Revenue Performance - For the nine months ended March 31, 2025, total revenue was $25,802 million, a decrease of 20.7% from $32,566 million in the same period of 2024[69]. - The Semiconductor Back-end Solutions (SBS) segment generated revenue of $18,113 million in the nine months ended March 31, 2025, down 20.4% from $22,769 million in 2024[69]. - The Industrial Electronics (IE) segment reported revenue of $7,665 million for the nine months ended March 31, 2025, a decline of 21.6% compared to $9,778 million in 2024[69]. - Total revenue decreased by $3,014, or 29.0%, to $7,384 in the third quarter of Fiscal 2025, compared to $10,398 for the same period in Fiscal 2024[137]. - SBS segment revenue decreased by $2,272, or 29.5%, to $5,425 for the third quarter of Fiscal 2025, compared to $7,697 for the same period in Fiscal 2024[137]. - IE segment revenue decreased by $745, or 27.6%, to $1,950 for the third quarter of Fiscal 2025, compared to $2,695 for the same period in Fiscal 2024[137]. - Total SBS revenue decreased by $4,656 to $18,113 from $22,769 for the nine months ended March 31, 2025, compared to the same period in Fiscal 2024[142]. - Total IE revenue decreased by $2,113 from $9,778 to $7,665 for the nine months ended March 31, 2025, compared to the same period in Fiscal 2024[147]. Profitability and Loss - Gross profit for the total company was $6,516 million for the nine months ended March 31, 2025, down 19.4% from $8,077 million in the same period of 2024[69]. - The operating income for the total company was a loss of $213 million for the nine months ended March 31, 2025, compared to a profit of $735 million in 2024[69]. - The company recognized a net loss attributable to common shareholders of $495 million for the three months ended March 31, 2025, compared to a net income of $70 million for the same period in 2024[98]. - Basic loss per share from continuing operations was $(0.12) for the three months ended March 31, 2025, compared to earnings of $0.02 for the same period in 2024[98]. - Loss from operations was $343 for the three months ended March 31, 2025, reflecting a decline of $402 compared to income from operations of $59 for the same period in Fiscal 2024[143]. - Net loss attributable to common shareholders was $224 million for the nine months ended March 31, 2025, a negative swing of $1,031 million compared to net income of $807 million in the same period of 2024[186]. Assets and Liabilities - Total assets as of March 31, 2025, were $39,959 million, a decrease from $43,087 million as of March 31, 2024[69]. - As of March 31, 2025, trade accounts receivable amounted to $8,965 million, a decrease from $10,661 million as of June 30, 2024[94]. - Total assets decreased by $2,581 to $39,959 as of March 31, 2025, compared to $42,540 as of June 30, 2024[143]. - Total liabilities decreased by $3,731 to $7,231 as of March 31, 2025, compared to $10,962 as of June 30, 2024[143]. - Accounts payable decreased by $1,217 to $1,958 as of March 31, 2025, compared to $3,175 as of June 30, 2024, aligning with reduced procurement activity[199]. Cash Flow and Investments - Net cash provided by operating activities decreased by $1,483 to an inflow of $1,035 for the nine months ended March 31, 2025, from $2,518 for the same period in Fiscal 2024[207]. - Net cash used in investing activities was $101 for the nine months ended March 31, 2025, a variance of $557 compared to net cash provided by investing activities of $456 for the same period in Fiscal 2024[208]. - Net cash used in financing activities was $96 for the nine months ended March 31, 2025, representing a decrease of $18 compared to cash outflow of $78 during the same period in Fiscal 2024[209]. Government Grants and Taxation - The company received government grants totaling $93 million in the nine months ended March 31, 2025, compared to $89 million in the same period of 2024[74]. - The effective tax rate (ETR) from continuing operations was 933.3% for the nine months ended March 31, 2025, compared to 24.3% for the same period in 2024[77]. - The Company received government grants amounting to $22 for the three months ended March 31, 2025, compared to $12 in the same period of Fiscal 2024[163]. Stock Options and