EX-9.1 2 exhibit99-1.htm EXHIBIT 99.1 exhibit99-1.htm
Exhibit 99.1
 
LOS ANGELES
SINGAPORE
SELANGOR
PENANG
BANGKOK
SUZHOU
SHANGHAI

 
 
 FOR IMMEDIATE RELEASE
Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000
Investor Contact:
Berkman Associates
(310) 826-5051
info@BerkmanAssociates.com
 
 
Trio-Tech Reports Second Quarter Results

New Trio-Tech Solar Business Receives $870,000 Photovoltaic Order


Van Nuys, CA -- February 16, 2010 -- Trio-Tech International (AMEX:TRT) announced today that revenue for the second quarter ended December 31, 2009 increased 6.6% to $6,191,000 from $5,805,000 for the second quarter of fiscal 2009.  This growth reflected a 10.8% increase in revenue from semiconductor test equipment sales, combined with revenue from the Company's new business, PT SHI Indonesia, a Batam-based manufacturer, equipment fabricator and provider of project management services for the oil and gas industries, that more than offset a decrease in revenue from semiconductor test services for the period.
 
The net loss for this year's second quarter was $584,000, or $0.18 per share.  For the second quarter of fiscal 2009, the net loss was $426,000, $0.13 per share.
 
"During this year's second quarter we consolidated all of our China testing operations into our Suzhou facility, which contributed to improved gross margin percentage in our testing operations despite the decrease in revenue in this segment.  For the Company as a whole, gross margin decreased compared to the second quarter of fiscal 2009 due to product mix in our semiconductor test equipment business and start-up expenses to support the launch of PT SHI and TT Solar, our new Singapore-based solar energy products and services business," said SW Yong, Trio-Tech's CEO.
 
Yong continued, "Our strategy to add new sources of revenue to supplement our core semiconductor testing equipment and services business is moving Trio-Tech in the right direction.  PT SHI Indonesia is beginning to generate sales and we believe that continued growth for the Indonesian oil and gas sector in the years to come presents considerable long-term growth potential for Trio-Tech.
 
"We also are pleased to announce that our new solar business, TTSolar, has received its first contract, an $870,000 order to supply photovoltaic products producing 500 kWp (kilowatt peak) power for public housing projects in Singapore.  This new contract represents an important milestone marking our participation in the rapidly growing market to supply green energy technologies for residential housing and industrial applications.  With the support of the Singapore government to encourage expanding investment in green technologies, we confidently look forward to TTSolar's future growth."
 
For the six months ended December 31, 2009, revenue increased 10.3% to $13,296,000 compared to $12,049,000 for the first six months of fiscal 2009.  The net loss for this year's first half was $1,135,000, or $0.35 per share.  This compares to a net loss for the first six months of the prior fiscal year of $1,145,000, or $0.35 per share.


16139 Wyandotte Street, Van Nuys, CA 91406,  USA  ●  TEL:  (818) 787-7000  ●  FAX  (818) 787-9130
 
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At December 31, 2009, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $9,640,000 ($2.99 per outstanding share), working capital of $7,984,000, and shareholders' equity of $19,045,000 ($5.90 per outstanding share).  At June 30, 2009, cash and cash equivalents, restricted term deposits and short-term deposits were $11,468,000 ($3.55 per outstanding share), working capital was $9,302,000, and shareholders' equity was $19,864,000 ($6.16 per outstanding share).

About TT Solar
Trio-Tech Solar (TTSolar.com) is a registered business firm wholly owned by Trio-Tech International Pte Ltd, a subsidiary of Trio-Tech International.  The solar energy products and services business was established in fiscal 2009 to explore new sources of revenue for Trio-Tech in response to the growing interest by the Singapore government to invest in green and clean energy supply.  Trio-Tech International Pte Ltd. is qualified by the Singapore Building Contractors Association (BCA) and is also qualified as a government supplier to tender for government projects in Singapore.

