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Trio-Tech Reports First Quarter Results

General and administrative expenses increased to $2,098,000 for the first quarter of fiscal 2012 compared to $1,830,000 for the first quarter of fiscal 2011, partially reflecting losses from changes in the exchange rate between the Singapore and U.S. dollar, an increase in expenses at the Tianjin, China and Indonesia operations and offset by lower expenses in Malaysia, Singapore and Chongqing, China operations.

The loss from operations for the first quarter of fiscal 2012 was $921,000. This compares to income from operations of $753,000 for the first quarter of fiscal 2011.

Balance Sheet Highlights

As of September 30, 2011, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $6,350,000 ($1.91 per outstanding share), working capital of $6,190,000 and shareholders' equity was $23,498,000 ($7.07 per outstanding share). At June 30, 2011, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $6,872,000 ($2.07 per outstanding share), working capital of $7,256,000 and shareholders' equity was $24,977,000 ($7.52 per outstanding share).

CEO Comments

"We are working hard to bring our costs into line with the current pace of business, even as we seek to expand our operations with existing customers and attract new customers in all of our operating segments. We continue to believe that our strategy to supplement our core semiconductor test equipment and services business with new opportunities, including our new oil and gas fabrication business in Indonesia and our real estate initiatives in China, is the best way for Trio-Tech to deliver sustained, profitable growth for the long run. Our indications are that this strategy will bear fruit in the coming quarters," 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 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
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
Three Months Ended
September 30,
Revenue 2011     2010
Products $ 3,116 $ 9,203
Testing Services 3,291 3,474
Fabrication Services 2,345 165
Other   47     187  
  8,799     13,029  
Costs of Sales
Cost of products sold 2,607 7,908
Cost of testing services rendered 2,634 2,109
Cost of fabrication services rendered 2,132 215
Other   26     50  
  7,399     10,282  
 
Gross Margin 1,400 2,747
Operating Expenses:
General and administrative 2,098 1,830
Selling 144 128
Research and development 75 29
Loss on disposal of property, plant and equipment   4     7  
Total operating expenses   2,321     1,994  
Loss income from Operations (921 ) 753
Other (Expenses) Income
Interest expense (61 ) (60 )
Other income (expense)   44     (40 )
Total other expenses   (17 )   (100 )
(Loss) Income from Continuing Operations before Income Taxes (938 ) 653
Income Tax (Expense) Benefit   (37 )   4  
(Loss) income from Continuing Operations before Non-controlling Interest, net of tax (975 ) 657
Equity in loss of unconsolidated joint venture, net of tax (11 ) --
LOSS FROM DISCONTINUED OPERATIONS, net of tax   (1 )   (2 )
NET (LOSS) INCOME $ (987 ) $ 655
Less: Net (loss) income attributable to the non-controlling interest   (183 )   164  
Net (Loss) Income attributable to Trio-Tech International (804 ) 491
Net (Loss) Income Attributable to Trio-Tech International Common Shareholders:
(Loss) income from continuing operations, net of tax (803 ) 493
Loss from discontinued operations, net of tax   (1 )   (2 )
Net (Loss) Income $ (804 ) $ 491
 
Comprehensive (Loss) Income:
Net (Loss) Income $ (987 ) $ 655
Foreign currency translation, net of tax   (534 )   909  
Comprehensive (Loss) Income (1,521 ) 1,564
Less: Comprehensive (loss) income attributable to non-controlling Interest   (218 )   169  
Comprehensive (Loss) Income Attributable to Trio-Tech International   (1,303 )   1,395  
Basic (loss) earnings per share from continuing operations $ (0.24 ) $ 0.15
Basic loss per share from discontinued operations   --     --  
Basic (Loss) Earnings per Share $ (0.24 ) $ 0.15  
Diluted (loss) earnings per share from continuing operations $ (0.24 ) $ 0.14
Diluted loss per share from discontinued operations   --     --  
Diluted (Loss) Earnings per Share $ (0.24 ) $ 0.14  
Weighted Average Shares Outstanding - Basic 3,288 3,227
Weighted Average Shares Outstanding - Diluted 3,288 3,478
 
 
 
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
     
 
Sep. 30, June 30,
2011 2011
ASSETS (unaudited)
 
CURRENT ASSETS:
Cash & cash equivalents $ 2,779 $ 3,111
Short-term deposits 201 199
Trade accounts receivable, net 6,902 6,812
Other receivables 1,408 309
Loan receivables from property development projects 1,094 1,083
Inventories, net 2,300 2,430
Prepaid expenses and other current assets 365 348
Assets held for sale   130   137
Total current assets 15,179 14,429
 
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE 760 764
INVESTMENT PROPERTY IN CHINA, Net 1,233 1,238
PROPERTY, PLANT AND EQUIPMENT, Net 14,201 14,951
OTHER ASSETS 1,678 1,412
RESTRICTED TERM DEPOSITS   3,370   3,562
TOTAL ASSETS $ 36,421 $ 36,356
 
 
LIABILITIES AND SHAREHOLDER'S EQUITY
 
CURRENT LIABILITIES:
Lines of credit $ 1,832 $ 1,333
Accounts payable 2,522 1,874
Accrued expenses 3,878 3,179
Income taxes payable 482 492
Current portion of bank loans payable 132 147
Current portion of capital leases   143   148
Total current liabilities 8,989 7,173
 
BANK LOANS PAYABLE, net of current portion 2,595 2,768
CAPITAL LEASES, net of current portion 220 271
DEFERRED TAX LIABILITIES 623 677
OTHER NON-CURRENT LIABILITIES   496   490
TOTAL LIABILITIES   12,923   11,379
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 September 30, 2011 and June 30, 2011 10,531 10,531
Paid-in capital 2,269 2,227
Accumulated retained earnings 4,987 5,791
Accumulated other comprehensive gain-translation adjustments   2,960   3,459
Total Trio-Tech International shareholders' equity 20,747 22,008
 
NON-CONTROLLING INTEREST 2,751 2,969
TOTAL EQUITY   23,498   24,977
TOTAL LIABILITIES AND EQUITY $ 36,421 $ 36,356
 




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