Attached files
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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k.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
|
Company
Contact:
A.
Charles
Wilson
Chairman (818) 787-7000 |
Investor
Contact:
Berkman
Associates
(310)
477-3118
info@BerkmanAssociates.com
|
Trio-Tech
Fiscal 2018 Second Quarter Net Income Doubles to $0.18 Per Share As
Revenue Increases 16%
First Half Net Income is $0.34 Per Share Versus $0.17 Per
Share
Van Nuys, CA – February 12, 2018
– Trio-Tech International
(NYSE MKT: TRT) today announced financial results for the
second quarter of fiscal 2018 and the six month period ended
December 31, 2017:
● Revenue
increased 16% compared to the second quarter of fiscal
2017.
● Operating
income increased 151% compared to the second quarter of fiscal
2017.
● Net
income to shareholders increased 117% compared to the second
quarter of fiscal 2017.
● Earnings
per share doubled to $0.18 compared to $0.09 for the second quarter
of fiscal 2017.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "Building on our solid first quarter
performance, Trio-Tech delivered strong financial results once
again in the second quarter. Operating earnings surged, as gross
margins improved and expenses as a percentage of sales
decreased.
"Growth
in our semiconductor testing and semiconductor equipment
manufacturing segments continued to be the primary drivers of these
gains, and we see exciting opportunities for further growth in
these businesses. The automotive industry is a particularly
attractive opportunity for us. We are pleased by the progress we
have made so far this fiscal year."
Fiscal
2018 Second Quarter Results
For the
fiscal second quarter ended December 31, 2017, revenue increased
16% to $10,552,000 compared to revenue of $9,104,000 for the same
quarter last year. Manufacturing revenue increased 20% to
$3,973,000 for this year's second quarter compared to $3,320,000
for the same quarter last year. Semiconductor testing services
revenue increased 21% to $4,936,000 for the second quarter compared
to $4,070,000 in the same quarter last year. Distribution revenue
declined 4% to $1,606,000 for this year's second quarter from
$1,675,000 for the same quarter last year.
Gross
margin for the second quarter of fiscal 2018 increased 22% to
$2,795,000 compared to $2,294,000 in the same quarter last year. An
improved product mix in manufacturing and distribution operations
increased gross margin to 26% of revenue, compared to 25% of
revenue in the second quarter of fiscal 2017.
Operating expenses
for the second quarter of fiscal 2018 increased 4% to $2,097,000,
but declined to 20% of revenue from $2,016,000, or 22% of revenue,
in the same quarter last year. The decline in operating expenses,
as a percent of revenue, helped contribute to a 151% increase in
income from operations to $698,000 from $278,000 for the second
quarter last year.
Net
income attributable to Trio-Tech common shareholders for the fiscal
2018 second quarter increased 117% to $673,000, or $0.18 per
diluted share, compared to $310,000, or $0.09 per diluted share in
the same quarter last year.
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech
Fiscal 2018 Second Quarter Net Income Doubles to $0.18 Per Share as
Revenue Increases 16%
February 12,
2018
Page
Two
Fiscal
2018 First Half Results
For the
six months ended December 31, 2017, revenue increased 19% to
$21,497,000 compared to revenue of $18,075,000 for the same period
last year. Manufacturing revenue increased 25% to $8,738,000 for
the first half compared to $6,991,000 in the same period last year.
Semiconductor testing services revenue increased 16% to $9,541,000
for the first six months compared to $8,227,000 in the same period
last year. Distribution revenue increased 13% to $3,142,000 for
this year's first half from $2,779,000 for the same period last
year.
Gross
margin for the first six months of fiscal 2018 increased 19% to
$5,555,000 compared to $4,652,000 in the same period last year.
Gross margin was 26% of revenue in both periods.
Operating expenses
for the first six months of fiscal 2018 increased 8% to $4,310,000,
but declined to 20% of revenue from $3,997,000, or 22% of revenue,
in the same period last year.
The
increase in gross margin, coupled with the decline in operating
expenses, as a percent of revenue, together contributed to a 90%
increase in income from operations to $1,245,000 from $655,000 in
the same period last year.
Net
income attributable to Trio-Tech common shareholders for the first
six months of fiscal 2018 increased 104% to $1,248,000, or $0.34
per diluted share, compared to $613,000, or $0.17 per diluted share
in the same period last year.
Shareholders'
equity at December 31, 2017 was $23,736,000, or $6.69 per
outstanding share, compared to $21,527,000, or $6.11 per
outstanding share, at June 30, 2017. There were approximately
3,548,055 common shares outstanding at December 31,
2017.
