Attached files
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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k_mar2017.htm |
 |
LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
BANGKOK
SUZHOU
TIANJIN
CHONGQING
|
|
FOR IMMEDIATE
RELEASE
|
Company
Contact:
Investor Contact:
A. Charles
Wilson
Berkman
Associates
Chairman
(310)
477-3118
(818)
787-7000
info@BerkmanAssociates.com
|
Trio-Tech Third Quarter Net Income Increased 133% to
$0.10 Per Share Versus $0.04 Per Share Last Year
Nine Months Net Income Increased to $0.27 Per Diluted Share Versus
$0.17 Per Share In
The Same Period Last Year
Van Nuys, CA – May 11, 2017
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
third quarter and first nine months of fiscal 2017:
●
Fiscal 2017 third
quarter revenue increased 5.0% to $9,825,000 compared to $9,355,000
for the third quarter of fiscal 2016.
●
Fiscal 2017 third
quarter net income increased 133% to $350,000, or $0.10 per diluted
share, compared to $150,000, or $0.04 per share, for the third
quarter of fiscal 2016.
●
Revenue for the
first nine months of fiscal 2017 increased 8.8% to $27,900,000
compared to revenue of $25,639,000 for the same period of fiscal
2016.
●
Net income for the
first nine months of fiscal 2017 increased 60.8% to $963,000, or
$0.27 per diluted share, compared to $599,000, or $0.17 per share
for the same period of fiscal 2016.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "Higher revenue and improved gross
margin for the third quarter of fiscal 2017 combined to drive a
50.2% increase in operating income compared to the same quarter
last year. Net income increased 133%, generating earnings of $0.10
per diluted share compared to $0.04 per diluted share in the same
quarter of last year.
"Our
improved third quarter results are primarily due to increases in
revenue and improved operating profitability in our semiconductor
testing services business. Our distribution business also reported
strong growth in the quarter versus the same quarter last year.
Although manufacturing revenue declined, improved gross margin led
to higher profitability for this segment as well. Taken together,
overall gross margin for the third quarter increased to 24.9% of
sales compared to 22.8% of sales in the third quarter of fiscal
2016.
"For
the first nine months of fiscal 2017, operating income was up 20.0%
and net income increased more than 60.0%.
"Our
customers know that they can count on Trio-Tech to consistently
deliver high quality products and services when and where they are
needed and at competitive prices. This strategy has served us well
for many years."
Fiscal
2017 Third Quarter Results
For the
third quarter ended March 31, 2017, revenue increased 5.0% to
$9,825,000 compared to $9,355,000 for the same quarter of fiscal
2016. Testing services revenue increased 9.8% to $3,977,000 in the
quarter, compared to $3,622,000 in the same quarter last year,
reflecting increasing testing volume at the Company’s Asian
facilities. Increased demand for products in the Singapore
operation raised distribution revenue 28.3% to $1,581,000 compared
to $1,232,000 in the same quarter last year. Manufacturing revenue
declined 5.3% to $4,230,000 for this year's third quarter compared
to $4,468,000 for the same quarter of fiscal 2016, primarily due to
reduced sales for Singapore and United States
operations.
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech Third Quarter Net Income Increased 133% to $0.10 Per
Share Compared to
$0.04 Per Share Last Year
May 11,
2017
Page
Two
Operating expenses
for the third quarter of fiscal 2017 increased to $1,962,000, or
20.0% of revenue, from $1,809,000, or 19.3% of revenue, for the
same quarter last year.
Third
quarter fiscal 2017 operating income increased 50.2% to $485,000
from $323,000 in the same quarter last year.
Net
income attributable to Trio-Tech International common shareholders
for the third quarter of fiscal 2017 increased 133% to $350,000, or
$0.10 per diluted share, compared to $150,000, or $0.04 per diluted
share, for the third quarter of fiscal 2016. Third quarter fiscal
2017 net income benefitted from a $45,000 gain in other income,
compared to a loss of $97,000 in the same quarter last year,
primarily due to a decline in foreign exchange losses to only
$88,000, compared to foreign exchange losses of $218,000 in the
same quarter last year.
Fiscal
2017 Nine Months Results
For the
nine months ended March 31, 2017, revenue increased 8.8% to
$27,900,000 compared to revenue of $25,639,000 for the first nine
months of fiscal 2016.
