Trio-Tech Reports Fourth Quarter and Fiscal 2023 Results
- Solid operating margins and improved cash flow
- Testing services revenue increased 18.8%
- Softening demand for testing services in H2 2023
Trio-Tech CEO, S.W. Yong, Appointed Chairman of the Board
S.W. Yong, CEO and newly elected Chairman said, “Challenging conditions in the global semiconductor industry had a significant impact on Trio-Tech’s performance this past year, especially in the fourth fiscal quarter. Through proactive management of the business, we nevertheless maintained solid operating margins, significantly improved cash flow and delivered a profitable quarter and year. What’s more, we enhanced our cash-rich balance sheet, reduced debt and increased shareholders’ equity. A constant focus on improving our balance sheet enables the Company to be well positioned for investing in opportunities to create new revenue streams, improve profitability and enhance shareholder value.
“While we are very pleased that testing services revenue increased
“Trio-Tech closed the fiscal year with near-record backlog and market demand for semiconductor equipment shows signs of a gradual recovery as we enter fiscal 2024. Distribution revenue is also projected to increase in fiscal 2024 as the demand for our value-added products shows encouraging signs. With due caution about the overall tone of the semiconductor industry and economic prospects in
“The semiconductor industry has experienced periods of rapid growth and downturns, often in connection with, or in anticipation of, maturing product cycles of both semiconductor companies, customer products and general economic conditions. Consequently, we are increasing our efforts to expand our lines of businesses to reduce the risks associated with a single industry focus and customer concentration.”
Board of Directors Appoints S.W. Yong Chairman of the Board
Trio-Tech’s Board of Directors announced the appointment of CEO, Mr. Siew Wai Yong, as Chairman of the Board of Directors, effective September 20, 2023. “Mr. Yong joined the Company in 1976 and has been an exceptional leader during his tenure as President and CEO since September 1990. With his appointment as Chairman, Mr. Yong will continue to play a key role shaping the direction of the Company and its long-term success,” said the Board of Directors.
“I would like to thank the Board for the opportunity to serve as the Chairman and feel honored to take on this additional role. On behalf of the Board, I would also like to thank Mr. A. Charles Wilson for his guidance and his contributions as Chairman over the many years of his distinguished service. I look forward to working with the Board and our Management to support the company’s continued growth,” said Mr. Yong.
Fourth Quarter Results
Revenue for the fourth quarter of fiscal 2023 decreased
Gross margin decreased
Net income for the fourth quarter of fiscal 2023 was
Backlog at June 30, 2023 was
Fiscal 2023 Results
Fiscal 2023 testing services revenue increased
Fiscal 2023 gross margin declined slightly to
Operating expenses increased to
Net income attributable to our common shareholders for fiscal 2023 was
Balance Sheet Highlights
Cash and cash equivalents at June 30, 2023 were
About Trio‑Tech
Established in 1958, Trio-Tech International is located in
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
TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES |
|
||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|
||||||||||||||||||
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) |
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|
|||||||||||||||
|
|
June 30, |
|
June 30, |
|
||||||||||||||
Revenue |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|||
|
Manufacturing |
$ |
2,235 |
|
|
$ |
3,339 |
|
|
$ |
13,827 |
|
|
$ |
13,526 |
|
|
||
|
Testing services |
|
5,421 |
|
|
|
5,494 |
|
|
|
23,130 |
|
|
|
19,477 |
|
|
||
|
Distribution |
|
1,415 |
|
|
|
2,999 |
|
|
|
6,270 |
|
|
|
11,037 |
|
|
||
|
Real estate |
|
8 |
|
|
|
2 |
|
|
|
23 |
|
|
|
25 |
|
|
||
|
|
|
|
9,079 |
