Trio-Tech International (NYSE MKT: TRT) today announced financial results for the first quarter of fiscal 2016:
● Net income increased to $0.08 per share compared to a net loss of $0.04 per share for the first quarter of fiscal 2015 despite a 2.0% decrease in revenue.
● Operating income increased to $299,000 compared to an operating loss of $134,000 for the first quarter of fiscal 2015.
● Cash and cash equivalents increased to $4,001,000, or $1.14 per share, at September 30, 2015 compared to $3,711,000, or $1.06 per share, at June 30, 2015.
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "Although
revenue declined slightly, our tight cost controls increased gross
margin, operating income, and net income. Higher product and
distribution sales were offset by lower testing services revenue. Such
fluctuations in quarterly products and testing services revenue are
entirely typical of the semiconductor industry in general and our
business in particular, a fact which has taught us to pay careful
attention to operating flexibility and costs. Our discipline on the cost
side was clearly evident from the 21.2% increase in gross margin for
this year's first quarter compared to the first quarter of fiscal 2015,
as well as the 4.4% decrease in general and administrative expenses this
year versus last. Cash generated from operations also increased to
$688,000 for the first quarter of fiscal 2016 compared to $466,000 a
year ago.
"We continue to focus on value creation for both our customers and our shareholders. Our broad menu of products and services, attention to quality, and the wide geographic scope of our operations have enabled us to forge strong relationships with our customers. This is the foundation for the improved bottom-line performance Trio-Tech has delivered for shareholders in the past several quarters."
Fiscal 2016 First Quarter Results
For the three months ended
September 30, 2015, revenue decreased 2.0% to $7,930,000 compared to
revenue of $8,093,000 for the first quarter of fiscal 2015.
Semiconductor testing services revenue decreased 18.1% to $3,783,000 for
this year's first quarter compared to $4,618,000 for the same period
last fiscal year, primarily reflecting reduced orders from a major
customer in Asia. Manufacturing revenue increased 3.1% to $3,140,000 for
the first quarter of fiscal 2016 compared to $3,047,000 for the same
period last fiscal year, due to increased orders from a major customer
in the Singapore operations. Higher sales to a new customer in Singapore
increased distribution revenue 153.2% to $975,000 for the first quarter
of fiscal 2016, compared to $385,000 in the same period last year.
Net income attributable to Trio-Tech common shareholders for the first quarter of fiscal 2016 increased to $259,000, or $0.08 per basic and diluted share, which included a loss from discontinued operations of $5,000, or $0.00 per share. This compares to a net loss attributable to Trio-Tech common shareholders of $136,000, or $0.04 per basic and diluted share, for the first quarter of fiscal 2015, which included income from discontinued operations of $14,000, or $0.00 per share.
Gross margin for this year's first quarter was 27.5% compared to 22.2% for the same period last fiscal year. Operating expenses decreased to $1,879,000 for the first quarter of fiscal 2016 compared to $1,931,000 for the same period last fiscal year.
Income from operations for the first quarter of fiscal 2016 increased to $299,000. This compares to a loss from operations of $134,000 for the first quarter of fiscal 2015.
Shareholders' equity at September 30, 2015 was $19,678,000, or $5.60 per outstanding share, compared to $20,722,000, or $5.90 per outstanding share, at June 30, 2015. There were approximately 3,513,000 common shares outstanding at September 30, 2015 and June 30, 2015.
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.
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | ||||||||||||
Revenue | 2015 | 2014 | ||||||||||
Manufacturing | $ | 3,140 | $ | 3,047 | ||||||||
Testing services | 3,783 | 4,618 | ||||||||||
Distribution | 975 | 385 | ||||||||||
Others | 32 | 43 | ||||||||||
7,930 | 8,093 | |||||||||||
Cost of Sales | ||||||||||||
Cost of manufactured products sold | 2,109 | 2,873 | ||||||||||
Cost of testing services rendered | 2,758 | 3,049 | ||||||||||
Cost of distribution | 853 | 340 | ||||||||||
Others | 32 | 34 | ||||||||||
5,752 | 6,296 | |||||||||||
Gross Margin | 2,178 | 1,797 | ||||||||||
Operating Expenses: | ||||||||||||
General and administrative | 1,662 | 1,738 | ||||||||||
Selling | 171 | 131 | ||||||||||
Research and development | 46 | 47 | ||||||||||
Impairment loss | -- | 15 | ||||||||||
Total operating expenses | 1,879 | 1,931 | ||||||||||
