Trio-Tech Reports Improved Third Quarter Results

About this update from Trio-tech International

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the third quarter and first nine months of fiscal 2024. Fiscal 2024 Third Quarter Results For the three months ended March 31, 2024, total revenue increased 6% to $10,398,000 compared to $9,842,000 for same quarter last year. Manufacturing segment revenue increased 62% to $4,813,000, compared to $2,963,000 for the same quarter last year. Distribution segment revenue increased 51% to $1,783,000, compared to $1,179,000 for the same period last year. Testing Services segment revenue decreased 33% to $3,796,000 from $5,697,000 for the same quarter last year. Overall gross margin increased 10% to $2,703,000, or 26% of revenue, compared to $2,458,000, or 25% of revenue for the same period last year. The increase in gross margin reflects improved operations in the Manufacturing and Distribution segments, partially offset by lower gross margin in Testing Services. Total operating expenses for the third quarter of fiscal 2024 increased to $2,644,000, or 25% of revenue, from $2,495,000, or 25% of revenue, in the same quarter last year. Pre-tax Income from continuing operations increased to $306,000, compared to pre-tax income from continuing operations of $57,000 for the same quarter last year. Net income attributable to Trio-Tech International Common Shareholders for the three months ended March 31, 2024 increased to $70,000, or $0.02 per diluted share, which included non-cash stock compensation expense of $338,000. This compares to a net loss for the third quarter of fiscal 2023 of $7,000, or $0.00 per diluted share, which included non-cash stock compensation expense of $283,000. CEO Comments S.W. Yong, Trio-Tech’s CEO, said, “Higher capital spending by our key customers and increased backlog enabled the Manufacturing segment to achieve a 62% revenue gain in the seasonally weakest quarter of our fiscal year. Increasing demand for electronic components and display products, a market we specifically targeted for growth in the past year, drove a 51% increase in Distribution revenue. We are cautiously optimistic that these favorable trends in revenue and profitability for these two segments of our business will continue throughout this calendar year. “The performance of our Testing Services segment reflects continued weakness in global semiconductor demand. The cost control measures we have implemented across the Company have enabled Trio-Tech to maintain solid margins despite the decline in revenue in the Testing Services segment. We are confident that our tight manufacturing cost controls, strong cash flow and attention to market developments position Trio-Tech to exploit any near-term opportunities and developments in the semiconductor industry.” Fiscal 2024 Nine Months Results For the first nine months of fiscal 2024, revenue decreased 5% to $32,566,000 compared to $34,171,000 for the first nine months of fiscal 2023. Manufacturing revenue increased 8% to $12,488,000 from 11,592,000 for the first nine months of fiscal 2023. Distribution revenue increased 33% to $6,453,000 from $4,855,000 for the first nine months from fiscal 2023. Testing Services revenue decreased 23% to $13,606,000 from 17,709,000 for the first nine months of fiscal 2023. Gross margin for the first nine months of fiscal 2023 decreased 14% to $8,077,000, or 25% of revenue, compared to $9,415,000, or 27% of revenue, for the same period last year. Operating expenses were $7,342,000, or 23% of revenue, for this year’s first nine months compared to $7,316,000, or 21% of revenue, for the same period a year ago. Net income attributable to Trio-Tech International Common Shareholders for the first nine months of fiscal 2024 was $807,000, or $0.19 per diluted share. This compares to net income of $1,382,000, or $0.33 per diluted share, for the first nine months of fiscal 2023. Balance Sheet Highlights Shareholders’ equity at March 31, 2024 increased to $31,452,000, or $7.47 per outstanding share, compared to shareholders’ equity of $29,571,000, or $7.21 per outstanding share, at June 30, 2023. Cash, cash equivalents and short-term deposits at March 31, 2024 increased to $17,025,000, or $4.04 per outstanding share, compared to $14,210,000, or $3.47 per outstanding share, at June 30, 2023. Trio-Tech reported total non-current liabilities at March 31, 2024 of $1,839,000. This compares to total non-current liabilities at June 30, 2023 of $3,289,000. There were approximately 4,210,305 common shares outstanding at March 31, 2024 compared to approximately 4,096,680 at June 30, 2023. 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; or the divestiture in the future of one or more business segments; 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; public health issues related to the COVID-19 pandemic; trade tension between U.S. and China; inflation; the war in Ukraine and Russia, the war between Israel and Hamas; 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   Nine Months Ended   March 31,   March 31, Revenue 2024   2023   2024   2023 Manufacturing $ 4,813     $ 2,963     $ 12,488     $ 11,592   Testing Services   3,796       5,697       13,606       17,709   Distribution   1,783       1,179       6,453       4,855   Real Estate   6       3       19       15         10,398       9,842       32,566       34,171   Cost of Sales               Cost of manufactured products sold   3,594       2,451       9,252       8,825   Cost of testing services rendered   