TRT Trio Tech International

$7.47 Book Value; $4.04 in Cash, Short-Term Deposits Per Share

Trio-Tech International (NYSE MKT: TRT) today announced financial results for the third quarter and first nine months of fiscal 2024.

Fiscal 2024 Third Quarter Results

For the three months ended March 31, 2024, total revenue increased 6% to $10,398,000 compared to $9,842,000 for same quarter last year. Manufacturing segment revenue increased 62% to $4,813,000, compared to $2,963,000 for the same quarter last year. Distribution segment revenue increased 51% to $1,783,000, compared to $1,179,000 for the same period last year. Testing Services segment revenue decreased 33% to $3,796,000 from $5,697,000 for the same quarter last year.

Overall gross margin increased 10% to $2,703,000, or 26% of revenue, compared to $2,458,000, or 25% of revenue for the same period last year. The increase in gross margin reflects improved operations in the Manufacturing and Distribution segments, partially offset by lower gross margin in Testing Services.

Total operating expenses for the third quarter of fiscal 2024 increased to $2,644,000, or 25% of revenue, from $2,495,000, or 25% of revenue, in the same quarter last year.

Pre-tax Income from continuing operations increased to $306,000, compared to pre-tax income from continuing operations of $57,000 for the same quarter last year.

Net income attributable to Trio-Tech International Common Shareholders for the three months ended March 31, 2024 increased to $70,000, or $0.02 per diluted share, which included non-cash stock compensation expense of $338,000. This compares to a net loss for the third quarter of fiscal 2023 of $7,000, or $0.00 per diluted share, which included non-cash stock compensation expense of $283,000.

CEO Comments

S.W. Yong, Trio-Tech’s CEO, said, “Higher capital spending by our key customers and increased backlog enabled the Manufacturing segment to achieve a 62% revenue gain in the seasonally weakest quarter of our fiscal year. Increasing demand for electronic components and display products, a market we specifically targeted for growth in the past year, drove a 51% increase in Distribution revenue. We are cautiously optimistic that these favorable trends in revenue and profitability for these two segments of our business will continue throughout this calendar year.

“The performance of our Testing Services segment reflects continued weakness in global semiconductor demand. The cost control measures we have implemented across the Company have enabled Trio-Tech to maintain solid margins despite the decline in revenue in the Testing Services segment. We are confident that our tight manufacturing cost controls, strong cash flow and attention to market developments position Trio-Tech to exploit any near-term opportunities and developments in the semiconductor industry.”

Fiscal 2024 Nine Months Results

For the first nine months of fiscal 2024, revenue decreased 5% to $32,566,000 compared to $34,171,000 for the first nine months of fiscal 2023. Manufacturing revenue increased 8% to $12,488,000 from 11,592,000 for the first nine months of fiscal 2023. Distribution revenue increased 33% to $6,453,000 from $4,855,000 for the first nine months from fiscal 2023. Testing Services revenue decreased 23% to $13,606,000 from 17,709,000 for the first nine months of fiscal 2023.

Gross margin for the first nine months of fiscal 2023 decreased 14% to $8,077,000, or 25% of revenue, compared to $9,415,000, or 27% of revenue, for the same period last year.

Operating expenses were $7,342,000, or 23% of revenue, for this year’s first nine months compared to $7,316,000, or 21% of revenue, for the same period a year ago.

Net income attributable to Trio-Tech International Common Shareholders for the first nine months of fiscal 2024 was $807,000, or $0.19 per diluted share. This compares to net income of $1,382,000, or $0.33 per diluted share, for the first nine months of fiscal 2023.

Balance Sheet Highlights

Shareholders’ equity at March 31, 2024 increased to $31,452,000, or $7.47 per outstanding share, compared to shareholders’ equity of $29,571,000, or $7.21 per outstanding share, at June 30, 2023. Cash, cash equivalents and short-term deposits at March 31, 2024 increased to $17,025,000, or $4.04 per outstanding share, compared to $14,210,000, or $3.47 per outstanding share, at June 30, 2023.

Trio-Tech reported total non-current liabilities at March 31, 2024 of $1,839,000. This compares to total non-current liabilities at June 30, 2023 of $3,289,000.

There were approximately 4,210,305 common shares outstanding at March 31, 2024 compared to approximately 4,096,680 at June 30, 2023.

