EX-99.1 2 ex99-1.htm PRESS RELEASE Blueprint
 
   Exhibit 99.1
 
 
LOS ANGELES
SINGAPORE
KUALA LUMPUR
INDONESIA
BANGKOK
SUZHOU
TIANJIN
CHONGQING
 
 
 
 
 
 
Company Contact:                                       Investor Contact:
 A. Charles Wilson                                        Berkman Associates
 Chairman                                                      (310) 927-3108
 (818) 787-7000                                             info@BerkmanAssociates.com
 
 
Trio-Tech Reports Second Quarter
Net Income of $0.11 Per Diluted Share
 
First Half Net Income of $0.19 Per Diluted Share
 
 
Van Nuys, CA – February 13, 2020 -- Trio-Tech International (NYSE MKT: TRT) today announced financial results for the second quarter and first six months of fiscal 2020.
 
Fiscal 2020 Second Quarter Results
For the three months ended December 31, 2019, net income increased 23% to $426,000, or $0.11 per diluted share, compared to $348,000, or $0.09 per diluted share, for the second quarter of fiscal 2019. Net income for the second quarter of fiscal 2020 included a $1,172,000 gain on the sale of assets held for sale. There were no corresponding gains in the same period last year.
 
Revenue for the second quarter of fiscal 2020 decreased 8% to $8,962,000 compared to revenue of $9,690,000 for the same quarter last year. Manufacturing revenue was $3,045,000, a 9% decrease compared to $3,352,000 a year earlier. Semiconductor testing services revenue decreased 12% to $3,887,000 compared to $4,393,000 last year. Distribution revenue increased 5% to $2,014,000 compared to $1,916,000 for the comparable quarter of fiscal 2019.
 
Gross margin for the second quarter of fiscal 2020 was $1,905,000, or 21% of revenue. This compares to gross margin of $2,258,000, or 23% of revenue, for the same quarter last year, reflecting lower manufacturing and testing services sales.
 
Operating expenses increased 3% to $2,078,000, or 23% of revenue, for this year’s second quarter compared to $2,031,000, or 21% of revenue, last year. Operating expenses increased primarily due to a doubtful debt provision in the Singapore manufacturing segment.
 
CEO Comments
S.W. Yong, Trio-Tech's CEO, said, "While we are pleased to report an increase in net income for the second quarter and first half of fiscal 2020 primarily driven by asset sales, our operating results continued to be affected by trade disputes as well as customer requests for delayed deliveries. As always, we are focused on delivering unparalleled customer service and the highest quality products to our customers as we strive to improve Trio-Tech’s operating performance.”
 
Fiscal 2020 First Half Results
For the six months ended December 31, 2019, net income increased 69% to $699,000, or $0.19 per diluted share, which included the $1,172,000 gain on the sale of assets held for sale. This compares to net income of $413,000, or $0.11 per diluted share, for the six months ended December 31, 2018.
 
 
(more)
 

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Trio-Tech Reports Second Quarter Net Income of $0.11 Per Diluted Share
February 13, 2020
Page Two

 
Revenue decreased 5% to $18,785,000 compared to revenue of $19,735,000 for the first half of the last fiscal year. Manufacturing revenue decreased 9% to $6,362,000 compared to $6,989,000 for the same period in the last fiscal year. Semiconductor testing services revenue decreased 6% to $8,277,000 compared to $8,830,000 for the first six months of the prior fiscal year, while distribution revenue increased 7% to $4,113,000 compared to $3,860,000 for the first six months of the prior fiscal year.
Gross margin for the first six months of fiscal 2020 decreased 5% to $4,157,000, or 22% of revenue, compared to $4,359,000, or 22% of revenue, for last fiscal year’s first six months.
 
Operating expenses for the first six months of fiscal 2020 increased 2% to $4,108,000, or 22% of revenue, compared to $4,009,000, or 20% of revenue for the same period of last fiscal year.
 
