Trio-Tech Fourth Quarter Net Income Improves to $0.06 from $0.04 Per Diluted Share

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the fourth quarter and fiscal year ended June 30, 2024.

Fourth Quarter Results

For the three months ended June 30, 2024 revenue increased 7% to $9,746,000 from $9,079,000 for the fourth quarter of fiscal 2023, reflecting a 60% increase in manufacturing revenue, a 30% increase in distribution revenue, and a 20% decrease in testing services revenue.

Gross margin increased 17% to $2,685,000, or 28% of revenue, from $2,290,000, or 25% of revenue, for the same quarter last year. Income from operations increased 178% to $358,000 compared to $129,000 for the fourth quarter of fiscal 2023.

Net income for the fourth quarter of fiscal 2024 increased to $243,000, or $0.06 per diluted share, compared to $162,000, or $0.04 per diluted share, for last year’s fourth quarter.

S.W. Yong, Chairman & CEO said, “Trio-Tech’s strategy to focus on opportunities to grow our manufacturing and distribution segments significantly contributed to our strong fourth quarter results. We continue to carefully evaluate the path forward for each of our operating segments to concentrate our resources on products and markets with the greatest growth potential. Supporting this strategy, we have increased our sales efforts and introduced new products and services in our manufacturing and distribution businesses. Additionally, we are evaluating potential acquisitions and divestitures as well as direct investments and joint development projects with key partners that can contribute to Trio-Tech’s long-term success and increase value for our shareholders.”

Fiscal 2024 Results

For the fiscal year ended June 30, 2024, distribution revenue increased 32% to $8,297,000 from $6,270,000, led by strong sales of display products. Manufacturing revenue increased 16% to $16,057,000 from $13,827,000, reflecting an increased market share achieved by supporting our key customers in their New Product Introduction (NPI) programs. Testing services revenue decreased 22% to $17,933,000 from $23,130,000 for fiscal 2023. Total revenue for fiscal 2024 decreased 2% to $42,312,000 from $43,250,000 for fiscal 2023.

Gross margin for fiscal 2024 decreased slightly to $10,762,000, or 25% of revenue, compared to $11,705,000, or 27% of revenue, for fiscal 2023.

Operating expense increased 2% to $9,669,000 from $9,477,000 and increased to 23% of revenue compared to 22% of revenue for fiscal 2023.

Net income attributable to Trio-Tech shareholders for fiscal 2024 was $1,050,000, or $0.24 per diluted share. This compares to net income of $1,544,000, or $0.37 per diluted share, for fiscal 2023.

Backlog at June 30, 2024 was $14,422,000, compared to record backlog of $17,437,000 at June 30, 2023.

Balance Sheet Highlights

Cash and cash equivalents at June 30, 2024 increased to $10,035,000 compared to $7,583,000, at June 30, 2023 and working capital also increased to $22,760,000, compared to $19,501,000 a year earlier. Shareholders' equity at June 30, 2024 increased to $31,578,000, or $7.43 per outstanding share, compared to $29,571,000, or $7.22 per outstanding share, for the prior year. There were approximately 4,250,305 and 4,096,680 common shares outstanding at June 30, 2024 and June 30, 2023, respectively.

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; 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 (LOSS)

AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

Three Months Ended

Twelve Months Ended

 

June 30,

June 30,

Revenue

2024

2023

2024

2023

Manufacturing

$

3,569

 

$

2,235

 

$

16,057

 

$

13,827

 

Testing services

 

4,327

 

 

5,421

 

 

17,933

 

 

23,130

 

Distribution

 

1,844

 

 

1,415

 

 

8,297

 

 

6,270

 

Real estate

 

6

 

 

8

 

 

25

 

 

23

 

 

 

9,746

 

 

9,079

 

 

42,312

 

 

43,250

 

Cost of Sales

 

 

 

 

Cost of manufactured products sold

 

2,571

 

 

1,762

 

 

11,823

 

 

10,587

 

Cost of testing services rendered

 

2,960

 

 

3,845

 

 

12,809

 

 

15,658

 

Cost of distribution

 

1,513

 

 

1,164

 

 

6,847

 

 

5,228

 

Cost of real estate

 

17

 

 

18

 

 

71

 

 

72

 

 

 

7,061

 

 

6,789

 

 

31,550

 

 

31,545

 

Gross Margin

 

2,685

 

 

2,290

 

 

10,762

 

 

11,705

 

 

 

 

 

 

Operating Expense:

 

 

 

 

General and administrative

 

2,061

 

 

1,931

 

 

8,387

 

 

8,403

 

Selling

 

205

 

 

144

 

 

844

 

 

670

 

Research and development

 

87

 

 

86

 

 

392

 

 

397

 

Loss on disposal of property, plant and equipment

 

(26

)

 

--

 

 

46

 

 

7

 

Total operating expenses

 

2,327

 

 

2,161

 

 

9,669

 

 

9,477

 

Income from Operations

 

358

 

 

129

 

 

1,093

 

 

2,228

 

Other Income

 

 

 

 

Interest expense

 

(14

)

 

(22

)

 

(77

)

 

(105

)

Other income, net

 

134

 

 

155

 

 

500

 

 

106

 

Government grant

 

24

 

 

45

 

 

113

 

 

153

 

Total other income

 

144

 

 

178

 

 

536

 

 

154

 

Income from Continuing Operations before Income Taxes

 

502

 

 

307

 

 

1,629

 

 

2,382

 

Income Tax Expense

 

(212

)

 

(148

)

 

(486

)

 

(622

)

Income from Continuing Operations before Non-controlling Interest, net of tax

 

