EX-99.1 3 a93388exv99w1.htm EXHIBIT 99.1

exv99w1

LOS ANGELES
SINGAPORE
DUBLIN
PENANG
KUALA LUMPUR
BANGKOK

FOR IMMEDIATE RELEASE Company Contact:
Dale Cheesman
Corporate Secretary
(818) 787-7000 Investor Contact:
Berkman Associates
(310) 277-5162
info@BerkmanAssociates.com

Trio-Tech Reports Fiscal 2003 Results

     Van Nuys, CA, — September 25, 2003 — Trio-Tech International (AMEX:TRT) today announced financial results for the fiscal year ended June 30, 2003.

     For fiscal 2003, total revenue increased 8.3% to $21,246,000 from $19,617,000 for fiscal 2002. Gross margin for fiscal 2003 improved to 23.5% from 18.8% for fiscal 2002. Operating income (before non-cash items) increased to $186,000 for fiscal 2003 compared to an operating loss (before non-cash items) of $1,981,000 for fiscal 2002. The net loss for fiscal 2003 was $81,000, or $0.03 per share, after a non-cash impairment charge on assets of $358,000 and a loss on disposal of assets of $115,000. This compares to a net loss for fiscal 2002 of $3,547,000, or $1.21 per share, after goodwill, intangibles and asset impairment charges of $1,631,000 and a gain on disposal of assets of $33,000.

     At June 30, 2003, shareholders’ equity was $8,590,000, or approximately $2.93 per share, which included cash and short-term deposits $5,803,000.

Additional Performance Measures

     Net cash provided from operating activities was $1,253,000 for fiscal 2003 compared to a deficit of $(1,717,000) for fiscal 2002.

     Testing services backlog increased to $5,138,000 at June 30, 2003 from $1,739,000 at March 31, 2003. At June 30, 2002, testing services backlog was $6,615,000.

     “As evidenced by the substantial increase in testing services backlog in the fourth quarter compared to the third quarter, we are beginning to see encouraging signs of incipient recovery in the semiconductor industry after the prolonged global slump that affected our customers’ and Trio-Tech’s performance again in fiscal 2003. Activity has increased at our semiconductor testing and burn-in facilities in the Far East among both established and new accounts, which we believe validates our decision to invest in our testing technology and capacity despite the downturn. Inquiries also are rising for the first time in a long time regarding certain of our manufactured products. We are optimistic about Trio-Tech’s opportunity for renewed growth in the new fiscal year,” said Charles Wilson, Chairman.

     President and Chief Executive Officer S.W. Yong said, “We expect that the actions we took in fiscal 2003 will enhance efficiency and further reduce labor and facilities costs in the current fiscal year. With our lean cost structure and increasingly efficient operations, we believe that Trio-Tech is well-positioned to benefit as our industry recovers.”

(more)

14731 Califa Street, Van Nuys, CA 91411, USA • TEL: (818) 787-7000 • FAX (818) 789-9130

Trio-Tech Reports Fiscal 2003 Results
September 25, 2003
Page Two

Segment Review

     Net sales for Trio-Tech’s testing services segment increased to $9,505,000 for fiscal 2003 from $8,942,000 for fiscal 2002. Operating income in the testing segment increased 18% to $803,000 for fiscal 2003 from $680,000 a year earlier. Manufacturing segment revenue declined to $4,674,000 for fiscal 2003 from $5,022,000 for the prior year. The operating loss in the manufacturing segment decreased to $802,000 for fiscal 2003 compared to an operating loss of $4,013,000 a year earlier. Distribution segment revenue increased to $7,067,000 for fiscal 2003 from $5,653,000 a year earlier. The distribution segment reported an operating loss of $212,000 for fiscal 2003 compared to an operating loss of $69,000 for the prior year.

About Trio-Tech

     Founded in 1958, Trio-Tech International provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. Headquartered in Van Nuys, California, the Company also designs, manufactures and markets equipment and systems used in the testing and production of semiconductors and distributes semiconductor processing and testing equipment manufactured by others. For further information or to request quotations for any of Trio-Tech’s complete line of semiconductor test equipment, please visit the Company’s Web site at www.triotech.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.

(tables attached)

#3399

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

				Twelve Months Ended								Three Months Ended
				June 30,								June 30,
				2003				2002				2003				2002
				(audited)								(unaudited)
NET SALES				$	21,246			$	19,617			$	4,719			$	5,012
COST OF SALES					16,245				15,926				3,867				4,565
GROSS PROFIT					5,001				3,691				852				447
OPERATING EXPENSES:
	General and administrative				3,992				4,141				800				907
	Selling				702				1,200				47				312
	Research and development				121				331				32				72
	Impairment loss				358				1,631				358				1,008
	(Gain) loss on disposal of property, plant and equipment				115				(33	)			3				4
		Total			5,288				7,270				1,240				2,303
INCOME (LOSS) FROM OPERATIONS					(287	)			(3,579	)			(388	)			(1,856	)
OTHER INCOME (EXPENSE)
	Interest (expense)				(185	)			(207	)			(40	)			(48	)
	Other income (expense)				347				306				106				(83	)
		Total			162				99				66				(131	)
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY INTEREST					(125	)			(3,480	)			(322	)			(1,987	)
INCOME TAXES (BENEFIT)					94				53				23				(15	)
INCOME (LOSS) BEFORE MINORITY INTEREST					(219	)			(3,533	)			(345	)			(1,972	)
MINORITY INTEREST					138				(14	)			89				(71	)
NET (LOSS) INCOME					(81	)			(3,547	)			(256	)			(2,043	)
OTHER COMPREHENSIVE INCOME (LOSS):
	Unrealized gain on investment				21				24				45				24
	Foreign currency translation adjustment				18				262				84				252
COMPREHENSIVE (LOSS) INCOME				$	(42	)		$	(3,261	)		$	(127	)		$	(1,767	)
EARNINGS (LOSS) PER SHARE, Basic and Diluted				$	(0.03	)		$	(1.21	)		$	(0.09	)		$	(0.70	)
WEIGHTED AVERAGE NUMBER OF COMMON & COMMON SHARES OUTSTANDING, Basic and Diluted					2,928				2,928				2,928				2,928

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (AUDITED)
(IN THOUSANDS)

				June 30,
ASSETS
				2003				2002
CURRENT ASSETS:
	Cash			$	1,495			$	1,007
	Short-term deposits				4,308				6,027
	Short term investments				485				554
	Trade accounts receivable, net				3,643				4,148
	Other receivables				373				527
	Inventories				1,049				1,014
	Prepaid expenses and other current assets				140				128
		Total current assets			11,493				13,405
PROPERTY AND EQUIPMENT, Net					5,210				5,593
OTHER ASSETS, Net					8				77
TOTAL ASSETS				$	16,711			$	19,075
LIABILITIES & SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
	Lines of credit			$	300			$	1,227
	Accounts payable				1,080				1,717
	Accrued expenses				2,096				2,315
	Income taxes payable				56				106
	Current portion of notes payable and capitalized leases				934				1,121
		Total current liabilities			4,466				6,486
LONG-TERM DEBT AND CAPITALIZED LEASES, net of current portion					836				986
DEFERRED INCOME TAXES					711				669
MINORITY INTEREST					2,108				2,316
SHAREHOLDERS’ EQUITY					8,590				8,618
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY				$	16,711			$	19,075