Trio-Tech Reports Fiscal 2025 Second Quarter Financial Results and Shipments of Dynamic Tester Systems for the Growing Silicon Carbide and GaN Power Module Markets

Rhea-AI Summary

Trio-Tech International (NYSE MKT: TRT) reported fiscal 2025 second quarter results and announced shipments of dynamic tester systems for Silicon Carbide (SiC) and GaN power modules. Q2 financial highlights include:

- Revenue of $8.6M (vs $12.2M year ago)
- Gross margin of 26% (vs 23% year ago)
- Net income of $507,000 ($0.12 per diluted share)
- Cash position of $10.3M as of December 31, 2024

The company is targeting suppliers of power modules and inverters to automotive manufacturers, power semiconductor manufacturers, and third-party testing laboratories. Despite current market softness, management highlighted progress in SiC and GaN markets, emphasizing these materials' advantages in efficiency, power density, and thermal tolerance for applications in industrial power systems, electric vehicles, and AI computing.

Positive

• Gross margin improved to 26% from 23% year-ago
• Cash position increased to $10.3M from $10.0M in June 2024
• Operating expenses remained stable at $2.2M
• Favorable foreign currency movement resulted in $678,000 other income

Negative

• Q2 revenue declined 29.5% to $8.6M from $12.2M year-ago
• Operating income turned negative to -$3,000 from $677,000 year-ago
• First half net income decreased to $271,000 from $737,000 year-ago
• First half EPS declined to $0.06 from $0.17 year-ago

Insights

Semiconductor Industry Analyst

The Q2 FY2025 results present a strategic inflection point for Trio-Tech, despite showing revenue contraction to $8.6 million. While the traditional semiconductor testing segment faces headwinds, the company's expansion into Silicon Carbide (SiC) and Gallium Nitride (GaN) testing systems positions it advantageously in a rapidly growing market segment.

The dynamic tester systems for SiC and GaN power modules represent a calculated pivot into high-growth segments. These materials are becoming increasingly critical in electric vehicles, industrial power systems, and AI infrastructure, where efficiency and thermal management are paramount. The compliance with automotive qualification guidelines (AQG) is particularly significant, as it opens doors to the burgeoning EV supply chain.

Financial metrics reveal careful management during this transition period. The improved gross margin of 26% despite lower revenue suggests successful cost control measures. The healthy cash position of $10.3 million provides adequate runway for R&D and market expansion in the SiC/GaN testing segment.

The stable net income of $507,000 and foreign exchange gains of $678,000 have helped offset operational challenges. However, the shift from $677,000 operating income last year to a $3,000 loss signals the investment phase in new technology development.

The strategic timing of this technological pivot is crucial. As traditional silicon approaches its physical limits in power applications, the SiC/GaN market is projected to experience substantial growth. The company's focus on mission-critical applications and certification services positions it to capture value from both immediate testing needs and long-term industry transformation.

VAN NUYS, Calif.--(BUSINESS WIRE)-- Trio-Tech International (NYSE MKT: TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced its financial results for the second quarter that ended on December 31, 2024. The company also announced shipments of dynamic tester systems for Silicon Carbide (SiC) and Gallium Nitride (GaN) power modules during the quarter.

Trio-Tech International Chairman and CEO S.W. Yong’s Comments

“While our second quarter results were affected by softness in the semiconductor market and slower electronic equipment sales, we made progress with shipments of our dynamic tester systems for the growing SiC and GaN power module markets.

“SiC and GaN are revolutionizing power electronics, particularly in high-performance applications where efficiency and thermal management are crucial. Unlike traditional silicon (Si) technology, SiC and GaN facilitate faster switching with reduced energy loss and greater power capacity. As industries prioritize performance, durability, and cost-effectiveness, we believe they will recognize the advantages of these materials, which ultimately need to be tested by systems like our dynamic tester that complies with relevant automotive qualification guidelines (AQG).

“SiC and GaN provide significant benefits in efficiency, power density, and thermal tolerance, making them well-suited for demanding applications like industrial power systems, electric vehicles, and advanced computing like AI. Their capability to manage higher voltages and temperatures while reducing energy loss ensures their importance in next-generation power electronics.

“While Silicon remains dominant in many markets today, SiC and GaN are positioned to gain traction due to their superior power-handling capabilities and efficiency advantages. Our target customers include suppliers of power modules and inverters to automotive manufacturers, power semiconductor manufacturers, and third-party testing laboratories that provide certification and compliance services for mission-critical applications.

