CORRECTING and REPLACING Trio-Tech Reports Fourth Quarter and Fiscal 2009 Results

• Press Release
• Source: Trio-Tech International
• On 3:05 pm EDT, Friday October 2, 2009

VAN NUYS, Calif.--(BUSINESS WIRE)--Final URL of final sentence in About Trio-Tech section should read: www.ttsolar.com (sted: www.triotech-solar.com).

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Symbol	Price	Change
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{"s" : "trt","k" : "c10,l10,p20,t10","o" : "","j" : ""}

The corrected release reads:

TRIO-TECH REPORTS FOURTH QUARTER AND FISCAL 2009 RESULTS

Trio-Tech International (AMEX:TRT - News) today announced financial results for the fourth quarter and fiscal year ended June 30, 2009.

"During fiscal 2009 we took the difficult steps necessary to reduce operating costs and maintain our financial flexibility in anticipation of improved business conditions in the future. We addressed the difficult challenges of prolonged weakness in the global semiconductor and electronics industries by significantly reducing headcount and related expenses. This is reflected by the improvement in fourth quarter fiscal 2009 gross margin to 25.6%, compared to 18.9% in the same quarter last year, and the 21.4% reduction in general and administrative expenses for the fourth quarter of fiscal 2009 to $1,363,000, compared to $1,735,000 in the same quarter last year.

"Although business conditions remain difficult, we are encouraged that initial signs of recovery are finally beginning to appear. With our efficient operations, continuing strong cash position and low debt, Trio-Tech is positioned to benefit as industry conditions improve, as well as from the new business and customer relationships we are developing in China and Malaysia," said Chief Executive Officer S. W. Yong.

"We have long sought additional sources of revenue to add a "third leg" to our business that can contribute to our long-term growth. We are pleased to report that in March 2009, we established Singapore-based SHI International Private Ltd. Trio-Tech has a 55% equity interest in this venture. Subsequently, SHI International completed the acquisition of a 95% ownership stake in Batam-based PT SHI Indonesia, a manufacturer, equipment fabricator and provider of project management services for the oil and gas industries. PT SHI Indonesia's specialized engineering products include Oil & Gas Processing & Storage Facilities, Floating Production Storage Offloading (FPSO) modules and steel structures for industrial plants such as refineries, petrochemicals and power plants. We believe that this business has significant opportunities for future growth serving the large and expanding petroleum industry in Indonesia and South East Asia," said Yong.

Fourth Quarter Results

For the three months ended June 30, 2009, total revenue decreased to $4,332,000 compared to $7,041,000 for the fourth quarter of fiscal 2008, but increased sequentially from $3,646,000 for the third quarter of fiscal 2009. The net loss for the fourth quarter of fiscal 2009 was $659,000, or $0.20 per share. This compares to a net loss for the fourth quarter of fiscal 2008 of $461,000, or $0.14 per share and to a net loss for the third quarter of fiscal 2009 of $162,000, or $0.05 per share.

Product sales for the fourth quarter of fiscal 2009 were $2,188,000 compared to $3,592,000 for the same quarter last year. Product sales gross margin was 5.0% compared to 13.7% in the same quarter last year, reflecting lower volume and reduced capacity utilization.

Testing segment revenue for the fourth quarter of fiscal 2009 was $2,076,000 compared to $2,986,000 in the same quarter last year. The testing sales gross margin improved to 45.8% compared to 12.6% in the same quarter last year, reflecting reduced compensation levels.

General and administrative expenses for the fourth quarter of fiscal 2009 decreased 21.4% to $1,363,000 compared to $1,735,000 in the same quarter last year. Selling expenses declined 50.8% to $88,000 compared to $179,000 in the same quarter last year. These improvements reflect aggressive reductions in every expense category.

Fiscal 2009 Results

For the twelve months ended June 30, 2009, revenue was $20,047,000 compared to $40,417,000 for fiscal 2008. The net loss for fiscal 2009 was $1,966,000, or $0.61 per share, which reflected an aggregate non-cash impairment loss of $623,000 related to the impairment of some testing equipment in our China and Malaysia operations due to a reduction in customer orders and non-cash, stock-related compensation expense of $518,000. This compares to a net loss for fiscal 2008 of $956,000, or $0.30 per share, which included an impairment loss of $450,000 related to property and certain equipment in our China, Singapore and Malaysia operations and non-cash, stock-related compensation expense of $468,000.

Revenue from product sales for fiscal 2009 decreased to $9,876,000 compared to $22,142,000 in fiscal 2008. Product sales gross margin improved to 16.0%, compared to 15.0% in fiscal 2008, primarily reflecting reduced raw materials costs.

Revenue from the testing segment for fiscal 2009 decreased to $9,758,000 compared to $18,172,000 for fiscal 2008. Testing sales gross margin decreased to 29.1% from 30.5% in fiscal 2008, reflecting lower volume and reduced absorption of fixed capacity.

General and administrative expenses for fiscal 2009 decreased 26.0% to $5,805,000 compared to $7,844,000 for fiscal 2008. This decrease was primarily the result of reduced compensation levels, lower headcount and reductions in officer and director salaries versus 2008 base compensation rates.

Balance Sheet Highlights

At June 30, 2009, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $11,468,000 ($3.55 per outstanding share), working capital of $9,302,000, and shareholders' equity of $19,864,000 ($6.16 per outstanding share). At June 30, 2008, cash and cash equivalents and short-term deposits were $14,346,000 ($4.45 per outstanding share), working capital was $15,903,000, and shareholders' equity was $22,141,000 ($6.86 per outstanding share).

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, manufactures, markets and distributes equipment and systems used in the testing, production and processing of semiconductor products. The Company's subsidiaries also provide a wide range of FAA-approved and competitively priced products to the aviation and aerospace industries, solar energy products and solutions, equipment fabricating services for the oil and gas industries and real estate management services. Headquartered in Van Nuys, California, you can obtain further information for Trio-Tech's semiconductor products and services 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.

Company Contact:
Trio-Tech International
A. Charles Wilson
Chairman
818-787-7000
or
Investor Contact:
Berkman Associates
310-826-5051
info@BerkmanAssociates.com