Attached files
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| 8-K - CURRENT REPORT - TRIO-TECH INTERNATIONAL | trt8k_feb102021.htm |
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LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
BANGKOK
SUZHOU
TIANJIN
CHONGQING
|
|
|
FOR IMMEDIATE
RELEASE
|
Company Contact:
A. Charles
Wilson
Chairman
(818)
787-7000
|
Investor Contact:
Berkman
Associates
(310)
927-3108
info@BerkmanAssociates.com
|
|
Trio-Tech
Reports Second Quarter
Net Income of $0.06 Per Diluted Share
Van Nuys, CA – February 11, 2021
-- Trio-Tech International (NYSE
MKT: TRT) today announced financial results for the second
quarter and first six months of fiscal 2021.
Fiscal
2021 Second Quarter Results
For the
three months ended December 31, 2020, revenue decreased 9% to
$8,201,000 compared to revenue of $8,962,000 for the second quarter
of fiscal 2020. Manufacturing revenue increased 17% to $3,569,000
compared to $3,045,000 a year earlier. Semiconductor testing
services revenue decreased 8% to $3,560,000 compared to $3,887,000
last year. Distribution revenue decreased 47% to $1,065,000
compared to $2,014,000 for the comparable quarter last
year.
Higher
margins in manufacturing and distribution increased overall gross
margin to 23% of revenue, or $1,870,000, for the second quarter
fiscal 2021 compared to 21% of revenue, or $1,905,000, for the same
quarter last year.
Operating expenses
decreased 8% to $1,907,000, or 23% of revenue, compared to
$2,078,000, or 23% of revenue, for last year’s second
quarter. The loss from operations for this year’s second
quarter was $37,000, compared to a loss from operations a year
earlier of $173,000.
Other
income for the second quarter was $143,000, which included
government assistance to Singapore and Malaysia operations totaling
$101,000 to mitigate the adverse business impact of the pandemic.
In the same quarter last year, other income was
$40,000.
Net
income for the second quarter of fiscal 2021 was $235,000, or $0.06
per diluted share. Net income for the second quarter of fiscal 2020
of $426,000, or $0.11 per diluted share, benefitted from a one-time
gain of $1,172,000 related to the sale of assets held for
sale.
Shareholders'
equity at December 31, 2020 was $26,548,000, or $7.15 per
outstanding share, compared to $25,146,000, or $6.84 per
outstanding share, at June 30, 2020. There were approximately
3,710,555 Trio-Tech International common shares outstanding at
December 31, 2020.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "We delivered better gross margins and
lower expenses in the second quarter, contributing to a sharp
improvement in our operating performance compared to the same
quarter last year. We also delivered a sequential improvement in
top and bottom-line results compared to the first quarter of fiscal
2021 as our order rate trended higher, which is another encouraging
sign. Despite our reassuring strong balance sheet and successful
control of operating expenses, we continue to be cautious about our
business, as the economic effects of the Covid pandemic
continue."
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech
Reports Second Quarter Net Income of $0.06 Per Diluted
Share
February 11,
2021
Page
Two
Fiscal
2021 First Half Results
For the
first six months of fiscal 2021, revenue decreased 20% to
$15,042,000 compared to $18,785,000 for the same period last year.
Manufacturing revenue decreased 3% to $6,194,000, compared to
$6,362,000 last year. Semiconductor testing services revenue
decreased 21% to $6,514,000 compared to $8,277,000, and
distribution revenue decreased 44% to $2,323,000 compared to
$4,113,000 a year ago.
Overall
gross margin for the first six months of fiscal 2021 decreased 18%
to $3,388,000, but improved, as a percent of revenue, to 23%. This
compares to an overall gross margin of $4,157,000, or 22% of
revenue, for the same period last year.
Operating expenses
for the first six months of fiscal 2021 decreased 9% to $3,752,000,
or 25% of revenue, compared to $4,108,000, or 22% of revenue, for
the first six months of fiscal 2020.
Net
income for the first half of fiscal 2021 was $227,000, or $0.06 per
diluted share. This compares to net income of $699,000, or $0.19
per diluted share, for the first half of fiscal 2020. Net income
for last year’s first half included a $1,172,000 gain on the
sale of assets held for sale.