Gross
margin for the first nine months of fiscal 2017 increased 10.5% to
$7,099,000 from $6,425,000 and improved to 25.4%, compared to 25.1%
of sales, in the same period last year.
Income
from operations for the first nine months of fiscal 2017 increased
20.0% to $1,140,000 compared to $950,000 for the same period last
fiscal year.
Net
income attributable to Trio-Tech International common shareholders
for the first nine months of fiscal 2017 increased 60.8% to
$963,000, or $0.27 per diluted share, compared to $599,000, or
$0.17 per diluted share, in the same period last year. Net income
for the nine month period benefitted from a gain in other income of
$209,000, compared to a loss of $22,000 in the same period last
year. The improvement in other income is primarily due to a foreign
exchange gain of $93,000 compared to a foreign exchange loss of
$126,000 in the same period last year.
Shareholders'
equity at March 31, 2017 was $20,751,000, or $5.89 per outstanding
share, compared to $20,871,000, or $5.94 per outstanding share, at
June 30, 2016. There were 3,523,055 and 3,513,055 common shares
outstanding at March 31, 2017 and June 30, 2016,
respectively.
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.
(more)
Trio-Tech Third Quarter Net Income Increased 133% to $0.10 Per
Share Compared to
$0.04 Per Share Last Year
May 11,
2017
Page
Three
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 to
government policies, potential legislative 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
|
|||||||||
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|||||||||
|
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
|
Three Months Ended
|
Nine Months Ended
|
||
|
|
March 31,
|
March 31,
|
||
|
Revenue
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
|
|
Manufacturing
|
$4,230
|
$4,468
|
$11,221
|
$10,884
|
|
Testing Services
|
3,977
|
3,622
|
12,204
|
11,106
|
|
Distribution
|
1,581
|
1,232
|
4,360
|
3,566
|
|
Others
|
37
|
33
|
115
|
83
|
|
|
|
|
|
|
|
|
9,825
|
9,355
|
27,900
|
25,639
|
|
Costs of Sales
|
|
|
|
|
|
Cost of manufactured
products sold
|
3,345
|
3,597
|
8,762
|
8,177
|
|
Cost of testing services rendered
|
2,597
|
2,570
|
8,069
|
7,827
|
|
Cost of
distribution
|
1,407
|
1,025
|
3,899
|
3,118
|
|
Others
|
29
|
31
|
71
|
92
|
|
|
|
|
|
|
|
|
7,378
|
7,223
|
20,801
|
19,214
|
|
|
|
|
|
|
|
Gross Margin
|
2,447
|
2,132
|
7,099
|
6,425
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
General and administrative
|
1,659
|
1,600
|
5,178
|
4,861
|
|
Selling
|
222
|
158
|
587
|
470
|
|
Research and development
|
51
|
51
|
156
|
148
|
|
Loss (gain)
on disposal of property, plant and equipment
|
30
|
--
|
38
|
(4)
|
|
|
|
|
|
|
|
Total operating expenses
|
1,962
|
1,809
|
5,959
|
5,475
|
|
|
|
|
|
|
|
Income
from Operations
|
485
|
323
|
1,140
|
950
|
|
|
|
|
|
|
|
Other (Expenses)
Income
|
|
|
|
|
|
Interest expense
|
(43)
|
(47)
|
(149)
|
(151)
|
|
Other income
(expenses), net
|
45
|
(97)
|
358
|
129
|
|
|
|
|
|
|
|
Total other income
(expenses)
|
2
|
(144)
|
209
|
(22)
|
|
|
|
|
|
|
|
Income from Continuing Operations before Income Taxes
|
487
|
179
|
1,349
|
928
|
|
|
|
|
|
|
|
Income Tax Expenses
|
(106)
|
(15)
|
(256)
|
(168)
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
|
|
before Non-controlling
Interest, net of tax
|
381
|
164
|
1,093
|
760
|
|
|
|
|
|
|
|
Loss from
Discontinued Operations, net of tax
|
(1)
|
(1)
|
(4)
|
(5)
|
|
|
|
|
|
|
|
NET INCOME
|
380
|
$163
|
1,089
|
$755
|
|
|
|
|
|
|
|
Less: Net Income Attributable to Non-controlling Interest
|
30
|
13
|
126
|
156
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International