Compensation - The company granted 80,000 stock options during the nine-month period ended March 31, 2025, with a recognized stock-based compensation expense of $209 million[103]. - As of March 31, 2025, there were 348,250 stock options outstanding under the 2017 Employee Plan, with a weighted average exercise price of $5.55[106]. - The weighted average remaining contractual term for vested stock options as of March 31, 2025, was 2.60 years[105]. - The weighted average exercise price of vested stock options as of March 31, 2025, was $5.80, with a total of 471,000 shares covered and a remaining contractual term of 3.01 years[112]. - The Company recognized a stock-based compensation expense of $220,000 for the nine months ended March 31, 2024, with 49,000 stock options exercised during the same period[111]. Future Projections and Plans - The company plans to focus on segments with anticipated opportunities for future revenue growth, potentially divesting underperforming segments[71]. - Future minimum rental income from non-cancelable operating leases in China and Thailand is projected to be $139,000 from Fiscal 2025 to Fiscal 2029[115]. - The total future minimum lease payments for operating leases as of March 31, 2025, amount to $1,170,000, with a present value of net minimum lease payments of $1,105,000[120]. Operating Expenses - Total operating expenses increased to $6,729 million for the nine months ended March 31, 2025, from $7,342 million in the same period of 2024, with general and administrative expenses decreasing by 5.2%[177]. - Operating expenses for the three months ended March 31, 2025, totaled $2,319, a decrease of $325 from $2,644 in the same period of Fiscal 2024, primarily due to a 12.1% reduction in general and administrative expenses[158].

Financial Performance - Total revenue for Q2 FY2025 was $8.6 million, down from $12.2 million year-over-year, representing a decrease of 29.5%[6] - Total revenue for the first six months of FY2025 was $18.4 million, down from $22.2 million year-over-year, a decrease of 17.1%[10] - Revenue for the three months ended December 31, 2024, was $8,619,000, a decrease of 29.1% compared to $12,202,000 for the same period in 2023[14] - Gross margin for Q2 FY2025 was $2.2 million, or 26% of revenue, compared to $2.9 million, or 23% of revenue a year ago[10] - Gross margin for the six months ended December 31, 2024, was $4,540,000, down from $5,374,000 in 2023, reflecting a decline of 15.5%[14] - Net income attributable to common shareholders for Q2 FY2025 was $507,000, unchanged from the previous year[10] - Net income attributable to common shareholders for the three months ended December 31, 2024, was $507,000, unchanged from the same period in 2023[14] - Basic earnings per share from continuing operations remained at $0.12 for both the three months ended December 31, 2024, and 2023[14] - Comprehensive loss attributable to common shareholders for the three months ended December 31, 2024, was $(1,263,000), compared to comprehensive income of $1,716,000 in 2023[16] Operating Expenses - Total operating expenses for Q2 FY2025 remained stable at $2.2 million compared to the same quarter last year[10] - Total operating expenses for the six months ended December 31, 2024, were $4,410,000, a decrease from $4,698,000 in 2023[14] Other Income and Losses - Other income for Q2 FY2025 was $678,000, primarily due to favorable foreign currency movements, compared to an expense of $100,000 a year ago[10] - The company reported other income of $678,000 for the three months ended December 31, 2024, compared to an expense of $(100,000) in the same period of 2023[14] - The company experienced a foreign currency translation loss of $(1,794,000) for the three months ended December 31, 2024[16] Market Focus and Growth - The company is actively engaging with potential new customers in the SiC and GaN markets, indicating a focus on high-efficiency power solutions[6] - The company anticipates continued growth in the SiC and GaN markets, driven by increasing demand for high-performance applications[6] Income from Operations - The company reported a loss from operations of $3,000 in Q2 FY2025, compared to income from operations of $677,000 a year ago[10] - Income from continuing operations before income taxes for the three months ended December 31, 2024, was $675,000, compared to $577,000 in 2023, an increase of 17%[14] Cash Position - Cash and cash equivalents increased to $10.3 million as of December 31, 2024, compared to $10.0 million on June 30, 2024[10] Share Information - The weighted average number of common shares outstanding for the three months ended December 31, 2024, was 4,403,404[15]

