|By Business Wire||
|May 14, 2014 08:09 AM EDT||
Trio-Tech International (NYSE MKT:TRT) today announced financial results for the third quarter and the first nine months of fiscal 2014.
"We are pleased by the steadily improving performance of our core semiconductor manufacturing equipment and semiconductor testing services businesses, both of which delivered solid revenue growth for the third quarter and first nine months of fiscal 2014 compared to the same periods of fiscal 2013. Gross margin, operating income, and net income also increased versus the same periods of the prior year. We believe our solid performance reflects our focus on customer service and operating efficiency, and we are optimistic about the outlook for the period ahead," said S.W. Yong, Trio-Tech's CEO.
Third Quarter Results
For the three months ended March 31, 2014, revenue increased 24.5% to $8,039,000, compared to revenue of $6,458,000 for the third quarter of fiscal 2013. Products revenue increased 12.5% to $3,394,000 compared to $3,018,000 for last year's third fiscal quarter, and semiconductor testing services revenue increased 35.0% to $4,599,000 compared to $3,407,000 for the third quarter of fiscal 2013.
Gross margin for this year's fiscal third quarter increased to $1,967,000, or 24.5% of revenue, compared to $1,267,000, or 19.6% of revenue, for the third quarter of fiscal 2013.
Operating expenses for the third quarter of fiscal 2014 of $1,946,000, or 24.2% of revenue, included non-cash stock option expense of $8,000. For the third quarter of fiscal 2013, operating expenses of $1,780,000, or 27.6% of revenue, included non-cash stock option expense of $21,000.
Income from operations for the third quarter of fiscal 2014 increased to $21,000 compared to an operating loss of $513,000 for the same period a year ago.
Net income attributable to Trio-Tech common shareholders for the third quarter of fiscal 2014 increased to $157,000, or $0.05 per diluted share, which included income from the discontinued fabrication services business of $34,000, or $0.01 per share. In comparison, for the third quarter of fiscal 2013, the net loss attributable to Trio-Tech common shareholders was $543,000, or $0.16 per share, which included a loss from the discontinued fabrication business of $52,000, or $0.01 per share. Trio-Tech terminated its fabrication facilities lease in December 2012 and discontinued this segment in the fourth quarter of fiscal 2013.
Nine Months Results
For the nine months ended March 31, 2014, revenue increased 15.6% to $26,875,000 compared to revenue of $23,254,000 for the first nine months of fiscal 2013. Products revenue increased 11.8% to $13,495,000 compared to $12,073,000 for the first nine months of fiscal 2013, and semiconductor testing services revenue increased 19.5% to $13,244,000 compared to $11,085,000 for the same period last year.
Gross margin for the first nine months of fiscal 2014 increased to $6,045,000, or 22.5% of revenue, compared to $4,654,000, or 20.0% of revenue, for the same period last year.
Operating expenses for the first nine months of fiscal 2014 increased 9.8% to $6,143,000, or 22.9% of revenue, including a non-cash stock option expense of $208,000. For the same period last year, operating expenses of $5,592,000, or 24.0% of revenue, included non-cash stock option expense of $40,000.
The operating loss for the first nine months of fiscal 2014 of $98,000 narrowed significantly from the operating loss of $938,000 for the first nine months of fiscal 2013.
The net loss attributable to Trio-Tech common shareholders for the first nine months of fiscal 2014 was $225,000, or $0.06 per share, which included a loss from the discontinued fabrication services business of $38,000, or $0.00 per share. In comparison, for the first nine months of fiscal 2013, the net loss attributable to Trio-Tech common shareholders was $1,065,000, or $0.32 per share, including a loss from the discontinued fabrication business of $541,000, or $0.08 per share.
Cash provided by operations for the first nine months of fiscal 2014 was $3,154,000, compared to cash provided by operations for the first nine months of fiscal 2013 of $4,104,000.
Shareholders' equity at March 31, 2014 was $20,583,000, or $5.86 per outstanding share, compared to $20,606,000, or $6.20 per outstanding share, at June 30, 2013. There were approximately 3,513,000 common shares outstanding for the first nine months of fiscal 2014, compared to approximately 3,322,000 common shares outstanding for the same period last year.
Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, oil and gas equipment fabrication 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, and www.ttsolar.com.