2,601       3,940       9,849       11,813   Cost of distribution   1,482       975       5,334       4,064   Cost of real estate   18       18       54       54         7,695       7,384       24,489       24,756   Gross Margin   2,703       2,458       8,077       9,415   Operating Expenses:               General and administrative   2,351       2,248       6,326       6,472   Selling   204       160       639       526   Research and development   89       87       305       311   Loss on disposal of property, plant and equipment   --       --       72       7   Total operating expenses   2,644       2,495       7,342       7,316   Income (Loss) from Operations   59       (37 )     735       2,099   Other Income (Expenses)               Interest expenses   (17 )     (29 )     (63 )     (83 ) Other income (expenses), net   252       40       366       (49 ) Government grant   12       83       89       108   Total other income (expenses)   247       94       392       (24 ) Income from Continuing Operations before Income Taxes   306       57       1,127       2,075   Income Tax Expenses   (142 )     (8 )     (274 )     (474 ) Income from Continuing Operations before Non-controlling Interest, net of tax   164       49       853       1,601   (Loss) Income from Discontinued Operations, net of tax   (1 )     5       3       (4 ) NET INCOME   163       54       856       1,597   Less: Net income Attributable to Non-controlling Interest   93       61       49       215   Net Income (Loss) Attributable to Trio-Tech International   70       (7 )     807       1,382   Net Income Attributable to Trio-Tech International:               Income (Loss) from Continuing Operations, net of tax   71       (10 )     801       1,384   (Loss) Income from Discontinued Operations, net of tax   (1 )     3       6       (2 ) Net Income (Loss) Attributable to Trio-Tech International $ 70     $ (7 )   $ 807     $ 1,382   Basic Earnings per Share $ 0.02     $ 0.00     $ 0.19     $ 0.34   Diluted Earnings per Share $ 0.02     $ 0.00     $ 0.19     $ 0.33   Weighted Average Shares Outstanding - Basic   4,176       4,075       4,131       4,075   Weighted Average Shares Outstanding - Diluted   4,282       4,159       4,274       4,161   TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) UNAUDITED (IN THOUSANDS)     Three Months Ended   Nine Months Ended March 31,   March 31, 2024   2023   2024   2023 Comprehensive (Loss) / Income               Attributable to Trio-Tech International:               Net income $ 163     $ 54     $ 856   $ 1,597 Foreign Currency Translation, net of tax   (753 )     166       222     521 Comprehensive (Loss) Income   (590 )     220       1,078     2,118 Less: Comprehensive Income (Loss)               Attributable to Non-controlling Interest   93       (85 )     49     127 Comprehensive (Loss) Income               Attributable to Trio-Tech International $ (683 )   $ 305     $ 1,029   $ 1,991 TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)       Mar. 31,   Jun. 30,   2024   2023 ASSETS   (Unaudited)   (Audited)           CURRENT ASSETS:         Cash and cash equivalents   $ 10,716   $ 7,583 Short-term deposits     6,309     6,627 Trade account receivables, net     10,083     9,804 Other receivables     1,089     939 Inventories, net     2,742     2,151 Prepaid expenses and other current assets     577     694 Assets held for sale     --     274 Financed sales receivable     --     16 Restricted term deposits     754     739 Total current assets     32,270     28,827 NON-CURRENT ASSETS:         Deferred tax assets     117     100 Investment properties, net     433     474 Property, plant and equipment, net     6,081     8,344 Operating lease right-of-use assets     2,277     2,609 Other assets     149     116 Restricted term deposits     1,760     1,716 Total non-current assets     10,817     13,359 TOTAL ASSETS   $ 43,087   $ 42,186           LIABILITIES AND SHAREHOLDERS’ EQUITY         CURRENT LIABILITIES:         Accounts payable   $ 2,406   $ 1,660 Accrued expense     3,904     4,291 Contract liabilities     1,499     1,277 Income taxes payable     328     418 Current portion of bank loans payable     308     475 Current portion of finance leases     56     107 Current portion of operating leases     1,295     1,098 Total current liabilities     9,796     9,326 NON-CURRENT LIABILITIES:         Bank loans payable, net of current portion     676     877 Finance leases, net of current portion     10     42 Operating leases, net of current portion     982     1,511 Income taxes payable, net of current portion     141     255 Deferred tax liabilities     3     10 Other non-current liabilities     27     594 Total non-current liabilities     1,839     3,289 TOTAL LIABILITIES   $ 11,635   $ 12,615           EQUITY         TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:         Common stock, no par value, 15,000,000 shares authorized; 4,210,305 and 4,096,680 shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively     13,194     12,819 Paid-in capital     5,494     5,066 Accumulated retained earnings     11,570     10,763 Accumulated other comprehensive income-translation adjustments     984     758 Total Trio-Tech International shareholders' equity     31,242     29,406 Non-controlling interest     210     165 TOTAL EQUITY     31,452     29,571 TOTAL LIABILITIES AND EQUITY   $ 43,087   $ 42,186   View source version on businesswire.com: https://www.businesswire.com/news/home/20240513413690/en/

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