Revenue and Segment Performance - Total revenue for the six months ended December 31, 2024, was $18,418 million, a decrease of 16% from $22,168 million in the same period of 2023[75]. - Semiconductor Back-end Solutions (SBS) segment revenue for the six months ended December 31, 2024, was $12,688 million, down 16% from $15,072 million in 2023[75]. - Industrial Electronics (IE) segment revenue for the six months ended December 31, 2024, was $5,715 million, a decrease of 19% from $7,083 million in 2023[75]. - Total revenue decreased by $3,583, or 29.4%, to $8,619 in the second quarter of Fiscal 2025, compared to $12,202 for the same period in Fiscal 2024[150]. - SBS segment revenue decreased by $2,087, or 26.4%, to $5,809 for the second quarter of Fiscal 2025, compared to $7,896 for the same period in Fiscal 2024[150]. - IE segment revenue decreased by $1,499, or 34.9%, to $2,801 for the second quarter of Fiscal 2025, compared to $4,300 for the same period in Fiscal 2024[150]. - Revenue for the three and six months ended December 31, 2024 was $8,619 and $18,418, respectively, a decrease of $3,583 and $3,750, respectively, compared to the same period of Fiscal 2024[152]. Profitability and Income - Gross profit for the total company for the six months ended December 31, 2024, was $4,540 million, compared to $5,374 million in 2023, reflecting a gross margin of 24.6%[75]. - Operating income for the total company for the six months ended December 31, 2024, was $130 million, down from $676 million in 2023[75]. - The Company’s net income attributable to common shareholders for the six months ended December 31, 2024, was $271 million, compared to $737 million for the same period in 2023[106]. - Basic earnings per share from continuing operations attributable to the Company was $0.12 for the three months ended December 31, 2024, consistent with the same period in 2023[106]. - Basic earnings per share from continuing operations decreased to $0.06 for the six months ended December 31, 2024, compared to $0.18 in the same period of Fiscal 2024[201]. - Overall gross margin increased by 2.3% to 25.7% for the second quarter of Fiscal 2025, from 23.4% for the same period in Fiscal 2024[150]. - Overall gross margin increased marginally by 0.4% to 24.6% for the six months ended December 31, 2024, from 24.2% for the same period in Fiscal 2024[187]. Assets and Liabilities - Total assets as of December 31, 2024, were $39,800 million, a decrease from $46,598 million in 2023[75]. - Total assets decreased by $2,740 to $39,800 as of December 31, 2024, compared to $42,540 as of June 30, 2024[150]. - Total liabilities decreased by $3,391 to $7,571 as of December 31, 2024, compared to $10,962 as of June 30, 2024[150]. - The Company reported trade accounts receivable of $9,881 million as of December 31, 2024, compared to $10,661 million as of June 30, 2024, indicating a decrease of approximately 7.3%[102]. Cash Flow and Financing Activities - Net cash provided by operating activities decreased by $1,113 to an inflow of $254 for the six months ended December 31, 2024, compared to an inflow of $1,367 for the same period in Fiscal 2024[221]. - Net cash provided by investing activities decreased by $896 to $240 for the six months ended December 31, 2024, compared with the same period in Fiscal 2024[221]. - Net cash used in financing activities for the six months ended December 31, 2024, was $183, representing a decrease of $463 compared to cash inflow of $280 during the same period in 2023[222]. - The changes in cash flow from financing activities were mainly due to the absence of cash inflow from stock option exercises and net proceeds from lines of credit in the six months ended December 31, 2024[222]. - The Company filed a shelf registration