TRT Trio Tech International

Shareholders’ Equity Increases to $7.58 Per Share From $7.22 Per Share

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

Fiscal 2024 Second Quarter Results

For the three months ended December 31, 2023, revenue decreased 2% to $12,202,000 compared to $12,390,000 for the same quarter last year, primarily related to a decline in revenue in the Company’s testing services segment.

The overall gross margin was $2,854,000, or 23% of revenue, compared to $3,335,000, or 27% of revenue, for the same quarter last year. Operating income was $677,000, or 6% of revenue, compared to $1,069,000, or 9% of revenue, for the same quarter last year.

Total other expenses were $100,000, compared to $253,000 in the same quarter last year, due principally to an increase in interest income to $96,000 from $37,000, and a strengthening of the US dollar against the Singapore dollar, which reduced currency exchange losses to $236,000, compared to $349,000 in the same quarter last year.

Net income for the second quarter of fiscal 2024 was unchanged at $507,000, or $0.12 per diluted share from the second quarter of fiscal 2023. Net income for this year’s second quarter benefited from non-controlling interests’ after-tax loss of $21,000, versus an after-tax income of $58,000 in the same quarter last year.

Cash and cash equivalents at December 31, 2023, increased to $10,966,000, compared to $7,583,000 at June 30, 2023, and shareholders' equity increased to $31,528,000, or $7.58 per outstanding share, compared to $29,571,000, or $7.22 per outstanding share at June 30, 2023. There were approximately 4,160,555 and 4,096,680 common shares outstanding at December 31, 2023 and June 30, 2023, respectively.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, “Distribution revenue increased 63% in the quarter and distribution margins improved to 18% from 15% compared to the second quarter last year. In addition, we received customer acceptance for the initial dynamic test system delivered in the recent first quarter and anticipate delivering the remaining five units in the second half of fiscal 2024.

“Semiconductor industry capital spending improved last fall, boosting second quarter manufacturing segment revenue and contributing to backlog, which is expected to be delivered during the remainder of fiscal 2024.

“We remain optimistic and encouraged by improvements in our manufacturing and distribution segments. Our strong cash position, improving operating efficiency and tight expense controls will enable the Company to quickly evaluate and react proactively when the semiconductor industry gradually recovers from the current downturn.”

Fiscal 2024 First Half Results

For the first six months of fiscal 2024, revenue decreased 9% to $22,168,000 compared to $24,329,000 for the same period last year.

Gross margin for the first six months of fiscal 2024 was $5,374,000, or 24% of revenue, compared to $6,957,000, or 29% of revenue for the same period last year.

Income from operations was $676,000, or 3% of revenue, compared to $2,136,000, or 9% of revenue for the same period last year.

Total other income was $145,000, compared to expenses of $118,000 in the same quarter last year, due to an increase in interest income to $174,000, compared to $55,000, and reduced currency exchange losses of $177,000, compared to $279,000 in the same period last year.

Net income for the first half of fiscal 2024 was $737,000, or $0.17 per diluted share, compared to $1,389,000, or $0.33 per diluted share for the same period last year.

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; 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

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

Three Months Ended

Six Months Ended

December 31,

December 31,

Revenue

2023

2022

2023

2022

Manufacturing

$

4,790

 

$

5,044

 

$

7,675

 

$

8,629

 

Testing services

 

4,646

 

 

5,648

 

 

9,810

 

 

12,012

 

Distribution

 

2,760

 

 

1,694

 

 

4,670

 

 

3,676

 

Real estate

 

6

 

 

4

 

 

13

 

 

12

 

 

 

12,202

 

 

12,390

 

 

22,168

 

 

24,329

 

Cost of Sales

 

 

 

 

Cost of manufactured products sold

 

3,609

 

 

3,849

 

 

5,658

 

 

6,374

 

Cost of testing services rendered

 

3,464

 

 

3,747

 

 

7,248

 

 

7,873

 

Cost of distribution

 

2,256

 

 

1,441

 

 

3,852

 

 

3,089

 

Cost of real estate

 

19

 

 

18

 

 

36

 

 

36

 

 

 

9,348

 

 

9,055

 

 

16,794

 

 

17,372

 

Gross Margin

 

2,854

 

 

3,335

 

 

5,374

 

 

6,957

 

Operating Expenses:

 

 

 

 

General and administrative

 

1,817

 

 

1,919

 

 

3,975

 

 

4,224

 

Selling

 

248

 

 

193

 

 

435

 

 

366

 

Research and development

 

131

 

 

151

 

 

216

 

 

224

 

(Gain) Loss on disposal of property, plant and equipment

 

(19

)

 

3

 

 

72

 

 

7

 

Total operating expenses

 

2,177

 

 

2,266

 

 

4,698

 

 

4,821

 

Income from Operations

 

677

 

 

1,069

 

 

676

 

 

2,136

 

Other (Expenses) Income

 

 

 

 

Interest expenses

 

(22

)

 

(10

)

 

(46

)

 

(54

)

Other (expenses) income, net

 

(82

)

 

(264

)

 

114

 

 

(106

)

Government grant

 

4

 

 

21

 

 

77

 

 

42

 

Total other (expenses) income

 

(100

)

 