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; or the divestiture in the future of one or more business segments; 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; inflation; the war in Ukraine and Russia, the war between Israel and Hamas; 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

 

Nine Months Ended

 

March 31,

 

March 31,

Revenue

2024

 

2023

 

2024

 

2023

Manufacturing

$

4,813

 

 

$

2,963

 

 

$

12,488

 

 

$

11,592

 

Testing Services

 

3,796

 

 

 

5,697

 

 

 

13,606

 

 

 

17,709

 

Distribution

 

1,783

 

 

 

1,179

 

 

 

6,453

 

 

 

4,855

 

Real Estate

 

6

 

 

 

3

 

 

 

19

 

 

 

15

 

 

 

 

10,398

 

 

 

9,842

 

 

 

32,566

 

 

 

34,171

 

Cost of Sales

 

 

 

 

 

 

 

Cost of manufactured products sold

 

3,594

 

 

 

2,451

 

 

 

9,252

 

 

 

8,825

 

Cost of testing services rendered

 

2,601

 

 

 

3,940

 

 

 

9,849

 

 

 

11,813

 

Cost of distribution

 

1,482

 

 

 

975

 

 

 

5,334

 

 

 

4,064

 

Cost of real estate

 

18

 

 

 

18

 

 

 

54

 

 

 

54

 

 

 

 

7,695

 

 

 

7,384

 

 

 

24,489

 

 

 

24,756

 

Gross Margin

 

2,703

 

 

 

2,458

 

 

 

8,077

 

 

 

9,415

 

Operating Expenses:

 

 

 

 

 

 

 

General and administrative

 

2,351

 

 

 

2,248

 

 

 

6,326

 

 

 

6,472

 

Selling

 

204

 

 

 

160

 

 

 

639

 

 

 

526

 

Research and development

 

89

 

 

 

87

 

 

 

305

 

 

 

311

 

Loss on disposal of property, plant and equipment

 

--

 

 

 

--

 

 

 

72

 

 

 

7

 

Total operating expenses

 

2,644

 

 

 

2,495

 

 

 

7,342

 

 

 

7,316

 

Income (Loss) from Operations

 

59

 

 

 

(37

)

 

 

735

 

 

 

2,099

 

Other Income (Expenses)

 

 

 

 

 

 

 

Interest expenses

 

(17

)

 

 

(29

)

 

 

(63

)

 

 

(83

)

Other income (expenses), net

 

252

 

 

 

40

 

 

 

366

 

 

 

(49

)

Government grant

 

12

 

 

 

83

 

 

 

89

 

 

 

108

 

Total other income (expenses)

 

247

 

 

 

94

 

 

 

392

 

 

 

(24

)

Income from Continuing Operations before Income Taxes

 

306

 

 

 

57

 

 

 

1,127

 

 

 

2,075

 

Income Tax Expenses

 

(142

)

 

 

(8

)

 

 

(274

)

 

 

(474

)

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

 

164

 

 

 

49

 

 

 

853

 

 

 

1,601

 

(Loss) Income from Discontinued Operations, net of tax

 

(1

)

 

 

5

 

 

 

3

 

 

 

(4

)

NET INCOME

 

163

 

 

 

54

 

 

 

856

 

 

 

1,597

 

Less: Net income Attributable to Non-controlling Interest

 

93

 

 

 

61

 

 

 

49

 

 

 

215

 

Net Income (Loss) Attributable to Trio-Tech International

 

70

 

 

 

(7

)

 

 

807

 

 

 

1,382

 

Net Income Attributable to Trio-Tech International:

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations, net of tax

 

71

 

 

 

(10

)

 

 

801

 

 

 

1,384

 

(Loss) Income from Discontinued Operations, net of tax

 

(1

)

 

 

3

 

 

 

6

 

 

 

(2

)

Net Income (Loss) Attributable to Trio-Tech International

$

70

 

 

$

(7

)

 

$

807

 

 

$

1,382

 

Basic Earnings per Share

$

0.02

 

 

$

0.00

 

 

$

0.19

 

 

$

0.34

 

Diluted Earnings per Share

$

0.02

 

 

$

0.00

 

 

$

0.19

 

 

$

0.33

 

Weighted Average Shares Outstanding - Basic

 

4,176

 

 

 

4,075

 

 

 

4,131

 

 

 

4,075

 

