Attached files
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| 8-K - FORM 8-K - TRIO-TECH INTERNATIONAL | trt8k_oct82014.htm |
Exhibit 99.1
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LOS ANGELES
SINGAPORE
KUALA LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING
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FOR IMMEDIATE RELEASE
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Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000
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Investor Contact:
Berkman Associates
(310) 477-3118
info@BerkmanAssociates.com
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Trio Tech Reports Profitable Fourth Quarter and Fiscal 2014
Van Nuys, CA -- October 8, 2014 -- 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.
(more)
16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130
Trio-Tech Reports Improved Fourth Quarter and Fiscal 2014 Results
October 8, 2014
Page Two
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)
16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
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(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
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Twelve Months Ended
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June 30,
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June 30,
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Revenue
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2014
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2013
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2014
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2013
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Products
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$ | 4,573 | $ | 4,536 | $ | 18,068 | $ | 16,609 | ||||||||
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Testing Services
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4,773 | 3,944 | 18,017 | 15,029 | ||||||||||||
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Others
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41 | 36 | 177 | 132 | ||||||||||||
| 9,387 | 8,516 | 36,262 | 31,770 | |||||||||||||
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Cost of Sales
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Cost of products sold
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3,918 | 4,051 | 15,223 | 14,414 | ||||||||||||
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Cost of testing services rendered
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3,181 | 2,734 | 12,601 | 10,874 | ||||||||||||
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Others
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34 | 14 | 139 | 131 | ||||||||||||
| 7,133 | 6,799 | 27,963 | 25,419 | |||||||||||||
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Gross Margin
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2,254 | 1,717 | 8,299 | 6,351 | ||||||||||||
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Operating Expenses:
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General and administrative
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1,934 | 1,468 | 7,363 | 6,450 | ||||||||||||
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Selling
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179 | 137 | 732 | 537 | ||||||||||||
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Research and development
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46 | 64 | 196 | 281 | ||||||||||||
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(Gain) Loss on disposal of property, plant and equipment
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(1 | ) | (49 | ) | 10 | (56 | ) | |||||||||
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Total operating expenses
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2,158 | 1,620 | 8,301 | 7,212 | ||||||||||||
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Income (Loss) from Operations
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96 | 97 | (2 | ) | (861 | ) | ||||||||||
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Other Income (Expenses)
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Interest expenses
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(67 | ) | (61 | ) | (263 | ) | (287 | ) | ||||||||
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Other income, net
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127 | 131 | 163 | 520 | ||||||||||||
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Total other income (expenses)
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60 | 70 | (100 | ) | 233 | |||||||||||
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Income (Loss) from continuing operations before Income Taxes
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156 | 167 | (102 | ) | (628 | ) | ||||||||||
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Income Tax Benefits
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78 | 165 | 344 | 260 | ||||||||||||
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Income (Loss) from continuing operations before non-controlling interest, net of tax
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234 | 332 | 242 | (368 | ) | |||||||||||
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Loss from discontinued operations, net of tax
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(3 | ) | (213 | ) | (41 | ) | (734 | ) | ||||||||
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NET INCOME (LOSS)
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$ | 231 | $ | 119 | $ | 201 | $ | (1,102 | ) | |||||||
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Less: Net income (loss) attributable to the non-controlling Interest
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51 | (73 | ) | (144 | ) | 83 | ||||||||||
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Net Income (Loss) Attributable to Trio-Tech International Common Shareholders
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282 | 46 | 57 | (1,019 | ) | |||||||||||
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Amounts Attributable to Trio-Tech International Common Shareholders:
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Income (Loss) from continuing operations, net of tax
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285 | 160 | 81 | (671 | ) | |||||||||||
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Loss from discontinued operations, net of tax
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(3 | ) | (114 | ) | (24 | ) | (348 | ) | ||||||||
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Net Income (Loss) Attributable to Trio-Tech International Common Shareholders
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282 | 46 | 57 | (1,019 | ) | |||||||||||
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Comprehensive Income (Loss) Attributable to Trio-Tech International Shareholders:
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Net Income (Loss)
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$ | 231 | $ | 120 | $ | 201 | $ | (1,102 | ) | |||||||
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Foreign currency translation, net of tax
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166 | (30 | ) | (228 | ) | 634 | ||||||||||
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Comprehensive Income (Loss)
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397 | 90 | (27 | ) | (468 | ) | ||||||||||
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Less: Comprehensive loss (income) attributable to non-controlling interest
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8 | (67 | ) | 74 | (58 | ) | ||||||||||
