Attached files
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| 8-K - FORM 8-K - TRIO-TECH INTERNATIONAL | tt8k_feb142013.htm |
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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: Investor Contact:
A. Charles Wilson Berkman Associates
Chairman (310) 477-3118
(818) 787-7000 info@BerkmanAssociates.com
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Trio-Tech Reports Sharply Narrower Second Quarter Net Loss
As Revenue Increases 11.1%
Van Nuys, CA -- February 14, 2013 -- Trio-Tech International (NYSE MKT:TRT) today announced financial results for the second quarter and first half of fiscal 2013.
For the three months ended December 31, 2012, revenue increased 11.1% to $7,351,000 compared $6,619,000 for last year's second quarter. The net loss attributable to Trio-Tech common shareholders for the second quarter of fiscal 2013 decreased to $506,000, or $0.15 per share. This compares to a net loss for the second quarter of fiscal 2012 of $1,203,000, or $0.36 per share.
For the six months ended December 31, 2012, revenue increased 10.9% to $17,098,000, compared $15,418,000 for last year's first half. The net loss attributable to Trio-Tech common shareholders for the first six months of fiscal 2013 narrowed to $523,000, or $0.16 per share, compared to a net loss for the first six months of fiscal 2012 of $2,007,000, or $0.60 per share. Cash provided by operations for the first six months of fiscal 2013 was $3,646,000, compared to cash used by operations for the first six months of fiscal 2012 of $1,754,000. Shareholders' equity at December 31, 2012 was $21,132,000, or $6.36 per outstanding share, compared to $20,556,000, or $6.25 per outstanding share, at June 30, 2012.
"Our core operations performed well in the second quarter, and our cash position is improving. Revenue from semiconductor testing services was up 33.9%, driven by higher testing volume in our Malaysia, Thailand and China operations, while sales of semiconductor test products increased 3.6%. Benefitting from the growth in revenue, gross margin for this year's second quarter improved to 18.3% compared to 11.4% a year ago, while operating expenses decreased 18.2%, reflecting our commitment to control costs. We are optimistic about the outlook for our testing business, especially in China," said SW Yong, Trio-Tech's CEO.
As previously announced, effective on December 31, 2012, the Company terminated the lease on the yard in Batam, Indonesia used for its oil and gas equipment fabrication business. Yong noted that this will contribute to further cost reductions beginning in the current quarter.
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, www.shi-international.com and www.ttsolar.com.
Trio-Tech Reports Sharply Narrower Second Quarter Net Loss As Revenue Increases 11.1%
February 14, 2013
Page Two
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)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
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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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2012
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2011
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2012
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2011
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Products
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$ | 3,419 | $ | 3,301 | $ | 9,055 | $ | 6,417 | ||||||||
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Testing Services
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3,769 | 2,815 | 7,678 | 6,106 | ||||||||||||
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Fabrication Services
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130 | 455 | 302 | 2,800 | ||||||||||||
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Other
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33 | 48 | 63 | 95 | ||||||||||||
| 7,351 | 6,619 | 17,098 | 15,418 | |||||||||||||
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Costs of Sales
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Cost of products sold
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2,799 | 2,743 | 7,825 | 5,350 | ||||||||||||
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Cost of testing services rendered
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2,842 | 2,566 | 5,519 | 5,200 | ||||||||||||
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Cost of fabrication services rendered
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331 | 528 | 578 | 2,660 | ||||||||||||
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Other
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32 | 26 | 65 | 52 | ||||||||||||
| 6,004 | 5,863 | 13,987 | 13,262 | |||||||||||||
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Gross Margin
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1,347 | 756 | 3,111 | 2,156 | ||||||||||||
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Operating Expenses:
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General and administrative
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1,731 | 2,166 | 3,555 | 4,264 | ||||||||||||
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Selling
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129 | 123 | 262 | 267 | ||||||||||||
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Research and development
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72 | 73 | 145 | 148 | ||||||||||||
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(Gain) Loss on disposal of property, plant and equipment
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-- | -- | (3 | ) | 4 | |||||||||||
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Total operating expenses
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1,932 | 2,362 | 3,959 | 4,683 | ||||||||||||
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Loss from Operations
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(585 | ) | (1,606 | ) | (848 | ) | (2,527 | ) | ||||||||
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Other Income (Expenses)
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Interest expense
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(82 | ) | (70 | ) | (167 | ) | (131 | ) | ||||||||
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Other income, net
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75 | (23 | ) | 257 | 21 | |||||||||||
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Total other (expenses) income
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(7 | ) | (93 | ) | 90 | (110 | ) | |||||||||
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Loss from Continuing Operations before Income Taxes
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(592 | ) | (1,699 | ) | (758 | ) | (2,637 | ) | ||||||||
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Income Tax Benefit (Expense)
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(2 | ) | 136 | 123 | 99 | |||||||||||
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Loss from Continuing Operations before Non-controlling Interest, net of tax
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(594 | ) | (1,563 | ) | (635 | ) | (2,538 | ) | ||||||||
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Equity in earnings of unconsolidated joint venture, net of tax
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-- | -- | -- | (11 | ) | |||||||||||
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LOSS FROM DISCONTINUED OPERATIONS, net of tax
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-- | (1 | ) | -- | (2 | ) | ||||||||||
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NET LOSS
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$ | (594 | ) | $ | (1,564 | ) | $ | (635 | ) | $ | (2,551 | ) | ||||
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Less: Net loss attributable to the non-controlling interest
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(88 | ) | (361 | ) | (112 | ) | (544 | ) | ||||||||
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Net Loss attributable to Trio-Tech International
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(506 | ) | (1,203 | ) | (523 | ) | (2,007 | ) | ||||||||
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Net Loss Attributable to Trio-Tech International:
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Loss from continuing operations, net of tax
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(506 | ) | (1,202 | ) | (523 | ) | (2,005 | ) | ||||||||
