TrioTech International (TRT, Financial) filed Quarterly Report for the period ended 2010-09-30.
Triotech International has a market cap of $16.46 million; its shares were traded at around $5.1 with and P/S ratio of 0.45. TRT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The real estate segment accounted for 1.4% of total net sales in the first quarter of fiscal 2011, an increase of 0.4% compared to 1.0% in the first quarter of fiscal 2010. The absolute amount of net sales in the real estate segment increased by $119 to $187 for the three months ended September 30, 2010, from $68 in the same period of fiscal 2010 primarily due to an increase in our investment in the real estate segment after the first quarter of fiscal 2010. On January 8, 2010, we entered into a new lease agreement with a third party for the eight units of commercial property purchased from Jiang Huai in the third quarter of fiscal 2010. This new property was rented through a rental agreement which provided for a one year renewable term with an annual rental income of RMB 720, or approximately $106. For the quarter ended September 30, 2010, this property generated an additional rental income of RMB 180, or approximately $27. In addition, we received an investment income of RMB 625, or approximately $92 in the first quarter of fiscal 2011 pursuant to the Memorandum of Agreement that we entered in April 2010.
Gross profit margin as a percentage of revenue in the real estate segment was 73.4% for the first quarter of fiscal 2011, an increase of 24.9% as compared to 48.5% for the same period in the last fiscal year. In terms of dollar amount, gross profit in the real estate segment in the first quarter of fiscal 2011 was $137, an increase of $104, compared to $33 in the same period of fiscal 2010. The increase in the gross profit margin as a percentage of revenue in the real estate segment was due to an increase of $92 in investment income in the first quarter of fiscal 2011, which has a lower direct cost. We did not have any investment income in the first quarter of fiscal 2010, but did have a rental income of $54.
Gross profit margin as a percentage of revenue in the fabrication services segment was negative 30.3% for the three months ended September 30, 2010, a decrease of 32.1% as compared to positive margin of 1.8% for the same period of fiscal 2010. In terms of dollar amount, gross profit in the fabrication services segment in the first quarter of fiscal 2011 was negative $50, a decrease of $59, compared to $9 in the same period of fiscal 2010. The cost of sales of this subsidiary mainly consisted of depreciation expenses and cost of direct labor. As revenue in this segment decreased by $339 to $165 for the three months ended September 30, 2010, as compared to $504 for the same period of last fiscal year, the decreased revenue could not cover the entire fixed cost of the operation, resulting in a negative gross margin due to underutilization of the plant capacity.
Selling expenses decreased by $4, or 3.0%, from $132 for the three months ended September 30, 2009, to $128 for the three months ended September 30, 2010, mainly due to a decrease in entertainment expenses by $7 as a result of our cost cutting strategy, which was offset with an exchange fluctuation loss of $4.
Income tax benefit for the three months ended September 30, 2010 was $4, a decrease of $33, compared to $37 for the same period of last fiscal year. The decrease in income tax benefit was mainly due to an increase in income in the first quarter of fiscal 2011. As we still have net operating loss carry forwards of approximately $972 in our Singapore operation for Singapore income tax purposes as of June 30, 2010, we were able to use the net operating loss carry forwards of $88 against income generated from this operation in the first quarter of 2011.
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Triotech International has a market cap of $16.46 million; its shares were traded at around $5.1 with and P/S ratio of 0.45. TRT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales into and within China and the Southeast Asia regions and other countries (except sales into and within the United States) increased by $6,318, or 98.8%, to $12,715 for the three months ended September 30, 2010, compared with $6,397 for the same period of last fiscal year. The increase was primarily due to an increase in sales in the manufacturing segment in our Singapore operation and in the testing segment in our Malaysia operation. Net sales into and within the United States were $314, a decrease of $382, or 54.9%, compared to $696 for the same quarter last fiscal year, due to a decrease in market demand for our products in the U.S. market, which management believes is the result of the negative impact of the financial crisis in the United States.The real estate segment accounted for 1.4% of total net sales in the first quarter of fiscal 2011, an increase of 0.4% compared to 1.0% in the first quarter of fiscal 2010. The absolute amount of net sales in the real estate segment increased by $119 to $187 for the three months ended September 30, 2010, from $68 in the same period of fiscal 2010 primarily due to an increase in our investment in the real estate segment after the first quarter of fiscal 2010. On January 8, 2010, we entered into a new lease agreement with a third party for the eight units of commercial property purchased from Jiang Huai in the third quarter of fiscal 2010. This new property was rented through a rental agreement which provided for a one year renewable term with an annual rental income of RMB 720, or approximately $106. For the quarter ended September 30, 2010, this property generated an additional rental income of RMB 180, or approximately $27. In addition, we received an investment income of RMB 625, or approximately $92 in the first quarter of fiscal 2011 pursuant to the Memorandum of Agreement that we entered in April 2010.
Gross profit margin as a percentage of revenue in the real estate segment was 73.4% for the first quarter of fiscal 2011, an increase of 24.9% as compared to 48.5% for the same period in the last fiscal year. In terms of dollar amount, gross profit in the real estate segment in the first quarter of fiscal 2011 was $137, an increase of $104, compared to $33 in the same period of fiscal 2010. The increase in the gross profit margin as a percentage of revenue in the real estate segment was due to an increase of $92 in investment income in the first quarter of fiscal 2011, which has a lower direct cost. We did not have any investment income in the first quarter of fiscal 2010, but did have a rental income of $54.
Gross profit margin as a percentage of revenue in the fabrication services segment was negative 30.3% for the three months ended September 30, 2010, a decrease of 32.1% as compared to positive margin of 1.8% for the same period of fiscal 2010. In terms of dollar amount, gross profit in the fabrication services segment in the first quarter of fiscal 2011 was negative $50, a decrease of $59, compared to $9 in the same period of fiscal 2010. The cost of sales of this subsidiary mainly consisted of depreciation expenses and cost of direct labor. As revenue in this segment decreased by $339 to $165 for the three months ended September 30, 2010, as compared to $504 for the same period of last fiscal year, the decreased revenue could not cover the entire fixed cost of the operation, resulting in a negative gross margin due to underutilization of the plant capacity.
Selling expenses decreased by $4, or 3.0%, from $132 for the three months ended September 30, 2009, to $128 for the three months ended September 30, 2010, mainly due to a decrease in entertainment expenses by $7 as a result of our cost cutting strategy, which was offset with an exchange fluctuation loss of $4.
Income tax benefit for the three months ended September 30, 2010 was $4, a decrease of $33, compared to $37 for the same period of last fiscal year. The decrease in income tax benefit was mainly due to an increase in income in the first quarter of fiscal 2011. As we still have net operating loss carry forwards of approximately $972 in our Singapore operation for Singapore income tax purposes as of June 30, 2010, we were able to use the net operating loss carry forwards of $88 against income generated from this operation in the first quarter of 2011.
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