U.S. Markets closed
  • S&P 500

    4,232.60
    +30.98 (+0.74%)
     
  • Dow 30

    34,777.76
    +229.23 (+0.66%)
     
  • Nasdaq

    13,752.24
    +119.39 (+0.88%)
     
  • Russell 2000

    2,271.63
    +30.21 (+1.35%)
     
  • Crude Oil

    64.82
    +0.11 (+0.17%)
     
  • Gold

    1,832.00
    +16.30 (+0.90%)
     
  • Silver

    27.57
    +0.10 (+0.38%)
     
  • EUR/USD

    1.2168
    +0.0100 (+0.8275%)
     
  • 10-Yr Bond

    1.5770
    +0.0160 (+1.02%)
     
  • Vix

    16.69
    -1.70 (-9.24%)
     
  • GBP/USD

    1.3990
    +0.0097 (+0.6995%)
     
  • USD/JPY

    108.5820
    -0.5030 (-0.4611%)
     
  • BTC-USD

    57,957.02
    +2,037.35 (+3.64%)
     
  • CMC Crypto 200

    1,480.07
    +44.28 (+3.08%)
     
  • FTSE 100

    7,129.71
    +53.54 (+0.76%)
     
  • Nikkei 225

    29,357.82
    +26.45 (+0.09%)
     

Trio-Tech Reports Second Quarter Net Income of $0.06 Per Diluted Share

  • Oops!
    Something went wrong.
    Please try again later.
·10 min read
  • Oops!
    Something went wrong.
    Please try again later.

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the second quarter and first six months of fiscal 2021.

Fiscal 2021 Second Quarter Results

For the three months ended December 31, 2020, revenue decreased 9% to $8,201,000 compared to revenue of $8,962,000 for the second quarter of fiscal 2020. Manufacturing revenue increased 17% to $3,569,000 compared to $3,045,000 a year earlier. Semiconductor testing services revenue decreased 8% to $3,560,000 compared to $3,887,000 last year. Distribution revenue decreased 47% to $1,065,000 compared to $2,014,000 for the comparable quarter last year.

Higher margins in manufacturing and distribution increased overall gross margin to 23% of revenue, or $1,870,000, for the second quarter fiscal 2021 compared to 21% of revenue, or $1,905,000, for the same quarter last year.

Operating expenses decreased 8% to $1,907,000, or 23% of revenue, compared to $2,078,000, or 23% of revenue, for last year’s second quarter. The loss from operations for this year’s second quarter was $37,000, compared to a loss from operations a year earlier of $173,000.

Other income for the second quarter was $143,000, which included government assistance to Singapore and Malaysia operations totaling $101,000 to mitigate the adverse business impact of the pandemic. In the same quarter last year, other income was $40,000.

Net income for the second quarter of fiscal 2021 was $235,000, or $0.06 per diluted share. Net income for the second quarter of fiscal 2020 of $426,000, or $0.11 per diluted share, benefitted from a one-time gain of $1,172,000 related to the sale of assets held for sale.

Shareholders' equity at December 31, 2020 was $26,548,000, or $7.15 per outstanding share, compared to $25,146,000, or $6.84 per outstanding share, at June 30, 2020. There were approximately 3,710,555 Trio-Tech International common shares outstanding at December 31, 2020.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, "We delivered better gross margins and lower expenses in the second quarter, contributing to a sharp improvement in our operating performance compared to the same quarter last year. We also delivered a sequential improvement in top and bottom-line results compared to the first quarter of fiscal 2021 as our order rate trended higher, which is another encouraging sign. Despite our reassuring strong balance sheet and successful control of operating expenses, we continue to be cautious about our business, as the economic effects of the Covid pandemic continue."

Fiscal 2021 First Half Results

For the first six months of fiscal 2021, revenue decreased 20% to $15,042,000 compared to $18,785,000 for the same period last year. Manufacturing revenue decreased 3% to $6,194,000, compared to $6,362,000 last year. Semiconductor testing services revenue decreased 21% to $6,514,000 compared to $8,277,000, and distribution revenue decreased 44% to $2,323,000 compared to $4,113,000 a year ago.

Overall gross margin for the first six months of fiscal 2021 decreased 18% to $3,388,000, but improved, as a percent of revenue, to 23%. This compares to an overall gross margin of $4,157,000, or 22% of revenue, for the same period last year.

Operating expenses for the first six months of fiscal 2021 decreased 9% to $3,752,000, or 25% of revenue, compared to $4,108,000, or 22% of revenue, for the first six months of fiscal 2020.

Net income for the first half of fiscal 2021 was $227,000, or $0.06 per diluted share. This compares to net income of $699,000, or $0.19 per diluted share, for the first half of fiscal 2020. Net income for last year’s first half included a $1,172,000 gain on the sale of assets held for sale.

About Trio-Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarter in Singapore. Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Our subsidiary locations include Tianjin, Suzhou, Chongqing in China, as well as Kuala Lumpur, Malaysia and Bangkok, Thailand. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com and www.universalfareast.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.

