Trio-Tech Reports 124% Q3 Revenue Growth, Driven by Strong Semiconductor Reliability Testing Demand Supporting AI and Automotive Applications

About this update from Trio-tech International

Trio-Tech International (NYSE American: TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced financial results for its fiscal third quarter ended March 31, 2026. The Company reported 124% year-over-year revenue growth, driven primarily by strong demand for semiconductor reliability testing services. Trio-Tech International Chairman and CEO S.W. Yong’s Comments Semiconductor Back-End Solutions Driving Growth “During the third quarter, we delivered strong revenue growth driven primarily by continued demand in our Semiconductor Back-End Solutions segment, including customers developing advanced AI computing and EV automotive-related chips that require high levels of reliability and performance validation. We continue to see solid momentum in semiconductor testing services and equipment, particularly across Asian operations. “We are encouraged by the significant year-over-year improvement in revenue and profitability year-to-date. We believe Trio-Tech is well-positioned as a key partner for semiconductor reliability and performance validation, particularly for customers in high-growth markets such as AI and EV automotive. In March, we announced approximately $5.3 million in orders for high-performance Burn-In Boards supporting a next-generation AI GPU platform. Since then, we have received an additional $2.5 million in orders, underscoring demand for our burn-in and reliability solutions. Accordingly, we continue to invest in our capabilities and regional footprint to support anticipated growth opportunities in these expanding end markets. “Our focused approach, combined with expanding testing activity across Southeast Asia, continues to support strong segment performance. With a solid balance sheet, further strengthened by our recently completed equity financing, and with continued operational discipline, we remain focused on executing our strategy and positioning the Company for sustainable growth.” Fiscal 2026 Third Quarter Financial Results Total revenue: $16.5 million, a 124% increase from $7.4 million in Q3 FY2025. Semiconductor Back-End Solutions: $13.1 million, up 141% from $5.4 million in the prior year quarter, driven by higher testing volumes. Industrial Electronics: $3.4 million, up 76% from $2.0 million, reflecting increasing demand across industrial and commercial applications, including aerospace-related products. Gross margin: $2.6 million, or 16% of revenue, compared to $2.0 million, or 27%, in the prior year period; reflecting a higher mix of lower-margin, high-volume testing services. Operating loss: $81 thousand, compared to an operating loss of $343 thousand in Q3 FY2025. Net loss attributable to common shareholders: $38 thousand, or approximately breakeven per diluted share, compared to a net loss of $495 thousand, or $0.06 per diluted share, in the prior year quarter. Cash, cash equivalents, short-term deposits and restricted cash: $18.3 million as of March 31, 2026, compared with $19.5 million as of June 30, 2025. As announced, following the close of the quarter, the Company raised approximately $10 million in gross proceeds from a registered direct equity offering. Proceeds will be used for working capital and general corporate purposes, including strategic investments to expand capacity and support growth in the AI and automotive markets. Fiscal 2026 Year-to-Date Financial Results Total revenue: $47.7 million, an 85% increase from $25.8 million in the year ago period. Semiconductor Back-End Solutions: $36.9 million, up 104% from $18.1 million in the prior year period. Industrial Electronics: $10.8 million, up 40% from $7.7 million in the year-ago period. Gross margin: $7.6 million, or 16% of revenue, compared to $6.5 million, or 25%, in the prior year period. Operating income: $62 thousand, compared to an operating loss of $213 thousand a year ago. Net income attributable to common shareholders: $165 thousand, or approximately $0.02 per diluted share, compared to a net loss of $224 thousand, or $0.03 per diluted share, in the prior year period. Outlook Trio-Tech expects increased demand for its semiconductor back-end testing services, supported by customer programs for advanced semiconductor devices, including high-performance CPU and GPU computing requirements and EV automotive applications. In response to growing demand from our North American and European semiconductor customers, the Company is expanding its footprint in Malaysia through a newly executed lease for an additional 104,000 square feet in Perai, Penang. This expansion adds significant capacity for AI-related testing services and meets the strong customer demand for our services in Southeast Asia. The Company also expects higher contributions from its Industrial Electronics segment, driven by demand across industrial, commercial and aerospace applications. Within Industrial Electronics, revenue growth and contribution increased from key components used in third-generation point-of-sale (POS) systems, reflecting the segment’s continued expansion into commercial technology applications. Trio-Tech remains focused on operational efficiency, disciplined demand-driven capital allocation, and maintaining a strong liquidity position to support long-term growth and profitability. About Trio-Tech International Trio-Tech International (NYSE American: 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, imposition of tariffs, 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 BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)     March 31,     June 30,       2026     2025       (Unaudited)           ASSETS                 CURRENT ASSETS:                 Cash and cash equivalents   $ 12,970     $ 10,890   Short-term deposits     2,558       5,817   Trade accounts receivable, less allowance for expected credit losses of $151 and $35, respectively     13,386       10,804   Other receivables     511       608   Inventories, less provision for obsolete inventories of $824 and $851, respectively     2,472       2,262   Prepaid expense and other current assets     555       384   Restricted term deposits     821       816   Total current assets     33,273       31,581   NON-CURRENT ASSETS:                 Deferred tax assets     90       91   Investment properties, net     305       345   Property, plant and equipment, net     5,994       6,021   Operating lease right-of-use assets     2,870       864   Other assets     244       231   Restricted term deposits     1,939       1,935   Total non-current assets     11,442       