EX-99.1 2 v23917exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
     
(TRIO-TECH LOGO)
  LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI
         
 
  Company Contact:   Investor Contact:
FOR IMMEDIATE RELEASE
  A. Charles Wilson   Berkman Associates
 
  Chairman   (310) 826-5051
 
  (818) 787-7000   info@BerkmanAssociates.com
Trio-Tech Reports Fiscal 2006 Fourth Quarter Net Income
Increased to $0.22 Per Share Versus $0.02 Per Share
As Quarterly Revenue Increased 61%
     Van Nuys, CA, — September 22, 2006 — Trio-Tech International (AMEX:TRT) today announced higher revenue and net income for the fourth quarter of 2006 and fiscal 2006 compared to the same periods of fiscal 2005.
     “Trio-Tech reported a solid year and a particularly strong fourth quarter, as the performance of both our product and services segments exceeded our expectations. We believe that our strategy to establish a significant position in the rapidly growing semiconductor testing and burn-in business in Asia has put us on the right track for continued success,” said Chief Executive Officer S.W. Yong.
     The CEO continued, “The strong relationships we have built over the years have helped Trio-Tech to become a partner of choice to support our customers’ growing operations in China. We believe that our growth initiatives in this exciting market are now beginning to deliver the results we anticipated. The semiconductor testing and burn-in business based in Shanghai which we acquired effective on January 3, 2006 has commenced operations and we expect testing volume to increase at this facility in the new fiscal year. In addition, last month we announced that we will expand our facility in Suzhou, China to provide specialized testing and burn-in services and manufacture burn-in equipment to serve China’s expanding semiconductor, communications and consumer electronics markets. We expect to complete this expansion project in the next couple of months, and look forward to increasing our volume of business at this location beginning in the second half of this fiscal year.
     “As evidenced by our strong backlog, conditions in our primary markets are favorable, and we are optimistic about Trio-Tech’s continued growth in fiscal 2007.” Yong noted that total backlog increased to $16,294,000 at June 30, 2006 from $9,365,000 at June 30, 2005, including testing service backlog of $12,030,000 at the end of fiscal 2006 compared to $7,384,000 at the end of fiscal 2005.
Fourth Quarter Results
     For the three months ended June 30, 2006, total revenue increased 61% to $9,500,000 compared to $5,901,000 for the fourth quarter of fiscal 2005. Semiconductor testing service revenue increased 24% to $3,744,000 from $3,022,000 for the same period in the prior year. Revenue from product sales doubled to $5,756,000 from $2,879,000, primarily as the result of higher sales of burn-in boards and related equipment.
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Trio-Tech Reports Fiscal 2006 Fourth Quarter Net Income Increased to $0.22 Per Share Versus
$0.02 Per Share As Quarterly Revenue Increased 61%
September 22, 2006
Page Two
     Net income for the fourth quarter of fiscal 2006, net of income taxes and minority interest, increased to $705,000, or $0.22 per diluted share. This compares to net income for the fourth quarter of fiscal 2005, net of income taxes and minority interest, of $62,000, or $0.02 per diluted share.
     At June 30, 2006, cash and short-term deposits were $10,390,000, versus $4,650,000 at June 30, 2005. Shareholder’s equity at June 30, 2006 was $17,392,000 compared to $9,297,000 at June 30, 2005. Shareholders’ equity at June 30, 2006 was net of the dividend of $0.50 per share declared on December 2, 2005 and paid on January 25, 2006.
Fiscal 2006 Results
     Revenue for the twelve months ended June 30, 2006 increased 16% to $29,099,000 compared to $25,061,000 for fiscal 2005. Testing services segment revenue for fiscal 2006 increased 28% to $14,455,000 from $11,307,000 for fiscal 2005. Revenue from manufacturing segment and distribution segment increased 6% to $14,644,000 from $13,754,000.
     Income from continuing operations for the twelve months ended June 30, 2006, net of income taxes and minority interest, was $597,000, or $0.19 per diluted share. This compares to net income from continuing operations for fiscal 2005, net of income taxes and minority interest, of $216,000, or $0.07 per diluted share.
     Including discontinued operations, net income for the twelve months ended June 30, 2006 was $9,056,000, or $2.90 per diluted share, which included an after-tax gain of $8,909,000 from the sale of property utilized in Trio-Tech’s now discontinued operations in Dublin, Ireland. This compares to net income for the twelve months ended June 30, 2005 of $221,000, or $0.07 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)
(IN THOUSANDS, EXCEPT EARNINGS (LOSS) PER SHARE)
                                 
    Three Months Ended     Twelve Months Ended  
    June 30,     June 30,  
    2006     2005     2006     2005  
    (unaudited)     (audited)  
REVENUES
                                
Product
   $ 5,756     $ 2,879     $ 14,644     $ 13,754  
Services
     3,744       3,022       14,455       11,307  
 