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||Nine Months Ended|
|March 31,||March 31,|
|Costs of Sales|
|Cost of products sold||2,895||2,538||11,305||10,363|
|Cost of testing services rendered||3,142||2,621||9,420||8,140|
|General and administrative||1,757||1,567||5,429||4,982|
|Research and development||49||72||150||217|
|(Gain) Loss on disposal of property, plant and equipment||--||(2||)||11||(6||)|
|Total operating expenses||1,946||1,780||6,143||5,592|
|Loss (Income) from Operations||21||(513||)||(98||)||(938||)|
|Other Income (Expenses)|
|Other income, net||77||78||36||388|
|Total other income (expenses)||15||6||(160||)||162|
Income (loss) from Continuing Operations before Income Taxes
|Income Tax Benefit (Expense)||184||(28||)||266||96|
Income (loss) from Continuing Operations before Non-controlling Interest, net of tax
|Income (loss) from discontinued operations, net of tax||34||(52||)||(38||)||(541||)|
|NET INCOME (LOSS)||$||254||$||(587||)||$||(30||)||$||(1,221||)|
|Less: Net income (loss) attributable to the non-controlling interest||97||(44||)||195||(156||)|
|Net Income (loss) attributable to Trio-Tech International||157||(543||)||(225||)||(1,065||)|
|Net Income (Loss) Attributable to Trio-Tech International:|
|Income (loss) from continuing operations, net of tax||138||(530||)||(204||)||(810||)|
|Income (loss) from discontinued operations, net of tax||19||(13||)||(21||)||(255||)|
|Net Income (Loss) Attributable to Trio-Tech International||$||157||$||(543||)||$||(225||)||$||(1,065||)|
|Comprehensive Income (Loss) Attributable to Trio-Tech International|
|Net income (loss)||$||254||$||(587||)||$||(30||)||$||(1,221||)|
|Foreign currency translation, net of tax||(249||)||(52||)||(394||)||665|
|Comprehensive Income (Loss)||5||(639||)||(424||)||(556||)|
Less: Comprehensive income (loss) attributable to non-controlling Interest
|Comprehensive Loss Attributable to Trio-Tech International||(83||)||(578||)||(506||)||(548||)|
|Basic and diluted earnings (loss) per share|
|From continuing operations||$||0.04||$||(0.15||)||$||(0.06||)||$||(0.24||)|
|From discontinued operations||$||0.01||$||(0.01||)||$||0.00||$||(0.08||)|
|Basic and diluted Earnings (Loss) per Share||$||0.05||$||(0.16||)||$||(0.06||)||$||(0.32||)|
|Weighted Average Shares Outstanding - Basic||3,513||3,322||3,513||3,322|
|Weighted Average Shares Outstanding - Diluted||3,582||3,322||3,513||3,322|
|TRIO-TECH INTERNATIONAL AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(IN THOUSANDS, EXCEPT NUMBER OF SHARES)|
|Mar. 31||Jun. 30,|
|Cash & cash equivalents||$||2,549||$||2,793|
|Trade accounts receivable, net||8,163||8,728|
|Loan receivables from property development projects, net||803||1,139|
|Prepaid expenses and other current assets||294||358|
|Total current assets||14,162||16,578|
|Investment Properties, Net||1,785||1,893|
|Property, Plant and Equipment, Net||13,024||12,851|
|Restricted Term Deposits||3,505||3,494|
LIABILITIES AND SHAREHOLDERS' EQUITY
|Lines of credit||$||2,875||$||3,864|
|Income taxes payable||273||459|
|Current portion of bank loans payable||599||770|
|Current portion of capital leases||67||105|
|Total current liabilities||10,588||12,394|
|Bank Loans Payable, net of current portion||2,601||2,613|
|Capital Leases, net of current portion||229||228|
|Deferred Tax Liabilities||157||191|
|Other non-current liabilities||38||12|
|Commitments and contingencies||--||--|
|TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:|
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 and 3,321,555 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively
|Accumulated retained earnings||1,443||1,668|
|Accumulated other comprehensive gain-translation adjustments||3,399||3,680|
|Total Trio-Tech International shareholders' equity||18,688||18,635|
|TOTAL LIABILITIES AND EQUITY||$||34,196||$||36,044|
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Dec. 26, 2014 12:00 PM EST Reads: 1,673
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Dec. 26, 2014 11:15 AM EST Reads: 2,295
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Dec. 26, 2014 11:00 AM EST Reads: 1,901
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
Dec. 26, 2014 11:00 AM EST Reads: 2,064
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
Dec. 26, 2014 11:00 AM EST Reads: 2,150
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 26, 2014 11:00 AM EST Reads: 1,768
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Dec. 26, 2014 11:00 AM EST Reads: 1,986
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...
Dec. 26, 2014 10:00 AM EST Reads: 1,952
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
Dec. 26, 2014 10:00 AM EST Reads: 1,730
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Dec. 26, 2014 10:00 AM EST Reads: 7,119
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Dec. 26, 2014 09:30 AM EST Reads: 1,730
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Dec. 26, 2014 09:00 AM EST Reads: 2,588
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Dec. 26, 2014 09:00 AM EST Reads: 2,013
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Dec. 26, 2014 09:00 AM EST Reads: 2,223
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
Dec. 26, 2014 08:30 AM EST Reads: 2,372