TRT Trio Tech International

Trio-Tech International (NYSE MKT: TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced its financial results for the second quarter that ended on December 31, 2024. The company also announced shipments of dynamic tester systems for Silicon Carbide (SiC) and Gallium Nitride (GaN) power modules during the quarter.

Trio-Tech International Chairman and CEO S.W. Yong’s Comments

“While our second quarter results were affected by softness in the semiconductor market and slower electronic equipment sales, we made progress with shipments of our dynamic tester systems for the growing SiC and GaN power module markets.

“SiC and GaN are revolutionizing power electronics, particularly in high-performance applications where efficiency and thermal management are crucial. Unlike traditional silicon (Si) technology, SiC and GaN facilitate faster switching with reduced energy loss and greater power capacity. As industries prioritize performance, durability, and cost-effectiveness, we believe they will recognize the advantages of these materials, which ultimately need to be tested by systems like our dynamic tester that complies with relevant automotive qualification guidelines (AQG).

“SiC and GaN provide significant benefits in efficiency, power density, and thermal tolerance, making them well-suited for demanding applications like industrial power systems, electric vehicles, and advanced computing like AI. Their capability to manage higher voltages and temperatures while reducing energy loss ensures their importance in next-generation power electronics.

“While Silicon remains dominant in many markets today, SiC and GaN are positioned to gain traction due to their superior power-handling capabilities and efficiency advantages. Our target customers include suppliers of power modules and inverters to automotive manufacturers, power semiconductor manufacturers, and third-party testing laboratories that provide certification and compliance services for mission-critical applications.

“Given the strong global demand for SiC and GaN and the encouraging initial response to our dynamic tester, we are actively engaging with several potential new customers who are developing applications for high-efficiency power solutions. We look forward to providing updates on our progress throughout the remainder of our fiscal year.”

Fiscal 2025 Second Quarter Financial Results

• Total revenue was $8.6 million, compared to $12.2 million a year ago.
• Gross margin was $2.2 million, or 26% of revenue, compared to $2.9 million, or 23% of revenue a year ago.
• Total operating expense was $2.2 million, compared to $2.2 million a year ago.
• Loss from operations was $3,000, compared to income from operations of $677,000 a year ago.
• Other income was $678,000 mainly due to favorable foreign currency movement, compared to other expense of $100,000 a year ago.
• Net income attributable to common shareholders was $507,000, compared to $507,000 a year ago.
• Net income per diluted share was $0.12, compared to $0.12 a year ago.
• Cash and cash equivalents were $10.3 million on December 31, 2024, compared to $10.0 million on June 30, 2024.

Fiscal 2025 First Six Months Financial Results

• Total revenue was $18.4 million, compared to $22.2 million a year ago.
• Gross margin was $4.5 million, or 25% of revenue, compared to $5.4 million, or 24% of revenue a year ago.
• Total operating expense was $4.4 million, compared to $4.7 million a year ago.
• Income from operations was $130,000, compared to income from operations of $676,000 a year ago.
• Other income was $366,000, compared to $145,000 a year ago.
• Net income attributable to common shareholders was $271,000, compared to $737,000 a year ago.
• Net income per diluted share was $0.06, compared to $0.17 a year ago.

About Trio-Tech International

Trio-Tech International (NYSE MKT: TRT) is a California-based company operating in the United States, Singapore, Malaysia, Thailand, and China. Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services. The company’s diversified business segments include semiconductor back-end solutions and industrial electronics.

For more information, visit www.triotech.com and www.universalfareast.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; the divestiture of one or more business segments in response to, among other factors, 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; trade tension between U.S. and China and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this release 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. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS) UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)  

Three Months Ended

 

Six Months Ended

December 31,

 

December 31,

 

December 31,

 

December 31,

2024

 

2023

 

2024

 

2023

Revenue Semiconductor Back-end Solutions

$

5,809

 

$

7,896

 

$

12,688

 

$

15,072

 

Industrial Electronics

 

2,801

 

 

4,300

 

 

5,715

 

 

7,083

 

Others

 

9

 

 

6

 

 

15

 

 

13

 

 

8,619

 

 

12,202

 

 

18,418

 

 

22,168

 

  Cost of Sales

 

6,401

 

 

9,348

 

 

13,878

 

 

16,794

 

  Gross Margin

 

2,218

 

 

2,854

 

 

4,540

 

 

5,374

 

  Operating Expense: General and administrative

 

1,965

 

 

1,817

 

 

3,929

 

 

3,975

 

Selling

 

176

 

 

248

 

 

326

 

 

435

 

Research and development

 

114

 

 

131

 

 

202

 

 

216

 

(Gain) / Loss on disposal of property, plant and equipment

 

(34

)

 

(19

)

 

(47

)

 

72

 

Total operating expense

 

2,221

 

 

2,177

 

 

4,410

 

 

4,698

 

  (Loss) / Income from Operations

 

(3

)

 

677

 

 

130

 

 

676

 

  Other Income / (Expense) Interest expense

 

(13

)

 

(22

)

 

(26

)

 

(46

)

Other income / (expense), net

 

686

 

 

(82

)

 

321

 

 

114

 

Government grant

 

5

 

 

4

 

 

71

 

 

77

 

Total other income / (expense)

 

678

 

 

(100

)

 

366

 

 

145

 

  Income from Continuing Operations before Income Taxes

 

675

 

 

577

 