(253

)

 

145

 

 

(118

)

Income from Continuing Operations before Income Taxes

 

577

 

 

816

 

 

821

 

 

2,018

 

Income Tax Expenses

 

(95

)

 

(241

)

 

(132

)

 

(466

)

Income from Continuing Operations before

 

 

 

 

Non-controlling Interest, Net of Tax

 

482

 

 

575

 

 

689

 

 

1,552

 

Income (Loss) from Discontinued Operations, Net of Tax

 

4

 

 

(10

)

 

4

 

 

(9

)

NET INCOME

 

486

 

 

565

 

 

693

 

 

1,543

 

Less: Net (Loss) Income Attributable to Non-controlling Interest

 

(21

)

 

58

 

 

(44

)

 

154

 

Net Income Attributable to Trio-Tech International

 

507

 

 

507

 

 

737

 

 

1,389

 

Net Income Attributable to Trio-Tech International:

 

 

 

 

Income from Continuing Operations, Net of Tax

 

503

 

 

512

 

 

730

 

 

1,394

 

Income (Loss) from Discontinued Operations, Net of Tax

 

4

 

 

(5

)

 

7

 

 

(5

)

Net Income attributable to Trio-Tech International

$

507

 

$

507

 

$

737

 

$

1,389

 

Basic Earnings per Share

$

0.12

 

$

0.12

 

$

0.18

 

$

0.34

 

Diluted Earnings per share

$

0.12

 

$

0.12

 

$

0.17

 

$

0.33

 

Weighted Average Shares Outstanding - Basic

 

4,120

 

 

4,074

 

 

4,109

 

 

4,074

 

Weighted Average Shares Outstanding - Diluted

 

4,259

 

 

4,162

 

 

4,270

 

 

4,160

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

Three Months Ended

Six Months Ended

December 31,

December 31,

2023

2022

2023

2022

Comprehensive Income Attributable to

Trio-Tech International Common Shareholders:

 

 

 

 

Net income

$

486

 

$

565

$

693

 

$

1,543

Foreign Currency Translation, Net of Tax

 

1,158

 

 

1,568

 

975

 

 

355

Comprehensive Income

 

1,644

 

 

2,133

 

1,668

 

 

1,898

Less: Comprehensive (loss) income

Attributable to Non-controlling Interest

 

(72

)

 

133

 

(74

)

 

212

Comprehensive Income Attributable to

Trio-Tech International Common Shareholders

$

1,716

 

$

2,000

$

1,742

 

$

1,686

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

Dec. 31,

Jun. 30,

2023

2023

ASSETS

(Unaudited)

(Audited)

CURRENT ASSETS:

 

 

Cash and cash equivalents

$

10,966

$

7,583

Short-term deposits

 

5,791

 

6,627

Trade account receivables, net

 

12,388

 

9,804

Other receivables

 

1,029

 

939

Inventories, net

 

3,546

 

2,151

Prepaid expenses and other current assets

 

589

 

694

Assets held for sale

 

--

 

274

Financed sales receivable

 

6

 

16

Restricted term deposit

 

762

 

739

Total current assets

 

35,077

 

28,827

NON-CURRENT ASSETS:

 

 

Deferred tax assets

 

153

 

100

Investment properties, net

 

461

 

474

Property, plant and equipment, net

 

6,601

 

8,344

Operating lease right-of-use assets

 

2,359

 

2,609

Other assets

 

169

 

116

Restricted term deposits

 

1,778

 

1,716

Total non-current assets

 

11,521

 

13,359

TOTAL ASSETS

$

46,598

$

42,186

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

CURRENT LIABILITIES:

 

 

Lines of credit

$

384

$

--

Accounts payable

 

2,345

 

1,660

Accrued expense

 

4,506

 

4,291

Contract liabilities

 

3,808

 

1,277

Income taxes payable

 

257

 

418

Current portion of bank loans payable

 

375

 

475

Current portion of finance leases

 

81

 

107

Current portion of operating leases

 

1,119

 

1,098

Total current liabilities

 

12,875

 

9,326

NON-CURRENT LIABILITIES:

 

 

Bank loans payable, net of current portion

 

762

 

877

Finance leases, net of current portion

 

15

 

42

Operating leases, net of current portion

 

1,240

 

1,511

Income taxes payable, net of current portion

 

141

 

255

Deferred tax liabilities

 

7

 

10

Other non-current liabilities

 

30

 

594

Total non-current liabilities

 

2,195

 

3,289

TOTAL LIABILITIES

$

15,070

$

12,615

 

 

 

EQUITY

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

Common stock, no par value, 15,000,000 shares authorized; 4,160,555 and 4,096,680 shares issued and outstanding at December 31 and June 30, 2023, respectively

 

13,018

 

12,819

Paid-in capital

 

5,156

 

5,066

Accumulated retained earnings

 

11,500

 

10,763

Accumulated other comprehensive income-translation adjustments

 

1,763

 

758

Total Trio-Tech International shareholders' equity

 

31,437

 

29,406

Non-controlling interest

 

91

 

165

TOTAL EQUITY

 

31,528

 

29,571

TOTAL LIABILITIES AND EQUITY

$

46,598

$

42,186

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212111431/en/

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

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