Revenue Performance - Trio-Tech reported total revenue of $15.6 million for Q2 FY2026, an 82% increase from $8.6 million in Q2 FY2025[5] - Revenue from Semiconductor Back-End Solutions reached $12.4 million, up 113% from $5.8 million in the prior year quarter, driven by higher testing volumes[9] - Industrial Electronics segment revenue was $3.3 million, reflecting a 17% increase from $2.8 million in the prior year[9] - Revenue for the three months ended December 31, 2025, was $15,649,000, a 81.5% increase from $8,619,000 for the same period in 2024[14] Profitability Metrics - Gross margin for Q2 FY2026 was $2.5 million, or 16% of revenue, compared to $2.2 million, or 26%, in the prior year period[9] - Gross margin for the six months ended December 31, 2025, was $5,084,000, compared to $4,540,000 for the same period in 2024, reflecting a 12% increase[14] - Operating income for Q2 FY2026 was $97 thousand, compared to an operating loss of $3 thousand in Q2 FY2025[9] - Net income attributable to common shareholders was $126 thousand, or $0.01 per diluted share, compared to $507 thousand, or $0.06 per diluted share, in the prior year quarter[9] - Net income attributable to common shareholders for the three months ended December 31, 2025, was $126,000, a decrease of 75.2% from $507,000 for the same period in 2024[14] - Basic earnings per share from continuing operations for the three months ended December 31, 2025, was $0.01, down from $0.06 for the same period in 2024[14] - Comprehensive income attributable to common shareholders for the three months ended December 31, 2025, was $589,000, compared to a loss of $1,263,000 for the same period in 2024[16] Operational Insights - Cash, cash equivalents, and restricted cash totaled $19.2 million as of December 31, 2025, slightly down from $19.5 million at June 30, 2025[9] - Total operating expenses for the six months ended December 31, 2025, were $4,941,000, an increase from $4,410,000 for the same period in 2024[14] - Income from continuing operations before income taxes for the three months ended December 31, 2025, was $312,000, compared to $675,000 for the same period in 2024[14] - The company reported a foreign currency translation gain of $465,000 for the three months ended December 31, 2025[16] - The weighted average number of diluted shares outstanding for the three months ended December 31, 2025, was 9,364,000, an increase from 8,807,000 for the same period in 2024[15] - The company did not report any government grants for the three months ended December 31, 2025, compared to $5,000 for the same period in 2024[14] Future Outlook - Trio-Tech expects continued demand for its semiconductor back-end testing services through fiscal 2026, particularly for advanced and AI-related devices[7] - The company is focused on operational efficiency and disciplined capital allocation to support long-term growth and profitability[7] - Trio-Tech is investing in its capabilities and regional footprint to capitalize on growth opportunities in high-value markets such as AI and electric vehicles[4]

Revenue Growth - Semiconductor Back-end Solutions (SBS) segment revenue for the six months ended December 31, 2025, was $23,809 million, a 87.5% increase from $12,688 million in the same period of 2024[72] - Industrial Electronics (IE) segment revenue for the six months ended December 31, 2025, was $7,336 million, a 28.3% increase from $5,715 million in the same period of 2024[72] - Total company revenue for the six months ended December 31, 2025, was $31,163 million, compared to $18,418 million for the same period in 2024, representing a 69.0% increase[72] Profitability - The gross profit for the total company for the six months ended December 31, 2025, was $5,084 million, compared to $4,540 million for the same period in 2024, indicating an increase of 12.0%[72] - The operating income for the total company for the six months ended December 31, 2025, was $143 million, compared to $130 million for the same period in 2024, reflecting a 10.0% increase[72] Assets and Liabilities - The total assets of the company as of December 31, 2025, were $45,729 million, up from $39,800 million as of December 31, 2024, marking a 14.7% increase[72] - As of December 31, 2025, trade accounts receivable stood at $13,455 million, up from $10,804 million as of June 30, 2025, reflecting a growth of 24.4%[100] - The total future minimum lease payments under operating leases as of December 31, 2025, amount to $2,830,000, with a present value of net minimum lease payments of $2,551,000[127] Tax and Other Income - The effective tax rate (ETR) from continuing operations for the six months ended December 31, 2025, was 26.2%, down from 38.3% for the same period in 2024[81] - Other income for the three months ended December 31, 2025, totaled $237 million, a decrease from $686 million in the same period in 2024[75] Business Strategy - Management is considering potential divestitures of business segments to focus on areas with anticipated revenue growth opportunities[74] Sales Performance - Product sales for the three and six months