Driven by higher sales in each of the company's businesses, Trio-Tech International (AMEX:TRT) announced today that revenue for the third quarter ended March 31, 2010 increased 195% to $10,771,000 compared to $3,651,000 for the third quarter of fiscal 2009, and 74% compared to $6,190,000 for the second quarter of fiscal 2010. The net loss from continuing operations attributable to Trio-Tech International's common shareholders for this year's third quarter was $142,000, or $0.04 per share, compared to a net loss from continuing operations for the third quarter of fiscal 2009 of $138,000, or $0.04 per share, and narrowed from the net loss for this year's second quarter of $557,000, or $0.17 per share.

Net sales in the company's manufacturing segment increased more than fourfold to $7,384,000 for the third quarter of fiscal 2010 compared to $1,673,000 for the same period of the prior year, reflecting sharply higher sales of semiconductor test equipment products, as well as revenue of $848,000 from TT Solar, the company's new Singapore-based solar energy products and services business. "We believe that demand for our semiconductor test equipment continued to benefit from the recovery of the global semiconductor market that became evident late last year. Results also benefited from the strong performance of TT Solar in its first full quarter of operations and, in view of the Singapore government's commitment to expanding investment in green technologies, we are hopeful about TT Solar's future growth," said SW Yong, Trio-Tech's CEO.

Revenue from the testing segment increased to $2,854,000 for this year's third quarter compared to $1,842,000 for the third quarter of fiscal 2009, as an increase in capacity at the company's facility in Malaysia enabled it to accept more orders from a major customer. Revenue at PT SHI Indonesia, a Batam-based manufacturer, equipment fabricator and provider of project management services for the oil and gas industries which Trio-Tech acquired earlier this fiscal year, was $101,000 for this year's third quarter.

Overall gross margin increased to $2,051,000, or 19% of revenue, for this year's third quarter compared to $809,000, or 22% of revenue, for the third quarter of fiscal 2009, and $960,000, or 16% of revenue for the second quarter of 2010. "The gains in testing segment revenue and gross margin contributed significantly to the increase in overall gross margin. This increase was partially offset by low margins in our solar and fabrication businesses, as we compete to gain share in these new markets. This was the anticipated short-term consequence of our strategy to grow our company for the long term. We expect the profitability of our new businesses to improve over time," Yong said.

"Increased volume in our core semiconductor testing equipment and services businesses is a welcome development, and we are encouraged by the positive trends we see in the electronics industry worldwide. At the same time, our strategy to add new sources of revenue is beginning to generate the incremental growth we anticipated. We believe that PT SHI Indonesia is well positioned to benefit from growth in the Indonesian oil and gas industry and that TT Solar gives us a meaningful toe-hold in the emerging green energy business in Singapore," Yong said.

For the nine months ended March 31, 2010, revenue increased 54% to $24,054,000 compared to $15,667,000 for the first nine months of fiscal 2009. The net loss from continuing operations for this year's first nine months was $1,231,000, or $0.38 per share. This compares to a net loss from continuing operations for the first nine months of fiscal 2009 of $843,000, or $0.27 per share.

At March 31, 2010, Trio-Tech reported cash and cash equivalents, restricted term deposits and short-term deposits of $8,939,000 ($2.77 per outstanding share), working capital of $7,198,000, and shareholders' equity of $19,168,000 ($5.94 per outstanding share). At June 30, 2009, cash and cash equivalents, restricted term deposits and short-term deposits were $11,468,000 ($3.55 per outstanding share), working capital was $9,302,000, and shareholders' equity was $19,864,000 ($6.16 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. 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.
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED 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 2010   2009 2010   2009
Products $ 7,627 $ 1,722 $ 14,628 $ 7,688
Services 2,854 1,842 8,104 7,635
Fabrication Services 101 -- 805 --
Others   189     87     517     344  
  10,771     3,651     24,054     15,667  
Cost of Sales
Cost of products sold 6,475 1,316 12,546 6,213
Cost of services rendered 1,945 1,493 5,718 5,654
Cost of fabrication services rendered 254 -- 1,447 --
Others   46     33     117     52  
  8,720     2,842     19,828     11,919  
Gross Margin 2,051 809 4,226 3,748

