TRT Trio Tech International

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

For the three months ended September 30, 2023, revenue decreased by 17% to $9,966,000 from $11,939,000 for the first quarter of fiscal 2023, primarily due to lower revenue in the Company’s testing services and manufacturing segments. Reflecting this decrease, gross margin declined to 25% of revenue compared to 30% of revenue for last year’s first quarter.

Net income for the first quarter of fiscal 2024 was $230,000, or $0.05 per diluted share. This compares to net income of $882,000, or $0.21 per diluted share, for the first quarter of fiscal 2023.

Cash and cash equivalents at September 30, 2023, increased to $8,333,000 compared to $7,583,000 at June 30, 2023, and shareholders’ equity increased to $29,655,000, or $7.24 per outstanding share, compared to $29,571,000, or $7.22 per outstanding share, at June 30, 2023. There were approximately 4,096,680 common shares outstanding at September 30, 2023 and June 30, 2023.

CEO Comments

S.W. Yong, Trio-Tech’s Chairman & CEO, said, “We are glad to announce that we have delivered our first dynamic test system, related to the contract we announced last Spring, and are currently waiting for customer on-site buy off. While we see encouraging signs that demand for Trio-Tech’s products and services among our key customers has begun to stabilize, we remain cautious in the short term and are focused on enhancing customer service and our ability to rapidly adapt to changing market conditions.

“We anticipate a significant recovery of distribution sales in fiscal 2024 and have positioned ourselves as a value-added reseller, offering extended research and development services to customize and integrate products for new and existing customers. Together, these efforts support our longer-term goal to broaden and diversify product offerings to our customer base and take advantage of new growth opportunities we have identified in providing industry display solutions for medical laboratory equipment and arcade gaming industries.”

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 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

 

 

September 30,

 

 

 

 

 

 

Revenue

 

2023

 

2022

Manufacturing

 

$

2,885

 

 

$

3,585

 

Testing services

 

 

5,164

 

 

 

6,364

 

Distribution

 

 

1,910

 

 

 

1,982

 

Real estate

 

 

7

 

 

 

8

 

 

 

 

 

9,966

 

 

 

11,939

 

Cost of Sales

 

 

 

 

Cost of manufactured products sold

 

 

2,049

 

 

 

2,525

 

Cost of testing services rendered

 

 

3,784

 

 

 

4,126

 

Cost of distribution

 

 

1,596

 

 

 

1,648

 

Cost of real estate

 

 

17

 

 

 

18

 

 

 

 

 

7,446

 

 

 

8,317

 

Gross Margin

 

 

2,520

 

 

 

3,622

 

Operating Expenses:

 

 

 

 

General and administrative

 

 

2,158

 

 

 

2,305

 

Selling

 

 

187

 

 

 

173

 

Research and development

 

 

85

 

 

 

73

 

Loss on disposal of property, plant and equipment

 

 

91

 

 

 

4

 

Total operating expense

 

 

2,521

 

 

 

2,555

 

(Loss) / Income from Operations

 

 

(1

)

 

 

1,067

 

Other Income / (Expense)

 

 

 

 

Interest expense

 

 

(24

)

 

 

(44

)

Other income, net

 

 

196

 

 

 

158

 

Government Grant

 

 

73

 

 

 

21

 

Total other income

 

 

245

 

 

 

135

 

Income from Continuing Operations before Income Taxes

 

 

244

 

 

 

1,202

 

Income Tax Expenses

 

 

(37

)

 

 

(225

)

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

 

 

207

 

 

 

977

 

Income from Discontinued Operations, net of tax

 

 

--

 

 

 

1

 

NET INCOME

 

 

207

 

 

 

978

 

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

 

 

(23

)

 

 

96

 

Net Income Attributable to Trio-Tech International

 

 

230

 

 

 

882

 

Net Income Attributable to Trio-Tech International:

 

 

 

 

Income from continuing operations, net of tax

 

 

227

 

 

 

882

 

Income from discontinued operations, net of tax

 

 

3

 

 

 

--

 