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Loss from discontinued operations, net of tax
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-- | (1 | ) | -- | (2 | ) | ||||||||||
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Net Loss Attributable to Trio-Tech Intenational
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$ | (506 | ) | $ | (1,203 | ) | $ | (523 | ) | $ | (2,007 | ) | ||||
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Comprehensive Income (Loss) Attributable to Trio-Tech:
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Net loss
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$ | (594 | ) | $ | (1,564 | ) | $ | (635 | ) | $ | (2,551 | ) | ||||
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Foreign currency translation, net of tax
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161 | 425 | 716 | (109 | ) | |||||||||||
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Comprehensive Income (Loss)
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(433 | ) | (1,139 | ) | 81 | (2,660 | ) | |||||||||
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Less: Comprehensive (loss) income attributable to non-controlling Interest
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(46 | ) | (348 | ) | 52 | (566 | ) | |||||||||
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Comprehensive (Loss) Income Attributable to Trio-Tech
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(387 | ) | (791 | ) | 29 | (2,094 | ) | |||||||||
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Basic and diluted loss per share from continuing operations
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$ | (0.15 | ) | $ | (0.36 | ) | $ | (0.16 | ) | $ | (0.60 | ) | ||||
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Basic and diluted loss per share from discontinued operations
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-- | -- | -- | -- | ||||||||||||
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Basic and diluted Loss per Share
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$ | (0.15 | ) | $ | (0.36 | ) | $ | (0.16 | ) | $ | (0.60 | ) | ||||
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Weighted Average Shares Outstanding - Basic and Diluted
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3322 | 3,322 | 3,322 | 3,322 | ||||||||||||
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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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Dec. 31,
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June 30,
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2012
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2012
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ASSETS
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(unaudited)
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CURRENT ASSETS:
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Cash & cash equivalents
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$ | 2,790 | $ | 1,572 | ||||
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Short-term deposits
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105 | 250 | ||||||
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Trade accounts receivable, net
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6,869 | 11,311 | ||||||
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Other receivables
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560 | 962 | ||||||
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Loan receivables from property development projects
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1,123 | 1,101 | ||||||
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Inventories, net
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2,138 | 2,324 | ||||||
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Prepaid expenses and other current assets
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287 | 406 | ||||||
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Assets held for sale
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-- | 130 | ||||||
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Total current assets
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13,872 | 18,056 | ||||||
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INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
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781 | 765 | ||||||
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INVESTMENT PROPERTIES, Net
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1,933 | 1,815 | ||||||
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PROPERTY, PLANT AND EQUIPMENT, Net
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13,233 | 13,193 | ||||||
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OTHER ASSETS
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599 | 776 | ||||||
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RESTRICTED TERM DEPOSITS
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3,615 | 3,445 | ||||||
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TOTAL ASSETS
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$ | 34,033 | $ | 38,050 | ||||
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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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$ | 2,626 | $ | 3,605 | ||||
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Accounts payable
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2,631 | 4,834 | ||||||
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Accrued expenses
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2,611 | 3,011 | ||||||
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Income taxes payable
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471 | 469 | ||||||
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Current portion of bank loans payable
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734 | 766 | ||||||
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Current portion of capital leases
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151 | 175 | ||||||
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Total current liabilities
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9,224 | 12,860 | ||||||
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BANK LOANS PAYABLE, net of current portion
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3,136 | 3,373 | ||||||
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CAPITAL LEASES, net of current portion
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172 | 221 | ||||||
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DEFERRED TAX LIABILITIES
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356 | 497 | ||||||
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OTHER NON-CURRENT LIABILITIES
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13 | 543 | ||||||
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TOTAL LIABILITIES
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12,901 | 17,494 | ||||||
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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
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authorized; 3,321,555 shares issued and outstanding at
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December 31, 2012, and June 30, 2012, respectively
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10,531 | 10,531 | ||||||
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Paid-in capital
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2,733 | 2,431 | ||||||
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Accumulated retained earnings
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2,164 | 2,687 | ||||||
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Accumulated other comprehensive gain-translation adjustments
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3,739 | 3,187 | ||||||
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Total Trio-Tech International shareholders' equity
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19,167 | 18,836 | ||||||
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NON-CONTROLLING INTEREST
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1,965 | 1,720 | ||||||
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TOTAL EQUITY
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21,132 | 20,556 | ||||||
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TOTAL LIABILITIES AND EQUITY
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$ | 34,033 | $ | 38,050 | ||||