“Given the strong global demand for SiC and GaN and the encouraging initial response to our dynamic tester, we are actively engaging with several potential new customers who are developing applications for high-efficiency power solutions. We look forward to providing updates on our progress throughout the remainder of our fiscal year.”

Fiscal 2025 Second Quarter Financial Results

• Total revenue was $8.6 million, compared to $12.2 million a year ago.
• Gross margin was $2.2 million, or 26% of revenue, compared to $2.9 million, or 23% of revenue a year ago.
• Total operating expense was $2.2 million, compared to $2.2 million a year ago.
• Loss from operations was $3,000, compared to income from operations of $677,000 a year ago.
• Other income was $678,000 mainly due to favorable foreign currency movement, compared to other expense of $100,000 a year ago.
• Net income attributable to common shareholders was $507,000, compared to $507,000 a year ago.
• Net income per diluted share was $0.12, compared to $0.12 a year ago.
• Cash and cash equivalents were $10.3 million on December 31, 2024, compared to $10.0 million on June 30, 2024.

Fiscal 2025 First Six Months Financial Results

• Total revenue was $18.4 million, compared to $22.2 million a year ago.
• Gross margin was $4.5 million, or 25% of revenue, compared to $5.4 million, or 24% of revenue a year ago.
• Total operating expense was $4.4 million, compared to $4.7 million a year ago.
• Income from operations was $130,000, compared to income from operations of $676,000 a year ago.
• Other income was $366,000, compared to $145,000 a year ago.
• Net income attributable to common shareholders was $271,000, compared to $737,000 a year ago.
• Net income per diluted share was $0.06, compared to $0.17 a year ago.

About Trio-Tech International

Trio-Tech International (NYSE MKT: TRT) is a California-based company operating in the United States, Singapore, Malaysia, Thailand, and China. Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services. The company’s diversified business segments include semiconductor back-end solutions and industrial electronics.

For more information, visit 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
		Three Months Ended								Six Months Ended
		December 31,				December 31,				December 31,				December 31,
		2024				2023				2024				2023
Revenue
Semiconductor Back-end Solutions		$	5,809			$	7,896			$	12,688			$	15,072
Industrial Electronics			2,801				4,300				5,715				7,083
Others			9				6				15				13
			8,619				12,202				18,418				22,168
Cost of Sales			6,401				9,348				13,878				16,794
Gross Margin			2,218				2,854				4,540				5,374
Operating Expense:
General and administrative			1,965				1,817				3,929				3,975
Selling			176				248				326				435
Research and development			114				131				202				216
(Gain) / Loss on disposal of property, plant and equipment			(34	)			(19	)			(47	)			72
Total operating expense			2,221				2,177				4,410				4,698
(Loss) / Income from Operations			(3	)			677				130				676
Other Income / (Expense)
Interest expense			(13	)			(22	)			(26	)			(46	)
Other income / (expense), net			686				(82	)			321				114
Government grant			5				4				71				77
Total other income / (expense)			678				(100	)			366				145
Income from Continuing Operations before Income Taxes			675				577				496				821
Income Tax Expense			(139	)			(95	)			(190	)			(132	)
Income from Continuing Operations before Non-controlling Interest, Net of Taxes			536				482				306				689
Discontinued Operations
(Loss) / Income from discontinued operations, net of tax			(7	)			4				-				4
Net Income			529				486				306				693
Less: Net income / (loss) attributable to non-controlling interest			22				(21	)			35				(44	)
Net Income Attributable to Common Shareholders		$	507			$	507			$	271			$	737
Amounts Attributable to Common Shareholders:
Income from continuing operations, net of tax			511				503				271				730
(Loss) / Income from discontinued operations, net of tax			(4	)			4				-				7
Net Income Attributable to Common Shareholders		$	507			$	507			$	271			$	737
Basic Earnings per Share:
Basic earnings per share from continuing operations		$	0.12			$	0.12			$	0.06			$	0.18
Basic earnings per share from discontinued operations			-				-				-				-
Basic Earnings per Share from Net Income		$	0.12			$	0.12			$	0.06			$	0.18
Diluted Earnings per Share:
Diluted earnings per share from continuing operations		$	0.12			$	0.12			$	0.06			$	0.17
Diluted earnings per share from discontinued operations			-				-				-				-
Diluted Earnings per Share from Net Income		$	0.12			$	0.12			$	0.06			$	0.17
Weighted Average Number of Common Shares Outstanding
Basic			4,250				4,120				4,250				4,109
Dilutive effect of stock options			153				139				119				161
Number of Shares Used to Compute Earnings Per Share Diluted			4,403				4,259				4,369				4,270
		Three Months Ended								Six Months Ended
		Dec. 31,				Dec. 31,				Dec. 31,				Dec. 31,
			2024				2023				2024				2023
Comprehensive (Loss) / Income Attributable to Common Shareholders:
Net income		$	529			$	486			$	306			$	693
Foreign currency translation, net of tax			(1,794	)			1,158				220				975
Comprehensive (Loss) / Income			(1,265	)			1,644				526				1,668
Less: comprehensive income / (loss) attributable to non- controlling interest			(2	)			(72	)			137				(74	)
Comprehensive (Loss) / Income Attributable to Common Shareholders		$	(1,263	)		$	1,716			$	389			$	1,742

