Trio Tech Shares Plummet After Earnings

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After reporting fourth quarter and annual earnings on Monday, Trio-Tech International’s stock plummeted more than 30 percent.


Trio-Tech reported fourth-quarter net income of $672,000 (21 cents per share) a 4.6 percent dip from $705,000 (22 cents) from the same period a year earlier.


Revenues for the Van Nuys-based computer chip testing facility also slipped 3.2 percent to $9.2 million, hurt by a 34 percent dip in equipment sales, the company said. The dip is part of a shift toward providing more testing services to bigger clients, such as microchip maker AMD, versus selling the testing equipment. Revenues from testing increased 43 percent to $5.3 million, the company said.


For the year, the company reported net income of $3.3 million ($1.03 per share) a sharp drop from $9.1 million ($2.79) from 2006. However, the previous-year’s results were boosted by the sale of a facility in Ireland for $11 million, the company said.


Annual revenues increased 61 percent to a record $47 million due to a 77 percent increase in business in China and Southeast Asia.


Shares in Trio-Tech lost 31 percent, or $4.66, to $10.40 in afternoon trading Monday on the American Stock Exchange.

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