ended December 31, 2025, were $4,969 million and $11,188 million, respectively, compared to $4,600 million and $9,954 million for the same period in Fiscal 2025, representing an increase of 8% and 12.4% year-over-year[93] - Service sales for the same periods were $10,672 million and $19,957 million, compared to $4,010 million and $8,449 million in Fiscal 2025, indicating a significant increase of 166% and 135% year-over-year[97] Stock Options and Compensation - The company recognized $113 million in stock-based compensation expense during the six months ended December 31, 2025, compared to $125 million in the same period of 2024[109] - The weighted average exercise price of vested stock options as of December 31, 2025, was $2.82, with a remaining contractual term of 2.06 years[111] - The company had 711,404 outstanding stock options as of December 31, 2025, with an intrinsic value of $2,460 million[112] - The company’s stock options plan allows for the grant of options covering up to 1,200,000 shares of common stock, reflecting an increase from the previous limit of 600,000 shares[107] - As of December 31, 2025, there were vested stock options covering a total of 902,321 shares with a weighted average exercise price of $2.91 and a remaining contractual term of 2.34 years[119] - The Company did not grant any stock options during the six-month periods ended December 31, 2025, and December 31, 2024, and recognized no stock-based compensation expense during these periods[117][118] Customer Concentration - Major customers accounted for significant revenue concentration, with Customer A contributing 41.2% of revenue for the six months ended December 31, 2025, compared to 3.9% in 2024[131] Shareholder Returns - The Company has a share repurchase program authorized for up to $1 million, with the full amount remaining available for repurchases as of December 31, 2025[132][133] Lease Income - Future minimum rental income from non-cancelable operating leases in China and Thailand is contractually due to total $389,000 from Fiscal 2026 to Fiscal 2029[123] - The Company recognized lease costs of $421,000 for operating leases during the six months ended December 31, 2025[126] Stock Split - A two-for-one stock split was executed subsequent to December 31, 2025, with no change to total shareholders' equity[134]

Core Insights - Trio-Tech International reported an 82% year-over-year revenue growth for its fiscal second quarter ended December 31, 2025, primarily driven by strong demand for advanced semiconductor testing services supporting AI compute chips and EV power devices [1] Financial Performance - The company experienced significant revenue growth, attributed to the increasing demand in the semiconductor sector, particularly for AI and electric vehicle applications [1]

Oil Industry - Crude oil prices are largely unchanged as traders assess the U.S. operation that ousted Nicolás Maduro from Venezuela, which may lead to a potential restoration of oil production in the country [3][4] - Goldman Sachs analysts suggest that any rebound in Venezuelan oil output will be limited and slow due to years of underinvestment and deteriorating infrastructure, requiring strong incentives to attract capital [4] - The prospect of increased Venezuelan oil supply adds downside risks for global crude prices beyond 2027, especially in conjunction with production growth in Russia and the U.S. [5] Semiconductor Industry - Taiwan Semiconductor Manufacturing Company (TSMC) shares surged 3% in premarket trading after a 5% increase on Friday, reaching a new record high following a 35% price target increase by Goldman Sachs to NT$2,330 [7] - Goldman Sachs views AI as a multi-year growth engine for TSMC, projecting improved profit margins and a planned investment of $150 billion over the next three years to increase capacity [8] Technology and Consumer Electronics - Samsung Electronics plans to double the number of mobile devices powered by Google's Gemini AI from 400 million to 800 million by 2026, with a focus on applying AI across all products and services [9] - The co-CEO of Samsung acknowledged the impact of the global memory chip shortage on mobile phones and consumer electronics, indicating potential price hikes while working on long-term strategies to mitigate the effects [10]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Performance - Trio-Tech reported total revenue of $15.5 million for Q1 FY2026, a 58% increase from $9.8 million in Q1 FY2025[4] - The Semiconductor Back-End Solutions segment generated $11.4 million, up 66% from $6.9 million year-over-year, driven by AI chip testing demand[4] - The Industrial Electronics segment achieved $4.0 million in revenue, a 39% increase from $2.9 million, reflecting growth in new aerospace channel sales[4] - Gross margin for Q1 FY2026 was $2.6 million, or 17% of revenue, down from 23% in the prior year due to lower-margin AI chip testing services[4] - Net income attributable to common shareholders was $77 thousand, or $0.02 per diluted share, compared to a net loss of $236 thousand in the prior year[9] Cash