TRT Trio Tech International

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the second quarter and first six months of fiscal 2023.

Fiscal 2023 Second Quarter Results

For the three months ended December 31, 2022, revenue increased 13% to $12,390,000, compared to $10,922,000 for the same quarter last year, driven by a 43% increase in revenue in the Company’s manufacturing segment.

Reflecting the growth in revenue and an increase in gross margin for the second quarter to 27% of revenue compared to 26% of revenue for the second quarter of fiscal 2022, operating income surged 63% to $1,069,000 compared to $656,000 last year.

Net income for the second quarter of fiscal 2023 was $507,000, or $0.12 per diluted share, compared to net income of $855,000, or $0.20 per diluted share, for the second quarter of fiscal 2022. Net income for this year’s second quarter was affected by a non-cash currency exchange loss of $349,000 associated with a weakening of the US dollar against the Singapore dollar during the quarter. This compares to an exchange loss of $38,000 for the second quarter of fiscal 2022.

Shareholders' equity at December 31, 2022 increased to $29,973,000, or $7.35 per outstanding share, compared to $28,002,000, or $6.88 per outstanding share, at June 30, 2022. There were approximately 4,076,680 and 4,071,680 shares of common stock outstanding at December 31, 2022 and June 30, 2022, respectively.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, “We are pleased by growth in revenue and operating income that we delivered for the first half of the new fiscal year. Looking ahead, despite the potential impact of semiconductor industry capacity adjustments on our business in the second half, we remain optimistic that we will achieve our goals for long-term growth and profitability as we remain focused on improving operating efficiency, controlling expenses, and working closely with current and prospective customers to expand our business opportunities.”

Fiscal 2022 First Half Results

For the first six months of fiscal 2023, revenue increased 15% to $24,329,000 compared to $21,093,000 for the same period last year.

Gross margin for the first six months of fiscal 2023 increased 15% to $6,957,000 compared to $6,069,000 for the same period last year and represented approximately 29% of revenue for both periods.

Income from operations increased 31% to $2,136,000, or 9% of revenue, compared to $1,626,000, or 8% of revenue, for the same period last year.

Net income for the first half of fiscal 2023 was $1,389,000, or $0.33 per diluted share, compared to $1,772,000, or $0.43 per diluted share, for the same period last year. Net income for this year’s first half reflected a non-cash currency exchange loss of $279,000 versus an exchange loss of $4,000 for the first six months of fiscal 2022.

About Trio‑Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarters 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 and Jiangsu 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; on-going public health issues related to the COVID-19 pandemic; geopolitical conflicts, including the current war in Ukraine; political and trade tension between U.S and China, other economic, financial and regulatory factors beyond the Company's control and, uncertainties relating to our ability to operate our business in China; uncertainties regarding the enforcement of laws and the fact that rules and regulation in China can change quickly with little advance notice, along with the risk that the Chinese government may intervene or influence our operation at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers could result in a material change in our operations, financial performance and/or the value of our common stock or impair our ability to raise money. 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 (LOSS)

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

Revenue

2022

 

2021

 

2022

 

2021

Manufacturing

$

5,044

 

$

3,528

 

$

8,629

 

$

7,090

 

Testing services

 

5,648

 

 

4,966

 

 

12,012

 

 

9,566

 

Distribution

 

1,694

 

 

2,420

 

 

3,676

 

 

4,418

 

Real estate

 

4

 

 

8

 

 

12

 

 

19

 

 

 

12,390

 

 

10,922

 

 

24,329

 

 

21,093

 

Cost of Sales

 

 

 

 

Cost of manufactured products sold

 

3,849

 

 

2,874

 

 

6,374

 

 

5,308

 

Cost of testing services rendered

 

3,747

 

 

3,089

 

 

7,873

 

 

5,972

 

Cost of distribution

 

1,441

 

 

2,050

 

 

3,089

 

 

3,706

 

Cost of real estate

 

18

 

 

19

 

 

36

 

 

38

 

 

 

9,055

 

 

8,032

 

 

17,372

 

 

15,024

 

Gross Margin

 

3,335

 

 

2,890

 

 

6,957

 

 

6,069

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

General and administrative

 

1,919

 

 

1,947

 

 

4,224

 

 

3,927

 

Selling

 

193

 

 

156

 

 

366

 

 

303

 

Research and development

 

151

 

 

131

 

 

224

 

 

213

 

Gain on disposal of property, plant and equipment

 

3

 

 

--

 

 

7

 

 

--

 

Total operating expenses

 

2,266

 

 

2,234

 

 

4,821

 

 

4,443

 

Income from Operations

 

1,069

 

 

656

 

 

2,136

 

 

1,626

 

Other Income (Expenses)

 

 

 

 

Interest expenses

 

(10

)

 

(28

)

 

(54

)

 

(56

)

Other income, net

 

(243

)

 

381

 

 

(64

)

 

542

 

Total other income

 

(253

)

 

353

 

 

(118

)

 

486

 

Income from Continuing Operations before Income Taxes

 

816

 

 

1,009

 

 

2,018

 

 

2,112

 

Income Tax Expenses

 

(241

)

 

(153

)

 

(466

)

 

(333

)

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

 

575

 

 

856

 

 

1,552

 

 

1,779

 

(Loss) Income from Discontinued Operations, Net of Tax

 

