Attached files
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| 8-K - FORM 8K - TRIO-TECH INTERNATIONAL | trt8k_nov92017.htm |
Exhibit
99.1
 |
LOS
ANGELES
SINGAPORE
KUALA
LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING
|
|
|
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 First Quarter Net Income Doubles to $0.16 Per Share On
22.0% Revenue Gain Versus 2017 First
Quarter
Van Nuys, CA -- November 9, 2017 –
Trio-Tech International (NYSE MKT:
TRT) today announced financial results for the first quarter
of fiscal 2018:
●
Revenue increased
22.0% compared to the first quarter of fiscal 2017.
●
Operating income
increased 45.1% compared to the first quarter of fiscal
2017.
●
Net income
attributable to TRT increased 89.8% compared to the first quarter
of fiscal 2017.
●
Earnings per share
doubled to $0.16 compared to $0.08 for the first quarter of fiscal
2017.
CEO
Comments
S.W.
Yong, Trio-Tech's CEO, said, "Trio-Tech's excellent first quarter
financial results speak for themselves: Revenue increased sharply
in each of our business segments, driving commensurate gains in
operating income, net income and earnings per share versus the
first quarter of last fiscal year. Our Singapore and Tianjin, China
operations were especially strong, and business conditions there
currently appear likely to remain favorable. This was our strongest
quarterly financial performance in quite some time, a tribute to
the hard work and dedication of Trio-Tech's entire team, and we are
optimistic regarding the remainder of the year."
Fiscal
2018 First Quarter Results
For the
first fiscal quarter ended September 30, 2017, revenue increased to
$10,945,000 compared to revenue of $8,971,000 for the same quarter
last year. Manufacturing revenue increased 29.8% to $4,765,000 for
this year's first quarter compared to $3,671,000 for the first
quarter a year ago. Semiconductor testing services revenue
increased 10.8% to $4,605,000 for the first quarter of fiscal 2018,
compared to $4,157,000 a year earlier. Distribution revenue
increased 39.1% to $1,536,000 for this year's first quarter from
$1,104,000 for the first quarter of fiscal 2017.
Gross
margin for the first quarter of fiscal 2018 increased 17.0% to
$2,760,000 compared to $2,358,000 in the same quarter last year. A
change in product mix at both manufacturing and testing services
reduced gross margin to 25.2% of revenue, compared to 26.3% of
revenue for the first quarter last year.
Operating expenses
for the first quarter of fiscal 2018 increased to $2,213,000, but
declined to 20.2% of revenue from $1,981,000, or 22.1% of revenue,
a year earlier. The decline in operating expenses, as a percent of
revenue, contributed to a 45.1% increase in income from operations
to $547,000 from $377,000 for the first quarter of fiscal
2017.
(more)
16139
Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818)
787-7000 ● FAX (818) 787-9130
Trio-Tech
Fiscal 2018 First Quarter Net Income Doubles to $0.16 Per Share On
22.0% Revenue Gain Versus 2017 First Quarter
November 9,
2017
Page
Two
Net
income attributable to Trio-Tech common shareholders for the first
quarter of fiscal 2018 increased 89.8% to $575,000, or $0.16 per
diluted share, compared to $303,000, or $0.08 per diluted share in
the same quarter last year.
Shareholders'
equity at September 30, 2017 was $22,554,000, or $6.38 per
outstanding share, compared to $21,527,000, or $6.11 per
outstanding share, at June 30, 2017. There were approximately
3,533,055 common shares outstanding at September 30,
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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|||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|||||
|
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
|
|
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Three Months Ended
September 30, |
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Revenue
|
2017
|
2016
|
|
|
||
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Products
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$4,765
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$3,671
|
|
Testing services
|
4,605
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4,157
|
|
Distribution
|
1,536
|
1,104
|
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Other
|
39
|
39
|
|
|
|
|
|
|
10,945
|
8,971
|
|
Cost of Sales
|
|
|
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Cost of products sold
|
3,649
|
2,795
|
|
Cost of testing services rendered
|
3,139
|
2,814
|
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Distribution
|
1,368
|
991
|
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Other
|
29
|
13
|
|
|
|
|
|
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8,185
|
6,613
|
|
|
|
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Gross Margin
|
2,760
|
2,358
|
|
|
|
|
|
Operating Expenses:
|
|
|
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General and administrative
|
1,839
|
1,743
|
|
Selling
|
179
|
185
|
|
Research and development
|
184
|
53
|
|
Impairment loss of property, plant and equipment
|
11
|
--
|
|
|
|
|
|
Total operating expenses
|
2,213
|
1,981
|
|
|
|
|
|
Income from Operations
|
547
|
377
|
|
|
|
|
|
Other Income (Expenses)
|
|
|
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Interest expense
|
(58)
|
(58)
|
|
Other income, net
|
158
|
110
|
|
|
|
|
|
Total other income
|
100
|
52
|
|
|
|
|
|
Income from Continuing Operations before Income Taxes
|
647
|
429
|
|
Income Tax Expense
|
(42)
|
(83)
|
|
|
|
|
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Income from Continuing Operations before Non-controlling Interest, net of tax
