Trio-Tech Reports First Quarter Results; Delivers First Dynamic Power Module Test System

Rhea-AI Summary

Trio-Tech International (NYSE MKT: TRT) announced financial results for the first quarter of fiscal 2024, reporting a 17% decrease in revenue to $9,966,000 from $11,939,000 for the first quarter of fiscal 2023. This decline was primarily due to lower revenue in the Company’s testing services and manufacturing segments. Gross margin also declined to 25% of revenue compared to 30% of revenue for last year’s first quarter. Net income for the first quarter of fiscal 2024 was $230,000, or $0.05 per diluted share, down from $882,000, or $0.21 per diluted share, for the first quarter of fiscal 2023. The company's cash and cash equivalents increased to $8,333,000, and shareholders’ equity increased to $29,655,000. CEO S.W. Yong expressed optimism about the future, expecting a significant recovery of distribution sales in fiscal 2024 and positioning the company as a value-added reseller.

Positive

• The company's cash and cash equivalents increased to $8,333,000
• CEO S.W. Yong expressed optimism about the future, expecting a significant recovery of distribution sales in fiscal 2024

Negative

• 17% decrease in revenue to $9,966,000 from $11,939,000 for the first quarter of fiscal 2023
• Gross margin declined to 25% of revenue compared to 30% of revenue for last year’s first quarter
• Net income for the first quarter of fiscal 2024 was $230,000, or $0.05 per diluted share, down from $882,000, or $0.21 per diluted share, for the first quarter of fiscal 2023

VAN NUYS, Calif.--(BUSINESS WIRE)-- Trio-Tech International (NYSE MKT: TRT) today announced financial results for the first quarter of fiscal 2024.

For the three months ended September 30, 2023, revenue decreased by 17% to $9,966,000 from $11,939,000 for the first quarter of fiscal 2023, primarily due to lower revenue in the Company’s testing services and manufacturing segments. Reflecting this decrease, gross margin declined to 25% of revenue compared to 30% of revenue for last year’s first quarter.

Net income for the first quarter of fiscal 2024 was $230,000, or $0.05 per diluted share. This compares to net income of $882,000, or $0.21 per diluted share, for the first quarter of fiscal 2023.

Cash and cash equivalents at September 30, 2023, increased to $8,333,000 compared to $7,583,000 at June 30, 2023, and shareholders’ equity increased to $29,655,000, or $7.24 per outstanding share, compared to $29,571,000, or $7.22 per outstanding share, at June 30, 2023. There were approximately 4,096,680 common shares outstanding at September 30, 2023 and June 30, 2023.

CEO Comments

S.W. Yong, Trio-Tech’s Chairman & CEO, said, “We are glad to announce that we have delivered our first dynamic test system, related to the contract we announced last Spring, and are currently waiting for customer on-site buy off. While we see encouraging signs that demand for Trio-Tech’s products and services among our key customers has begun to stabilize, we remain cautious in the short term and are focused on enhancing customer service and our ability to rapidly adapt to changing market conditions.

“We anticipate a significant recovery of distribution sales in fiscal 2024 and have positioned ourselves as a value-added reseller, offering extended research and development services to customize and integrate products for new and existing customers. Together, these efforts support our longer-term goal to broaden and diversify product offerings to our customer base and take advantage of new growth opportunities we have identified in providing industry display solutions for medical laboratory equipment and arcade gaming industries.”

