Trio-Tech International (NYSE MKT: TRT) today announced financial results for the third quarter and first nine months of fiscal 2021.

Third Quarter Results

Revenue from the sale of Trio-Tech’s proprietary semiconductor testing and manufacturing equipment increased 24% to $3,130,000 for the third quarter of fiscal 2021 compared to $2,519,000 for the same quarter last year, driven by higher orders from a number of customers at the Company’s Singapore facility. Third quarter revenue from semiconductor testing services decreased 6% to $3,504,000 from $3,741,000 for the same quarter last year, primarily due to a decrease in demand from major customers. Revenue from the distribution of semiconductor manufacturing and testing equipment decreased 34% to $1,467,000 from $2,225,000 for the third quarter last year, reflecting generally lower customer demand. Total revenue for the three months ended March 31, 2021 decreased 5% to $8,112,000 compared to $8,501,000 for the same quarter last year.

Despite the decline in overall revenue, an improved product mix helped to increase the overall gross margin to $2,060,000, or 25% of revenue, compared to $1,786,000, or 21% of revenue, for the same quarter last year.

General and administrative expenses increased 10% to $1,923,000 from $1,754,000 in the same quarter last year, primarily related to a higher stock compensation recorded, due to the increased volatility in our share price.

The loss from operations for the third quarter of fiscal 2021 was $65,000, compared to $367,000 for the same quarter last year.

Other income of $273,000 for this year’s third quarter included $107,000 in governmental grants to offset the negative impact of the COVID-19 pandemic. Other income of $440,000 for last year’s third quarter included similar grants of $263,000.

Net income attributable to Trio-Tech International Common Shareholders for the three months ended March 31, 2021 increased to $178,000, or $0.04 per diluted share, compared to $70,000, or $0.02 per diluted share, for the third quarter of fiscal 2020.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, "While the COVID-19 pandemic was primarily responsible for a very difficult first half of fiscal 2021 for Trio-Tech, and continued to affect our performance in the third quarter, the improvement in orders and gross margin in our manufacturing segment is an encouraging sign for the future. We are maintaining tight control over operating costs throughout the Company, but operating profitability will be largely dependent upon improvements in business conditions, which continue to remain uncertain. As we are monitoring the situation closely, we remain prepared to take further actions as required by local governments, or which we deem necessary, in the best interests of our employees, customers and stockholders."

Nine Months Results

For the first nine months of fiscal 2021, overall revenue decreased 15% to $23,154,000 compared to $27,286,000 for the same period last year. Manufacturing revenue increased 4% to $9,324,000 from $8,881,000, while testing services revenue declined 17% to $10,018,000 from $12,018,000. Distribution revenue decreased 40% to $3,790,000 compared to $6,338,000 for the same period of fiscal 2020.

Overall gross margin for the first nine months of fiscal 2021 decreased 8% to $5,448,000 from $5,943,000 last year, but increased as a percentage of revenue to 24% from 22% for the same period of fiscal 2020.

For the first nine months of fiscal 2021, general and administrative expenses decreased $74,000 to $5,245,000 from $5,319,000 for the same period of fiscal 2020, primarily due to the decrease in staff benefit cost related expenses as part of our cost-saving measures.

Selling expenses for the first nine months of fiscal 2021 decreased $191,000 to $356,000, as compared to $547,000 in the same period of fiscal 2020, primarily due to the decline in traveling expenses incurred as a result of worldwide travel restrictions amid the pandemic.

For the first nine months of fiscal 2021, other income decreased to $531,000 from $1,576,000 for the same period of fiscal 2020. The decrease was primarily due to a non-recurring gain on the sale of assets of $1,172,000 in the same period last year.

Net income attributable to Trio-Tech International Common Shareholders for the first nine months of fiscal 2021 was $405,000, or $0.10 per diluted share, compared to $769,000, or $0.21 per diluted share, for the first nine months of fiscal 2020.

Shareholders' equity at March 31, 2021 was $26,921,000, or $6.88 per outstanding share, compared to $25,146,000, or $6.84 per outstanding share, at June 30, 2020. There were approximately 3,913,055 common shares outstanding at March 31, 2021.

About Trio-Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarter 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 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; public health issues related to the COVID-19 pandemic; 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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