Weighted Average Shares Outstanding - Diluted

 

4,282

 

 

 

4,159

 

 

 

4,274

 

 

 

4,161

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

UNAUDITED (IN THOUSANDS)

 

 

Three Months Ended

 

Nine Months Ended

March 31,

 

March 31,

2024

 

2023

 

2024

 

2023

Comprehensive (Loss) / Income

 

 

 

 

 

 

 

Attributable to Trio-Tech International:

 

 

 

 

 

 

 

Net income

$

163

 

 

$

54

 

 

$

856

 

$

1,597

Foreign Currency Translation, net of tax

 

(753

)

 

 

166

 

 

 

222

 

 

521

Comprehensive (Loss) Income

 

(590

)

 

 

220

 

 

 

1,078

 

 

2,118

Less: Comprehensive Income (Loss)

 

 

 

 

 

 

 

Attributable to Non-controlling Interest

 

93

 

 

 

(85

)

 

 

49

 

 

127

Comprehensive (Loss) Income

 

 

 

 

 

 

 

Attributable to Trio-Tech International

$

(683

)

 

$

305

 

 

$

1,029

 

$

1,991

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

 

Mar. 31,

 

Jun. 30,

 

2024

 

2023

ASSETS

 

(Unaudited)

 

(Audited)

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

10,716

 

$

7,583

Short-term deposits

 

 

6,309

 

 

6,627

Trade account receivables, net

 

 

10,083

 

 

9,804

Other receivables

 

 

1,089

 

 

939

Inventories, net

 

 

2,742

 

 

2,151

Prepaid expenses and other current assets

 

 

577

 

 

694

Assets held for sale

 

 

--

 

 

274

Financed sales receivable

 

 

--

 

 

16

Restricted term deposits

 

 

754

 

 

739

Total current assets

 

 

32,270

 

 

28,827

NON-CURRENT ASSETS:

 

 

 

 

Deferred tax assets

 

 

117

 

 

100

Investment properties, net

 

 

433

 

 

474

Property, plant and equipment, net

 

 

6,081

 

 

8,344

Operating lease right-of-use assets

 

 

2,277

 

 

2,609

Other assets

 

 

149

 

 

116

Restricted term deposits

 

 

1,760

 

 

1,716

Total non-current assets

 

 

10,817

 

 

13,359

TOTAL ASSETS

 

$

43,087

 

$

42,186

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

 

$

2,406

 

$

1,660

Accrued expense

 

 

3,904

 

 

4,291

Contract liabilities

 

 

1,499

 

 

1,277

Income taxes payable

 

 

328

 

 

418

Current portion of bank loans payable

 

 

308

 

 

475

Current portion of finance leases

 

 

56

 

 

107

Current portion of operating leases

 

 

1,295

 

 

1,098

Total current liabilities

 

 

9,796

 

 

9,326

NON-CURRENT LIABILITIES:

 

 

 

 

Bank loans payable, net of current portion

 

 

676

 

 

877

Finance leases, net of current portion

 

 

10

 

 

42

Operating leases, net of current portion

 

 

982

 

 

1,511

Income taxes payable, net of current portion

 

 

141

 

 

255

Deferred tax liabilities

 

 

3

 

 

10

Other non-current liabilities

 

 

27

 

 

594

Total non-current liabilities

 

 

1,839

 

 

3,289

TOTAL LIABILITIES

 

$

11,635

 

$

12,615

 

 

 

 

 

EQUITY

 

 

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

 

 

Common stock, no par value, 15,000,000 shares authorized; 4,210,305 and 4,096,680 shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively

 

 

13,194

 

 

12,819

Paid-in capital

 

 

5,494

 

 

5,066

Accumulated retained earnings

 

 

11,570

 

 

10,763

Accumulated other comprehensive income-translation adjustments

 

 

984

 

 

758

Total Trio-Tech International shareholders' equity

 

 

31,242

 

 

29,406

Non-controlling interest

 

 

210

 

 

165

TOTAL EQUITY

 

 

31,452

 

 

29,571

TOTAL LIABILITIES AND EQUITY

 

$

43,087

 

$

42,186

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513413690/en/

Company Contact: Siew Wai Yong Chairman & CEO (818) 787-7000

Investor Contact: Berkman Associates (310) 927-3108 robert.jacobs@jacobscon.com