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; 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; public health issues related to the COVID-19 pandemic; 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 INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
			Three Months Ended
			September 30,
Revenue			2023				2022
Manufacturing			$	2,885			$	3,585
Testing services				5,164				6,364
Distribution				1,910				1,982
Real estate				7				8
				9,966				11,939
Cost of Sales
Cost of manufactured products sold				2,049				2,525
Cost of testing services rendered				3,784				4,126
Cost of distribution				1,596				1,648
Cost of real estate				17				18
				7,446				8,317
Gross Margin				2,520				3,622
Operating Expenses:
General and administrative				2,158				2,305
Selling				187				173
Research and development				85				73
Loss on disposal of property, plant and equipment				91				4
Total operating expense				2,521				2,555
(Loss) / Income from Operations				(1	)			1,067
Other Income / (Expense)
Interest expense				(24	)			(44	)
Other income, net				196				158
Government Grant				73				21
Total other income				245				135
Income from Continuing Operations before Income Taxes				244				1,202
Income Tax Expenses				(37	)			(225	)
Income from Continuing Operations before Non-controlling Interest, net of tax				207				977
Income from Discontinued Operations, net of tax				--				1
NET INCOME				207				978
Less: Net (Loss) / Income Attributable to the Non-controlling Interest				(23	)			96
Net Income Attributable to Trio-Tech International				230				882
Net Income Attributable to Trio-Tech International:
Income from continuing operations, net of tax				227				882
Income from discontinued operations, net of tax				3				--
Net Income Attributable to Trio-Tech International			$	230			$	882
Earnings per share
Basic earnings per share			$	0.06			$	0.22
Diluted earnings per share			$	0.05			$	0.21
Weighted Average Shares Outstanding - Basic				4,096				4,077
Weighted Average Shares Outstanding - Diluted				4,280				4,158

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
		Three Months Ended
		September 30,
		2023				2022
Comprehensive Income Attributable to Trio-Tech International:
Net Income		$	207			$	978
Foreign Currency Translation, net of tax			(183	)			(1,213	)
Comprehensive Income / (Loss)			24				(235	)
Less: Comprehensive (Loss) / Income Attributable to Non-controlling Interests			(2	)			79
Comprehensive Income / (Loss) Attributable to Trio-Tech International		$	26			$	(314	)

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
		Sep. 30,			Jun. 30,
		2023			2023
ASSETS		(Unaudited)			(Audited)
CURRENT ASSETS:
Cash and cash equivalents		$	8,333		$	7,583
Short-term deposits			5,946			6,627
Trade account receivables, net			10,973			9,804
Other receivables			1,671			939
Inventories, net			4,023			2,151
Prepaid expenses and other current assets			660			694
Assets held for sale			--			274
Financed sales receivable			11			16
Restricted term deposit			737			739
Total current assets			32,354			28,827
NON-CURRENT ASSETS:
Deferred tax assets			152			100
Investment properties, net			458			474
Property, plant and equipment, net			7,290			8,344
Operating lease right-of-use assets			2,563			2,609
Other assets			163			116
Restricted term deposits			1,719			1,716
Total non-current assets			12,345			13,359
TOTAL ASSETS		$	44,699		$	42,186
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit		$	297		$	--
Accounts payable			2,556			1,660
Accrued expense			7,507			5,568
Income taxes payable			393			418
Current portion of bank loans payable			423			475
Current portion of finance leases			97			107
Current portion of operating leases			1,190			1,098
Total current liabilities			12,463			9,326
NON-CURRENT LIABILITIES:
Bank loans payable, net of current portion			809			877
Finance leases, net of current portion			24			42
Operating leases, net of current portion			1,372			1,511
Income taxes payable, net of current portion			142			255
Deferred tax liabilities			7			10
Other non-current liabilities			227			594
Total non-current liabilities			2,581			3,289
TOTAL LIABILITIES		$	15,044		$	12,615
EQUITY
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:
Common stock, no par value, 15,000,000 shares authorized; 4,096,680 shares issued and outstanding at September 30 and June 30, 2023			12,819			12,819
Paid-in capital			5,126			5,066
Accumulated retained earnings			10,993			10,763
Accumulated other comprehensive income-translation adjustments			554			758
Total Trio-Tech International shareholders' equity			29,492			29,406
Non-controlling interest			163			165
TOTAL EQUITY			29,655			29,571
TOTAL LIABILITIES AND EQUITY		$	44,699		$	42,186

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113428659/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 International's revenue for the first quarter of fiscal 2024?

Trio-Tech International reported a 17% decrease in revenue to $9,966,000 from $11,939,000 for the first quarter of fiscal 2023.

What was the net income for the first quarter of fiscal 2024?

Net income for the first quarter of fiscal 2024 was $230,000, or $0.05 per diluted share, down from $882,000, or $0.21 per diluted share, for the first quarter of fiscal 2023.

What did CEO S.W. Yong express about the future?

CEO S.W. Yong expressed optimism about the future, expecting a significant recovery of distribution sales in fiscal 2024 and positioning the company as a value-added reseller.