News Column

Trio-Tech Third Quarter Net Income Improves to $0.05 Per Share Versus a Loss of $0.16 Per Share as Revenue Increases 24.5%

May 28, 2014



By a News Reporter-Staff News Editor at Electronics Newsweekly -- Trio-Tech International (NYSE MKT:TRT) 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. About Trio-Tech 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.

Keywords for this news article include: Finance, Electronics, Semiconductor, Trio-Tech International.

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Source: Electronics Newsweekly