                        
 
     9,500       5,901       29,099       25,061  
 
                        
 
                                
COST OF SALES
                                
Cost of products sold
     4,591       2,447       11,805       11,324  
Cost of service rendered
     2,440       2,021       9,363       7,690  
 
                        
 
     7,031       4,468       21,168       19,014  
 
                        
 
                                
GROSS MARGIN
     2,469       1,433       7,931       6,047  
 
                                
OPERATING EXPENSES:
                                
General and administrative
     1,779       1,020       6,321       4,466  
Selling
     202       170       970       1,058  
Research and development
     17       16       70       93  
Impairment loss
     46       70       61       70  
Loss on disposal of property, plant and equipment
     —       1       22       1  
 
                        
Total operating expenses
     2,044       1,277       7,444       5,688  
 
                        
INCOME FROM OPERATIONS
     425       156       487       359  
 
                                
OTHER INCOME (EXPENSE)
                                
Interest expense
     (31 )     (36 )     (142 )     (165 )
Other income
     402       104       598       182  
 
                        
Total other income
     371       68       456       17  
 
                        
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
     796       224       943       376  
INCOME TAX PROVISION (BENEFITS)
     (33 )     132       258       158  
 
                        
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST
     829       92       685       218  
MINORITY INTEREST
     (124 )     (20 )     (88 )     (2 )
 
                        
 
                                
INCOME FROM CONTINUING OPERATIONS
     705       72       597       216  
INCOME (LOSS) FROM DISCONTINUED OPERATION
     —       (10 )     8,459       5  
 
                        
NET INCOME ATTRIBUTABLE TO COMMON SHARES
   $ 705     $ 62     $ 9,056     $ 221  
 
                        
 
                                
Basic earnings per share from continuing operations
   $ 0.22     $ 0.02     $ 0.19     $ 0.07  
Basic earnings per share from discontinued operations
     0.00       0.00       2.72       0.00  
 
                        
Basic earnings per share
   $ 0.22     $ 0.02     $ 2.91     $ 0.07  
 
                        
 
                                
Diluted earnings per share from continuing operations
   $ 0.22     $ 0.02     $ 0.19     $ 0.07  
Diluted earnings per share from discontinued operations
     0.00       0.00       2.71       0.00  
 
                        
Diluted earnings per share
   $ 0.22     $ 0.02     $ 2.90     $ 0.07  
 
                        
 
                                
WEIGHTED AVERAGE SHARES OUTSTANDING
                                
Basic
     3,219       2,968       3,115       2,966  
Diluted
     3,234       3,012       3,128       3,031  
 
                                
COMPREHENSIVE INCOME (LOSS):
                                
Net income
     705       62       9,056       221  
Foreign currency translation adjustment
     193       (189 )     (190 )     25  
 
                        
COMPREHENSIVE INCOME (LOSS)
   $ 898     $ (127 )   $ 8,866     $ 246  
 
                        

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except number of shares)
                 
    June 30,  
    2006     2005  
ASSETS
                
 
                
CURRENT ASSETS:
                
Cash
   $ 2,551     $ 1,439  
Short-term deposits
     7,839       3,211  
Trade accounts receivable, net
     8,518       4,178  
Other receivables
     306       142  
Inventories, net
     2,447       1,584  
Prepaid expenses and other current assets
     170       91  
 
            
 
                                
Total current assets
     21,831       10,645  
 
            
 
                
PROPERTY, PLANT AND EQUIPMENT, Net
     7,073       7,176  
OTHER INTANGIBLE ASSETS, Net
     311       386  
OTHER ASSETS
     169       138  
 
            
TOTAL ASSETS
   $ 29,384     $ 18,345  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES:
                
Line of credit
   $ 116     $ 336  
Accounts payable
     3,809       1,681  
Accrued expenses
     3,045       2,598  
Income taxes payable
     311       168  
Current portion of notes payable
     856       655  
Current portion of capital leases
     107       123  
Current portion of deferred tax liabilities
     292       275  
 
            
 
                                
Total current liabilities
     8,536       5,836  
 
            
 
                
NOTES PAYABLE, net of current portion
     644       634  
CAPITAL LEASES, net of current portion
     230       110  
DEFERRED TAX LIABILITIES
     386       407  
 
            
 
                                
TOTAL LIABILITIES
     9,796       6,987  
 
            
 
                                
MINORITY INTEREST
     2,196       2,061  
 
                
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized; 3,219,407 and 2,976,942 shares issued and outstanding at June 30, 2006 and 2005, respectively
     10,338       9,554  
Paid-in capital
     337       284  
Accumulated retained earnings (deficit)
     7,150       (298 )
Accumulated other comprehensive loss-translation adjustments
     (433 )     (243 )
 
            
 
                                
Total shareholders’ equity
     17,392       9,297  
 
            
 
                                
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 29,384     $ 18,345