Income (loss) from Operations | 299 | (134 | ) | |||||||||
Other Income (Expenses) | ||||||||||||
Interest expense | (53 | ) | (64 | ) | ||||||||
Other income, net | 208 | 46 | ||||||||||
Total other income (expense) | 155 | (18 | ) | |||||||||
Income (loss) from Continuing Operations before Income Taxes | 454 | (152 | ) | |||||||||
Income Tax (Expense) Benefit | (67 | ) | 46 | |||||||||
Income (loss) from Continuing Operations before Non-controlling Interest, net of tax | 387 | (106 | ) | |||||||||
(Loss) income from Discontinued Operations, net of tax | (10 | ) | 26 | |||||||||
NET INCOME (LOSS) | 377 | (80 | ) | |||||||||
Less: Net Income Attributable to the Non-controlling Interest | 118 | 56 | ||||||||||
Net Income (Loss) Attributable to Trio-Tech International | $ | 259 | $ | (136 | ) | |||||||
Net Income (Loss) Attributable to Trio-Tech International: | ||||||||||||
Income (loss) from continuing operations, net of tax | 264 | (150 | ) | |||||||||
(Loss) income from discontinued operations, net of tax | (5 | ) | 14 | |||||||||
Net income (loss) attributable to Trio-Tech International | $ | 259 | $ | (136 | ) | |||||||
Basic and Diluted Earnings (Loss) Per Share | ||||||||||||
From continuing operations | $ | 0.08 | $ | (0.04 | ) | |||||||
From discontinued operations | 0.00 | (0.00 | ) | |||||||||
Basic and diluted Earnings (Loss) per Share | $ | 0.08 | $ | (0.04 | ) | |||||||
Weighted Average Shares Outstanding – Basic | 3,513 | 3,513 | ||||||||||
Weighted Average Shares Outstanding – Diluted | 3,521 | 3,513 | ||||||||||
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | ||||||||||||
2015 | 2014 | |||||||||||
Comprehensive Income (Loss) Attributable to Trio-Tech International: | ||||||||||||
Net income (loss) | $ | 377 | $ | (80 | ) | |||||||
Foreign currency translation, net of tax | (1,425 | ) | 160 | |||||||||
Comprehensive (Loss) Income | (1,048 | ) | 80 | |||||||||
Less: Comprehensive (loss) income attributable to non-controlling interests | (252 | ) | 113 | |||||||||
Comprehensive Loss Attributable to Trio-Tech International | $ | (796 | ) | $ | (33 | ) | ||||||
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(IN THOUSANDS, EXCEPT NUMBER OF SHARES) | ||||||||||
Sep. 30, | Jun. 30, | |||||||||
2015 | 2015 | |||||||||
ASSETS | (unaudited) | |||||||||
CURRENT ASSETS: | ||||||||||
Cash and cash equivalents | $ | 4,001 | $ | 3,711 | ||||||
Short-term deposits | 92 | 101 | ||||||||
Trade accounts receivable, net | 7,644 | 7,875 | ||||||||
Other receivables | 351 | 389 | ||||||||
Inventories, net | 1,201 | 1,141 | ||||||||
Prepaid expenses and other current assets | 287 | 244 | ||||||||
Assets held for sale | 83 | 98 | ||||||||
Total current assets | 13,659 | 13,559 | ||||||||
Deferred tax assets | 433 | 453 | ||||||||
Investment properties, net | 1,478 | 1,540 | ||||||||
Property, plant and equipment, net | 11,188 | 12,522 | ||||||||
Other assets | 1,753 | 1,823 | ||||||||
Restricted term deposits | 1,969 | 2,140 | ||||||||
Total non-current assets | 16,821 | 18,478 | ||||||||
TOTAL ASSETS | $ | 30,480 | $ | 32,037 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES: | ||||||||||
Lines of credit | $ | 1,905 | $ | 1,578 | ||||||
Accounts payable | 2,980 | 2,770 | ||||||||
Accrued expenses | 2,660 | 3,084 | ||||||||
Income taxes payable | 250 | 296 | ||||||||
Current portion of bank loans payable | 310 | 346 | ||||||||
Current portion of capital leases | 169 | 197 | ||||||||
Total current liabilities | 8,274 | 8,271 | ||||||||
Bank loans payable, net of current portion | 1,810 | 2,198 | ||||||||
Capital leases, net of current portion | 394 | 475 | ||||||||
Deferred tax liabilities | 292 | 333 | ||||||||
Other non-current liabilities | 32 | 38 | ||||||||
Total non-current liabilities | 2,528 | 3,044 | ||||||||
TOTAL LIABILITIES | 10,802 | 11,315 | ||||||||
COMMITMENTS AND CONTINGENCIES | -- | -- | ||||||||
EQUITY | ||||||||||
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||||||||||
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding at September 30, 2015, and June 30, 2015 | 10,882 | 10,882 | ||||||||
Paid-in capital | 3,091 | 3,087 | ||||||||
Accumulated retained earnings | 2,505 | 2,246 | ||||||||
Accumulated other comprehensive gain-translation adjustments | 1,716 | 2,771 | ||||||||
Total Trio-Tech International shareholders' equity | 18,194 | 18,986 | ||||||||
NON-CONTROLLING INTERESTS | 1,484 | 1,736 | ||||||||
TOTAL EQUITY | 19,678 | 20,722 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 30,480 | $ | 32,037 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151116005498/en/
Contacts:
Company:
A. Charles
Wilson, Chairman
(818) 787-7000
or
Investor:
Berkman
Associates
310-477-3118
info@BerkmanAssociates.com