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TrioTech International Reports Operating Results (10-Q)

February 18, 2011 | About:
10qk

10qk

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TrioTech International (TRT) filed Quarterly Report for the period ended 2010-12-31.

Triotech International has a market cap of $15.6 million; its shares were traded at around $4.7 with a P/E ratio of 42.8 and P/S ratio of 0.4. Hedge Fund Gurus that owns TRT: Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

The revenue from the real estate segment increased by $512, or 196.9%, to $772 and by $631, or 192.4%, to $959 for the three months and six months ended December 31, 2010, respectively, compared to the same periods of the last fiscal year. The increase in revenue was primarily due to an increase in our rental income and our investment income in the real estate segment as compared to the second quarter of fiscal 2010. In addition, the investment income in our investment project (B-48 Phase 1) in Chongqing received for the six months ended December 31, 2010 increased by $604 as compared to $192 for the same period in the last fiscal year.

Net sales for the three months and six months ended December 31, 2010 were $9,549 and $22,578, respectively, an increase of $3,359 and $9,295, respectively, when compared to net sales for the same periods of the prior year. As a percentage, net sales increased by 54.3% and 70.0% for the three months and six months ended December 31, 2010, respectively, when compared to total net sales for the same periods of the prior year.

Net sales into and within China and the Southeast Asia regions and other countries (except sales into and within the United States) increased by $3,000, or 50.3%, to $8,965 and by $9,317, or 75.4%, to $21,680 for the three months and six months ended December 31, 2010, respectively, as compared with $5,965 and $12,363 for the same periods 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 and Thailand operations. Net sales into and within the United States were $584, and $898 for the three months and six months ended December 31, 2009, respectively, an increase of $359 and a decrease of $22, respectively, from $225 and $920 for the same periods of the prior year, The increase in three month results was mainly due to an increase in market demand for our products in the U.S. market in the second quarter of fiscal 2011 as compared to the same period in fiscal 2010.

As a percentage of total net sales, the revenue generated by the fabrication services segment accounted for 1.0% and 1.1% of total net sales for the three and six months ended December 31, 2010, respectively, as compared to 3.2% and 5.3% of total net sales for the same periods of last fiscal year. The absolute amount of net sales was $93 and $258 for the three and six months ended December 31, 2010, respectively, a decrease of $107 and $446 as compared to $200 and $704 for the same period of last fiscal year. The decrease in revenue generated by the segment was due to fewer fabrication projects handled by the Company in the three and six months ended December 31, 2010. As the Company has only been in the fabrication business for a little more than a year, the existing customer base is still limited. The Company renewed the lease of the yard, which the Company believes will enable management to explore additional business and seek new customers with a longer business horizon so as to optimize capacity utilization, which would enable the operations to be profitable.

Net sales in the distribution segment accounted for 2.1% and 1.9% of total net sales for the three and six months ended December 31, 2010, respectively, a decrease of 0.4% and 0.4% compared to the same periods in fiscal 2010. The absolute amount of net sales increased by $49 to $204 and by $131 to $433 for the three and six months ended December 31, 2010, respectively, compared to the same periods in fiscal 2010. The increase in revenue was mainly due to an increase in the sales to our new customers as well as an increase in the sales of our self-designed and manufactured equipment, which are customized for the unique needs of our existing customers. We believe that our competitive advantage in self-designed and manufactured equipment, which addresses the unique needs of our customers, increased the demand for our products.

Net revenue in the real estate segment increased by $585, or 312.8%, for the second quarter of fiscal 2011, compared to $187 for the first quarter of fiscal 2011. The investment income increased by $602 for the second quarter of fiscal 2011, compared to $92 for the first quarter of fiscal 2011.

Read the The complete Report

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10qk
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