Trio Tech International
Trio-Tech International was incorporated in 1958 under the laws of the State of
California. Our mailing address and executive offices are located at 16139 Wyandotte
Street, Van Nuys, California 91406, and our telephone number is (818) 787-7000.
We operated our business in four segments: manufacturing, testing services,
distribution and real estate. Geographically, we operate in the U.S., Singapore,
Malaysia, Thailand and China. We operate six testing services facilities; one
in the United States and five in Southeast Asia. We operate two manufacturing
facilities: one in the United States and the other in Southeast Asia. Our distribution
segment and real estate segment operate primarily in Southeast Asia. Our major
customers are concentrated in Southeast Asia and they are either semiconductor
chip manufacturers or testing facilities that purchase testing equipment.
Our core business is and historically has been in the semiconductor industry
(testing services, manufacturing and distribution). Revenue from this industry
accounted for 99.5% of our revenue for both fiscal years 2015 and 2014, respectively.
The semiconductor industry has experienced periods of rapid growth, but has
also experienced downturns, often in connection with, or in anticipation of,
maturing product cycles of both semiconductor companies’ and their customers’
products and declines in general economic conditions. To reduce our risks associated
with sole industry focus and customer concentration, the Company expanded its
business into the real estate investment and oil and gas equipment fabrication
businesses in 2007 and 2009, respectively. The Company’s Indonesia operation
and the Indonesia operation’s immediate holding company, which comprise
the fabrication services segment, suffered continued operating losses since
it commenced its operations, and the cash flow was minimal in the past years.
The Company established a restructuring plan to close the fabrication services
operation, and in accordance with ASC Topic 205, Presentation of Financial Statement
Discontinued Operations (“ASC Topic 205”), the Company presented
the operation results from fabrication services as a discontinued operation.
Real Estate segment contributed only 0.5% to the total revenue and has been
insignificant since the property market in China has slow down due to cooling
measures in China.
To achieve our strategic plan for our semiconductor business, we believe that
we must pursue and win new business in the following areas:
Primary markets – Capturing additional market share within our primary
markets by offering superior products and services to address the needs of our
major customers.
Growing markets – Expanding our geographic reach in areas of the world
with significant growth potential.
New markets – Developing new products and technologies that serve wholly
new markets.
Complementary strategic relationships – Through complementary acquisitions
or similar arrangements, we believe we can expand our markets and strengthen
our competitive position. As part of our growth strategy, the Company continues
to selectively assess opportunities to develop strategic relationships, including
acquisitions, investments and joint development projects with key partners and
other businesses.