Operating Expenses / (Gains) :
General and administrative 1,657 1,094 4,661 4,385
Selling 183 73 410 279
Research and development 9 10 29 30
Impairment loss -- 95 -- 319
(Gain) / loss on disposal of property, plant and equipment   (4 )   16     (5 )   (138 )
Total operating expenses   1,845     1,288     5,095     4,875  
(Loss) / Income from Operations 206 (479 ) (869 ) (1,127 )
Other Income / (Expenses)
Interest expense (49 ) (25 ) (123 ) (129 )
Other income   24     128     159     478  
Total other income (expenses) (25 ) 103 36 349
(Loss) / Income from Continuing Operations before Income Taxes 181 (376 ) (833 ) (778 )
Income Tax Expenses (Benefits)   78     (139 )   50     (103 )
(Loss) / Income From Continuing Operations before non controlling interest 103 (237 ) (883 ) (675 )
(LOSS) / INCOME FROM DISCONTINUED OPERATION   14     (24 )   (32 )   (464 )
 
NET (LOSS) INCOME $ 117   $ (261 ) $ (915 ) $ (1,139 )
 
Comprehensive Income (loss):
Net (Loss) Income $ 117 $ (261 ) $ (915 ) $ (1,139 )
Other comprehensive loss, net of tax:
Foreign currency translation adjustment   (827 )   (710 )   (489 )   (1,338 )
Total other comprehensive income / (loss), net of tax   (827 )   (710 )   (489 )   (1,338 )
Comprehensive (loss) income (710 ) (971 ) (1,404 ) (2,527 )
Comprehensive (loss) income attributable to non-controlling interest   (794 )   (263 )   (581 )   4  
Comprehensive (loss) income attributable to Trio-Tech International $ 84   $ (708 ) $ (823 ) $ (2,531 )
 
Loss per share from Continuing operations - Basic and Diluted $ (0.04 ) $ (0.04 ) $ (0.38 ) $ (0.27 )
Loss per share from Discontinued operation - Basic and Diluted   0.00     (0.01 )   (0.01 )   (0.14 )
Loss per share - Basic and Diluted

$

(0.04

)
$ (0.05 ) $ (0.39 ) $ (0.41 )
 
Weighted Average Shares Outstanding - Basic and Diluted   3,227     3,227     3,227     3,227  
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES) (UNAUDITED)
 
   
March 31, June 30,
2010 2009
ASSETS
 
CURRENT ASSETS:
Cash & cash equivalent $ 3,611 $ 6,037
Short-term deposits 1,748 1,994
Trade accounts receivable, net 9,324 3,981
Other receivables 568 279
Inventories, net 1,481 1,184
Prepaid expenses and other current assets   259   167
Total current assets 16,991 13,642
 
INVESTMENT PROPERTY IN CHINA, Net 3,042 2,935
PROPERTY, PLANT AND EQUIPMENT, Net 11,543 6,607
GOODWILL 431 --
OTHER ASSETS 700 1,326
RESTRICTED TERM DEPOSITS   3,580   3,437
TOTAL ASSETS $ 36,287 $ 27,947
 

LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Line of credit $ 1,213 $ --
Accounts payable 5,139 1,025
Accrued expenses 2,349 1,769
Income taxes payable 206 202
Current portion of bank loans payable 809 1,266
Current portion of capital leases   77   78
Total current liabilities

9,793
4,340
 
BANK LOANS PAYABLE, net of current portion 2,592 237
CAPITAL LEASES, net of current portion -- 52
DEFERRED TAX LIABILITIES 588 526
OTHER NON-CURRENT LIABILITIES   647   10
TOTAL LIABILITIES 13,620 5,165
 
EQUITY
 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

Common stock; no par value, 15,000,000 shares authorized; 3,227,430 shares issued and outstanding at March 31, 2010, and June 30, 2009, respectively
10,365 10,365
Paid-in capital 1,573 1,446
Accumulated retained earnings 5,596 6,859
Accumulated other comprehensive loss-translation adjustments   1,634   1,194
Total Trio-Tech International shareholders' equity   19,168   19,864
NONCONTROLLING INTEREST   3,499   2,918
TOTAL EQUITY   22,667   22,782
TOTAL LIABILITIES AND EQUITY $ 36,287 $ 27,947

Copyright Business Wire 2010

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