AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Trio-Tech First Quarter Net Earnings Per Diluted Share Increased to $0.07 versus $0.02

November 13, 2019 GMT

VAN NUYS, Calif.--(BUSINESS WIRE)--Nov 13, 2019--

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/

CONTACT: Company Contact:

A. Charles Wilson

Chairman

(818) 787-7000Investor Contact:

Berkman Associates

(310) 927-3108

info@BerkmanAssociates.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY HARDWARE ELECTRONIC DESIGN AUTOMATION ENGINEERING TECHNOLOGY OTHER CONSTRUCTION & PROPERTY SEMICONDUCTOR MANUFACTURING

SOURCE: Trio-Tech International

Copyright Business Wire 2019.

PUB: 11/13/2019 08:30 AM/DISC: 11/13/2019 08:30 AM

http://www.businesswire.com/news/home/20191113005208/en