9,487   TOTAL ASSETS   $ 44,715     $ 41,068                     LIABILITIES                 CURRENT LIABILITIES:                 Lines of credit   $ -     $ 141   Accounts payable     5,698       1,896   Accrued expense     2,884       3,036   Contract liabilities     92       250   Income taxes payable     154       122   Current portion of bank loans payable     260       256   Current portion of finance leases     1       43   Current portion of operating leases     766       540   Total current liabilities     9,855       6,284   NON-CURRENT LIABILITIES:                 Bank loans payable, net of current portion     255       428   Operating leases, net of current portion     2,104       324   Deferred tax liabilities     6       10   Other non-current liabilities     31       31   Total non-current liabilities     2,396       793   TOTAL LIABILITIES   $ 12,251     $ 7,077                     EQUITY                 TRIO-TECH INTERNATIONAL SHAREHOLDERS’ EQUITY:                 Common stock, no par value, with 15,000,000 shares authorized; 8,962,909 and 8,625,610 shares issued as of March 31, 2026 and June 30, 2025, respectively; and 8,960,166 and 8,625,460 shares outstanding as of those dates, respectively.   $ 14,378     $ 13,490   Paid-in capital     6,372       5,979   Treasury stock, at cost     (12 )     -   Accumulated retained earnings     11,030       12,037   Accumulated other comprehensive income-translation adjustments     2,557       2,522   Total Trio-Tech International shareholders’ equity     34,325       34,028   Non-controlling interest     (1,861 )     (37 ) TOTAL EQUITY   $ 32,464     $ 33,991   TOTAL LIABILITIES AND EQUITY   $ 44,715     $ 41,068   TRIO-TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS) UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)     Three Months Ended     Nine Months Ended       March 31,     March 31,     March 31,     March 31,       2026     2025     2026     2025   Revenue                                 Semiconductor Back-end Solutions   $ 13,079     $ 5,425     $ 36,888     $ 18,113   Industrial Electronics     3,426       1,950       10,762       7,665   Others     6       9       24       24         16,511       7,384       47,674       25,802                                     Cost of Sales     13,957       5,408       40,036       19,286                                     Gross Margin     2,554       1,976       7,638       6,516                                     Operating Expense:                                 General and administrative     2,273       2,067       6,644       5,996   Selling     263       216       633       542   Research and development     99       90       299       292   Gain on disposal of property, plant and equipment     -       (54 )     -       (101 ) Total operating expense     2,635       2,319       7,576       6,729                                     (Loss) / Income from Operations     (81 )     (343 )     62       (213 )                                   Other Income / (Expense)                                 Interest expense     (11 )     (10 )     (41 )     (36 ) Other income / (expense), net     188       (144 )     610       177   Government grant     11       22       15       93   Total other income / (expense)     188       (132 )     584       234                                     Income / (Loss) from Continuing Operations before Income Taxes     107       (475 )     646       21                                     Income Tax Expense     (146 )     (6 )     (287 )     (196 )                                   (Loss) / income from Continuing Operations before Non-controlling Interest, Net of Taxes     (39 )     (481 )     359       (175 )                                   Discontinued Operations                                 Income from discontinued operations, net of tax     2       5       60       5   Net (Loss) / Income     (37 )     (476 )     419       (170 )                                   Less: Net income attributable to non-controlling interest     1       19       254       54   Net (Loss) / Income Attributable to Common Shareholders   $ (38 )   $ (495 )   $ 165     $ (224 )                                   Amounts Attributable to Common Shareholders:                                 (Loss) / Income from continuing operations, net of tax     (39 )     (498 )     132       (227 ) Income from discontinued operations, net of tax     1       3       33       3   Net (Loss) / Income Attributable to Common Shareholders   $ (38 )   $ (495 )   $ 165     $ (224 )                                   Basic (Loss) / Earnings per Share:                                 Basic (loss) / earnings per share from continuing operations   $ (0.00 )   $ (0.06 )   $ 0.02     $ (0.03 ) Basic earnings from discontinued operations     -       -       -       -   Basic (Loss) / Earnings per Share from Net Income   $ (0.00 )   $ (0.06 )   $ 0.02     $ (0.03 )                                   Diluted (Loss) / Earnings per Share:                                 Diluted (loss) / earnings per share from continuing operations   $ (0.00 )   $ (0.06 )   $ 0.02     $ (0.03 ) Diluted earnings per share from discontinued operations     -       -       -       -   Diluted (Loss) / Earnings per Share from Net Income   $ (0.00 )   $ (0.06 )   $ 0.02     $ (0.03 )                                   Weighted Average Number of Common Shares Outstanding (1)                                 Basic     8,840       8,545       8,721       8,516   Dilutive effect of stock options     908       206       554       226   Number of Shares Used to Compute Earnings Per Share Diluted     9,748       8,751       9,275       8,742   (1) On January 5, 2026, the Company effected a two-for-one forward stock split of the Company's issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split.       Three Months Ended     Nine Months Ended       March 31,     March 31,     March 31,     March 31,       2026     2025     2026     2025   Comprehensive (Loss)/income Attributable to Common Shareholders:                                                                   Net (loss)/Income   $ (37 )   $ (476 )   $ 419     $ (170 ) Foreign currency translation, net of tax     (21 )     522       374       742   Comprehensive (Loss) / Income     (58 )     46       793       572   Less: comprehensive income attributable to non-controlling interest     2       26       294       163   Comprehensive (Loss) / Income Attributable to Common Shareholders   $ (60 )   $ 20     $ 499     $ 409     View source version on businesswire.com: https://www.businesswire.com/news/home/20260514670258/en/

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