Trio-Tech International (NYSE MKT:TRT) today announced financial results for the first quarter of fiscal 2013, highlighted by higher revenue and a sharply reduced net loss compared to the first quarter of fiscal 2012.
For the three months ended September 30, 2012, revenue increased 10.8% to $9,747,000 compared to revenue of $8,799,000 for the first quarter of the prior fiscal year. The net loss attributable to Trio-Tech common shareholders for the first quarter of fiscal 2013 narrowed to $17,000, or $0.01 per share. This compares to a net loss for the first quarter of fiscal 2012 of $804,000, or $0.24 per share.
"Our first quarter results continue the trend of improved performance in our core semiconductor test equipment manufacturing and testing services businesses that began in the third quarter of fiscal 2012. While these businesses can be volatile and difficult to predict, we are confident we will be able to address any challenges in our testing and manufacturing operations during fiscal 2013. The company also is benefiting from our close attention to costs, as evidenced by the sharp reduction in operating expenses in the first quarter," said SW Yong, Trio-Tech's CEO.
Revenue from product sales increased to $5,636,000 for this year's first quarter compared to $3,116,000 for the first quarter of fiscal 2012. Revenue from testing services increased to $3,909,000 for the first quarter of fiscal 2012 compared to $3,291,000 for the prior fiscal year. Revenue in the real estate segment decreased to $30,000 for the first quarter of fiscal 2013 compared to $47,000 for the first quarter of fiscal 2012.
Revenue from the Company's oil and gas equipment fabrication business decreased to $172,000 for the first quarter of fiscal 2013 compared to $2,345,000 for the same period last year. During October 2012, the subsidiary served notice to terminate the lease on the fabrication yard in Batam, Indonesia.
Overall gross margin as a percentage of revenue for the first quarter of fiscal 2013 increased to 18.1% compared to 15.9% for the first quarter of fiscal 2012. Product segment gross margin decreased to 10.8% compared to 16.3% for the first quarter of fiscal 2012. Gross margin in the real estate segment decreased to negative 10.0% compared to 44.7% for the first quarter of fiscal 2012. Gross margin in fabrication services was negative 43.6% for the first quarter of fiscal 2013 compared to 9.1% for the first quarter of fiscal 2012.
General and administrative expenses decreased 13.1% to $1,824,000 for the first quarter of fiscal 2013 compared to $2,098,000 for the first quarter of fiscal 2012. Total operating expenses decreased 12.7% to $2,026,000 compared to $2,321,000 last year.
The loss from operations for the first quarter of fiscal 2013 was $262,000 compared to a loss from operations of $921,000 for the first quarter of fiscal 2012.
Balance Sheet Highlights
As of September 30, 2012, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $5,868,000, working capital of $4,782,000, short-term lines of credit and short-term and long-term loans payable of $8,940,000, and shareholders' equity of $21,042,000, or $6.40 per outstanding share.
In comparison, at June 30, 2012 Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $5,267,000, working capital of $5,196,000, short-term lines of credit and short-term and long-term loans payable of $7,744,000, and shareholders' equity of $20,556,000, or $6.25 per outstanding share.
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, oil and gas equipment fabrication 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.
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 Southeast 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; 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.
|TRIO-TECH INTERNATIONAL AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME|
|UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)|
|Three Months Ended|
|Costs of Sales|
|Cost of products sold||5,026||2,607|
|Cost of testing services rendered||2,677||2,634|
|Cost of fabrication services rendered||247||2,132|
|General and administrative||1,824||2,098|
|Research and development||73||75|
|Gain (Loss) on disposal of property, plant and equipment||(3||)||4|
|Total operating expenses||2,026||2,321|
|Loss income from Operations||(262||)||(921||)|
|Other (Expenses) Income|
|Other income, net||182||44|
|Total other (expenses) income||97||(17||)|
|Loss from Continuing Operations before Income Taxes||(165||)||(938||)|
|Income Tax Benefit (Expense)||124||(37||)|
|Loss from Continuing Operations before Non-controlling Interest, net of tax||(41||)||(975||)|
|Equity in loss of unconsolidated joint venture, net of tax||--||(11||)|
|LOSS FROM DISCONTINUED OPERATIONS, net of tax||--||(1||)|
|Less: Net (loss) income attributable to the non-controlling interest||24||(183||)|
|Net Loss attributable to Trio-Tech International||(17||)||(804||)|
|Net Loss Attributable to Trio-Tech International:|
|Loss from continuing operations, net of tax||(17||)||(803||)|
|Loss from discontinued operations, net of tax||--||(1||)|
|Net Loss Attributable to Trio-Tech International||$||(17||)||$||(804||)|
|Comprehensive Loss Attributable to Trio-Tech International:|
|Foreign currency translation, net of tax||555||(534||)|
|Less: Comprehensive income (loss) attributable to non-controlling Interest||98||(218||)|
|Comprehensive Income (Loss) Attributable to Trio-Tech International||416||(1,303||)|
|Basic and Diluted loss per share from continuing operations||$||(0.01||)||$||(0.24||)|
|Basic and Diluted loss per share from discontinued operations||--||--|
|Basic and Diluted Loss per Share||$||(0.01||)||$||(0.24||)|
|Weighted Average Shares Outstanding - Basic and Diluted||3,288||3,288|
|TRIO-TECH INTERNATIONAL AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(IN THOUSANDS, EXCEPT NUMBER OF SHARES)|
|Sep. 30,||June 30,|
|Cash & cash equivalents||$||2,088||$||1,572|
|Trade accounts receivable, net||11,036||11,311|
|Loan receivables from property development projects||1,112||1,101|
|Prepaid expenses and other current assets||480||406|
|Assets held for sale||135||130|
|Total current assets||17,641||18,056|
|INVESTMENT IN UNCONSOLIDATED JOINT VENTURE||773||765|
|INVESTMENT PROPERTY IN CHINA, Net||1,807||1,815|
|PROPERTY, PLANT AND EQUIPMENT, Net||13,690||13,193|
|RESTRICTED TERM DEPOSITS||3,527||3,445|
|LIABILITIES AND SHAREHOLDER'S EQUITY|
|Lines of credit||$||4,887||$||3,605|
|Income taxes payable||468||469|
|Current portion of bank loans payable||784||766|
|Current portion of capital leases||176||175|
|Total current liabilities||12,859||12,860|
|BANK LOANS PAYABLE, net of current portion||3,269||3,373|
|CAPITAL LEASES, net of current portion||192||221|
|DEFERRED TAX LIABILITIES||363||497|
|OTHER NON-CURRENT LIABILITIES||545||543|
|COMMITMENTS AND CONTINGENCIES||--||--|
|TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:|
|Common stock, no par value, 15,000,000 shares|
|authorized; 3,321,555 shares issued and outstanding at|
|September 30, 2012, and June 30, 2012, respectively||10,531||10,531|
|Accumulated retained earnings||2,670||2,687|
|Accumulated other comprehensive gain-translation adjustments||3,620||3,187|
|Total Trio-Tech International shareholders' equity||19,263||18,836|
|TOTAL LIABILITIES AND EQUITY||$||38,270||$||38,050|