Trio-Tech Fiscal 2018 Second Quarter Net Income Doubles to $0.18 Per Share As Revenue Increases 16%

First Half Net Income is $0.34 Per Share Versus $0.17 Per Share

Trio-Tech International TRT today announced financial results for the second quarter of fiscal 2018 and the six month period ended December 31, 2017:

● Revenue increased 16% compared to the second quarter of fiscal 2017.

● Operating income increased 151% compared to the second quarter of fiscal 2017.

● Net income to shareholders increased 117% compared to the second quarter of fiscal 2017.

● Earnings per share doubled to $0.18 compared to $0.09 for the second quarter of fiscal 2017.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, "Building on our solid first quarter performance, Trio-Tech delivered strong financial results once again in the second quarter. Operating earnings surged, as gross margins improved and expenses as a percentage of sales decreased.

"Growth in our semiconductor testing and semiconductor equipment manufacturing segments continued to be the primary drivers of these gains, and we see exciting opportunities for further growth in these businesses. The automotive industry is a particularly attractive opportunity for us. We are pleased by the progress we have made so far this fiscal year."

Fiscal 2018 Second Quarter Results

For the fiscal second quarter ended December 31, 2017, revenue increased 16% to $10,552,000 compared to revenue of $9,104,000 for the same quarter last year. Manufacturing revenue increased 20% to $3,973,000 for this year's second quarter compared to $3,320,000 for the same quarter last year. Semiconductor testing services revenue increased 21% to $4,936,000 for the second quarter compared to $4,070,000 in the same quarter last year. Distribution revenue declined 4% to $1,606,000 for this year's second quarter from $1,675,000 for the same quarter last year.

Gross margin for the second quarter of fiscal 2018 increased 22% to $2,795,000 compared to $2,294,000 in the same quarter last year. An improved product mix in manufacturing and distribution operations increased gross margin to 26% of revenue, compared to 25% of revenue in the second quarter of fiscal 2017.

Operating expenses for the second quarter of fiscal 2018 increased 4% to $2,097,000, but declined to 20% of revenue from $2,016,000, or 22% of revenue, in the same quarter last year. The decline in operating expenses, as a percent of revenue, helped contribute to a 151% increase in income from operations to $698,000 from $278,000 for the second quarter last year.

Net income attributable to Trio-Tech common shareholders for the fiscal 2018 second quarter increased 117% to $673,000, or $0.18 per diluted share, compared to $310,000, or $0.09 per diluted share in the same quarter last year.

Fiscal 2018 First Half Results

For the six months ended December 31, 2017, revenue increased 19% to $21,497,000 compared to revenue of $18,075,000 for the same period last year. Manufacturing revenue increased 25% to $8,738,000 for the first half compared to $6,991,000 in the same period last year. Semiconductor testing services revenue increased 16% to $9,541,000 for the first six months compared to $8,227,000 in the same period last year. Distribution revenue increased 13% to $3,142,000 for this year's first half from $2,779,000 for the same period last year.

Gross margin for the first six months of fiscal 2018 increased 19% to $5,555,000 compared to $4,652,000 in the same period last year. Gross margin was 26% of revenue in both periods.

Operating expenses for the first six months of fiscal 2018 increased 8% to $4,310,000, but declined to 20% of revenue from $3,997,000, or 22% of revenue, in the same period last year.

The increase in gross margin, coupled with the decline in operating expenses, as a percent of revenue, together contributed to a 90% increase in income from operations to $1,245,000 from $655,000 in the same period last year.

Net income attributable to Trio-Tech common shareholders for the first six months of fiscal 2018 increased 104% to $1,248,000, or $0.34 per diluted share, compared to $613,000, or $0.17 per diluted share in the same period last year.

Shareholders' equity at December 31, 2017 was $23,736,000, or $6.69 per outstanding share, compared to $21,527,000, or $6.11 per outstanding share, at June 30, 2017. There were approximately 3,548,055 common shares outstanding at December 31, 2017.

About Trio-Tech

Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com, www.universalfareast.com, and www.ttsolar.com.

Forward Looking Statements

This press release contains statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this Quarterly Report are forward looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology. Forward looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions.

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