EX-99.1 2 a35821exv99w1.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 22% Higher Revenue
For Fiscal 2008 First Quarter Versus Prior Year
     Van Nuys, CA — November 14, 2007 — Trio-Tech International (AMEX:TRT) announced today that revenue for the first quarter of fiscal 2008 ended September 30, 2007 increased 22.0% to $12,050,000 compared to $9,876,000 for the same period last year. Net income was $751,000, or $0.23 per diluted share, compared to $756,000, or $0.23 per diluted share, for the first quarter of fiscal 2007.
     “Both our product and semiconductor testing services segments reported solid revenue growth in the first quarter, contributing to higher gross margin and operating income versus prior year, as well as an increase in income before minority interest, despite a higher tax provision,” said Chief Executive Officer S.W. Yong.
     Revenue from product sales for the first quarter of fiscal 2008 increased 8.8% to $6,507,000 compared to $5,978,000 for the first quarter of fiscal 2007, reflecting an increase in demand for Trio-Tech’s semiconductor burn-in systems primarily from customers in Asia. Revenue from semiconductor testing services increased 42.2% to $5,543,000 versus $3,898,000 last year, the result of continued strong demand for burn-in services for semiconductors used in wireless and wired communications, automotive and other applications.
     Operating income for this year’s first quarter increased 52.7% to $1,254,000 compared to $821,000 last year. Operating income in this year’s first quarter benefited from a $298,000 reversal of over-accruals for prior-year bonuses and adjustments in commission expense estimates.
     The increase in the provision for income taxes for this year’s first quarter compared to prior year was mainly due to the increase in income generated by the Company’s operations in Singapore this year versus last year, and the reversal of a $114,000 deferred tax liability in last year’s first quarter.
Balance Sheet Highlights
     As of September 30, 2007, cash and cash equivalents were $16,270,000, working capital was $18,946,000, and shareholders’ equity was $22,401,000. As of June 30, 2007, cash and cash equivalents were $14,950,000, working capital was $16,445,000, and shareholders’ equity was $21,434,000.
(more)
14731 Califa Street, Van Nuys, CA 91411, USA • TEL: (818) 787-7000 • FAX (818) 787-9130

 

 

Trio-Tech Reports 22% Higher Revenue For Fiscal 2008 First Quarter Versus Prior Year
November 14, 2007
Page Two
     In the first quarter of fiscal 2008, Trio-Tech (Chongqing) Co. Ltd., a wholly owned subsidiary of the Company, entered into a Memorandum Agreement with Jiasheng Property Development Co. Ltd. to jointly develop approximately 25 acres owned by Jiasheng located in Chongqing, China. Pursuant to the agreement, an investment of $1,331,000 was transferred in the quarter by the Company into a special bank account jointly monitored by Trio-Tech (Chongqing) and Jiasheng Property Development.
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.
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(tables attached)

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED) (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
                 
    Three Months Ended  
    September 30,  
    2007     2006  
Revenues
                
Products
   $ 6,507     $ 5,978  
Services
     5,543       3,898  
 
            
 
     12,050       9,876  
 
            
 
                
Costs of Sales
                
Cost of products sold
     5,529       4,813  
Cost of services rendered
     3,479       2,589  
 
            
 
     9,008       7,402  
 
            
Gross Margin
     3,042       2,474  
 
                
Operating Expenses:
                
General and administrative
     1,645       1,445  
Selling
     124       191  
Research and development
     19       17  
 
            
Total operating expenses
     1,788       1,653  
 
            
 
                
Income from Operations
     1,254       821  
 
                
Other Income (Expenses)
               
Interest expense
     (85 )     (29 )
Other (expenses) income
     (50 )     37  
 
            
Total other (expenses) income
     (135 )     8  
 
                
Income Before Income Taxes
     1,119       829  
 
                
Income Tax Provision
     172       26  
 
            
 
                
Income Before Minority Interest
     947       803  
 
                
Minority Interest
     (196 )     (47 )
 
            
 
                
Net Income Attributed to Common Shares
   $ 751     $ 756  
 
            
 
                
EARNINGS PER SHARE:
                
Basic earnings per share
   $ 0.23     $ 0.23  
Diluted earnings per share
   $ 0.23     $ 0.23  
 
            
 
                
Weighted Average Shares Outstanding
                
Basic
     3,226       3,218  
Diluted
     3,237       3,237  
 
                
Comprehensive Income:
                
Net income
   $ 751     $ 756  
Foreign currency translation adjustment
     216       27  
 
            
 
                
Comprehensive Income
   $ 967     $ 783  
 
            

 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
                 
    September 30,     June 30,  
    2007     2007  
    (Unaudited)          
ASSETS
                
CURRENT ASSETS:
                
Cash
   $ 7,339     $ 7,135  
Short-term deposits
     8.931       7,815  
Trade accounts receivable, net
     9,993       7,410  
Other receivables
     500       245  
Inventories, net
     2,167       1,946  
Prepaid expenses and other current assets
     206       122  
Assets held for sale
     210       —  
 
            
Total current assets
     29,346       24,673  
 
            
INVESTMENT IN CHINA
     1,331       —  
PROPERTY, PLANT AND EQUIPMENT, Net
     7,133       7,458  
OTHER INTANGIBLE ASSETS, Net
     188       212  
OTHER ASSETS
     427       445  
 
            
TOTAL ASSETS
   $ 38,425     $ 32,788  
 
            
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
CURRENT LIABILITIES:
                
Line of credit
   $ 209     $ —  
Accounts payable
     3,299       2,265  
Accrued expenses
     4,163       4,354  
Income taxes payable
     1,137       948  
Current portion of notes payable
     1,466       536  
Current portion of capital leases
     126       125  
 
            
Total current liabilities
     10,400       8,228  
 
            
NOTES PAYABLE, net of current portion
     2,427       139  
CAPITAL LEASES, net of current portion
     129       155  
DEFERRED TAX LIABILITIES
     381       373  
 
            
TOTAL LIABILITIES
     13,337       8,895  
COMMITMENTS AND CONTINGENCIES
                
MINORITY INTEREST
     2,687       2,459  
SHAREHOLDERS’ EQUITY:
                
Common stock; no par value, 15,000,000 shares authorized; 3,225,930 shares issued and outstanding as at September 30, 2007, and at June 30, 2007
     10,361       10,361  
Paid-in capital
     460       460  
Accumulated retained earnings
     10,886       10,135  
Accumulated other comprehensive loss-translation adjustments
     694       478  
 
            
Total shareholders’ equity
     22,401       21,434  
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 38,425     $ 32,788