Trio-Tech First Quarter Net Earnings Per Diluted Share Increased to $0.07 versus $0.02

Trio-Tech International (NYSE MKT: TRT) announced today that net income for the first quarter of fiscal 2020 more than quadrupled to $273,000, or $0.07 per diluted share, compared to $65,000, or $0.02 per diluted share, for the first quarter of fiscal 2019.

Total revenue for the three months ended September 30, 2019 decreased 2% to $9,823,000 compared to revenue of $10,045,000 for the first quarter of fiscal 2019. Manufacturing revenue decreased 9% to $3,317,000 from $3,637,000 last year, primarily related to a decline in orders at Trio-Tech’s Singapore operations. Semiconductor testing services revenue decreased 1% to $4,390,000 compared to $4,437,000 last year, reflecting lower orders in Malaysia and China. Distribution revenue increased 8% to $2,099,000 compared to $1,944,000 in the first quarter last year, driven by an increase in orders from customers in Singapore.

Gross margin improved for all three of our major business segments for the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019, increasing 7% to $2,252,000, or 23% of sales, compared to $2,101,000, or 21% of sales in the same quarter last year. As a percent of sales, an improved product mix raised manufacturing and distribution gross margin to 23%, from 21% and to 14% from 13%, respectively, while cost reductions contributed to an increase in testing services gross margin to 27% from 24% a year ago.

Operating expenses for the first quarter of fiscal 2020 increased 3% to $2,030,000, or 21% of sales, compared to $1,978,000, or 20% of sales, for the first quarter of fiscal 2019.

Operating income increased 80% to $222,000, or 2% of revenue, compared to $123,000, or 1% of revenue, in the same quarter last year.

Shareholders' equity at September 30, 2019 was $24,569,000, or $6.69 per outstanding share, compared to $24,861,000, or $6.77 per outstanding share, at June 30, 2019. There were approximately 3,673,055 common shares outstanding at September 30, 2019 and June 30, 2019.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, "By aggressively managing costs and implementing programs to improve operating efficiency, we achieved higher margins and increased profitability in the first quarter of fiscal 2020 despite the slight decline in revenue. A favorable product mix in our manufacturing and distribution operations also contributed to our bottom-line performance. Although our customers are likely to continue to be affected by uncertainty associated with ongoing trade disputes, we believe that the semiconductor industry remains robust with new products and technologies for communications, defense, automotive and a host of other applications that create many exciting opportunities for Trio-Tech’s long-term growth.”

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, 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.

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; trade tension between U.S. and China; 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. 

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