Trio-Tech Fourth Quarter Net Income Improves to $0.06 from $0.04 Per Diluted Share

About this update from Trio-tech International

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2024. Fourth Quarter Results For the three months ended June 30, 2024 revenue increased 7% to $9,746,000 from $9,079,000 for the fourth quarter of fiscal 2023, reflecting a 60% increase in manufacturing revenue, a 30% increase in distribution revenue, and a 20% decrease in testing services revenue. Gross margin increased 17% to $2,685,000, or 28% of revenue, from $2,290,000, or 25% of revenue, for the same quarter last year. Income from operations increased 178% to $358,000 compared to $129,000 for the fourth quarter of fiscal 2023. Net income for the fourth quarter of fiscal 2024 increased to $243,000, or $0.06 per diluted share, compared to $162,000, or $0.04 per diluted share, for last year’s fourth quarter. S.W. Yong, Chairman & CEO said, “Trio-Tech’s strategy to focus on opportunities to grow our manufacturing and distribution segments significantly contributed to our strong fourth quarter results. We continue to carefully evaluate the path forward for each of our operating segments to concentrate our resources on products and markets with the greatest growth potential. Supporting this strategy, we have increased our sales efforts and introduced new products and services in our manufacturing and distribution businesses. Additionally, we are evaluating potential acquisitions and divestitures as well as direct investments and joint development projects with key partners that can contribute to Trio-Tech’s long-term success and increase value for our shareholders.” Fiscal 2024 Results For the fiscal year ended June 30, 2024, distribution revenue increased 32% to $8,297,000 from $6,270,000, led by strong sales of display products. Manufacturing revenue increased 16% to $16,057,000 from $13,827,000, reflecting an increased market share achieved by supporting our key customers in their New Product Introduction (NPI) programs. Testing services revenue decreased 22% to $17,933,000 from $23,130,000 for fiscal 2023. Total revenue for fiscal 2024 decreased 2% to $42,312,000 from $43,250,000 for fiscal 2023. Gross margin for fiscal 2024 decreased slightly to $10,762,000, or 25% of revenue, compared to $11,705,000, or 27% of revenue, for fiscal 2023. Operating expense increased 2% to $9,669,000 from $9,477,000 and increased to 23% of revenue compared to 22% of revenue for fiscal 2023. Net income attributable to Trio-Tech shareholders for fiscal 2024 was $1,050,000, or $0.24 per diluted share. This compares to net income of $1,544,000, or $0.37 per diluted share, for fiscal 2023. Backlog at June 30, 2024 was $14,422,000, compared to record backlog of $17,437,000 at June 30, 2023. Balance Sheet Highlights Cash and cash equivalents at June 30, 2024 increased to $10,035,000 compared to $7,583,000, at June 30, 2023 and working capital also increased to $22,760,000, compared to $19,501,000 a year earlier. Shareholders' equity at June 30, 2024 increased to $31,578,000, or $7.43 per outstanding share, compared to $29,571,000, or $7.22 per outstanding share, for the prior year. There were approximately 4,250,305 and 4,096,680 common shares outstanding at June 30, 2024 and June 30, 2023, respectively. About Trio‑Tech Established in 1958, Trio-Tech International is located in Van Nuys, California, with its principal executive office and regional headquarter in Singapore. Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Our subsidiary locations include Tianjin, Suzhou, Chongqing and Jiangsu in China, as well as Kuala Lumpur Malaysia and Bangkok Thailand. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at 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; 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; public health issues related to the COVID-19 pandemic; 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 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)         Three Months Ended   Twelve Months Ended   June 30,   June 30, Revenue 2024   2023   2024   2023 Manufacturing $ 3,569     $ 2,235     $ 16,057     $ 13,827   Testing services   4,327       5,421       17,933       23,130   Distribution   1,844       1,415       8,297       6,270   Real estate   6       8       25       23       9,746       9,079       42,312       43,250   Cost of Sales               Cost of manufactured products sold   2,571       1,762       11,823       10,587   Cost of testing services rendered   2,960       3,845       12,809       15,658   Cost of distribution   1,513       1,164       6,847       5,228   Cost of real estate   17       18       71       72       7,061       6,789       31,550       31,545   Gross Margin   2,685       2,290       10,762       11,705                   Operating Expense:               General and administrative   2,061       1,931       8,387       8,403   Selling   205       144       844       670   Research and development   87       86       392       397   Loss on disposal of property, plant and equipment   (26 )     --       46       7   Total operating expenses   2,327       2,161       9,669       9,477   Income from Operations   358       