About Trio-Tech
Established in 1958, Trio-Tech International is
located in Van Nuys, California, with its Principal Executive
Office and regional headquarter in Singapore. Trio-Tech
International is a diversified business group with interests in
semiconductor testing services, manufacturing and distribution of
semiconductor testing equipment, and real estate. Our subsidiary
locations include Tianjin, Suzhou, Chongqing in China, as well as
Kuala Lumpur Malaysia and Bangkok Thailand. Further information
about Trio-Tech's semiconductor products and services can be
obtained from the Company's Web site at www.triotech.com
and
www.universalfareast.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; the trade tension between
U.S. and China; public health issues related to the 2019-Novel
Coronavirus 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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||||
|
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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||||
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|
||||
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Three Months Ended
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Six Months Ended
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||
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December 31,
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December 31,
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||
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Revenue
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Manufacturing
|
$3,569
|
$3,045
|
$6,194
|
$6,362
|
|
Testing services
|
3,560
|
3,887
|
6,514
|
8,277
|
|
Distribution
|
1,065
|
2,014
|
2,323
|
4,113
|
|
Real
estate
|
7
|
16
|
11
|
33
|
|
|
|
|
|
|
|
|
8,201
|
8,962
|
15,042
|
18,785
|
|
Cost of Sales
|
|
|
|
|
|
Cost of manufactured products sold
|
2,770
|
2,383
|
4,707
|
4,938
|
|
Cost of testing services rendered
|
2,678
|
2,918
|
5,000
|
6,109
|
|
Cost of distribution
|
861
|
1,738
|
1,908
|
3,545
|
|
Cost
of real estate
|
22
|
18
|
39
|
36
|
|
|
|
|
|
|
|
|
6,331
|
7,057
|
11,654
|
14,628
|
|
|
|
|
|
|
|
Gross Margin
|
1,870
|
1,905
|
3,388
|
4,157
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
General and administrative
|
1,662
|
1,777
|
3,322
|
3,565
|
|
Selling
|
122
|
176
|
233
|
366
|
|
Research and development
|
123
|
125
|
198
|
201
|
|
Gain
on disposal of property, plant and equipment
|
--
|
--
|
(1)
|
(24)
|
|
|
|
|
|
|
|
Total operating expenses
|
1,907
|
2,078
|
3,752
|
4,108
|
|
|
|
|
|
|
|
(Loss)
Income from Operations
|
(37)
|
(173)
|
(364)
|
49
|
|
|
|
|
|
|
|
Other Income
(Expenses)
|
|
|
|
|
|
Interest expenses
|
(34)
|
(55)
|
(71)
|
(123)
|
|
Gain
on sale of asset held for sale
|
--
|
1,172
|
--
|
1,172
|
|
Other income, net
|
143
|
40
|
354
|
150
|
|
|
|
|
|
|
|
Total other income
|
109
|
1,157
|
283
|
1,199
|
|
|
|
|
|
|
|
Income (loss)
from Continuing Operations before Income Taxes
|
72
|
984
|
(81)
|
1,248
|
|
Income Tax Expenses
|
--
|
120
|
7
|
120
|
|
|
|
|
|
|
|
Income (loss)
from Continuing Operations
|
|
|
|
|
|
before Non-controlling Interest, Net of Tax
|
72
|
864
|
(88)
|
1,128
|
|
(Loss) Income
from Discontinued Operations, Net of Tax
|
(21)
|
1
|
(27)
|
--
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
51
|
865
|
(115)
|
1,128
|
|
|
|
|
|
|
|
Less: (Loss)
Income Attributable to Non-controlling Interest
|
(184)
|
439
|
(342)
|
429
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International
|
235
|
426
|
227
|
699
|
|
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations, Net of Tax
|
246
|
425
|
241
|
699
|
|
(Loss) Income
