Trio-Tech International

11/12/2024 | Press release | Distributed by Public on 11/12/2024 11:04

Trio Tech Reports $133,000 Operating Profit in First Quarter 2025 Financial Results Form 8 K

Trio-Tech Reports $133,000 Operating Profit

in First Quarter 2025 Financial Results

Van Nuys, CA -- November 12, 2024 - 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

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Income from operations was $133,000 compared to a loss from operations of $1,000 for the first quarter of fiscal 2024.

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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.

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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.

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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.

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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.

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Cash and cash equivalents at September 30, 2024, was $8,948,000 compared to $10,035,000 at June 30, 2024.

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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.

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16139 Wyandotte Street, Van Nuys, CA 91406, USA ● TEL: (818) 787-7000 ● FAX (818) 787-9130

Trio-Tech Reports $133,000 Operating Profit

November 12, 2024

Page Two

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.

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Trio-Tech Reports $133,000 Operating Profit

November 12, 2024

Page Three

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.

(tables attached)

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,

2024 2023

Revenue

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

(Unaudited)

ASSETS

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