Trio-Tech Reports $133,000 Operating Profit in First Quarter 2025 Financial Results

About this update from Trio-tech International

Trio-Tech International (NYSE MKT: TRT) , a comprehensive provider of semi-conductor back-end solutions and a global value-added supplier of electronic equipment, today announced financial results for the first quarter of fiscal 2025. First Quarter 2025 Financial Results Income from operations was $133,000 compared to a loss from operations of $1,000 for the first quarter of fiscal 2024. Revenue was $9,799,000 compared to $9,966,000 in the first quarter of fiscal 2024. The reduction was principally the result of reduced demand for semiconductor services. Gross margin was $2,322,000, or 24% of revenue compared to gross margin of $2,520,000, or 25% of revenue, for the first quarter of fiscal 2024. Reflecting ongoing cost reduction efforts, General and administrative expenses decreased to $1,964,000, or 20% of revenue, from $2,158,000, or 22% of revenue, last year. Together with reduced selling expenses, total operating expenses fell 13% to $2,189,000, or 22% of revenue, compared to $2,521,000, or 25% of revenue, for the first quarter of fiscal 2024. Net loss was $236,000, or $0.06 per share compared to net income of $230,000, or $0.05 per diluted share, for the first quarter of fiscal 2024. A significant decrease in the exchange value of the U.S. dollar relative to the Singapore dollar resulted in a $460,000 unrealized currency exchange loss and $46,000 realized currency exchange loss, compared to a currency exchange gain of $59,000 in the same quarter last year. Cash and cash equivalents at September 30, 2024, was $8,948,000 compared to $10,035,000 at June 30, 2024. Shareholders' equity increased to $33,440,000, or $7.87 per outstanding share, compared to $31,578,000, or $7.43 per outstanding share, at June 30, 2024, principally due to an increase in accumulated other comprehensive income in the first quarter of Fiscal 2025 due to the softening of the U.S. dollar. There were approximately 4,250,305 common shares outstanding at September 30, 2024 and June 30, 2024. CEO Comments S.W. Yong, Trio-Tech's Chairman & CEO, said, “Starting from the first quarter of fiscal 2025, we have adjusted our financial segment reporting to better align with our business focus and strategy. The new segments are defined by the characteristics of our end markets. The ‘Semiconductor Back-end Solutions’ (SBS) segment includes the primary semiconductor back-end equipment manufacturing and testing operations that cater to the semiconductor industry. Meanwhile, the value-added distribution business, along with our services and equipment manufacturing operations serving customers from various industries, are collectively reported under the ‘Industrial Electronics’ (IE) segment. We are confident that the new segmentation will help us ensure that time, money, and effort are invested where they maximize returns for our shareholders. The IE segment performed well in the quarter, improving sales, but with a drop in gross margins due to an unfavorable product mix. The SBS segment also performed well in the face of continuing weakness in the global semiconductor industry. Our operating cost controls enabled Trio-Tech to achieve an operating profit for this year’s first quarter compared to an operating loss last year, an encouraging start to the new year. We are focusing on factors within our control to achieve profitability despite a volatile market environment.” 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. The Company provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in Asia. The Company designs and manufactures an extensive range of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. The Company also designs, manufactures and distributes an extensive range of Test, Process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. The Company also acts as a design-in reseller of a wide range of camera modules, LCD displays and touch screen panels. 