and Assets - Cash, cash equivalents, and restricted cash increased to $20.1 million as of September 30, 2025, up from $19.5 million at June 30, 2025[9] - Total assets increased to $47,378 million as of September 30, 2025, up from $41,068 million on June 30, 2025, representing a growth of approximately 15.6%[14] - Current assets rose to $37,641 million, compared to $31,581 million, reflecting an increase of about 19.2%[14] - Cash and cash equivalents increased to $12,262 million from $10,890 million, representing a growth of approximately 12.6%[14] - Trade accounts receivable rose to $15,860 million, up from $10,804 million, reflecting an increase of about 46.9%[14] - Inventories increased to $2,404 million, compared to $2,262 million, indicating a growth of approximately 6.3%[14] - Paid-in capital increased to $6,037 million from $5,979 million, reflecting a growth of about 1.0%[14] - Accumulated retained earnings rose to $12,114 million, up from $12,037 million, indicating a growth of approximately 0.6%[14] Liabilities and Equity - Total liabilities increased to $13,234 million, up from $7,077 million, marking an increase of approximately 86.8%[14] - Current liabilities surged to $11,954 million, compared to $6,284 million, indicating an increase of around 90.5%[14] - Total equity reached $34,144 million, a slight increase from $33,991 million, showing a growth of about 0.4%[14] Future Outlook - Trio-Tech anticipates continued momentum in fiscal 2026, with steady growth expected in the Industrial Electronics segment and additional revenue from AI chip testing services[5] - The company is focused on cost control, operational efficiency, and strategic growth investments to support profitability and cash generation[5] - The Semiconductor Back-End segment benefits from regional expertise in Southeast Asia and strong customer relationships[3] - U.S. sales in the Industrial Electronics segment have grown for two consecutive quarters, indicating increasing demand and a diversified portfolio[4]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $15,514 million, a 58% increase from $9,799 million in the same period of 2024[66] - Semiconductor Back-end Solutions (SBS) segment revenue increased to $11,452 million in 2025 from $6,879 million in 2024, representing a 66% growth[66] - Industrial Electronics (IE) segment revenue rose to $4,052 million in 2025, up from $2,914 million in 2024, marking an increase of 39%[66] - Service sales reached $9,284 million for the three months ended September 30, 2025, compared to $4,440 million in the same period of 2024, reflecting a 109% increase[88] - Gross profit for the total company was $2,585 million in 2025, compared to $2,322 million in 2024, indicating an increase of 11%[66] - Operating income for the SBS segment was a loss of $80 million in 2025, compared to a profit of $177 million in 2024[66] - For the three months ended September 30, 2025, net income attributable to common shareholders was $77,000, compared to a net loss of $236,000 for the same period in 2024[95] - Basic earnings per share from continuing operations for the three months ended September 30, 2025, was $0.02, while it was $(0.06) for the same period in 2024[95] Assets and Liabilities - Total assets as of September 30, 2025, were $47,378 million, up from $42,940 million in 2024, showing a growth of 10%[66] - As of September 30, 2025, total finance lease liabilities amount to $32,000, while total operating lease liabilities are $1,401,000[114] - The company has future minimum lease payments of $1,524,000 under operating leases and $32,000 under finance leases[117] - The accumulated depreciation for plant and equipment under finance leases was $150,000 as of September 30, 2025[114] Government Grants and Income - The company received government grants of $4 million in 2025, down from $66 million in 2024, primarily due to a decrease in incentives from the Singapore government[68][69] - Interest income decreased to $61 million in 2025 from $101 million in 2024, a decline of 40%[67] Taxation - The effective tax rate for the three months ended September 30, 2025, was 28.2%, slightly down from 28.5% in the same period of 2024[72] Stock Options and Compensation - As of September 30, 2025, there were 392,750 stock options outstanding under the 2017 Employee Plan, with a weighted average exercise price of $5.51 and a remaining contractual term of 2.87 years[103] - During the three-month period ended September 30, 2025, the company recognized $58,000 in stock-based compensation expense, compared to $71,000 for the same period in 2024[100][101] - As of September 30, 2025, there were 471,000 vested stock options under the 2017 Directors Plan, with a weighted average exercise price of $5.80 and a remaining contractual term of 2.51 years[109] - The company granted 44,500 stock options under the 2017 Employee Plan during the three months ended September 30, 2025[100] - The weighted average exercise price of vested stock options under the 2017 Employee Plan as of September 30, 2025, was $5.55[102] - The company had 250,125 exercisable stock