Trio-Tech International said it ended talks to acquire Chicago-based MQS Inspection because a decline in Trio-Tech's stock price made financing difficult.
Burbank-based Trio-Tech also estimated it lost $350,000 to $400,000 for the fiscal year ended June 30, down from earnings of $2.8 million the preceding year. It said sales totaled $16 million, down 27%.
Trio-Tech President Charles Wilson attributed the downturn to the continuing slump in the semiconductor industry, the costs of starting new testing facilities and the costs from trying to buy MQS. Trio-Tech makes semiconductor testing equipment and also runs testing facilities.
MQS, a unit of Stamford-based GEO International, does non-destructive testing on metals and other materials for several major corporations. Trio-Tech was supposed to pay $14 million in cash for the company.