Trio-Tech Reports Third Quarter Results

Trio-Tech Reports Third Quarter Results

VAN NUYS, Calif.--(BUSINESS WIRE)-- Trio-Tech International (NYSE MKT:TRT) today announced unaudited financial results for the third quarter and first nine months of fiscal 2013.

For the three months ended March 31, 2013, revenue decreased 13.2% to $6,529,000 compared to $7,522,000 for the third quarter of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the third quarter of fiscal 2013 was $543,000, or $0.16 per share. This compares to a net loss of $518,000, or $0.16 per share, in same quarter last year.


For the nine months ended March 31, 2013, revenue increased 3.0% to $23,627,000, compared to $22,940,000 for the first nine months of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the first nine months of fiscal 2013 narrowed to $1,065,000, or $0.32 per share, compared to a net loss of $2,525,000, or $0.76 per share, for the same period of fiscal 2012.

Cash provided by operations for the first nine months of fiscal 2013 increased to $4,104,000, compared to cash used by operations for the first nine months of fiscal 2012 of $2,079,000. Shareholders' equity at March 31, 2013 was $20,516,000, or $6.23 per outstanding share, compared to $20,556,000, or $6.25 per outstanding share, at June 30, 2012.

"Trio-Tech's third quarter performance was mixed, with revenue from semiconductor testing services up 8.5%, driven by higher testing volume in Malaysia and China, while sales of our semiconductor testing equipment fell 29%, primarily due to delayed shipments to customers. Higher gross margin in testing services, a sharply reduced loss in the oil and gas equipment fabrication segment, where we terminated our facilities lease in December, 2012, and lower operating expenses combined to reduce the loss from operations by about a third to $634,000 from $933,000 for last year's third quarter. We believe these factors will continue to benefit the Company in the future," said SW Yong, Trio-Tech's CEO.

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, 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.

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 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.

(tables attached)

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

Three Months Ended

Nine Months Ended

March 31,

March 31,

Revenue

2013

2012

2013

2012

Products

$

3,018

$

4,268

$

12,073

$

10,685

Testing Services

3,407

3,141

11,085

9,247

Fabrication Services

71

83

373

2,883

Other

33

30

96

125

6,529

7,522

23,627

22,940

Costs of Sales

Cost of products sold

2,538

3,575

10,363

8,925

Cost of testing services rendered

2,621

2,597

8,140

7,797

Cost of fabrication services rendered

174

403

752

3,063

Other

32

23

97

75

5,365

6,598

19,352

19,860

Gross Margin

1,164

924

4,275

3,080

Operating Expenses:

General and administrative

1,580

1,620

5,135

5,884

Selling

148

164

411

431

Research and development

72

73

217

221

(Gain) Loss on disposal of property, plant and equipment

(2

)

--

(6

)

4

Total operating expenses

1,798

1,857

5,757

6,540

Loss from Operations

(634

)

(933

)

(1,482

)

(3,460

)

Other Income (Expenses)

Interest expense

(72

)

(83

)

(239

)

(215

)

Other income, net

147

158

404

179

Total other (expenses) income

75

75

165

(36

)

Loss from Continuing Operations before Income Taxes

(559

)

(858

)

(1,317

)

(3,496

)

Income Tax Benefit (Expense)

(28

)

14

96

114

Loss from Continuing Operations before Non-controlling Interest, net of tax

(587

)

(844

)

(1,221

)

(3,382

)

Equity in earnings of unconsolidated joint venture, net of tax

--

--

--

(11

)

LOSS FROM DISCONTINUED OPERATIONS, net of tax

--

--

--

(2

)

NET LOSS

$

(587

)

$

(844

)

$

(1,221

)

$

(3,395

)

Less: Net loss attributable to the non-controlling interest

(44

)

(326

)

(156

)

(870

)

Net Loss attributable to Trio-Tech International

(543

)

(518

)

(1,065

)

(2,525

)

Net Loss Attributable to Trio-Tech International:

Loss from continuing operations, net of tax

(543

)

(518

)

(1,065

)

(2,523

)

Loss from discontinued operations, net of tax

--

--

--

(2

)

Net Loss Attributable to Trio-Tech International

$

(543

)

$

(518

)

$

(1,065

)

$

(2,525

)

Comprehensive (Loss) Attributable to Trio-Tech:

Net loss

$

(587

)

$

(844

)

$

(1,221

)

$

(3,395

)

Foreign currency translation, net of tax

(52

)

193

665

84

Comprehensive (Loss)

(639

)

(651

)

(556

)

(3,311

)

Less: Comprehensive (loss) attributable to non-controlling Interest

(61

)

(297

)

(8

)

(863

)

Comprehensive (Loss) Attributable to Trio-Tech

(578

)

(354

)

(548

)

(2,448

)

Basic and diluted loss per share from continuing operations

$

(0.16

)

$

(0.16

)

$

(0.32

)

$

(0.76

)

Basic and diluted loss per share from discontinued operations

--

--

--

--

Basic and diluted Loss per Share

$

(0.16

)

$

(0.16

)

$

(0.32

)

$

(0.76

)

Weighted Average Shares Outstanding - Basic and Diluted

3,322

3,322

3,322

3,322

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

March 31,

June 30,

2013

2012

ASSETS

(unaudited)

CURRENT ASSETS:

Cash & cash equivalents

$

2,347

$

1,572

Short-term deposits

110

250

Trade accounts receivable, net

6,512

11,311

Other receivables

322

962

Loans receivable from property development projects

1,126

1,101

Inventories, net

1,677

2,324

Prepaid expenses and other current assets

468

406

Assets held for sale

--

130

Total current assets

12,562

18,056

INVESTMENTS

782

765

INVESTMENT PROPERTIES, Net

1,903

1,815

PROPERTY, PLANT AND EQUIPMENT, Net

13,156

13,193

OTHER ASSETS

499

776

RESTRICTED TERM DEPOSITS

3,554

3,445

TOTAL ASSETS

$

32,456

$

38,050

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Lines of credit

$

2,285

$

3,605

Accounts payable

1,922

4,834

Accrued expenses

2,851

3,011

Income taxes payable

461

469

Current portion of bank loans payable

734

766

Current portion of capital leases

131

175

Total current liabilities

8,384

12,860

BANK LOANS PAYABLE, net of current portion

2,913

3,373

CAPITAL LEASES, net of current portion

262

221

DEFERRED TAX LIABILITIES

369

497

OTHER NON-CURRENT LIABILITIES

12

543

TOTAL LIABILITIES

11,940

17,494

COMMITMENTS AND CONTINGENCIES

--

--

EQUITY

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

Common stock, no par value, 15,000,000 shares authorized; 3,321,555 shares issued and outstanding at March 31, 2013, and June 30, 2012, respectively

10,531

10,531

Paid-in capital