|
350
|
150
|
963
|
599
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
|
|
|
Income from Continuing Operations, net of tax
|
351
|
155
|
970
|
607
|
|
Loss from Discontinued Operations, net of tax
|
(1)
|
(5)
|
(7)
|
(8)
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International
|
$350
|
$150
|
$963
|
$599
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
$0.10
|
$0.04
|
$0.28
|
$0.17
|
|
|
|
|
|
|
|
Diluted Earnings per Share
|
$0.10
|
$0.04
|
$0.27
|
$0.17
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
3,523
|
3,563
|
3,523
|
3,563
|
|
Weighted Average Shares Outstanding - Diluted
|
3,639
|
3,576
|
3,577
|
3,575
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||||||
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||
|
UNAUDITED (IN THOUSANDS)
|
|
|
Three Months Ended
|
Nine Months Ended
|
||
|
|
March 31,
|
March 31,
|
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Comprehensive Income (Loss)
|
|
|
|
|
|
Attributable to Trio-Tech
International:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$380
|
$163
|
$1,089
|
$755
|
|
|
|
|
|
|
|
Foreign Currency Translation, net of tax
|
290
|
779
|
(1,087)
|
(624)
|
|
|
|
|
|
|
|
Comprehensive Income (Loss)
|
670
|
942
|
2
|
131
|
|
|
|
|
|
|
|
Less: Comprehensive Income (loss)
|
|
|
|
|
|
Attributable to Non-controlling Interest
|
(38)
|
170
|
(75)
|
32
|
|
|
|
|
|
|
|
Comprehensive Income (Loss)
|
|
|
|
|
|
Attributable to Trio-Tech International
|
$708
|
$772
|
$77
|
$99
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
|
Mar. 31,
|
Jun. 30,
|
|
|
2017
|
2016
|
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
$4,009
|
$3,807
|
|
Short-term deposits
|
536
|
295
|
|
Trade accounts receivable, net
|
8,350
|
8,826
|
|
Other receivables
|
321
|
596
|
|
Inventories, net
|
2,172
|
1,460
|
|
Prepaid expenses and other current assets
|
308
|
264
|
|
Assets held for sale
|
83
|
92
|
|
|
|
|
|
Total current assets
|
15,779
|
15,340
|
|
|
|
|
|
Deferred tax assets
|
376
|
401
|
|
Investment properties, net
|
1,221
|
1,340
|
|
Property, plant and equipment, net
|
10,694
|
11,283
|
|
Other assets
|
1,836
|
1,788
|
|
Restricted term deposits
|
1,629
|
2,067
|
|
|
|
|
|
Total non-current assets
|
15,756
|
16,879
|
|
|
|
|
|
TOTAL ASSETS
|
$31,535
|
$32,219
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$2,107
|
$2,491
|
|
Accounts payable
|
3,379
|
2,921
|
|
Accrued expenses
|
2,574
|
2,642
|
|
Income taxes payable
|
213
|
230
|
|
Current portion of bank loans payable
|
199
|
342
|
|
Current portion of capital leases
|
196
|
235
|
|
|
|
|
|
Total current liabilities
|
8,668
|
8,861
|
|
|
|
|
|
Bank loans payable, net of current portion
|
1,428
|
1,725
|
|
Capital leases, net of current portion
|
366
|
503
|
|
Deferred tax liabilities
|
279
|
216
|
|
Other non-current liabilities
|
43
|
43
|
|
|
|
|
|
Total non-current liabilities
|
2,116
|
2,487
|
|
|
|
|
|
TOTAL LIABILITIES
|
10,784
|
11,348
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
--
|
--
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,523,055 and
|
|
|
|
3,513,055
issued and outstanding at March
31, 2017 and June 30, 2016,
respectively
|
10,921
|
10,882
|
|
Paid-in capital
|
3,204
|
3,188
|
|
Accumulated retained earnings
|
3,988
|
3,025
|
|
Accumulated other comprehensive gain-translation adjustments
|
1,276
|
2,162
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
19,389
|
19,257
|
|
|
|
|
|
Non-controlling interest
|
1,362
|
1,614
|
|
|
|
|
|
TOTAL EQUITY
|
20,751
|
20,871
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$31,535
|
$32,219
|
|
|
|
|