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Trio-Tech Reports Fiscal 2011 Second Quarter Results

Stocks in this article: TRT

At December 31, 2010, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $8,121,000 ($2.46 per outstanding share), working capital of $8,926,000, and shareholders' equity of $22,896,000 ($6.93 per outstanding share). At June 30, 2010, cash and cash equivalents, restricted term deposits and short-term deposits were $8,205,000 ($2.54 per outstanding share), working capital was $8,665,000, and shareholders' equity was $20,266,000 ($6.28 per outstanding share).

About Trio-Tech

Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group pursuing aggressive interest in semiconductor test and manufacturing, oil and gas equipment fabrication, solar products 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.

 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
   
Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
Revenue   2010       2009     2010       2009  
Products $ 5,491 $ 3,139 $ 14,694 $ 7,001
Testing Services 3,193 2,591 6,667 5,250
Fabrication Services 93 200 258 704
Other   772     260     959     328  
  9,549     6,190     22,578     13,283  
Cost of Sales
Cost of products sold 4,634 2,784 12,542 6,071
Cost of testing services rendered 1,766 1,710 3,875 3,773
Cost of fabrication services rendered 188 699 403 1,193
Other   78     36     128     71  
  6,666     5,229     16,948     11,108  
 
Gross Margin 2,883 961 5,630 2,175
 
Operating Expenses
General and administrative 2,304 1,423 4,134 3,006
Selling 121 95 249 227
Research and development 87 10 116 20
Loss (Gain) on disposal of property, plant and equipment   --     --     7     (1 )
Total operating expenses   2,512     1,528     4,506     3,252  
 
Income (Loss) from Operations 371 (567 ) 1,124 (1,077 )
 
Other Income
Interest expenses (59 ) (55 ) (119 ) (74 )
Other income   183     139     143     136  
Total other income   124     84     24     62  
 
Income (Loss) from Continuing Operations before Income Taxes 495 (483 ) 1,148 (1,015 )
Income Tax (Expense) Benefit   (162 )   (9 )   (158 )   28  
 
Income (Loss) from Continuing Operations before Non-controlling interest, net of tax 333 (492 ) 990 (987 )
 
Equity in earnings of unconsolidated joint venture, net of tax -- -- -- --
 
Loss from discontinued operations, net of tax   --     (27 )   (2 )   (45 )
 
NET INCOME (LOSS) $ 333   $ (519 ) $ 988   $ (1,032 )
 
Less: Net Income (Loss) Attributable to the Non-controlling Interest   146     (150 )   310     (241 )
Net Income (Loss) Attributable to Trio-Tech International 187 (369 ) 678 (791 )
 
Amounts Attributable to Trio-Tech International Common Shareholders:
Income (Loss) from Continuing Operations, net of tax 187 (342 ) 680 (746 )
Loss from Discontinued Operations, net of tax   --     (27 )   (2 )   (45 )
Net Income (Loss) Attributable to Trio-Tech International Common Shareholders: 187 (369 ) 678 (791 )
 
Comprehensive Income (Loss) Attributable to Trio-Tech Common Shareholders:
Net Income (Loss) $ 333 $ (519 ) $ 988 $ (1,032 )
Foreign currency translation, net of tax   162     109     1,071     338  
Comprehensive Income (Loss) 495 (410 ) 2,059 (694 )
Less: Comprehensive (Loss) Income attributable to non-controlling interest   (69 )   (142 )   100     (198 )
Comprehensive Income (Loss) Attributable to Trio-Tech International 564 (268 ) 1,959 (496 )
 
Basic Earnings (Loss) per Share Attributable to Trio-Tech International:
From continuing operations $ 0.06 $ (0.10 ) $ 0.21 $ (0.24 )
From discontinued operations   --     (0.01 )   --     (0.01 )
Net Income (Loss) Attributable to Trio-Tech International $ 0.06   $ (0.11 ) $ 0.21   $ (0.25 )
 
Diluted Earnings (Loss) per Share Attributable to Trio-Tech International:
From continuing operations $ 0.05 $ (0.10 ) $ 0.20 $ (0.24 )
From discontinued operations   --     (0.01 )   --     (0.01 )
Net Income (Loss) Attributable to Trio-Tech International $ 0.05   $ (0.11 ) $ 0.20   $ (0.25 )
 
Weighted average common shares outstanding -- basic 3,296 3,227 3,262 3,227
Weighted average common shares outstanding -- diluted 3,427 3,227 3,380 3,227
 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
   
Dec. 31, Jun. 30,
2010 2010
ASSETS (Unaudited)
 
CURRENT ASSETS:
  Cash & cash equivalents $ 5,307 $ 3,244
Short-term deposits 388 2,714
Trade accounts receivable, net 9,385 12,142
Other receivables 401 778
Loan receivables from property development projects 1,057 --
Inventories, net 2,794 3,400
Investment in property development -- 887
Prepaid expenses and other current assets   482   296
 
    Total current assets 19,814 23,461
 
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE 755 --
INVESTMENT PROPERTY IN CHINA, Net 2,135 2,141
PROPERTY, PLANT AND EQUIPMENT, Net 13,720 12,695
OTHER ASSETS 1,930 1,180
RESTRICTED TERM DEPOSITS 2,426 2,247
 
TOTAL ASSETS $ 40,780 $ 41,724
 
 
LIABILITIES AND SHAREHOLDER'S EQUITY
 
CURRENT LIABILITIES:
Lines of credit $ 2,003 $ 2,532
Accounts payable 5,099 7,968
Accrued expenses 2,757 3,419
Income taxes payable 628 342
Current portion of bank loans payable 277 478
Current portion of capital leases   124   57
 
Total current liabilities 10,888 14,796
 
BANK LOANS PAYABLE, net of current portion 2,638 2,566
CAPITAL LEASES, net of current portion 265 --
DEFERRED TAX LIABILITIES 706 718
OTHER NON-CURRENT LIABILITIES   478   569
 
TOTAL LIABILITIES 14,975 18,649
 
COMMITMENTS AND CONTINGENCIES -- --
 
EQUITY
 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
Common stock, no par value, 15,000,000 shares authorized;
3,303,805 and 3,227,430 shares issued and outstanding,
at December 31, 2010, and June 30, 2010, respectively 10,500 10,365
Paid-in capital 2,133 1,597
Accumulated retained earnings 7,164 6,486
Accumulated other comprehensive gain-translation adjustments 3,099 1,818
 
Total Trio-Tech International shareholders' equity   22,896   20,266
 
NON-CONTROLLING INTEREST   2,909   2,809
 
TOTAL EQUITY   25,805   23,075
 
TOTAL LIABILITIES AND EQUITY $ 40,780 $ 41,724
 




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