Shareholders' equity at December 31, 2019 was $24,330,000, or $6.62 per outstanding share, compared to $23,666,000, or $6.44 per outstanding share, at June 30, 2019. There were approximately 3,673,055 Trio-Tech International common shares outstanding at December 31, 2019.
 
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 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; the trade tension between U.S. and China; public health issues related to the 2019-Novel Coronavirus 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.
 
 
(tables attached)
 
 
 
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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,
 
Revenue
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Manufacturing 
 $3,045 
 $3,352 
 $6,362 
 $6,989 
  Testing services
  3,887 
  4,393 
  8,277 
  8,830 
  Distribution
  2,014 
  1,916 
  4,113 
  3,860 
  Real Estate
  16 
  29 
  33 
  56 
 
    
    
    
    
 
  8,962 
  9,690 
  18,785 
  19,735 
Cost of Sales
    
    
    
    
   Cost of manufactured products sold
  2,383 
  2,646 
  4,938 
  5,503 
   Cost of testing services rendered
  2,918 
  3,106 
  6,109 
  6,489 
   Cost of distribution
  1,738 
  1,662 
  3,545 
  3,348 
   Cost of real estate
  18 
  18 
  36 
  36 
 
    
    
    
    
 
  7,057 
  7,432 
  14,628 
  15,376 
 
    
    
    
    
Gross Margin
  1,905 
  2,258 
  4,157 
  4,359 
 
    
    
    
    
Operating Expenses:
    
    
    
    
  General and administrative
  1,777 
  1,722 
  3,565 
  3,481 
  Selling
  176 
  187 
  366 
  334 
  Research and development
  125 
  122 
  201 
  194 
  Gain on disposal of property, plant and equipment
  -- 
  -- 
  (24)
  -- 
 
    
    
    
    
     Total operating expenses
  2,078 
  2,031 
  4,108 
  4,009 
 
    
    
    
    
(Loss) Income from Operations
  (173)
  227 
  49 
  350 
 
    
    
    
    
Other Income (Expenses)
    
    
    
    
  Interest expenses
  (55)
  (98)
  (123)
  (176)
  Gain on sale of asset held for sale
  1,172 
  -- 
  1,172 
  -- 
  Other income, net
  40 
  49 
  150 
  92 
 
    
    
    
    
     Total other income (expenses)
  1,157 
  (49)
  1,199 
  (84)
 
    
    
    
    
Income from Continuing Operations before Income Taxes
  984 
  178 
  1,248 
  266 
Income Tax (Expenses) Benefits
  (120)
  124 
  (120)
  50 
 
    
    
    
    
Income from Continuing Operations
    
    
    
    
  before Non-controlling Interest, Net of Tax
  864 
  302 
  1,128 
  316 
Income (Loss) from Discontinued Operations, Net of Tax
  1 
  4 
  -- 
  (4)
 
    
    
    
    
NET INCOME
  865 
  306 
  1,128 
  312 
 
    
    
    
    
Less: Income (Loss) Attributable to Non-controlling Interest
  439 
  (42)
  429 
  (101)
 
    
    
    
    
Net Income Attributable to Trio-Tech International
  426 
  348 
  699 
  413 
 
    
    
    
    
Net Income Attributable to Trio-Tech International:
    
    
    
    
 
    
    
    
    
Income from Continuing Operations, Net of Tax
  425 
  346 
  699 
  415 
Income (Loss) from Discontinued Operations, Net of Tax
  1 
  2 
  -- 
  (2)
 
    
    
    
    
Net Income attributable to Trio-Tech International
 $426 
 $348 
 $699 
 $413 
 
    
    
    
    
Basic Earnings per Share
 $0.12 
 $0.09 
 $0.19 
 $0.11 
 
    
    
    
    
Diluted Earnings per share
 $0.11 
 $0.09 
 $0.19 
 $0.11 
 
    
    
    
    
