Trio-Tech Reports Fiscal 2015 Second Quarter Results

Trio-Tech International (NYSE MKT:TRT) today announced financial results for the second quarter and first six months of fiscal 2015.

For the second fiscal quarter ended December 31, 2014, revenue decreased to $8,897,000 compared to revenue of $9,339,000 for the second quarter of fiscal 2014. Semiconductor testing service revenue increased by 10.4% to $5,073,000 for this year's second quarter compared to $4,597,000 for the same period last fiscal year, reflecting an increase in testing volume in all of the Company’s testing operations except Suzhou, China. Revenue from product sales decreased 19.5% to $3,780,000 for this year's second quarter compared to $4,696,000 for the same period last fiscal year. The decrease in products revenue primarily reflected reduced capital spending by certain customers for facility and equipment upgrades, compared to the same period last fiscal year.

Net income attributable to Trio-Tech common shareholders for the second quarter of fiscal 2015 was $94,000, or $0.03 per basic and diluted share. This compares to a net loss attributable to Trio-Tech common shareholders for the second quarter of fiscal 2014 of $365,000, or $0.10 per basic and diluted share.

Gross margin for this year's second quarter was 27.5% compared to 21.3% for the second quarter of last fiscal year, reflecting a shift in the mix of business toward higher margin testing and other services for this year's second quarter versus the same period a year ago. Lower general and administrative costs drove a decrease in operating expenses to $2,006,000 for the second quarter of fiscal 2015 compared to $2,093,000 for the same period last fiscal year.

With higher gross margin and lower operating expenses compared to last year's second quarter, income from operations for the second quarter of fiscal 2015 increased to $437,000. This compares to a loss from operations for the second quarter of fiscal 2014 of $106,000.

For the first six months of fiscal 2015, revenue decreased to $16,990,000 compared to revenue of $18,836,000 for the first six months of fiscal 2014. For this year's first half, testing services revenue increased 12.1% to $9,691,000 compared to $8,645,000 for the same period a year earlier. This revenue gain was offset by a 28.6% decrease in products revenue to $7,212,000 compared to $10,101,000 for last year's first half.

The net loss attributable to Trio-Tech common shareholders for the first six months of fiscal 2015 of $30,000, or $0.01 per basic and diluted share, included income from discontinued operations of $20,000, or $0.00 per basic and diluted share. This compares to a net loss attributable to Trio-Tech common shareholders for the first six months of fiscal 2014 of $382,000, or $0.11 per basic and diluted share, which included a loss from discontinued operations of $72,000, or $0.01 per basic and diluted share. Trio-Tech terminated its fabrication facilities lease in December 2012 and discontinued this segment in the fourth quarter of fiscal 2013.

Cash provided by operations for the first six months of fiscal 2015 was $1,745,000. This compares to cash provided by operations for the first six months of fiscal 2014 of $2,201,000.

Shareholders' equity at December 31, 2014 was $20,697,000, or $5.89 per outstanding share, compared to $20,833,000, or $5.93 per outstanding share, at June 30, 2014.

S.W. Yong, Trio-Tech's CEO, said, "We delivered a profitable second quarter despite the headwinds created by the decrease in product sales and the strength of the U.S. dollar. Although products revenue declined, revenue increased at the semiconductor testing and other services business, which is performing particularly well. Trio-Tech’s semiconductor test equipment business remains subject to fluctuations in our customers' capital spending requirements, but we see a variety of opportunities to build this business for the long term. We are encouraged by the improvements in gross margin and operating income for this year's second quarter, and remain committed to efficiency and cost-effectiveness throughout our Company."

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 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.