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

Rhea-AI Summary

Trio-Tech International (NYSE MKT: TRT) reported financial results for Q1 FY2025, showing an operating profit of $133,000 compared to a $1,000 loss in Q1 FY2024. Revenue decreased to $9.8 million from $10 million, primarily due to reduced semiconductor services demand. The company reported a net loss of $236,000 ($0.06 per share), largely due to currency exchange losses. Gross margin was 24% compared to 25% last year. Operating expenses decreased 13% to $2.2 million through cost reduction efforts. Cash position stood at $8.9 million, with shareholders' equity increasing to $33.4 million ($7.87 per share).

Positive

• Operating profit improved to $133,000 from a $1,000 loss year-over-year
• Operating expenses reduced by 13% to $2.2 million through cost reduction initiatives
• Shareholders' equity increased to $33.4 million from $31.6 million

Negative

• Revenue declined to $9.8 million from $10 million due to reduced semiconductor demand
• Net loss of $236,000 compared to net income of $230,000 in previous year
• Gross margin decreased to 24% from 25% year-over-year
• Cash position decreased to $8.9 million from $10 million
• Significant currency exchange losses of $506,000 due to USD/SGD exchange rate changes

Insights

Financial Analyst

The Q1 2025 results present a mixed picture. While operating profit improved to $133,000 from a loss last year, currency exchange losses significantly impacted the bottom line, resulting in a net loss of $236,000. Revenue declined slightly to $9.8M, with gross margins compressed to 24% from 25%. Notable positives include successful cost reduction initiatives, with operating expenses down 13% to $2.2M. The balance sheet remains solid with $8.9M cash and increased shareholder equity to $33.4M. The company's strategic reorganization into SBS and IE segments shows management's focus on operational efficiency, though semiconductor market weakness continues to present headwinds.

Market Research Analyst

The semiconductor industry context is important here. Despite global semiconductor weakness, Trio-Tech's operational improvements and segment restructuring demonstrate strategic adaptation. The Industrial Electronics segment's sales growth partially offsets semiconductor services decline. The $506,000 currency exchange loss impact overshadows operational improvements, but this is largely a macroeconomic factor rather than operational weakness. The company's cost management success, evidenced by 13% lower operating expenses, positions it well for potential market recovery. Book value per share increase to $7.87 provides some downside protection for investors.

VAN NUYS, Calif.--(BUSINESS WIRE)-- 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/

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

FAQ

What was Trio-Tech's (TRT) operating profit in Q1 2025?

Trio-Tech reported an operating profit of $133,000 in Q1 2025, compared to a loss of $1,000 in Q1 2024.

How much revenue did Trio-Tech (TRT) generate in Q1 2025?

Trio-Tech generated revenue of $9,799,000 in Q1 2025, down from $9,966,000 in Q1 2024.

What was Trio-Tech's (TRT) net earnings per share in Q1 2025?

Trio-Tech reported a net loss of $0.06 per share in Q1 2025, compared to net income of $0.05 per diluted share in Q1 2024.

What was Trio-Tech's (TRT) cash position as of September 30, 2024?

Trio-Tech had cash and cash equivalents of $8,948,000 as of September 30, 2024.