
|
|
|
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 June 30,
2014, and June 30, 2013, respectively
|
|
|
10,882
|
|
|
10,531
|
Paid-in capital
|
|
|
2,972
|
|
|
2,756
|
Accumulated retained earnings
|
|
|
1,725
|
|
|
1,668
|
Accumulated other comprehensive gain-translation adjustments
|
|
|
3,522
|
|
|
3,680
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
|
|
19,101
|
|
|
18,635
|
|
|
|
|
|
NON-CONTROLLING INTEREST
|
|
|
1,732
|
|
|
1,971
|
|
|
|
|
|
TOTAL EQUITY
|
|
|
20,833
|
|
|
20,606
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
34,590
|
|
$
|
36,044
|
Copyright Business Wire 2014