Trio-Tech Reports Fiscal 2015 First Quarter Results

Trio-Tech International (NYSE MKT:TRT) today announced financial results for the first quarter of fiscal 2015.

For the three months ended September 30, 2014, revenue decreased to $8,093,000 compared to revenue of $9,497,000 for the same period last fiscal year. Semiconductor testing services revenue increased 14.1% to $4,618,000 for this year's first quarter compared to $4,048,000 for the same period last fiscal year, but this growth was offset by a 36.5% decrease in products revenue to $3,432,000 for the first quarter of fiscal 2015 compared to $5,405,000 for the same period last fiscal year. The decrease in products revenue was primarily due to the postponement of order deliveries as requested by a customer in Singapore and a customer in the United States operations. Products revenue was also affected by reduced capital spending by our other customers for facility and equipment upgrades, compared to the same period last fiscal year.

The net loss attributable to Trio-Tech common shareholders for the first quarter of fiscal 2015 was $136,000, or $0.04 per basic and diluted share, which included income from the discontinued fabrication services business of $14,000, or $0.00 per share. This compares to a net loss attributable to Trio-Tech common shareholders of $17,000, or $0.01 per basic and diluted share, in the first quarter of fiscal 2014, which included a loss from the discontinued fabrication services business of $23,000, 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.

Gross margin for this year's first quarter was 22.2% compared to 22.0% for the same period last fiscal year. Operating expenses decreased to $1,931,000 for the first quarter of fiscal 2015 compared to $2,104,000 for the same period last fiscal year, primarily because of a $105,000 reduction in stock option expense for this year's first quarter versus the same period last fiscal year.

The loss from operations for the first quarter of fiscal 2015 was $134,000. This compares to a loss from operations for the first quarter of fiscal 2014 of $13,000.

Cash provided by operations for the first quarter of fiscal 2015 was $466,000. This compares to cash provided by operations for the first quarter of fiscal 2014 of $1,213,000.

Shareholders' equity at September 30, 2014 was $20,922,000, or $5.96 per outstanding share, compared to $20,833,000, or $5.93 per outstanding share, at June 30, 2014. There were approximately 3,513,000 common shares outstanding at September 30, 2014 and June 30, 2014.

S.W. Yong, Trio-Tech's CEO, said, "While we were disappointed by the postponement of two orders for equipment from two customers in this year's first quarter, we expect to ship these orders during the second or third quarter this year and we remain optimistic about the outlook for Trio-Tech. Our core semiconductor manufacturing equipment and semiconductor testing services businesses continued to run efficiently in this year's first quarter, as evidenced by the slight improvement in gross margin and solid cash flow, despite the decline in revenue, compared to the same period last fiscal year.

"We remain attentive to the evolving needs of our international customers and strive to further refine our operations. This formula has proven its worth in the past, and we believe will continue to support our success in the future."

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.