options under the 2017 Employee Plan as of September 30, 2025[103] - The company did not grant any stock options under the 2017 Directors Plan during the three months ended September 30, 2025[107] Lease Information - Future minimum rental income from non-cancelable operating leases in China and Thailand is projected to be $462 million from Fiscal 2026 to Fiscal 2029[112] - The weighted-average remaining lease term for finance leases is 0.38 years, while for operating leases it is 2.42 years[116] - Operating lease costs for the three months ended September 30, 2025, were $205,000, compared to $388,000 for the same period in 2024[116] - The company recognized right-of-use assets of $737,000 obtained in exchange for new operating lease liabilities during the three months ended September 30, 2025[116] Customer Concentration - Major customers accounted for significant revenue concentration, with Customer A contributing 39.8% of revenue for the three months ended September 30, 2025[121] Share Repurchase and Financing - The company has authorized a share repurchase program of up to $1 million, with $1 million remaining available for repurchases as of September 30, 2025[122][123] - A shelf registration statement was filed on November 3, 2025, allowing the company to raise up to $50 million for various corporate purposes[124]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) This section provides an overview of Trio-Tech's strategic direction, highlighting key business achievements and future positioning [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlights strong Q4 revenue and profitability from Industrial Electronics, full-year profitability excluding FX, and strategic balance sheet strengthening - In Q4, Trio-Tech achieved year-over-year revenue growth and profitability, driven by strong momentum in the Industrial Electronics (IE) segment, which grew **70%** compared to the prior year[2](index=2&type=chunk) - For the full year, excluding a negative foreign exchange impact of **$671,000**, Trio-Tech would have achieved profitability of **$630,000**, demonstrating operational strength and cost management[3](index=3&type=chunk) - The company's balance sheet is strong, with **$19.5 million** in cash and deposits and an **11% increase** in working capital, providing financial flexibility for growth investments[4](index=4&type=chunk) - Trio-Tech signed an agreement to acquire the remaining **50%** stake in its Malaysian subsidiary, Trio-Tech (Malaysia), subject to government approval, to strengthen its presence in a strategically important region[4](index=4&type=chunk) - The company is uniquely positioned to capitalize on the global semiconductor industry's strategic transformation, with Malaysia and Thailand emerging as critical hubs for backend testing and packaging[5](index=5&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes Trio-Tech's financial results for Q4 and the full fiscal year 2025, detailing revenue, profitability, and key balance sheet changes [Fiscal 2025 Fourth Quarter Financial Results](index=2&type=section&id=Fiscal%202025%20Fourth%20Quarter%20Financial%20Results) Q4 FY25 saw a **10.3% revenue increase** to **$10.7 million**, driven by **70.8% IE growth**, but net income declined **24.7%** due to unfavorable foreign currency movements Q4 Financial Performance (in millions) | Metric | Q4 FY25 ($M) | Q4 FY24 ($M) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Revenue | 10.7 | 9.7 | +10.3% | | SBS Revenue | 6.6 | 7.3 | -9.6% | | IE Revenue | 4.1 | 2.4 | +70.8% | | Gross Margin | 2.6 (25% of revenue) | 2.7 (27% of revenue) | -3.7% | | Income from Operations | 0.467 | 0.358 | +30.4% | | Other Expense (Income) | (0.358) | 0.134 | N/A (swing to expense) | | Net Income Attributable to Common Shareholders | 0.183 | 0.243 | -24.7% | | Net Income per Basic/Diluted Share | 0.04 | 0.06 | -33.3% | - IE revenue increased by **70%** to **$4.1 million**, driven by aviation channel expansion and fulfillment of deferred orders[8](index=8&type=chunk) - Other expense was **$358,000**, mainly due to foreign currency movement, compared to other income of **$134,000** a year ago[8](index=8&type=chunk) [Fiscal 2025 Full Year Results](index=2&type=section&id=Fiscal%202025%20Full%20Year%20Results) Full-year FY25 revenue decreased **13.7%** to **$36.5 million** due to SBS decline, resulting in a **net loss of $41,000**, though profitability would be **$630,000** excluding FX impacts Full Year Financial Performance (in millions) | Metric | FY25 ($M) | FY24 ($M) | Change (YoY) | | :-------------------------------- | :---------- | :---------- | :----------- | | Total Revenue | 36.5 | 42.3 | -13.7% | | SBS Revenue | 24.7 | 30.1 | -18.0% | | IE Revenue | 11.8 | 12.2 | -3.3% | | Gross Margin | 9.1 (25% of revenue) | 10.8 (25% of revenue) | -15.7% | | Income from Operations | 0.254 | 1.1 | -76.9% | | Other Expense (Income) | (0.181) | 0.5 | N/A (swing to expense) | | Net Loss Attributable to Common Shareholders | (0.041) | 1.050 | N/A (swing to loss) | | Net Loss per Basic/Diluted Share | (0.01) | 0.25 (basic), 0.24 (diluted) | N/A (swing to loss) | - Net loss attributable to common shareholders was **$41,000**, but excluding the negative foreign exchange impact of **$671,000**, Trio-Tech would have generated profitability of **$630,000** for the year[8](index=8&type=chunk) - Backlog decreased to **$11 million** as of June 30, 2025, compared to **$14.4 million** a year ago[8](index=8&type=chunk) - Cash, cash equivalents, and restricted cash increased to **$19.5 million** as of June 30, 2025, from **$19.1 million** a year ago[9](index=9&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the audited consolidated financial statements, including statements of operations, comprehensive income, and balance sheets [Condensed Consolidated Statements of Operations and Comprehensive Income / (Loss)](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20%2F%20%28LOSS%29) Detailed audited statements of operations and comprehensive income/loss for Q4 and full-year FY25 and FY24, showing revenue, expenses, and net results Condensed Consolidated Statements of Operations (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 12 Months Ended June 30, 2025 | 12 Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :------------------------------ | :------------------------------ | | **Revenue:** | | | | | | Semiconductor Back-end Solutions | $6,569 | $7,342 | $24,682 | $30,111 | | Industrial Electronics | 4,091 | 2,398 | 11,756 | 12,176 | | Others | 11 | 6 | 35 | 25 | | **Total Revenue** | **10,671** | **9,746** | **36,473** | **42,312** | | Cost of Sales | 8,043 | 7,061 | 27,329 | 31,550 | | **Gross Margin** | **2,628** | **2,685** | **9,144** | **10,762** | | **Operating Expense:** | | | | | | General and administrative | 1,894 | 2,061 | 7,890 | 8,387 | | Selling | 176 | 205 | 718 | 844 | | Research and development | 92 | 87 | 384 | 392 | | (Gain) / Loss on disposal of property, plant and equipment | (1) | (26) | (102) | 46 | | **Total operating expense** | **2,161** | **2,327** | **8,890** | **9,669** | | **Income from Operations** | **467** | **358** | **254** | **1,093** | | **Other (Expense) / Income:** | | | | | | Interest expense | (9) | (14) | (45) | (77) | | Other (expense) / income, net | (358) | 134 | (181) | 500 | | Government grant | 52 | 24 | 145 | 113 | | **Total other (expense) / income** | **(315)** | **144** | **(81)** | **536** | | Income from Continuing Operations before Income Taxes | 152 | 502 | 173 | 1,629 | | Income Tax Benefit / (Expense) | 28 | (212) | (168) | (486) | | Income from Continuing Operations before Non-controlling Interest, Net of Taxes | 180 | 290 | 5 | 1,143 | | Loss from discontinued operations, net of tax | (10) | (4) | (5) | (1) | | **Net Income** | **170** | **286** | **-** | **1,142** | | Less: Net (Loss) / Income attributable to non-controlling interest | (13) | 43 | 41 | 92 | | **Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders** | **$183** | **$243** | **$(41)** | **$1,050** | | **Basic Earnings / (Loss) per Share:** | | | | | | From continuing operations | $0.04 | $0.06 | $(0.01) | $0.25 | | From discontinued operations | - | - | - | - | | **Total Basic EPS** | **$0.04** | **$0.06** | **$(0.01)** | **$0.25** | | **Diluted Earnings / (Loss) per Share:** | | | | | | From continuing operations | $0.04 | $0.06 | $(0.01) | $0.24 | | From discontinued operations | - | - | - | - | | **Total Diluted EPS** | **$0.04** | **$0.06** | **$(0.01)** | **$0.24** | Condensed Consolidated Statements of Comprehensive Income / (Loss) (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 12 Months Ended June 30, 2025 | 12 Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :------------------------------ | :------------------------------ | | Net income | $170 | $286 | $- | $1,142 | | Foreign currency translation, net of tax | 1,058 | (328) | 1,800 | (106) | | **Comprehensive Income / (Loss)** | **1,228** | **(42)** | **1,800** | **1,036** | | Less: comprehensive (loss) / income attributable to non-controlling interest | (184) | 65 | (21) | 84 | | **Comprehensive Income / (Loss) Attributable to Common Shareholders** | **$1,412** | **$(107)** | **$1,821** | **$952** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Detailed audited consolidated balance sheets as of June 30, 2025, and 2024, providing a comprehensive overview of assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | ASSETS | June 30, 2025 | June 30, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------ | | **CURRENT ASSETS:** | | | | Cash and cash equivalents | $10,890 | $10,035 | | Short-term deposits | 5,817 | 6,497 | | Trade accounts receivable, less allowance for expected credit losses | 10,804 | 10,661 | | Other receivables | 608 | 541 | | Inventories, less provision for obsolete inventories | 2,262 | 3,162 | | Prepaid expense and other current assets | 384 | 536 | | Restricted term deposits | 816 | 750 | | **Total current assets** | **31,581** | **32,182** | | **NON-CURRENT ASSETS:** | | | | Deferred tax assets | 91 | 124 | | Investment properties, net | 345 | 407 | | Property, plant and equipment, net | 6,021 | 5,937 | | Operating lease