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 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; 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 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) / INCOME UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)        Three Months Ended   September 30, Revenue   2024   2023 Semiconductor Back-end Solutions   $ 6,879     $ 7,176   Industrial Electronics     2,914       2,783   Others     6       7         9,799       9,966   Cost of Sales     7,477       7,446   Gross Margin     2,322       2,520             Operating Expenses:         General and administrative     1,964       2,158   Selling     150       187   Research and development     88       85   (Gain) / Loss on disposal of property, plant and equipment     (13 )     91   Total operating expense     2,189       2,521             Income / (Loss) from Operations     133       (1 )           Other (Expenses) / Income         Interest expense     (13 )     (24 ) Other (expense) / income, net     (365 )     196   Government Grant     66       73   Total other (expense) / income     (312 )     245   (Loss) / Income from Continuing Operations before Income Taxes     (179 )     244             Income Tax Expenses     (51 )     (37 )           (Loss) / Income from Continuing Operations before Non-controlling Interest, net of tax     (230 )     207             Loss from Discontinued Operations, net of tax     7       --   NET (LOSS) / INCOME     (223 )     207             Less: Net Income / (Loss) Attributable to the Non-controlling Interest     13       (23 )           Net (Loss) / Income Attributable to Trio-Tech International     (236 )     230             Amounts Attributable to Trio-Tech International:         (Loss) / Income from continuing operations, net of tax     (240 )     227   Income from discontinued operations, net of tax     4       3             Net (Loss) / Income Attributable to Trio-Tech International   $ (236 )   $ 230             Earnings per share         Basic (loss) / earnings per share   $ (0.06 )   $ 0.06   Diluted (loss) / earnings per share   $ (0.06 )   $ 0.05             Weighted Average Shares Outstanding – Basic     4,250       4,096   Weighted Average Shares Outstanding – Diluted     4,335     4,280 TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)         Three Months Ended   September 30,     2024   2023           Comprehensive Income Attributable to Trio-Tech International:                   Net (Loss) / Income   $ (223 )   $ 207   Foreign Currency Translation, net of tax     2,014       (183 ) Comprehensive Income     1,791       24             Less: Comprehensive Income / (Loss) Attributable to Non-controlling Interests     139       (2 ) Comprehensive Income Attributable to Trio-Tech International   $ 1,652     $ 26   TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)               Sep. 30,   Jun. 30,   2024   2024 ASSETS   (Unaudited)               CURRENT ASSETS:         Cash and cash equivalents   $ 8,948   $ 10,035 Short-term deposits     6,509     6,497 Trade account receivables, net     12,094     10,661 Other receivables     655     541 Inventories, net     2,872     3,162 Prepaid expenses and other current assets     593     536 Restricted term deposits     804     750 Total current assets     32,475     32,182 NON-CURRENT ASSETS:         Deferred tax assets     139     124 Investment properties, net     404     407 Property, plant and equipment, net     6,273     5,937 Operating lease right-of-use assets     1,626     1,887 Other assets     125     232 Restricted term deposits     1,898     1,771 Total non-current assets     10,465     10,358 TOTAL ASSETS   $ 42,940   $ 42,540           LIABILITIES AND SHAREHOLDERS’ EQUITY         CURRENT LIABILITIES:         Accounts payable   $ 2,375   $ 3,175 Accrued expense     3,260     3,634 Contract liabilities     827     754 Income taxes payable     244     379 Current portion of bank loans payable     289     261 Current portion of finance leases     49     57 Current portion of operating leases     1,095     1,162 Total current liabilities     8,139     9,422 NON-CURRENT LIABILITIES:         Bank loans payable, net of current portion     634     613 Finance leases, net of current portion     24     34 Operating leases, net of current portion     531     725 Income taxes payable, net of current portion     142     141 Other non-current liabilities     30     27 Total non-current liabilities     1,361     1,540 TOTAL LIABILITIES   $ 9,500   $ 10,962           EQUITY         TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:         Common stock, no par value, 15,000,000 shares authorized; 4,250,305 shares issued and outstanding at September 30, 2024 and June 30, 2024     13,325     13,325 Paid-in capital     5,602     5,531 Accumulated retained earnings     11,577     11,813 Accumulated other comprehensive income-translation adjustments     2,548     660 Total Trio-Tech International shareholders' equity     33,052     31,329 Non-controlling interest     388     249 TOTAL EQUITY     33,440     31,578 TOTAL LIABILITIES AND EQUITY   $ 42,940   $ 42,540   View source version on businesswire.com: https://www.businesswire.com/news/home/20241112831871/en/

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