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Comprehensive Income (Loss) Attributable to Trio-Tech International Shareholders
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405 | 23 | (101 | ) | (526 | ) | ||||||||||
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Income (Loss) per Share Attributable to Trio-Tech International Shareholders:
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From continuing operations - basic and diluted
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$ | 0.08 | $ | 0.04 | $ | 0.02 | $ | (0.20 | ) | |||||||
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From discontinued operations - basic and diluted
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(0.01 | ) | (0.03 | ) | (0.01 | ) | (0.11 | ) | ||||||||
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Net Income (Loss) Attributable to Trio-Tech International Shareholders - basic and diluted
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$ | 0.07 | $ | 0.01 | $ | 0.01 | $ | (0.31 | ) | |||||||
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Weighted average common shares outstanding - basic
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3,513 | 3,322 | 3,513 | 3,322 | ||||||||||||
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Weighted average common shares outstanding - diluted
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3,549 | 3,322 | 3,549 | 3,322 | ||||||||||||
16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
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Year ended
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June 30,
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2014
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2013
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 2,938 | $ | 2,793 | ||||
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Short-term deposits
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102 | 104 | ||||||
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Trade accounts receivable, net
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8,625 | 8,728 | ||||||
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Other receivables
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311 | 993 | ||||||
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Loans receivable from property development projects
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-- | 1,139 | ||||||
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Inventories, net
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1,106 | 2,463 | ||||||
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Prepaid expenses and other current assets
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205 | 358 | ||||||
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Total current assets
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13,287 | 16,578 | ||||||
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DEFERRED TAX ASSETS
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388 | 203 | ||||||
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INVESTMENTS
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-- | 791 | ||||||
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INVESTMENT PROPERTIES, Net
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1,765 | 1,893 | ||||||
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PROPERTY, PLANT AND EQUIPMENT, Net
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13,541 | 12,851 | ||||||
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LOAN RECEIVABLES FROM PROPERTY DEVELOPMENT PROJECTS
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805 | -- | ||||||
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OTHER ASSETS
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1,263 | 234 | ||||||
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RESTRICTED TERM DEPOSITS
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3,541 | 3,494 | ||||||
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TOTAL ASSETS
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$ | 34,590 | $ | 36,044 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Lines of credit
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$ | 3,767 | $ | 3,864 | ||||
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Accounts payable
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3,162 | 4,136 | ||||||
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Accrued expenses
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3,046 | 3,060 | ||||||
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Income taxes payable
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214 | 459 | ||||||
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Current portion of bank loans payable
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448 | 770 | ||||||
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Current portion of capital leases
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81 | 105 | ||||||
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Total current liabilities
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10,718 | 12,394 | ||||||
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BANK LOANS PAYABLE, net of current portion
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2,598 | 2,613 | ||||||
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CAPITAL LEASES, net of current portion
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200 | 228 | ||||||
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DEFERRED TAX LIABILITIES
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202 | 191 | ||||||
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OTHER NON-CURRENT LIABILITIES
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39 | 12 | ||||||
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TOTAL LIABILITIES
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13,757 | 15,438 | ||||||
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COMMITMENTS AND CONTINGENCIES
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-- | |||||||
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EQUITY
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TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
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Common stock, no par value, 15,000,000 shares authorized; 3,513,055 and 3,321,555
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shares issued and outstanding at June 30, 2014, and June 30, 2013, respectively
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10,882 | 10,531 | ||||||
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Paid-in capital
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2,972 | 2,756 | ||||||
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Accumulated retained earnings
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1,725 | 1,668 | ||||||
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Accumulated other comprehensive gain-translation adjustments
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3,522 | 3,680 | ||||||
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Total Trio-Tech International shareholders' equity
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19,101 | 18,635 | ||||||
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NON-CONTROLLING INTEREST
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1,732 | 1,971 | ||||||
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TOTAL EQUITY
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20,833 | 20,606 | ||||||
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TOTAL LIABILITIES AND EQUITY
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$ | 34,590 | $ | 36,044 | ||||
16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130