right-of-use assets | 864 | 1,887 | | Other assets | 231 | 232 | | Restricted term deposits | 1,935 | 1,771 | | **Total non-current assets** | **9,487** | **10,358** | | **TOTAL ASSETS** | **$41,068** | **$42,540** | | **LIABILITIES** | | | | **CURRENT LIABILITIES:** | | | | Lines of credit | $141 | $- | | Accounts payable | 1,896 | 3,175 | | Accrued expense | 3,036 | 3,634 | | Contract liabilities | 250 | 754 | | Income taxes payable | 122 | 379 | | Current portion of bank loans payable | 256 | 261 | | Current portion of finance leases | 43 | 57 | | Current portion of operating leases | 540 | 1,162 | | **Total current liabilities** | **6,284** | **9,422** | | **NON-CURRENT LIABILITIES:** | | | | Bank loans payable, net of current portion | 428 | 613 | | Finance leases, net of current portion | - | 34 | | Operating leases, net of current portion | 324 | 725 | | Income taxes payable, net of current portion | - | 141 | | Deferred tax liabilities | 10 | - | | Other non-current liabilities | 31 | 27 | | **Total non-current liabilities** | **793** | **1,540** | | **TOTAL LIABILITIES** | **$7,077** | **$10,962** | | **EQUITY** | | | | **SHAREHOLDERS' EQUITY:** | | | | Common stock | $13,490 | $13,325 | | Paid-in capital | 5,979 | 5,531 | | Accumulated retained earnings | 12,037 | 11,813 | | Accumulated other comprehensive income-translation adjustments | 2,522 | 660 | | **Total shareholders' equity** | **34,028** | **31,329** | | Non-controlling interest | (37) | 249 | | **TOTAL EQUITY** | **$33,991** | **$31,578** | | **TOTAL LIABILITIES AND EQUITY** | **$41,068** | **$42,540** | [Additional Information](index=3&type=section&id=Additional%20Information) This section provides background on Trio-Tech International, outlines forward-looking statement risks, and lists investor relations contacts [About Trio-Tech International](index=3&type=section&id=About%20Trio-Tech%20International) Trio-Tech International, founded in 1958, is a global California-based company specializing in semiconductor testing, manufacturing, and distribution services - Trio-Tech International (NYSE MKT: TRT) is a California-based company operating in the United States, Singapore, Malaysia, Thailand, and China[10](index=10&type=chunk) - Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services[10](index=10&type=chunk) - The Company's diversified business segments include semiconductor back-end solutions and industrial electronics[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) Forward-looking statements are subject to various risks, including market volatility, competition, technological challenges, and international business and economic factors - Forward-looking statements are subject to risks including market acceptance, semiconductor industry volatility, competition, technology problems, product and delivery schedules, changes in testing specifications, integration of acquired businesses, and international business risks (currency fluctuations, tariffs, political instability)[11](index=11&type=chunk) - Other risks include changes in U.S. and global financial markets, trade tension between the U.S. and China, and other economic, financial, and regulatory factors beyond the Company's control[11](index=11&type=chunk) [Investor Relations Contact](index=3&type=section&id=For%20inquiries%2C%20please%20contact%3A) Investor inquiries can be directed to PondelWilkinson Inc., with specific contacts Todd Kehrli and Jim Byers - Investor inquiries can be directed to PondelWilkinson Inc., with contacts Todd Kehrli (tkehrli@pondel.com) or Jim Byers (jbyers@pondel.com)[12](index=12&type=chunk)

[PART I](index=4&type=section&id=Part%20I) [ITEM 1 – BUSINESS](index=4&type=section&id=Item%201%20%E2%80%93%20BUSINESS) Trio-Tech International operates in semiconductor back-end solutions and industrial electronics, diversifying in Fiscal 2025 and ceasing real estate reporting - Trio-Tech International was incorporated in **1958** and operates in two segments: **Semiconductor Back-end Solutions (SBS)** and **Industrial Electronics (IE)**[15](index=15&type=chunk)[18](index=18&type=chunk) - The company's strategy includes reducing its historic concentration on the semiconductor industry by expanding into new markets and diversifying its business lines[19](index=19&type=chunk)[21](index=21&type=chunk) - Effective Fiscal 2025, the real estate segment is no longer reportable due to its revenue being below **1% of total revenue** and management's decision not to allocate additional resources[25](index=25&type=chunk) Customer Concentration (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | | :-------------------------------- | :---------- | :---------- | | Combined sales to 3 largest customers | 47.0% | 49.5% | | Sales from one major customer | 20.7% | 20.6% | | Trade receivables from 3 largest customers | 56.3% | 57.0% | | Trade receivables from one major customer | 22.0% | 20.8% | Backlog as of June 30 (in thousands) | Segment | 2025 ($) | 2024 ($) | | :-------------------------- | :---- | :----- | | Semiconductor Back-end Solutions | $6,695 | $9,865 | | Industrial Electronics | $4,335 | $4,489 | | **Total** | **$11,030** | **$14,354** | [General Overview](index=4&type=section&id=General) Trio-Tech International, incorporated in 1958 and headquartered in Singapore, provides global semiconductor reliability test equipment and services across two segments - Trio-Tech International, a California corporation, was incorporated in **1958** and is headquartered in Singapore[15](index=15&type=chunk) - The company provides reliability test equipment and services to the semiconductor and other industries, acting as a global one-stop solution[17](index=17&type=chunk) - During Fiscal 2025, the company operated in two segments: **Semiconductor Back-end Solutions** and **Industrial Electronics**, with operations in the U.S., Singapore, Malaysia, Thailand, and China[18](index=18&type=chunk)[19](index=19&type=chunk) [Overall Business Strategies](index=6&type=section&id=Overall%20Business%20Strategies) The company aims to diversify beyond the semiconductor industry by expanding market share, geographic reach, new products, and strategic relationships - The core business is in the semiconductor industry, but the company is actively expanding into other areas to reduce risks associated with sole industry and customer concentration[21](index=21&type=chunk) - Strategic goals include capturing additional market share in primary markets, expanding geographic reach, developing new products for new markets, and pursuing complementary strategic relationships through acquisitions or joint ventures[23](index=23&type=chunk) [Business Segments](index=7&type=section&id=Business%20Segments) Effective Fiscal 2025, the company reports financial performance under new segments: Semiconductor Back-end Solutions (SBS) and Industrial Electronics (IE), with the real estate segment now reported under 'Others' - Beginning in Fiscal 2025, financial performance is reported based on new segments: **Semiconductor Back-end Solutions (SBS)** and **Industrial Electronics (IE)**, following a business strategy realignment[24](index=24&type=chunk) - The SBS segment focuses on designing, manufacturing, and providing testing services for burn-in and reliability test equipment in the semiconductor back-end processes[26](index=26&type=chunk) - The IE segment includes design, manufacture, and distribution of test, process, and other equipment for various consumer and industrial markets, along with value-added distribution of electronic components[27](index=27&type=chunk) - The real estate segment, previously reported, ceased to be a reportable segment in Fiscal 2025 due to its immaterial contribution and will be presented under 'Others'[25](index=25&type=chunk) [Product Research and Development](index=8&type=section&id=Product%20Research%20and%20Development) Research and development expenses decreased slightly in Fiscal 2025, focusing on improving product design and process technology in the U.S. and Singapore Research and Development Expense (in thousands) | Year | Expense ($) | | :-------- | :------ | | Fiscal 2025 | $384 | | Fiscal 2024 | $392 | - R&D activities are focused on improving product design and process technology, conducted in the U.S. and Singapore[28](index=28&type=chunk) [Marketing, Distribution and Services](index=8&type=section&id=Marketing%2C%20Distribution%20and%20Services) The company markets its products and services globally through direct sales, independent sales representatives, and its own marketing team - The company markets its products and services globally through direct sales, **5 independent sales representatives in the U.S.**, **22 in foreign countries**, and its own marketing team[29](index=29&type=chunk) [Customer Concentration](index=8&type=section&id=Customer%20Concentration) Customer concentration remains high, with the top three customers accounting for 47% of sales and 56.3% of trade receivables in Fiscal 2025, primarily from non-U.S. customers Customer Concentration (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | | :-------------------------------- | :---------- | :---------- | | Combined sales to 3 largest customers | 47.0% | 49.5% | | Sales from one major customer | 20.7% | 20.6% | | Trade receivables from 3 largest customers | 56.3% | 57.0% | | Trade receivables from one major customer | 22.0% | 20.8% | - The majority of sales and services in Fiscal 2025 and 2024 were provided to customers outside the U.S.