Trio-Tech Loss Blamed on Semiconductor Slump

Trio-Tech International lost $172,000 on sales of $4.5 million in its fourth quarter ended June 27, mainly because of the worldwide slowdown in the semiconductor industry, the company said.

In the same quarter a year ago, the Burbank-based company earned $370,000 on $4.2 million in revenue. Per share, the fourth-quarter loss was 6 cents versus a profit of 10 cents last year.

For the year, Trio-Tech lost $542,000, or 20 cents a share, versus a year-ago profit of $2.8 million, or $1.14 a share. Sales were down 27%, to $16.2 million.

President Charles Wilson said Trio-Tech had a hidden gain of about $400,000 because of the Irish pound’s advance against the dollar; the company has pounds on deposit in Ireland because it has a facility in Dublin.

Accounting rules, however, kept that gain from being reflected on the company’s profit-and-loss statement, Wilson said.

Besides the semiconductor industry’s troubles, Trio-Tech blamed its losses on the cost of starting new plants. Wilson said they were opened either because of specific contracts or, in the case of the Dublin plant, because the Irish government gave financial incentives.

Profits also were reduced by $130,000 in expenses from failed merger talks with MSQ Inspection Inc., which were terminated Aug. 6.

Trio-Tech makes semiconductor testing equipment and also runs testing facilities.

Wilson said he expects to report a profit for the first quarter, which ends Sept. 26. He cited improved results at the Sunnyvale and Irish test facilities, plus improved semiconductor test-equipment sales at the Burbank and Singapore plants.