from Discontinued Operations, Net of Tax
|
(11)
|
1
|
(14)
|
--
|
|
|
|
|
|
|
|
Net Income attributable to Trio-Tech International
|
$235
|
$426
|
$227
|
$699
|
|
|
|
|
|
|
|
Basic
Earnings per Share
|
$0.06
|
$0.12
|
$0.06
|
$0.19
|
|
|
|
|
|
|
|
Diluted Earnings
per share
|
$0.06
|
$0.11
|
$0.06
|
$0.19
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
3,710
|
3,673
|
3,710
|
3,673
|
|
Weighted Average Shares Outstanding - Diluted
|
3,800
|
3,725
|
3,793
|
3,706
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
|
||||
|
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
||||
|
|
||||
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||
|
|
December 31,
|
December 31,
|
||
|
Comprehensive Income Attributable to
Trio-Tech International Common
Shareholders:
|
2020
|
2019
|
2020
|
2019
|
|
|
||||
|
Net income
(loss)
|
$51
|
$865
|
$(115)
|
$1,128
|
|
|
|
|
|
|
|
Foreign Currency Translation, Net of Tax
|
943
|
525
|
1,583
|
(38)
|
|
|
|
|
|
|
|
Comprehensive Income
|
994
|
1,390
|
1,468
|
1,090
|
|
|
|
|
|
|
|
Less: Comprehensive (Loss) Income
Attributable To Non-controlling Interest
|
(197)
|
431
|
(319)
|
440
|
|
|
|
|
|
|
|
Comprehensive Income
Attributable to Trio-Tech International Common
Shareholders
|
$1,191
|
$959
|
$1,787
|
$650
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
||
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||
|
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
||
|
|
||
|
|
|
|
|
|
Dec.
31,
|
Jun.
30,
|
|
|
2020
|
2020
|
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash equivalents
|
$4,470
|
$4,150
|
|
Short-term deposits
|
6,940
|
6,838
|
|
Trade accounts receivable, net
|
7,581
|
5,951
|
|
Other receivables
|
670
|
998
|
|
Inventories, net
|
2,147
|
1,922
|
|
Prepaid expenses and other current assets
|
342
|
341
|
|
|
|
|
|
Total current assets
|
22,150
|
20,200
|
|
|
|
|
|
Deferred tax assets
|
354
|
247
|
|
Investment properties, net
|
712
|
690
|
|
Property, plant and equipment, net
|
10,050
|
10,310
|
|
Operating lease
right-of-use assets
|
1,514
|
944
|
|
Other assets
|
1,831
|
1,609
|
|
Restricted term deposits
|
1,752
|
1,660
|
|
|
|
|
|
Total non-current assets
|
16,213
|
15,460
|
|
|
|
|
|
TOTAL ASSETS
|
$38,363
|
$35,660
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$--
|
$172
|
|
Accounts payable
|
3,103
|
2,590
|
|
Accrued expenses
|
3,395
|
3,005
|
|
Income taxes payable
|
341
|
344
|
|
Current portion of bank loans payable
|
443
|
370
|
|
Current portion of finance leases
|
227
|
231
|
|
Current portion of operating leases
|
562
|
477
|
|
Current
portion of PPP loan
|
121
|
54
|
|
|
|
|
|
Total current liabilities
|
8,192
|
7,243
|
|
|
|
|
|
Bank loans payable, net of current portion
|
1,899
|
1,836
|
|
Finance leases, net of current portion
|
353
|
435
|
|
Operating
leases, net of current portion
|
952
|
467
|
|
Income
taxes payable
|
385
|
430
|
|
PPP
loan, net of current portion
|
--
|
67
|
|
Other non-current liabilities
|
34
|
36
|
|
|
|
|
|
Total non-current liabilities
|
3,623
|
3,271
|
|
|
|
|
|
TOTAL LIABILITIES
|
11,815
|
10,514
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,710,555
and 3,673,055 shares
|
|
|
|
issued and outstanding
at December
31, 2020 and June 30, 2020,
respectively
|
11,525
|
11,424
|
|
Paid-in capital
|
3,378
|
3,363
|
|
Accumulated retained earnings
|
8,263
|
8,036
|
|
Accumulated other comprehensive gain-translation adjustments
|
2,703
|
1,143
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
25,869
|
23,966
|
|
|
|
|
|
Non-controlling interest
|
679
|
1,180
|
|
|
|
|
|
TOTAL EQUITY
|
26,548
|
25,146
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$38,363
|
$35,660
|
|
|
|
|