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

2020

2019

2020

2019

Manufacturing

$

3,569

$

3,045

$

6,194

$

6,362

Testing services

3,560

3,887

6,514

8,277

Distribution

1,065

2,014

2,323

4,113

Real estate

7

16

11

33

8,201

8,962

15,042

18,785

Cost of Sales

Cost of manufactured products sold

2,770

2,383

4,707

4,938

Cost of testing services rendered

2,678

2,918

5,000

6,109

Cost of distribution

861

1,738

1,908

3,545

Cost of real estate

22

18

39

36

6,331

7,057

11,654

14,628

Gross Margin

1,870

1,905

3,388

4,157

Operating Expenses:

General and administrative

1,662

1,777

3,322

3,565

Selling

122

176

233

366

Research and development

123

125

198

201

Gain on disposal of property, plant and equipment

--

--

(1

)

(24

)

Total operating expenses

1,907

2,078

3,752

4,108

(Loss) Income from Operations

(37

)

(173

)

(364

)

49

Other Income (Expenses)

Interest expenses

(34

)

(55

)

(71

)

(123

)

Gain on sale of asset held for sale

--

1,172

--

1,172

Other income, net

143

40

354

150

Total other income

109

1,157

283

1,199

Income (loss) from Continuing Operations before Income Taxes

72

984

(81

)

1,248

Income Tax Expenses

--

120

7

120

Income (loss) from Continuing Operations before Non-controlling Interest, Net of Tax

72

864

(88

)

1,128

(Loss) Income from Discontinued Operations, Net of Tax

(21

)

1

(27

)

--

NET INCOME (LOSS)

51

865

(115

)

1,128

Less: (Loss) Income Attributable to Non-controlling Interest

(184

)

439

(342

)

429

Net Income Attributable to Trio-Tech International

235

426

227

699

Net Income Attributable to Trio-Tech International:

Income from Continuing Operations, Net of Tax

246

425

241

699

(Loss) Income from Discontinued Operations, Net of Tax

(11

)

1

(14

)

--

Net Income attributable to Trio-Tech International

$

235

$

426

$

227

$

699

Basic Earnings per Share

$

0.06

$

0.12

$

0.06

$

0.19

Diluted Earnings per share

$

0.06

$

0.11

$

0.06

$

0.19

Weighted Average Shares Outstanding - Basic

3,710

3,673

3,710

3,673

Weighted Average Shares Outstanding - Diluted

3,800

3,725

3,793

3,706

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,

2020

2019

2020

2019

Comprehensive Income Attributable to Trio-Tech International Common Shareholders:

Net income (loss)

$

51

$

865

$

(115

)

$

1,128

Foreign Currency Translation, Net of Tax

943

525

1,583

(38

)

Comprehensive Income

994

1,390

1,468

1,090

Less: Comprehensive (Loss) Income Attributable To Non-controlling Interest

(197

)

431

(319

)

440

Comprehensive Income Attributable to Trio-Tech International Common Shareholders

$

1,191

$

959

$

1,787

$

650

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

Dec. 31,

Jun. 30,

2020

2020

ASSETS

(Unaudited)

CURRENT ASSETS:

Cash and cash equivalents

$

4,470

$

4,150

Short-term deposits

6,940

6,838

Trade accounts receivable, net

7,581

5,951

Other receivables

670

998

Inventories, net

2,147

1,922

Prepaid expenses and other current assets

342

341

Total current assets

22,150

20,200

Deferred tax assets

354

247

Investment properties, net

712

690

Property, plant and equipment, net

10,050

10,310

Operating lease right-of-use assets

1,514

944

Other assets

1,831

1,609

Restricted term deposits

1,752

1,660

Total non-current assets

16,213

15,460

TOTAL ASSETS

$

38,363

$

35,660

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Lines of credit

$

--

$

172

Accounts payable

3,103

2,590

Accrued expenses

3,395

3,005

Income taxes payable

341

344

Current portion of bank loans payable

443

370

Current portion of finance leases

227

231

Current portion of operating leases

562

477

Current portion of PPP loan

121

54

Total current liabilities

8,192

7,243

Bank loans payable, net of current portion

1,899

1,836

Finance leases, net of current portion

353

435

Operating leases, net of current portion

952

467

Income taxes payable

385

430

PPP loan, net of current portion

--

67

Other non-current liabilities

34

36

Total non-current liabilities

3,623

3,271

TOTAL LIABILITIES

11,815

10,514

EQUITY

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

Common stock, no par value, 15,000,000 shares authorized; 3,710,555 and 3,673,055
shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively

11,525

11,424

Paid-in capital

3,378

3,363

Accumulated retained earnings

8,263

8,036

Accumulated other comprehensive gain-translation adjustments

2,703

1,143

Total Trio-Tech International shareholders' equity

25,869

23,966

Non-controlling interest

679

1,180

TOTAL EQUITY

26,548

25,146

TOTAL LIABILITIES AND EQUITY

$

38,363

$

35,660

View source version on businesswire.com: https://www.businesswire.com/news/home/20210211005325/en/

Contacts

Company Contact:
A. Charles Wilson
Chairman
(818) 787-7000

Investor Contact:
Berkman Associates
(310) 927-3108
info@BerkmanAssociates.com