 

496

 

 

821

 

  Income Tax Expense

 

(139

)

 

(95

)

 

(190

)

 

(132

)

  Income from Continuing Operations before Non-controlling Interest, Net of Taxes

 

536

 

 

482

 

 

306

 

 

689

 

  Discontinued Operations (Loss) / Income from discontinued operations, net of tax

 

(7

)

 

4

 

 

-

 

 

4

 

Net Income

 

529

 

 

486

 

 

306

 

 

693

 

  Less: Net income / (loss) attributable to non-controlling interest

 

22

 

 

(21

)

 

35

 

 

(44

)

Net Income Attributable to Common Shareholders

$

507

 

$

507

 

$

271

 

$

737

 

  Amounts Attributable to Common Shareholders: Income from continuing operations, net of tax

 

511

 

 

503

 

 

271

 

 

730

 

(Loss) / Income from discontinued operations, net of tax

 

(4

)

 

4

 

 

-

 

 

7

 

Net Income Attributable to Common Shareholders

$

507

 

$

507

 

$

271

 

$

737

 

  Basic Earnings per Share: Basic earnings per share from continuing operations

$

0.12

 

$

0.12

 

$

0.06

 

$

0.18

 

Basic earnings per share from discontinued operations

 

-

 

 

-

 

 

-

 

 

-

 

Basic Earnings per Share from Net Income

$

0.12

 

$

0.12

 

$

0.06

 

$

0.18

 

  Diluted Earnings per Share: Diluted earnings per share from continuing operations

$

0.12

 

$

0.12

 

$

0.06

 

$

0.17

 

Diluted earnings per share from discontinued operations

 

-

 

 

-

 

 

-

 

 

-

 

Diluted Earnings per Share from Net Income

$

0.12

 

$

0.12

 

$

0.06

 

$

0.17

 

  Weighted Average Number of Common Shares Outstanding Basic

 

4,250

 

 

4,120

 

 

4,250

 

 

4,109

 

Dilutive effect of stock options

 

153

 

 

139

 

 

119

 

 

161

 

Number of Shares Used to Compute Earnings Per Share Diluted

 

4,403

 

 

4,259

 

 

4,369

 

 

4,270

 

    Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Comprehensive (Loss) / Income Attributable to Common Shareholders:   Net income

$

529

 

$

486

 

$

306

 

$

693

 

Foreign currency translation, net of tax

 

(1,794

)

 

1,158

 

 

220

 

 

975

 

Comprehensive (Loss) / Income

 

(1,265

)

 

1,644

 

 

526

 

 

1,668

 

Less: comprehensive income / (loss) attributable to non- controlling interest

 

(2

)

 

(72

)

 

137

 

 

(74

)

Comprehensive (Loss) / Income Attributable to Common Shareholders

$

(1,263

)

$

1,716

 

$

389

 

$

1,742

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)  

December 31,

 

June 30,

2024

 

2024

(Unaudited)

 

 

ASSETS CURRENT ASSETS: Cash and cash equivalents

$

10,323

$

10,035

Short-term deposits

 

6,222

 

6,497

Trade accounts receivable, less allowance for expected credit losses of $80 and $209, respectively

 

9,881

 

10,661

Other receivables

 

961

 

541

Inventories, less provision for obsolete inventories of $771 and $679, respectively

 

1,957

 

3,162

Prepaid expense and other current assets

 

548

 

536

Restricted term deposits

 

756

 

750

Total current assets

 

30,648

 

32,182

NON-CURRENT ASSETS: Deferred tax assets

 

68

 

124

Investment properties, net

 

372

 

407

Property, plant and equipment, net

 

5,594

 

5,937

Operating lease right-of-use assets

 

1,197

 

1,887

Other assets

 

129

 

232

Restricted term deposits

 

1,792

 

1,771

Total non-current assets

 

9,152

 

10,358

TOTAL ASSETS

$

39,800

$

42,540

  LIABILITIES CURRENT LIABILITIES: Accounts payable

$

1,804

$

3,175

Accrued expense

 

2,695

 

3,634

Contract liabilities

 

721

 

754

Income taxes payable

 

288

 

379

Current portion of bank loans payable

 

258

 

261

Current portion of finance leases

 

42

 

57

Current portion of operating leases

 

943

 

1,162

Total current liabilities

 

6,751

 

9,422

NON-CURRENT LIABILITIES: Bank loans payable, net of current portion

 

524

 

613

Finance leases, net of current portion

 

12

 

34

Operating leases, net of current portion

 

254

 

725

Income taxes payable, net of current portion

 

-

 

141

Other non-current liabilities

 

30

 

27

Total non-current liabilities

 

820

 

1,540

TOTAL LIABILITIES

$

7,571

$

10,962

  EQUITY SHAREHOLDERS’ EQUITY: Common stock, no par value, 15,000,000 shares authorized; 4,250,305 shares issued outstanding as at December 31, 2024 and June 30, 2024, respectively

$

13,325

$

13,325

Paid-in capital

 

5,656

 

5,531

Accumulated retained earnings

 

12,084

 

11,813

Accumulated other comprehensive income-translation adjustments

 

778

 

660

Total shareholders’ equity

 

31,843

 

31,329

Non-controlling interest

 

386

 

249

TOTAL EQUITY

$

32,229

$

31,578

TOTAL LIABILITIES AND EQUITY

$

39,800

$

42,540

 

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