Trio-Tech International shares fell nearly 13 percent Tuesday morning, a day after the equipment maker and semiconductor testing company said it slipped to a loss in its fiscal fourth quarter on lower sales and higher expenses.
The Van Nuys company late Monday reported a net loss of $904,000 (-27 cents per share) for the quarter ended June 30, compared with net income of $399,000 (12 cents) in the same period a year earlier. Revenue fell more than 44 percent to $7.13 million as the company sold fewer testing services and less equipment. General and administrative expenses jumped 21.5 percent to $2.08 million.
For the full year, revenue fell 3.8 percent to $35.5 million, with lower sales of its semiconductor test equipment products partially offset by higher revenue from testing, real estate and fabrication services. The full-year net loss rose 84 percent to $688,000 (-21 cents).
During the year, the company increased production capacity at its Malaysia semiconductor testing facility and launched operations at a newest test services facility in Tianjin, China. Another bright spot was the company’s oil and gas equipment fabrication business, which had a $1.9 million backlog at the end of June, compared with $9,000 at the same point a year earlier. In July, the unit won contracts valued at $2.9 million to manufacture mobile offshore production units and living quarters for offshore oil exploration projects in Southeast Asia. In addition, Trio-Tech’s testing services backlog increased to $870,000, compared with $618,000 a year earlier.
“We laid the foundation for the next phase of Trio-Tech's growth, with investments to expand our core semiconductor test equipment and services businesses, as well as our new business initiatives,” said Chief Executive S.W. Yong in a statement. “While global business conditions remain unusually volatile and difficult to predict, we are encouraged as we enter the new fiscal year.”
Shares were down 40 cents, or 12.8 percent, to $2.73 in midday trading on the Nasdaq.
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