129       1,093       2,228   Other Income               Interest expense   (14 )     (22 )     (77 )     (105 ) Other income, net   134       155       500       106   Government grant   24       45       113       153   Total other income   144       178       536       154   Income from Continuing Operations before Income Taxes   502       307       1,629       2,382   Income Tax Expense   (212 )     (148 )     (486 )     (622 ) Income from Continuing Operations before Non-controlling Interest, net of tax   290       159       1,143       1,760   (Loss) / gain from discontinued operations, net of tax   (4 )     2       (1 )     (2 ) NET INCOME   286       161       1,142       1,758   Less: Net income / (loss) Attributable to Non-controlling Interest   43       (1 )     92       214   Net income Attributable to Trio-Tech International $ 243     $ 162     $ 1,050     $ 1,544   Net Income Attributable to Trio-Tech International:               Income from continuing operations, net of tax   245       161       1,054       1,545   (Loss) / income from discontinued operations, net of tax   (2 )     1       (4 )     (1 ) Net Income Attributable to Trio-Tech International   243       162       1,050       1,544   Basic Earnings per Share - Continuing Operations $ 0.06     $ 0.04     $ 0.25     $ 0.38   Basic Loss per Share - Discontinued Operations   --       --       --       --   Basic Earnings per Share $ 0.06     $ 0.04     $ 0.25     $ 0.38   Diluted Earnings per Share - Continuing Operations $ 0.06     $ 0.04     $ 0.24     $ 0.37   Diluted Loss per Share - Discontinued Operations   --       --       --       --   Diluted Earnings per Share $ 0.06     $ 0.04     $ 0.24     $ 0.37   Weighted Average Shares Outstanding - Basic   4,248       4,082       4,160       4,082   Weighted Average Shares Outstanding - Diluted   4,376       4,159       4,299       4,165   TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)                 Three Months Ended   Twelve Months Ended   June 30,   June 30,     2024   2023   2024   2023                   Comprehensive (Loss) / Income                 Attributable to Trio-Tech International Common Shareholders:                                   Net income   $ 286     $ 161     $ 1,142     $ 1,758   Foreign currency translation, net of tax     (328 )     (1,137 )     (106 )     (616 ) Comprehensive (Loss) / Income     (42 )     (976 )     1,036       1,142   Less: Comprehensive Income / (Loss)                 Attributable to Non-controlling Interests     35       (90 )     84       37   Comprehensive (Loss) / Income                 Attributable to Trio-Tech International   $ (77 )   $ (886 )   $ 952     $ 1,105                     TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)             Jun. 30,   Jun. 30, 2024   2023 ASSETS (Audited)   (Audited)         CURRENT ASSETS:       Cash and cash equivalents $ 10,035   $ 7,583 Short-term deposits   6,497     6,627 Trade account receivables, net   10,661     9,804 Other receivables   541     939 Inventories, net   3,162     2,151 Prepaid expenses and other current assets   536     694 Assets held for sale   --     274 Financed sales receivable   --     16 Restricted term deposit   750     739 Total current assets   32,182     28,827 NON-CURRENT ASSETS:       Deferred tax assets   124     100 Investment properties, net   407     474 Property, plant and equipment, net   5,937     8,344 Operating lease right-of-use assets   1,887     2,609 Other assets   232     116 Restricted term deposits   1,771     1,716 Total non-current assets   10,358     13,359 TOTAL ASSETS $ 42,540   $ 42,186         LIABILITIES AND SHAREHOLDERS’ EQUITY               CURRENT LIABILITIES:       Accounts payable $ 3,175   $ 1,660 Accrued expense   3,634     4,293 Contract liabilities   754     1,275 Income taxes payable   379     418 Current portion of bank loans payable   261     475 Current portion of finance leases   57     107 Current portion of operating leases   1,162     1,098 Total current liabilities   9,422     9,326 NON-CURRENT LIABILITIES:       Bank loans payable, net of current portion   613     877 Finance leases, net of current portion   34     42 Operating leases, net of current portion   725     1,511 Income taxes payable, net of current portion   141     255 Deferred tax liabilities   --     10 Other non-current liabilities   27     594 Total non-current liabilities   1,540     3,289 TOTAL LIABILITIES $ 10,962   $ 12,615 EQUITY       TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:       Common stock, no par value, 15,000,000 shares authorized; 4,250,305 and 4,096,680 shares issued and outstanding at June 30, 2024 and June 30, 2023, respectively 13,325   12,819   Paid-in capital   5,531     5,066 Accumulated retained earnings   11,813     10,763 Accumulated other comprehensive income-translation adjustments   660     758 Total Trio-Tech International shareholders' equity   31,329     29,406 Non-controlling interest   249     165 TOTAL EQUITY   31,578     29,571 TOTAL LIABILITIES AND EQUITY $ 42,540   $ 42,186   View source version on businesswire.com: https://www.businesswire.com/news/home/20240923732263/en/

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