|
605
|
346
|
|
|
|
|
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Income (loss) from discontinued operations, net of tax
|
(3)
|
1
|
|
|
|
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NET INCOME
|
602
|
347
|
|
|
|
|
|
Less: Net income attributable to the non-controlling interest
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27
|
44
|
|
|
|
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Net Income attributable to Trio-Tech International
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$575
|
$303
|
|
|
|
|
|
Net Income Attributable to Trio-Tech International:
|
|
|
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Income from continuing operations, net of tax
|
576
|
303
|
|
Loss from discontinued operations, net of tax
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(1)
|
--
|
|
|
|
|
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Net Income Attributable to Trio-Tech International
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$575
|
$303
|
|
|
|
|
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Earnings per share
|
|
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Basic earnings per share
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$0.16
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$0.09
|
|
|
|
|
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Diluted earnings per share
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$0.16
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$0.08
|
|
|
|
|
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Weighted Average Shares Outstanding - Basic
|
3,533
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3,513
|
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Weighted Average Shares Outstanding - Diluted
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3,673
|
3,579
|
|
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)
|
|
|
Three
Months Ended
September 30, |
|
|
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2017
|
2016
|
|
|
|
|
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Comprehensive Income Attributable to Trio-Tech International:
|
|
|
|
|
||
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Net income
|
$602
|
$347
|
|
Foreign currency translation, net of tax
|
375
|
(283)
|
|
|
|
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Comprehensive Income
|
977
|
64
|
|
|
|
|
|
Less: Comprehensive income (loss) attributable to non-controlling interests
|
27
|
(21)
|
|
|
|
|
|
Comprehensive Income Attributable to Trio-Tech International
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$950
|
$85
|
|
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
|
|||
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CONDENSED CONSOLIDATED BALANCE SHEETS
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|||
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(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
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Sep. 30,
|
Jun. 30,
|
|
|
2017
|
2017
|
|
ASSETS
|
(unaudited)
|
|
|
|
|
|
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CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
$3,188
|
$4,772
|
|
Short-term deposits
|
1,043
|
787
|
|
Trade accounts receivable, net
|
10,172
|
9,009
|
|
Other receivables
|
302
|
401
|
|
Inventories, net
|
2,482
|
1,756
|
|
Prepaid expenses and other current assets
|
336
|
226
|
|
Assets held for sale
|
87
|
86
|
|
|
|
|
|
Total current assets
|
17,610
|
17,037
|
|
|
|
|
|
Deferred tax assets
|
432
|
375
|
|
Investment properties, net
|
1,216
|
1,216
|
|
Property, plant and equipment, net
|
11,542
|
11,291
|
|
Other assets
|
2,220
|
1,922
|
|
Restricted term deposits
|
1,686
|
1,657
|
|
|
|
|
|
Total non-current assets
|
17,096
|
16,461
|
|
|
|
|
|
TOTAL ASSETS
|
$34,706
|
$33,498
|
|
|
|
|
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LIABILITIES AND SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Lines of credit
|
$1,581
|
$2,556
|
|
Accounts payable
|
3,766
|
3,229
|
|
Accrued expenses
|
3,483
|
3,043
|
|
Income taxes payable
|
255
|
233
|
|
Current portion of bank loans payable
|
343
|
260
|
|
Current portion of capital leases
|
214
|
228
|
|
|
|
|
|
Total current liabilities
|
9,642
|
9,549
|
|
|
|
|
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Bank loans payable, net of current portion
|
1,650
|
1,552
|
|
Capital leases, net of current portion
|
491
|
531
|
|
Deferred tax liabilities
|
324
|
295
|
|
Other non-current liabilities
|
45
|
44
|
|
|
|
|
|
Total non-current liabilities
|
2,510
|
2,422
|
|
|
|
|
|
TOTAL LIABILITIES
|
12,152
|
11,971
|
|
|
|
|
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EQUITY
|
|
|
|
|
|
|
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TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
|
|
|
|
Common stock, no par value, 15,000,000 shares authorized; 3,533,055 and 3,523,055
|
|
|
|
shares issued and outstanding at September 30, 2017 and June 30, 2017, respectively
|
10,972
|
10,921
|
|
Paid-in capital
|
3,207
|
3,206
|
|
Accumulated retained earnings
|
4,916
|
4,341
|
|
Accumulated other comprehensive gain-translation adjustments
|
2,007
|
1,633
|
|
|
|
|
|
Total Trio-Tech International shareholders' equity
|
21,102
|
20,101
|
|
|
|
|
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Non-controlling interest
|
1,452
|
1,426
|
|
|
|
|
|
TOTAL EQUITY
|
22,554
|
21,527
|
|
|
|
|
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TOTAL LIABILITIES AND EQUITY
|
$34,706
|
$33,498
|