Weighted Average Shares Outstanding B Basic
  3,673 
  3,673 
  3,673 
  3,673 
Weighted Average Shares Outstanding B Diluted
  3,725 
  3,781 
  3,706 
  3,815 
 
 
 
 
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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,
 

 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income Attributable to Trio-Tech International Common Shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 $865 
 $306 
 $1,128 
 $312 
 
    
    
    
    
Foreign Currency Translation, Net of Tax
  525 
  (51)
  (38)
  (590)
 
    
    
    
    
Comprehensive Income (Loss)
  1,390 
  255 
  1,090 
  (278)
 
    
    
    
    
Less: Comprehensive Income (Loss)
          Attributable To Non-controlling Interest
  431 
  (57)
  440 
  (192)
 
    
    
    
    
Comprehensive Income (Loss) Attributable to
   Trio-Tech International Common Shareholders
 $959 
 $312 
 $650 
 $(86)
 
    
    
    
    
 
 
 
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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
 
 
Dec. 31,
 
 
Jun. 30,
 
 
 
2019
 
 
2019
 
ASSETS
 
(unaudited) 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
  Cash and cash equivalents
 $4,743 
 $4,863 
  Short-term deposits
  6,888 
  4,144 
  Trade accounts receivable, net
  6,937 
  7,113 
  Other receivables
  752 
  817 
  Inventories, net
  2,182 
  2,427 
  Prepaid expenses and other current assets
  330 
  287 
  Assets held for sale
  -- 
  89 
 
    
    
     Total current assets
  21,832 
  19,740 
 
    
    
Deferred tax assets
  421 
  390 
Investment properties, net
  734 
  782 
Property, plant and equipment, net
  11,651 
  12,159 
Operating lease right-of-use assets
  475 
  -- 
Other assets
  1,626 
  1,750 
Restricted term deposits
  1,716 
  1,706 
 
    
    
     Total non-current assets
  16,623 
  16,787 
 
    
    
TOTAL ASSETS
 $38,455 
 $36,527 
 
    
    
LIABILITIES AND SHAREHOLDERS’ EQUITY
    
    
 
    
    
CURRENT LIABILITIES:
    
    
  Lines of credit
 $810 
 $187 
  Accounts payable
  3,565 
  3,272 
  Accrued expenses
  3,176 
  3,486 
  Income taxes payable
  395 
  417 
  Current portion of bank loans payable
  422 
  488 
  Current portion of finance leases
  286 
  283 
  Current portion of operating leases
  343 
  -- 
 
    
    
     Total current liabilities
  8,997 
  8,133 
 
    
    
  Bank loans payable, net of current portion
  2,127 
  2,292 
  Finance leases, net of current portion 
  570 
  442 
  Operating leases, net of current portion
  134 
  -- 
  Deferred tax liabilities
  315 
  327 
  Income taxes payable
  430 
  439 
  Other non-current liabilities
  37 
  33 
 
    
    
     Total non-current liabilities
  3,613 
  3,533 
 
    
    
TOTAL LIABILITIES
  12,610 
  11,666 
 
    
    
 
    
    
 
    
    
EQUITY
    
    
 
    
    
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
    
    
  Common stock, no par value, 15,000,000 shares authorized; 3,673,055 
    
    
    issued and outstanding at December 31, 2019 and June 30, 2019
  11,424 
  11,424 
  Paid-in capital
  3,319 
  3,305 
  Accumulated retained earnings
  7,769 
  7,070 
  Accumulated other comprehensive gain-translation adjustments
  1,818 
  1,867 
 
    
    
     Total Trio-Tech International shareholders' equity
  24,330 
  23,666 
 
    
    
Non-controlling interest
  1,515 
  1,195 
 
    
    
TOTAL EQUITY
  25,845 
  24,861 
 
    
    
TOTAL LIABILITIES AND EQUITY
 $38,444 
 $36,527 
 
    
    
 
 
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