290

 

 

159

 

 

1,143

 

 

1,760

 

(Loss) / gain from discontinued operations, net of tax

 

(4

)

 

2

 

 

(1

)

 

(2

)

NET INCOME

 

286

 

 

161

 

 

1,142

 

 

1,758

 

Less: Net income / (loss) Attributable to Non-controlling Interest

 

43

 

 

(1

)

 

92

 

 

214

 

Net income Attributable to Trio-Tech International

$

243

 

$

162

 

$

1,050

 

$

1,544

 

Net Income Attributable to Trio-Tech International:

 

 

 

 

Income from continuing operations, net of tax

 

245

 

 

161

 

 

1,054

 

 

1,545

 

(Loss) / income from discontinued operations, net of tax

 

(2

)

 

1

 

 

(4

)

 

(1

)

Net Income Attributable to Trio-Tech International

 

243

 

 

162

 

 

1,050

 

 

1,544

 

Basic Earnings per Share - Continuing Operations

$

0.06

 

$

0.04

 

$

0.25

 

$

0.38

 

Basic Loss per Share - Discontinued Operations

 

--

 

 

--

 

 

--

 

 

--

 

Basic Earnings per Share

$

0.06

 

$

0.04

 

$

0.25

 

$

0.38

 

Diluted Earnings per Share - Continuing Operations

$

0.06

 

$

0.04

 

$

0.24

 

$

0.37

 

Diluted Loss per Share - Discontinued Operations

 

--

 

 

--

 

 

--

 

 

--

 

Diluted Earnings per Share

$

0.06

 

$

0.04

 

$

0.24

 

$

0.37

 

Weighted Average Shares Outstanding - Basic

 

4,248

 

 

4,082

 

 

4,160

 

 

4,082

 

Weighted Average Shares Outstanding - Diluted

 

4,376

 

 

4,159

 

 

4,299

 

 

4,165

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

AUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

 

Three Months Ended

Twelve Months Ended

June 30,

June 30,

 

2024

2023

2024

2023

 

 

 

 

 

Comprehensive (Loss) / Income

 

 

 

 

Attributable to Trio-Tech International Common Shareholders:

 

 

 

 

 

 

 

 

 

Net income

$

286

 

$

161

 

$

1,142

 

$

1,758

 

Foreign currency translation, net of tax

 

(328

)

 

(1,137

)

 

(106

)

 

(616

)

Comprehensive (Loss) / Income

 

(42

)

 

(976

)

 

1,036

 

 

1,142

 

Less: Comprehensive Income / (Loss)

 

 

 

 

Attributable to Non-controlling Interests

 

35

 

 

(90

)

 

84

 

 

37

 

Comprehensive (Loss) / Income

 

 

 

 

Attributable to Trio-Tech International

$

(77

)

$

(886

)

$

952

 

$

1,105

 

 

 

 

 

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

 

 

 

Jun. 30,

Jun. 30,

2024

2023

ASSETS

(Audited)

(Audited)

 

 

 

CURRENT ASSETS:

 

 

Cash and cash equivalents

$

10,035

$

7,583

Short-term deposits

 

6,497

 

6,627

Trade account receivables, net

 

10,661

 

9,804

Other receivables

 

541

 

939

Inventories, net

 

3,162

 

2,151

Prepaid expenses and other current assets

 

536

 

694

Assets held for sale

 

--

 

274

Financed sales receivable

 

--

 

16

Restricted term deposit

 

750

 

739

Total current assets

 

32,182

 

28,827

NON-CURRENT ASSETS:

 

 

Deferred tax assets

 

124

 

100

Investment properties, net

 

407

 

474

Property, plant and equipment, net

 

5,937

 

8,344

Operating lease right-of-use assets

 

1,887

 

2,609

Other assets

 

232

 

116

Restricted term deposits

 

1,771

 

1,716

Total non-current assets

 

10,358

 

13,359

TOTAL ASSETS

$

42,540

$

42,186

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

Accounts payable

$

3,175

$

1,660

Accrued expense

 

3,634

 

4,293

Contract liabilities

 

754

 

1,275

Income taxes payable

 

379

 

418

Current portion of bank loans payable

 

261

 

475

Current portion of finance leases

 

57

 

107

Current portion of operating leases

 

1,162

 

1,098

Total current liabilities

 

9,422

 

9,326

NON-CURRENT LIABILITIES:

 

 

Bank loans payable, net of current portion

 

613

 

877

Finance leases, net of current portion

 

34

 

42

Operating leases, net of current portion

 

725

 

1,511

Income taxes payable, net of current portion

 

141

 

255

Deferred tax liabilities

 

--

 

10

Other non-current liabilities

 

27

 

594

Total non-current liabilities

 

1,540

 

3,289

TOTAL LIABILITIES

$

10,962

$

12,615

EQUITY

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

Common stock, no par value, 15,000,000 shares authorized; 4,250,305 and 4,096,680 shares issued and outstanding at June 30, 2024 and June 30, 2023, respectively

13,325

12,819

Paid-in capital

 

5,531

 

5,066

Accumulated retained earnings

 

11,813

 

10,763

Accumulated other comprehensive income-translation adjustments

 

660

 

758

Total Trio-Tech International shareholders' equity

 

31,329

 

29,406

Non-controlling interest

 

249

 

165

TOTAL EQUITY

 

31,578

 

29,571

TOTAL LIABILITIES AND EQUITY

$

42,540

$

42,186

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240923732263/en/

Company Contact: Siew Wai Yong Chairman & CEO [phone]

Investor Contact: Berkman Associates [phone] [e-mail]