Category: Semiconductors

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, Calif. -- 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.
 
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 benefited 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 benefited 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.
 
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.
 
 
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
                             

 

 

Contacts:

Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000
or
Investor Contact:
Berkman Associates
(310) 477-3118
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