EX-99.1 2 a20727exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1

(TRIO-TECH LOGO)
LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI


         
FOR IMMEDIATE RELEASE
  Company Contact:   Investor Contact:
 
  A. Charles Wilson   Berkman Associates
 
  Chairman   (310) 826-5051
 
  (818) 787-7000   info@BerkmanAssociates.com
Trio-Tech Reports Fiscal 2006 Third Quarter Results
     Van Nuys, CA, — May 11, 2006 — Trio-Tech International (AMEX:TRT) today announced financial results for the third quarter and first nine months of fiscal 2006.
     Third Quarter Results
     For the three months ended March 31, 2006, total revenue increased 10% to $6,469,000 from $5,884,000 for the third quarter of fiscal 2005, driven by a 21% increase in testing service revenue to $3,451,000 versus $2,846,000 for the third quarter of fiscal 2005. Trio-Tech’s semiconductor testing business continues to benefit from rising demand for personal computers, notebooks and server chips.
     Overall gross margin for the third quarter of fiscal 2006 improved to 27% of revenue from 24% for the same quarter last fiscal year. Gross margin in the testing services segment improved to 30.5% from 29.2% last year, reflecting improved overhead absorption and higher capacity utilization.
     Net income for the third quarter of fiscal 2006, net of income taxes and minority interest, increased to $174,000, or $0.05 per diluted share. This compares to net income for the third quarter of fiscal 2005, net of income taxes and minority interest, of $22,000, or $0.01 per diluted share.
     Chief Executive Officer S.W. Yong noted, “The semiconductor testing and burn-in business based in Shanghai, China which we acquired effective on January 3, 2006 contributed significantly to the increase in operating expenses for this year’s third quarter but, as planned, made only a small contribution to revenue for the period. We also added staff at our facilities in Singapore in anticipation of further increases in testing volume in the coming quarters. Although these investments in people and facilities restrained the increase in net income for this year’s third quarter, we are enthusiastic about our growth opportunities. We expect Trio-Tech (Shanghai) Co., Ltd. soon to begin making a positive contribution to our financial performance, and we look for continued growth at our operations in Singapore.”
     At March 31, 2006, cash and short-term deposits were $11,317,000, versus $4,650,000 at June 30, 2005. Shareholder’s equity at March 31, 2006 was $16,491,000 compared to $9,297,000 at June 30, 2005. Shareholders’ equity at March 31, 2006 was net of the dividend of $0.50 per share declared on December 2, 2005 and paid on January 25, 2006.
     Nine Month Results
     Revenue for the nine months ended March 31, 2006 increased to $19,599,000 compared to $19,161,000 for the first nine months of fiscal 2005. Testing services segment revenue for the first nine months of the current fiscal year increased 29% to $10,711,000 from $8,286,000 for the first nine months of fiscal 2005 .
(more)
14731 Califa Street, Van Nuys, CA 91411, USA Ÿ TEL: (818) 787-7000 Ÿ FAX: (818) 787-9130

 

 

Trio-Tech Reports Fiscal 2006 Third Quarter Results
May 11, 2006
Page Two
     Overall gross margin for the nine months ended March 31, 2006 improved to 28% of revenue from 24% for the same period of the prior fiscal year. Gross margin in the testing segment improved to 35% from 32% for last year’s first nine months, the result of improved overhead absorption and higher capacity utilization.
     The loss from continuing operations for the first nine months of fiscal 2006, net of income taxes and minority interest, was $107,000, or $0.03 per share. This compares to net income from continuing operations for the first nine months of fiscal 2005, net of income taxes and minority interest, of $143,000, or $0.05 per diluted share.
     Including discontinued operations, net income for the nine months ended March 31, 2006 was $8,352,000, or $2.71 per diluted share, which included an after-tax gain of $8.9 million from the sale of property in Dublin, Ireland. This compares to net income for the nine months ended March 31, 2005 of $159,000, or $0.05 per diluted share.
About Trio-Tech
     Founded in 1958, Trio-Tech International provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. Headquartered in Van Nuys, California, the Company also designs, manufactures and markets equipment and systems used in the testing and production of semiconductors, and distributes semiconductor processing and testing equipment manufactured by others. For further information or to request quotations for any of Trio-Tech’s complete line of semiconductor test equipment, please visit the Company’s Web site at www.triotech.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. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: the effectiveness of the cost reduction initiatives undertaken by the Company, changes in demand for the Company’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
(tables attached)
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED, IN THOUSANDS, EXCEPT EARNINGS (LOSS) PER SHARE)
                                 
    Nine Months Ended     Three Months Ended  
    March 31,     March 31,  
    2006     2005     2006     2005  
    (Unaudited)     (Unaudited)  
NET SALES
                                
PRODUCT SALES
   $ 8,888     $ 10,875     $ 3,018     $ 3,038  
SERVICES
     10,711       8,286       3,451       2,846  
 
                        
 
     19,599       19,161       6,469       5,884  
 
                        
 