|
|
|
11,834 |
|
|
|
43,250 |
|
|
|
44,065 |
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of manufactured products sold |
|
1,762 |
|
|
|
2,309 |
|
|
|
10,587 |
|
|
|
10,147 |
|
|
||
|
Cost of testing services rendered |
|
3,845 |
|
|
|
3,819 |
|
|
|
15,658 |
|
|
|
12,960 |
|
|
||
|
Cost of distribution |
|
1,164 |
|
|
|
2,496 |
|
|
|
5,228 |
|
|
|
9,147 |
|
|
||
|
Cost of real estate |
|
18 |
|
|
|
20 |
|
|
|
72 |
|
|
|
78 |
|
|
||
|
|
|
|
6,789 |
|
|
|
8,644 |
|
|
|
31,545 |
|
|
|
32,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross Margin |
|
2,290 |
|
|
|
3,190 |
|
|
|
11,705 |
|
|
|
11,733 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses: |
|
|
|
|
|
|
|
|
|||||||||||
|
General and administrative |
|
1,931 |
|
|
|
2,056 |
|
|
|
8,403 |
|
|
|
8,361 |
|
|
||
|
Selling |
|
144 |
|
|
|
194 |
|
|
|
670 |
|
|
|
643 |
|
|
||
|
Research and development |
|
86 |
|
|
|
82 |
|
|
|
397 |
|
|
|
375 |
|
|
||
|
Loss on disposal of property, plant and equipment |
|
-- |
|
|
|
1 |
|
|
|
7 |
|
|
|
1 |
|
|
||
|
|
Total operating expenses |
|
2,161 |
|
|
|
2,333 |
|
|
|
9,477 |
|
|
|
9,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from Operations |
|
129 |
|
|
|
857 |
|
|
|
2,228 |
|
|
|
2,353 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other Income |
|
|
|
|
|
|
|
|
|||||||||||
|
Interest expense |
|
(22 |
) |
|
|
(35 |
) |
|
|
(105 |
) |
|
|
(122 |
) |
|
||
|
Other income, net |
|
155 |
|
|
|
(74 |
) |
|
|
106 |
|
|
|
595 |
|
|
||
|
Government grant |
|
45 |
|
|
|
228 |
|
|
|
153 |
|
|
|
228 |
|
|
||
|
|
Total other income |
|
178 |
|
|
|
119 |
|
|
|
154 |
|
|
|
701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from Continuing Operations before Income Taxes |
|
307 |
|
|
|
976 |
|
|
|
2,382 |
|
|
|
3,054 |
|
|
|||
Income Tax Expenses |
|
(148 |
) |
|
|
(254 |
) |
|
|
(622 |
) |
|
|
(757 |
) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from Continuing Operations |
|
|
|
|
|
|
|
|
|||||||||||
|
before Non-controlling Interest, net of tax |
|
159 |
|
|
|
722 |
|
|
|
1,760 |
|
|
|
2,297 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gain / (loss) from discontinued operations, net of tax |
|
2 |
|
|
|
(3 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NET INCOME |
|
161 |
|
|
|
719 |
|
|
|
1,758 |
|
|
|
2,299 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Less: Net (loss) / income Attributable to Non-controlling Interest |
|
(1 |
) |
|
|
(71 |
) |
|
|
214 |
|
|
|
(96 |
) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income Attributable to Trio-Tech International |
$ |
162 |
|
|
$ |
790 |
|
|
$ |
1,544 |
|
|
$ |
2,395 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income Attributable to Trio-Tech International: |
|
|
|
|
|
|
|
|
|||||||||||
|
Income from continuing operations, net of tax |
|
161 |
|
|
|
793 |
|
|
|
1,545 |
|
|
|
2,396 |
|
|
||
|
Income / (Loss) from discontinued operations, net of tax |
|
1 |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net Income Attributable to Trio-Tech International |
|
162 |
|
|
|
790 |
|
|
|
1,544 |
|
|
|
2,395 |
|
|
||
|
|
|
|
|
|
|
|
|
|||||||||||
Basic Earnings per Share - Continuing Operations |
$ |
0.04 |
|
|
$ |
0.20 |
|
|
$ |
0.38 |
|
|
$ |
0.61 |
|
|
|||
Basic Loss per Share - Discontinued Operations |
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
(0.01 |
) |
|
|||
Basic Earnings per Share |
$ |
0.04 |
|
|
$ |
0.20 |
|
|
$ |
0.38 |
|
|
$ |
0.60 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted Earnings per Share - Continuing Operations |
$ |
0.04 |
|
|
$ |
0.19 |
|
|
|
0.37 |
|
|
$ |
0.57 |
|
|
|||
Diluted Loss per Share - Discontinued Operations |
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|||
Diluted Earnings per Share |
$ |
0.04 |
|
|
$ |
0.19 |
|
|
$ |
0.37 |
|
|
$ |
0.57 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Shares Outstanding - Basic |
|
4,082 |
|
|
|
3,972 |
|
|
|
4,082 |
|
|
|
3,972 |
|
|
|||
Weighted Average Shares Outstanding - Diluted |
|
4,159 |
|
|
|
4,094 |
|
|
|
4,165 |
|
|
|
4,174 |
|
|
|||
TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||||
AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
June 30, |
|
June 30, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
|
|
|
|
|
|
|
|
||||||||||
Comprehensive (Loss) / Income |
|
|
|
|
|
|
|
||||||||||
Attributable to Trio-Tech International |
|
|
|
|
|
|
|
||||||||||
Common Shareholders: |
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
161 |
|
|
$ |
719 |
|
|
$ |
1,758 |
|
|
$ |
2,299 |
|
||
Foreign currency translation, net of tax |
|
(1,137 |
) |
|
|
(1,253 |
) |
|
|
(616 |
) |
|
|
(1,275 |
) |
||
Comprehensive (Loss) / Income |
|
(976 |
) |
|
|
(534 |
) |
|
|
1,142 |
|
|
|
1,024 |
|
||
Less: Comprehensive (Loss) Income |
|
|
|
|
|
|
|
||||||||||
|
Attributable to Non-controlling Interests |
|
(90 |
) |
|
|
(129 |
) |
|
|
37 |
|
|
|
(169 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
Comprehensive (Loss) / Income |
|
|
|
|
|
|
|
||||||||||
Attributable to Trio-Tech International |
$ |
(886 |
) |
|
$ |
(405 |
) |
|
$ |
1,105 |
|
|
$ |
1,193 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(IN THOUSANDS, EXCEPT NUMBER OF SHARES) |
|||||
|
|||||
|
|
|
|
||
|
Jun. 30, |
|
Jun. 30, |
||
|
2023 |
|
|
2022 |
|
ASSETS |
(Audited) |
|
(Audited) |
||
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
||
Cash and cash equivalents |
$ |
7,583 |
|
$ |
7,698 |
Short-term deposits |
|
6,627 |
|
|
5,420 |
Trade account receivables, net |
|
9,804 |
|
|
11,592 |
Other receivables |
|
939 |
|
|
998 |
Inventories, net |
|
2,151 |
|
|
2,258 |
Prepaid expenses and other current assets |
|
694 |
|
|
1,215 |
Assets held for sale |
|
274 |
|
|
-- |
Financed sales receivable |
|
16 |
|
|
21 |
Restricted term deposit |
|
739 |
|
|
-- |
Total current assets |
|
28,827 |
|
|
29,202 |
NON-CURRENT ASSETS: |
|
|
|
||
Deferred tax assets |
|
100 |
|
|
169 |
Investment properties, net |
|
474 |
|
|
585 |
Property, plant and equipment, net |
|
8,344 |
|
|
8,481 |
Operating lease right-of-use assets |
|
2,609 |
|
|
3,152 |
Other assets |
|
116 |
|
|
137 |
Financed sales receivable |
|
-- |
|
|
17 |
Restricted term deposits |
|
1,716 |
|
|
1,678 |
Total non-current assets |
|
13,359 |
|
|
14,219 |
TOTAL ASSETS |
$ |
42,186 |
|
$ |
43,421 |
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
||
Lines of credit |
$ |
-- |
|
$ |
929 |
Accounts payable |
|
1,660 |
|
|
2,401 |
Accrued expense |
|
5,568 |
|
|
6,004 |
Income taxes payable |
|
418 |
|
|
787 |
Current portion of bank loans payable |
|
475 |
|
|
472 |
Current portion of finance leases |
|
107 |
|
|
118 |
Current portion of operating leases |
|
1,098 |
|
|
1,218 |
Total current liabilities |
|
9,326 |
|
|
11,929 |
NON-CURRENT LIABILITIES: |
|
|
|
||
Bank loans payable, net of current portion |
|
877 |
|
|
1,272 |
Finance leases, net of current portion |
|
42 |
|
|
119 |
Operating leases, net of current portion |
|
1,511 |
|
|
1,934 |
Income taxes payable, net of current portion |
|
255 |
|
|
137 |
Deferred tax liabilities |
|
10 |
|
|
-- |
Other non-current liabilities |
|
594 |
|
|
28 |
Total non-current liabilities |
|
3,289 |
|
|
3,490 |
TOTAL LIABILITIES |
$ |
12,615 |
|
$ |
15,419 |
|
|
|
|
||
EQUITY |
|
|
|
||
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: |
|
|
|
||
Common stock, no par value, 15,000,000 shares authorized; 4,096,680 and 4,071,680 |
|
|
|
||
shares issued and outstanding at June 30, 2023 and June 30, 2022, respectively |
|
12,819 |
|
|
12,750 |
Paid-in capital |
|
5,066 |
|
|
4,708 |
Accumulated retained earnings |
|
10,763 |
|
|
9,219 |
Accumulated other comprehensive income-translation adjustments |
|
758 |
|
|
1,197 |
Total Trio-Tech International shareholders' equity |
|
29,406 |
|
|
27,874 |
Non-controlling interest |
|
165 |
|
|
128 |
TOTAL EQUITY |
|
29,571 |
|
|
28,002 |
TOTAL LIABILITIES AND EQUITY |
$ |
42,186 |
|
$ |
43,421 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230927018217/en/
Company Contact:
Siew Wai Yong
Chairman & CEO
(818) 787-7000
Investor Contact:
Berkman Associates
(310) 927-3108
robert.jacobs@jacobscon.com
Source: Trio-Tech International