[30](index=30&type=chunk) [Backlog](index=8&type=section&id=Backlog) Total backlog decreased to $11.03 million in Fiscal 2025 from $14.354 million in Fiscal 2024, with no significant cancellations anticipated Backlog as of June 30 (in thousands) | Segment | 2025 ($) | 2024 ($) | | :-------------------------- | :---- | :----- | | Semiconductor Back-end Solutions | $6,695 | $9,865 | | Industrial Electronics | $4,335 | $4,489 | | **Total** | **$11,030** | **$14,354** | - The company does not anticipate significant cancellations or renegotiations of sales, with purchase orders generally requiring delivery within **12 months**[32](index=32&type=chunk) [Materials and Supplies](index=9&type=section&id=Materials%20and%20Supplies) The company sources parts and components from external vendors for assembly in its global facilities, believing no single supplier loss would materially affect operations - All parts and certain components are purchased from outside vendors for assembly in U.S., China, and Singapore facilities[33](index=33&type=chunk) - The company believes the loss of any single supplier would not materially adversely affect operations due to the availability of parts from various sources[33](index=33&type=chunk) [Competition](index=9&type=section&id=Competition) Competition in the SBS segment is intense, driven by product performance and service, while the IE segment differentiates through integrated value-added services - Competition in the SBS segment is intense, with key factors including product performance, reliability, service, technical support, and price[35](index=35&type=chunk)[36](index=36&type=chunk) - The IE segment differentiates itself through an integrated approach combining standard product offerings with value-added services like customization and technical support[38](index=38&type=chunk) [Patents](index=9&type=section&id=Patents) The company did not register any U.S. patents in Fiscal 2025 or 2024, but acknowledges potential material impact from intellectual property litigation - The company did not register any patents in the U.S. during Fiscal 2025 and 2024[39](index=39&type=chunk) - While the company believes it does not infringe on others' intellectual property, litigation costs or damages from potential claims could materially affect its business[40](index=40&type=chunk) [Employees](index=9&type=section&id=Employees) Total full-time employees decreased to 614 in Fiscal 2025 from 673 in Fiscal 2024, with the majority based in Asia and no union representation Employee Count as of June 30 | Category | 2025 | 2024 | | :--------- | :--- | :--- | | Full-time employees | 614 | 673 | | Part-time employees | 4 | 3 | | U.S. full-time | 5 | 6 | | Asia full-time | 609 | 667 | | SBS segment | 559 | 621 | | IE segment | 31 | 23 | | General admin/others | 24 | 29 | - None of the company's employees are represented by a labor union[41](index=41&type=chunk)[42](index=42&type=chunk) [ITEM 1A – RISK FACTORS](index=10&type=section&id=Item%201A%20Risk%20factors) As a smaller reporting company, Trio-Tech International is not required to provide the detailed risk factor information typically found in this item - The company is exempt from providing detailed risk factor disclosures as it qualifies as a smaller reporting company[43](index=43

Revenue Performance - Total revenue for Q3 2025 was $7.4 million, a decrease of 29% from $10.4 million in Q3 2024[4] - SBS segment revenue was $5.4 million, down 30% from $7.7 million a year ago; IE segment revenue was $2.0 million, down 26% from $2.7 million[4] - Revenue for the three months ended March 31, 2025, was $7,384,000, a decrease of 29% compared to $10,398,000 for the same period in 2024[14] - Total revenue for the nine months ended March 31, 2025, was $25,802,000, a decrease of 21% from $32,566,000 in the same period of 2024[14] Profitability and Loss - Gross margin for Q3 2025 was $2.0 million, or 27% of revenue, compared to $2.7 million, or 26% of revenue in the prior year[4] - Net loss attributable to common shareholders was $495,000, compared to net income of $70,000 in the same quarter last year[8] - Basic loss per share from continuing operations for the three months ended March 31, 2025, was $(0.12), compared to earnings of $0.02 in the same period last year[14] - Comprehensive income attributable to common shareholders for the three months ended March 31, 2025, was $20,000, compared to a loss of $683,000 in the same period of 2024[16] - The company reported a loss from operations of $(343,000) for the three months ended March 31, 2025, compared to income of $59,000 in the same period last year[14] Cost Management - Total operating expenses decreased to $2.3 million from $2.6 million a year ago, indicating cost management efforts[4] - Operating expenses for the nine months ended March 31, 2025, totaled $6,729,000, a decrease of 8% from $7,342,000 in the previous year[14] - Interest expense for the nine months ended March 31, 2025, was $36,000, down from $63,000 in the prior year[14] Financial Position - Cash and cash equivalents increased to $11.0 million as of March 31, 2025, from $10.0 million on June 30, 2024[8] - The company is focusing on preserving financial flexibility and aligning its cost structure with current demand amid uncertain macroeconomic conditions[3] Shareholder Actions - The Board of Directors authorized a share repurchase program to buy back up to $1.0 million of common stock over two years, reflecting confidence in long-term growth[1] Demand Indicators - The company secured over $1.2 million in follow-on orders for POS components during the quarter, indicating strong demand in the IE segment[2] Foreign Currency Impact - The company recognized a foreign currency translation gain of $522,000 for the three months ended March 31, 2025[16]