About Trio-Tech
Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group pursuing aggressive interest in semiconductor test and manufacturing, oil and gas equipment fabrication, solar products 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, www.shi-international.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.  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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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
             
   
Three Months Ended
   
Six Months Ended
 
   
December 31,
   
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
Revenue
                       
Products
  $ 3,139     $ 2,834     $ 7,001     $ 5,966  
Services
    2,592       2,728       5,263       5,826  
Fabrication Services
    200       --       704       --  
Others
    260       243       328       257  
                                 
      6,191       5,805       13,296       12,049  
Cost of Sales
                               
Cost of products sold
    2,784       2,230       6,071       4,897  
Cost of services rendered
    1,731       2,011       3,816       4,272  
Cost of fabrication services rendered
    699       --       1,193       --  
Others
    36       19       71       19  
                                 
      5,250       4,260       11,151       9,188  
                                 
Gross Margin
    941       1,545       2,145       2,861  
                                 
Operating Expenses/ (Gains) :
                               
General and administrative
    1,437       1,324       3,028       3,339  
Selling
    95       83       227       206  
Research and development
    10       10       20       20  
Impairment loss
    --       520       --       520  
(Gain)/loss on disposal of property, plant and equipment
    --       5       (1 )     (154 )
                                 
Total operating expenses
    1,542       1,942       3,274       3,917  
                                 
Loss  from Operations
    (601 )     (397 )     (1,129 )     (1070 )
                                 
Other Income (Expenses)
                               
Interest expense
    (55 )     (46 )     (74 )     (104 )
Other  income
    146       131       143       332  
                                 
Total other  income
    91       85       69       228  
                                 
Loss Before Income Taxes
    (510 )     (312 )     (1,060 )     (842 )
                                 
Income Tax  Expenses (Benefits)
    9       (62 )     (28 )     36  
                                 
Loss before non-controlling interest
    (519 )     (250 )     (1,032 )     (878 )
                                 
Non-controlling interest
    (65 )     (176 )     (103 )     (267 )
                                 
NET LOSS
  $ (584 )   $ (426 )   $ (1,135 )   $ (1,145 )
                                 
Comprehensive Loss
                               
                                 
Net loss
  $ (519 )   $ (250 )   $ (1,032 )   $ (878 )
Foreign currency translation adjustment
    109       (22 )     338       (678 )
                                 
Comprehensive Loss
    (410 )     (272 )     (694 )     (1,556 )
                                 
Comprehensive loss attributable to non-controlling interest
    (140 )     (162 )     (213 )     (267 )
                                 
Comprehensive loss attributable to Trio-Tech International
  $ (550 )   $ (434 )   $ (907 )   $ (1,823 )
                                 
Loss per Share - Basic and Diluted
  $ (0.18 )   $ (0.13 )   $ (0.35 )   $ (0.35 )
                                 
Weighted Average Shares Outstanding - Basic and Diluted
    3,227       3,227       3,227       3,227  

 
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
             
   
December 30,
   
June 30,
 
   
2009
   
2009
 
ASSETS
 
(Unaudited)
       
             
CURRENT ASSETS:
           
Cash & cash equivalent
  $ 4,699     $ 6,037  
Short-term deposits
    1,371       1,994  
Trade accounts receivable, net
    5,919       3,981  
Other receivables
    501       279  
Inventories, net
    1,485       1,184  
Prepaid expenses and other current assets
    195       167  
                 
Total current assets
    14,170       13,642  
                 
INVESTMENT PROPERTY IN CHINA, Net
    2,627       2,935  
PROPERTY, PLANT AND EQUIPMENT, Net
    11,044       6,607  
GOODWILL
    434       --  
OTHER ASSETS
    209       1,326  
RESTRICTED TERM DEPOSITS
    3,570       3,437  
                 
TOTAL ASSETS
  $ 32,054     $ 27,947  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
  $ 2,955     $ 1,025  
Accrued expenses
    1,830       1,769  
Income taxes payable
    191       202  
Current portion of bank loans payable
    1,132       1,266  
Current portion of capital leases
    78       78  
                 
Total current liabilities
    6,186       4,340  
                 
BANK LOANS PAYABLE, net of current portion
    2,511       237  
CAPITAL LEASES, net of current portion
    16       52  
DEFERRED TAX LIABILITIES
    531       526  
OTHER NON-CURRENT LIABILITIES
    634       10  
                 
TOTAL LIABILITIES
    9,878       5,165  
                 
EQUITY
               
                 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
               
Common stock; no par value, 15,000,000 shares
               
   authorized; 3,227,430 shares issued and outstanding at
               
   December 31, 2009, and June 30, 2009, respectively
    10,365       10,365  
Paid-in capital
    1,534       1,446  
Accumulated retained earnings 
    5,724       6,859  
Accumulated other comprehensive loss-translation adjustments
    1,422       1,194  
                 
Total Trio-Tech International shareholders' equity
    19,045       19,864  
                 
NONCONTROLLING INTEREST
    3,131       2,918  
                 
   TOTAL EQUITY
    22,176       22,782  
                 
TOTAL LIABILITIES AND EQUITY
  $ 32,054     $ 27,947