(10

)

 

--

 

 

(9

)

 

5

 

NET INCOME

 

565

 

 

856

 

 

1,543

 

 

1,784

 

Less: Income Attributable to Non-controlling Interest

 

58

 

 

1

 

 

154

 

 

12

 

Net Income Attributable to Trio-Tech International

 

507

 

 

855

 

 

1,389

 

 

1,772

 

Net Income Attributable to Trio-Tech International:

 

 

 

 

Income from Continuing Operations, Net of Tax

 

512

 

 

856

 

 

1,394

 

 

1,770

 

(Loss) Income from Discontinued Operations, Net of Tax

 

(5

)

 

(1

)

 

(5

)

 

2

 

Net Income attributable to Trio-Tech International

$

507

 

$

855

 

$

1,389

 

$

1,772

 

Basic Earnings per Share

$

0.12

 

$

0.22

 

$

0.34

 

$

0.46

 

Diluted Earnings per share

$

0.12

 

$

0.20

 

$

0.33

 

$

0.43

 

 

 

 

 

 

Weighted Average Shares Outstanding - Basic

 

4,074

 

 

3,923

 

 

4,074

 

 

3,923

Weighted Average Shares Outstanding - Diluted

4,162

4,242

 

4,160

 

4,129

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Comprehensive Income Attributable to Trio-Tech International Common Shareholders:

 

 

 

 

 

 

 

Net income

$

565

 

 

$

856

 

 

$

1,543

 

 

$

1,784

 

Foreign Currency Translation, Net of Tax

 

1,568

 

 

 

251

 

 

 

355

 

 

 

(38

)

Comprehensive Income

 

2,133

 

 

 

1,107

 

 

 

1,898

 

 

 

1,746

 

Less: Comprehensive income (loss) Attributable to Non-controlling Interest

 

133

 

 

 

2

 

 

 

212

 

 

 

6

 

Comprehensive Income Attributable to Trio-Tech International Common Shareholders

$

2,000

 

 

$

1,105

 

 

$

1,686

 

 

$

1,740

 

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

 

 

 

Dec. 31,

 

June 30,

2022

 

2022

ASSETS

(Unaudited)

 

(Audited)

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

6,379

 

 

$

7,698

 

Short-term deposits

 

4,995

 

 

 

5,420

 

Trade account receivables, net

 

13,332

 

 

 

11,592

 

Other receivables

 

728

 

 

 

998

 

Inventories, net

 

3,219

 

 

 

2,258

 

Prepaid expenses and other current assets

 

610

 

 

 

1,215

 

Financed sales receivable

 

21

 

 

 

21

 

Restricted term deposit

 

747

 

 

 

--

 

Total current assets

 

30,031

 

 

 

29,202

 

Deferred tax assets

 

93

 

 

 

169

 

Investment properties, net

 

533

 

 

 

585

 

Property, plant and equipment, net

 

11,070

 

 

 

8,481

 

Operating lease right-of-use assets

 

2,580

 

 

 

3,152

 

Other assets

 

141

 

 

 

137

 

Financed sales receivable

 

6

 

 

 

17

 

Restricted term deposits

 

1,742

 

 

 

1,678

 

Total non-current assets

 

16,165

 

 

 

14,219

 

TOTAL ASSETS

$

46,196

 

 

$

43,421

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Lines of credit

 

--

 

 

$

929

 

Accounts payable

 

3,067

 

 

 

2,401

 

Accrued expense

 

6,807

 

 

 

6,004

 

Income taxes payable

 

461

 

 

 

787

 

Current portion of bank loans payable

 

511

 

 

 

472

 

Current portion of finance leases

 

101

 

 

 

118

 

Current portion of operating leases

 

1,140

 

 

 

1,218

 

Total current liabilities

 

12,087

 

 

 

11,929

 

Bank loans payable, net of current portion

 

1,185

 

 

 

1,272

 

Finance leases, net of current portion

 

69

 

 

 

119

 

Operating leases, net of current portion

 

1,440

 

 

 

1,934

 

Income taxes payable

 

255

 

 

 

137

 

Deferred tax liabilities

 

15

 

 

 

--

 

Other non-current liabilities

 

1,172

 

 

 

28

 

Total non-current liabilities

 

4,136

 

 

 

3,490

 

TOTAL LIABILITIES

 

16,223

 

 

 

15,419

 

 

 

 

 

EQUITY

 

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

 

Common stock, no par value, 15,000,000 shares authorized; 4,076,680 and 4,071,680 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively

 

12,769

 

 

 

12,750

 

Paid-in capital

 

4,762

 

 

 

4,708

 

Accumulated retained earnings

 

10,608

 

 

 

9,219

 

Accumulated other comprehensive gain-translation adjustments

 

1,494

 

 

 

1,197

 

Total Trio-Tech International shareholders' equity

 

29,633

 

 

 

27,874

 

Non-controlling interest

 

340

 

 

 

128

 

TOTAL EQUITY

 

29,973

 

 

 

28,002

 

TOTAL LIABILITIES AND EQUITY

$

46,196

 

 

$

43,421

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230210005113/en/

Company Contact: A. Charles Wilson Chairman (818) 787-7000 Investor Contact: Berkman Associates (310) 927-3108 robert.jacobs@jacobscon.com