Trio-Tech Reports $133,000 Operating Profit in First Quarter 2025 Financial Results
First Quarter 2025 Financial Results
-
Income from operations was
compared to a loss from operations of$133,000 for the first quarter of fiscal 2024.$1,000 -
Revenue was
compared to$9,799,000 in the first quarter of fiscal 2024. The reduction was principally the result of reduced demand for semiconductor services.$9,966,000 -
Gross margin was
, or$2,322,000 24% of revenue compared to gross margin of , or$2,520,000 25% of revenue, for the first quarter of fiscal 2024. -
Reflecting ongoing cost reduction efforts, General and administrative expenses decreased to
, or$1,964,000 20% of revenue, from , or$2,158,000 22% of revenue, last year. Together with reduced selling expenses, total operating expenses fell13% to , or$2,189,000 22% of revenue, compared to , or$2,521,000 25% of revenue, for the first quarter of fiscal 2024. -
Net loss was
, or$236,000 per share compared to net income of$0.06 , or$230,000 per diluted share, for the first quarter of fiscal 2024.$0.05 -
A significant decrease in the exchange value of the
U.S. dollar relative to theSingapore dollar resulted in a unrealized currency exchange loss and$460,000 realized currency exchange loss, compared to a currency exchange gain of$46,000 in the same quarter last year.$59,000
-
A significant decrease in the exchange value of the
-
Cash and cash equivalents at September 30, 2024, was
compared to$8,948,000 at June 30, 2024.$10,035,000 -
Shareholders' equity increased to
, or$33,440,000 per outstanding share, compared to$7.87 , or$31,578,000 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$7.43 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
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
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
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/
Company Contact:
Siew Wai Yong
Chairman & CEO
(818) 787-7000
Investor Contact:
Berkman Associates
(310) 927-3108
robert.jacobs@jacobscon.com
Source: Trio-Tech International