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; 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)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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|||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
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Six Months Ended
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December 31,
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December 31,
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Revenue
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2017
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2016
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2017
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2016
|
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Manufacturing
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$3,973
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$3,320
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$8,738
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$6,991
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Testing services
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4,936
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4,070
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9,541
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8,227
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Distribution
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1,606
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1,675
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3,142
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2,779
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Others
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37
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39
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76
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78
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10,552
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9,104
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21,497
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18,075
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Cost of Sales
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Cost of manufactured products sold
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3,068
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2,622
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6,717
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5,417
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Cost of testing services rendered
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3,251
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2,658
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6,390
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5,472
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Cost of distribution
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1,409
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1,501
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2,777
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2,492
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Others
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29
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29
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58
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42
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7,757
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6,810
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15,942
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13,423
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Gross Margin
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2,795
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2,294
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5,555
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4,652
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Operating Expenses:
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General and administrative
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1,727
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1,776
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3,566
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3,519
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Selling
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252
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180
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431
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365
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Research and development
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118
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52
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302
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105
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Loss
on disposal of property, plant and equipment
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--
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8
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11
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8
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Total operating expenses
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2,097
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2,016
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4,310
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3,997
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Income from Operations
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698
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278
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1,245
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655
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|
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|
|
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Other (Expenses) Income
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Interest expenses
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(52)
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(48)
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(110)
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(106)
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Other income, net
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42
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203
|
200
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313
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Total other (expenses)
income
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(10)
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155
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90
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207
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Income from Continuing Operations before Income Taxes
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688
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433
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1,335
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862
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Income Tax Expenses
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(13)
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(67)
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(55)
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(150)
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Income from Continuing Operations
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before Non-controlling Interest, Net of Tax
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675
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366
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1,280
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712
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Loss
from Discontinued Operations, Net of Tax
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(2)
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(4)
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(5)
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(3)
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|
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NET INCOME
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673
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362
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1,275
|
709
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Less: Income Attributable to Non-controlling Interest
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--
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52
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27
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96
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Net Income Attributable to Trio-Tech International
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$673
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$310
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$1,248
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$613
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Net Income Attributable to Trio-Tech International:
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Income from Continuing Operations, Net of Tax
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678
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316
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1,254
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619
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Loss
from Discontinued Operations, Net of Tax
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(5)
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(6)
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(6)
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(6)
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Net Income attributable to Trio-Tech International
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$673
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$310
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$1,248
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$613
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Basic
Earnings per Share
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$0.19
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$0.09
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$0.35
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$0.18
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Diluted Earnings
per share
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$0.18
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$0.09
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$0.34
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$0.17
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Weighted Average Shares Outstanding B Basic
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3,548
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3,513
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3,548
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3,513
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Weighted Average Shares Outstanding B Diluted
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3,793
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3,569
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3,770
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3,552
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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|||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
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|||||||
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UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
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Six Months Ended
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December 31,
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December 31,
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2017
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2016
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2017
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2016
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Comprehensive Income Attributable to
Trio-Tech International
Common Shareholders:
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|
|
|
|
|
|
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Net income
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$673
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$362
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$1,275
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$709
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Foreign Currency Translation, Net of Tax
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588
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(1,094)
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963
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(1,377)
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Comprehensive Income
(Loss)
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1,261
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(732)
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2,238
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(668)
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Less: Comprehensive Income
(Loss) Attributable To Non
controlling Interest
|
88
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(16)
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115
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(37)
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Comprehensive Income
(Loss) Attributable to Trio-Tech International
Common Shareholders
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$1,173
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$(716)
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$2,123
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$(631)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
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Dec. 31,
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Jun. 30,
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2017
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2017
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ASSETS
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(unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$5,059
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$4,772
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Short-term deposits
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642
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787
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Trade accounts receivable, net
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9,493
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9,009
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Other receivables
|
548
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401
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Inventories, net
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2,972
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1,756
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Prepaid expenses and other current assets
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280
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226
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Assets held for sale
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91
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86
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|
|
|
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Total current assets
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19,085
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17,037
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Deferred tax assets
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435
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375
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Investment properties, net
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1,217
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1,216
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Property, plant and equipment, net
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12,385
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11,291
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Other assets
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1,950
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1,922
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Restricted term deposits
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1,717
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1,657
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Total non-current assets
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17,704
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16,461
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TOTAL ASSETS
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36,789
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$33,498
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LIABILITIES AND SHAREHOLDER'S EQUITY
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CURRENT LIABILITIES:
|
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Lines of credit
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2,189
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$2,556
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Accounts payable
|
3,342
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3,229
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|
Accrued expenses
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3,985
|
3,043
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Income taxes payable
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292
|
233
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Current portion of bank loans payable
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356
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260
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Current portion of capital leases
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250
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228
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|
|
|
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Total current liabilities
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10,414
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9,549
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Bank loans payable, net of current portion
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1,617
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1,552
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Capital leases, net of current portion
|
648
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531
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Deferred tax liabilities
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328
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295
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|
Other non-current liabilities
|
46
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44
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|
|
|
|
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Total non-current liabilities
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2,639
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2,422
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TOTAL LIABILITIES
|
13,053
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11,971
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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; 3,548,055 and 3,523,055
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shares issued and outstanding at December 31, 2017 and June 30, 2017, respectively
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11,013
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10,921
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Paid-in capital
|
3,208
|
3,206
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Accumulated retained earnings
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5,589
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4,341
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Accumulated other comprehensive gain-translation adjustments
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2,508
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1,633
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Total Trio-Tech International shareholders' equity
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22,318
|
20,101
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|
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Non-controlling interest
|
1,418
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1,426
|
|
|
|
|
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TOTAL EQUITY
|
23,736
|
21,527
|
|
|
|
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TOTAL LIABILITIES AND EQUITY
|
36,789
|
$33,498
|
|
|
|
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