                                
COST OF SALES
                                
COST OF GOODS SOLD
     7,214       8,914       2,299       2,510  
COSTS OF SERVICES RENDERED
     6,923       5,632       2,398       1,953  
 
                        
 
     14,137       14,546       4,697       4,463  
 
                        
 
                                
GROSS PROFIT
     5,462       4,615       1,772       1,421  
 
                                
OPERATING EXPENSES:
                                
General and administrative
     3,837       3,450       1,261       1,082  
Director and officer bonuses
     705       —       —       (9 )
Selling
     768       889       253       339  
Research and development
     53       77       20       20  
Impairment Loss
     15       —       —       —  
Gain on disposal of property, plant & equipment
     22       —       22       —  
 
                        
Total
     5,400       4,416       1,556       1,432  
 
                        
INCOME (LOSS) FROM OPERATIONS
     62       199       216       (11 )
OTHER INCOME (EXPENSE)
                                
Interest expense
     (111 )     (129 )     (37 )     (42 )
Other income
     196       81       84       39  
 
                        
Total
     85       (48 )     47       (3 )
 
                        
INCOME (LOSS) FROM CONTINUING
                                
OPERATIONS BEFORE INCOME TAXES
     147       151       263       (14 )
INCOME TAXES
     290       25       106       (26 )
 
                        
(LOSS) INCOME FROM CONTINUING
                                
OPERATIONS BEFORE MINORITY INTEREST
     (143 )     126       157       12  
MINORITY INTEREST
     36       17       17       (4 )
 
                        
(LOSS) INCOME FROM CONTINUING OPERATIONS
     (107 )     143       174       8  
INCOME FROM DISCONTINUED OPERATION
     8,459       16       —       14  
 
                        
NET INCOME
   $ 8,352     $ 159     $ 174     $ 22  
 
                        
Basic (loss) earnings per share from Continuing operations
   $ (0.03 )   $ 0.05     $ 0.05     $ 0.01  
Basic earnings per share from Discontinued operation
     2.74       —       0.00       —  
 
                        
Basic earnings per share from Net income
   $ 2.71     $ 0.05     $ 0.05     $ 0.01  
 
                        
Diluted earnings (loss) per share from Continuing operations
   $ (0.03 )   $ 0.05     $ 0.05     $ 0.01  
Diluted earnings per share from Discontinued operation
     2.74       —       0.00       —  
 
                        
Diluted earnings per share from Net income
   $ 2.71     $ 0.05     $ 0.05     $ 0.01  
 
                        
 
                                
WEIGHTED AVERAGE NUMBER OF COMMON AND POTENTIAL COMMON SHARES OUTSTANDING
                                
Basic
     3,080       2,966       3,211       2,966  
Diluted
     3,080       3,035       3,225       3,031  
COMPREHENSIVE INCOME (LOSS):
                                
Net income
   $ 8,352     $ 159     $ 174     $ 22  
Foreign currency translation adjustment
     (384 )     214       363       (64 )
 
                        
COMPREHENSIVE INCOME (LOSS)
   $ 7,968       373     $ 537       (42 )
 
                        

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT NUMBER OF SHARES)
                 
    Mar. 31,     Jun. 30,  
    2006     2005  
    (Unaudited)          
ASSETS
                
 
                
CURRENT ASSETS:
                
Cash
   $ 2,795     $ 1,439  
Short-term deposits
     8,522       3,211  
Trade accounts receivable, net
     5,219       4,178  
Other receivables
     333       142  
Inventories, net
     1,566       1,584  
Prepaid expenses and other current assets
     158       76  
 
            
Total current assets
     18,593       10,630  
 
                
PROPERTY, PLANT AND EQUIPMENT, Net
     7,228       7,176  
OTHER INTANGIBLE ASSETS, Net
     340       386  
OTHER ASSETS
     157       138  
ADVANCES TO SELLER
     —       15  
 
            
TOTAL ASSETS
   $ 26,318     $ 18,345  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES:
                
Lines of credit
   $ 225     $ 336  
Accounts payable
     1,818       1,681  
Accrued expenses
     2,615       2,598  
Income tax payable
     268       168  
Current portion of notes payable
     900       655  
Current portion of capital leases
     127       123  
Current portion of deferred tax liabilities
     287       275  
 
            
Total current liabilities
     6,240       5,836  
 
            
 
                
NOTES PAYABLE, net of current portion
     817       634  
CAPITAL LEASES, net of current portion
     254       110  
DEFERRED TAX LIABILITIES
     453       407  
 
            
TOTAL LIABILITIES
     7,764       6,987  
 
            
 
                
MINORITY INTEREST
     2,063       2,061  
 
                
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized;
                
3,219,407 shares issued and outstanding as at Mar. 31, 2006, and 2,976,042 shares issued and outstanding as at Jun. 30, 2005, and
     10,338       9,554  
Paid-in capital
     334       284  
Accumulated retained earnings (deficit)
     6,446       (298 )
Accumulated other comprehensive loss-translation adjustments
     (627 )     (243 )
Total shareholders’ equity
     16,491       9,297  
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 26,318     $ 18,345