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)
		December 31,			June 30,
		2024			2024
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	10,323		$	10,035
Short-term deposits			6,222			6,497
Trade accounts receivable, less allowance for expected credit losses of $80 and $209, respectively			9,881			10,661
Other receivables			961			541
Inventories, less provision for obsolete inventories of $771 and $679, respectively			1,957			3,162
Prepaid expense and other current assets			548			536
Restricted term deposits			756			750
Total current assets			30,648			32,182
NON-CURRENT ASSETS:
Deferred tax assets			68			124
Investment properties, net			372			407
Property, plant and equipment, net			5,594			5,937
Operating lease right-of-use assets			1,197			1,887
Other assets			129			232
Restricted term deposits			1,792			1,771
Total non-current assets			9,152			10,358
TOTAL ASSETS		$	39,800		$	42,540
LIABILITIES
CURRENT LIABILITIES:
Accounts payable		$	1,804		$	3,175
Accrued expense			2,695			3,634
Contract liabilities			721			754
Income taxes payable			288			379
Current portion of bank loans payable			258			261
Current portion of finance leases			42			57
Current portion of operating leases			943			1,162
Total current liabilities			6,751			9,422
NON-CURRENT LIABILITIES:
Bank loans payable, net of current portion			524			613
Finance leases, net of current portion			12			34
Operating leases, net of current portion			254			725
Income taxes payable, net of current portion			-			141
Other non-current liabilities			30			27
Total non-current liabilities			820			1,540
TOTAL LIABILITIES		$	7,571		$	10,962
EQUITY
SHAREHOLDERS’ EQUITY:
Common stock, no par value, 15,000,000 shares authorized; 4,250,305 shares issued outstanding as at December 31, 2024 and June 30, 2024, respectively		$	13,325		$	13,325
Paid-in capital			5,656			5,531
Accumulated retained earnings			12,084			11,813
Accumulated other comprehensive income-translation adjustments			778			660
Total shareholders’ equity			31,843			31,329
Non-controlling interest			386			249
TOTAL EQUITY		$	32,229		$	31,578
TOTAL LIABILITIES AND EQUITY		$	39,800		$	42,540

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213039047/en/

For inquiries, please contact:

PondelWilkinson Inc.

Todd Kehrli or Jim Byers

tkehrli@pondel.com

jbyers@pondel.com

Source: Trio-Tech International

FAQ

What was Trio-Tech's (TRT) revenue in Q2 fiscal 2025?

Trio-Tech reported revenue of $8.6 million in Q2 fiscal 2025, compared to $12.2 million in the same quarter last year.

How much did Trio-Tech (TRT) earn per share in Q2 2025?

Trio-Tech earned $0.12 per diluted share in Q2 fiscal 2025, unchanged from the same period last year.

What is Trio-Tech's (TRT) cash position as of December 31, 2024?

Trio-Tech had cash and cash equivalents of $10.3 million as of December 31, 2024, up from $10.0 million on June 30, 2024.

What new markets is Trio-Tech (TRT) targeting with its dynamic tester systems?

Trio-Tech is targeting the Silicon Carbide (SiC) and Gallium Nitride (GaN) power module markets, specifically suppliers to automotive manufacturers, power semiconductor manufacturers, and third-party testing laboratories.

How did Trio-Tech's (TRT) gross margin perform in Q2 2025?

Trio-Tech's gross margin improved to 26% of revenue in Q2 2025, compared to 23% in the same quarter last year.