Net Income Attributable to Trio-Tech International

 

$

230

 

 

$

882

 

Earnings per share

 

 

 

 

Basic earnings per share

 

$

0.06

 

 

$

0.22

 

Diluted earnings per share

 

$

0.05

 

 

$

0.21

 

Weighted Average Shares Outstanding - Basic

 

 

4,096

 

 

 

4,077

 

Weighted Average Shares Outstanding - Diluted

 

4,280

 

 

4,158

 

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

 

 

Three Months Ended

 

September 30,

 

2023

 

2022

Comprehensive Income Attributable to Trio-Tech International:

 

 

 

Net Income

$

207

 

 

$

978

 

Foreign Currency Translation, net of tax

 

(183

)

 

 

(1,213

)

Comprehensive Income / (Loss)

 

24

 

 

 

(235

)

Less: Comprehensive (Loss) / Income Attributable to Non-controlling Interests

 

(2

)

 

 

79

 

Comprehensive Income / (Loss) Attributable to Trio-Tech International

$

26

 

 

$

(314

)

TRIO‑TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

 

 

 

 

 

Sep. 30,

 

Jun. 30,

 

2023

 

2023

ASSETS

 

(Unaudited)

 

(Audited)

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

8,333

 

$

7,583

Short-term deposits

 

 

5,946

 

 

6,627

Trade account receivables, net

 

 

10,973

 

 

9,804

Other receivables

 

 

1,671

 

 

939

Inventories, net

 

 

4,023

 

 

2,151

Prepaid expenses and other current assets

 

 

660

 

 

694

Assets held for sale

 

 

--

 

 

274

Financed sales receivable

 

 

11

 

 

16

Restricted term deposit

 

 

737

 

 

739

Total current assets

 

 

32,354

 

 

28,827

NON-CURRENT ASSETS:

 

 

 

 

Deferred tax assets

 

 

152

 

 

100

Investment properties, net

 

 

458

 

 

474

Property, plant and equipment, net

 

 

7,290

 

 

8,344

Operating lease right-of-use assets

 

 

2,563

 

 

2,609

Other assets

 

 

163

 

 

116

Restricted term deposits

 

 

1,719

 

 

1,716

Total non-current assets

 

 

12,345

 

 

13,359

TOTAL ASSETS

 

$

44,699

 

$

42,186

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Lines of credit

 

$

297

 

$

--

Accounts payable

 

 

2,556

 

 

1,660

Accrued expense

 

 

7,507

 

 

5,568

Income taxes payable

 

 

393

 

 

418

Current portion of bank loans payable

 

 

423

 

 

475

Current portion of finance leases

 

 

97

 

 

107

Current portion of operating leases

 

 

1,190

 

 

1,098

Total current liabilities

 

 

12,463

 

 

9,326

NON-CURRENT LIABILITIES:

 

 

 

 

Bank loans payable, net of current portion

 

 

809

 

 

877

Finance leases, net of current portion

 

 

24

 

 

42

Operating leases, net of current portion

 

 

1,372

 

 

1,511

Income taxes payable, net of current portion

 

 

142

 

 

255

Deferred tax liabilities

 

 

7

 

 

10

Other non-current liabilities

 

 

227

 

 

594

Total non-current liabilities

 

 

2,581

 

 

3,289

TOTAL LIABILITIES

 

$

15,044

 

$

12,615

 

 

 

 

 

EQUITY

 

 

 

 

TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

 

 

 

 

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

 

 

12,819

 

 

12,819

Paid-in capital

 

 

5,126

 

 

5,066

Accumulated retained earnings

 

 

10,993

 

 

10,763

Accumulated other comprehensive income-translation adjustments

 

 

554

 

 

758

Total Trio-Tech International shareholders' equity

 

 

29,492

 

 

29,406

Non-controlling interest

 

 

163

 

 

165

TOTAL EQUITY

 

 

29,655

 

 

29,571

TOTAL LIABILITIES AND EQUITY

 

$

44,699

 

$

42,186

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113428659/en/

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

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