statement with the SEC to potentially raise $10,000,000 for expansion of testing capacity and working capital purposes[222]. Stock Options and Compensation - The Company recognized $125 million in stock-based compensation expense during the six months ended December 31, 2024, compared to $90 million for the same period in 2023, reflecting a 38.9% increase[110][111]. - The total number of outstanding stock options increased to 310,750 as of December 31, 2024, from 197,000 as of December 31, 2023[115]. - The Company granted 40,000 stock options during the six months ended December 31, 2024, while 63,875 stock options were exercised in the same period of 2023[110][111]. - The Company’s stock options granted under the 2017 Employee Plan increased from 216,375 to 270,750 during the six months ended December 31, 2024[115]. - The 2017 Directors Plan was amended to increase the total shares covered from 600,000 to 900,000 shares, approved by shareholders in December 2023[117]. - As of December 31, 2024, there were 431,000 vested stock options under the 2017 Directors Plan with a weighted average exercise price of $5.24 and a remaining contractual term of 2.38 years[120]. Operating Expenses and Other Income - Total operating expenses decreased by $288 to $4,410 for the six months ended December 31, 2024, compared to $4,698 in the same period of Fiscal 2024[190]. - Operating expenses increased by $44 to $2,221 for the three months ended December 31, 2024, compared to $2,177 for the same period in Fiscal 2024[167]. - Interest expense decreased by $20, or 43.5%, to $26 for the six months ended December 31, 2024, compared to $46 in the same period of Fiscal 2024, due to lower utilization of credit facilities[194]. - Other income increased by $207 to $321 for the six months ended December 31, 2024, compared to $114 in the same period of Fiscal 2024, primarily due to favorable foreign currency effects[195]. - Other income increased by $768 to $686 for the three months ended December 31, 2024, compared to other expense of $82 for the same period in Fiscal 2024[172]. Future Projections and Market Strategy - The company is exploring new markets and products, looking for new customers, and upgrading burn-in technology while searching for improved testing methods for higher technology chips[158]. - Future minimum rental income from non-cancelable operating leases in China and Thailand is projected to be $192,000 from Fiscal 2025 to Fiscal 2029[125]. - Total future minimum lease payments for operating leases are estimated at $1,248,000, with a present value of net minimum lease payments of $1,197,000 as of December 31, 2024[130].

Financial Performance - Operating profit for the first quarter of fiscal 2025 was $133,000, a significant improvement from a loss of $1,000 in the same quarter of fiscal 2024[2] - Revenue decreased to $9,799,000, down 1.7% from $9,966,000 in the first quarter of fiscal 2024, primarily due to reduced demand for semiconductor services[2] - Gross margin was $2,322,000, representing 24% of revenue, compared to 25% of revenue in the first quarter of fiscal 2024[2] - Net loss was $236,000, or $0.06 per share, compared to net income of $230,000, or $0.05 per diluted share, for the first quarter of fiscal 2024[4] Expenses and Cost Management - General and administrative expenses decreased to $1,964,000, or 20% of revenue, down from $2,158,000, or 22% of revenue, in the prior year[3] - Total operating expenses fell 13% to $2,189,000, or 22% of revenue, compared to $2,521,000, or 25% of revenue, for the first quarter of fiscal 2024[3] Cash and Equity - Cash and cash equivalents decreased to $8,948,000 from $10,035,000 at the end of the previous quarter[5] - Shareholders' equity increased to $33,440,000, or $7.87 per outstanding share, compared to $31,578,000, or $7.43 per outstanding share, at the end of the previous quarter[6] - Total shareholders' equity rose to $33,052,000 from $31,329,000, representing an increase of 5.18%[18] - Paid-in capital increased to $5,602,000 from $5,531,000, a rise of 1.29%[18] - Accumulated retained earnings decreased to $11,577,000 from $11,813,000, a decline of 2.00%[18] - Non-controlling interest increased to $388,000 from $249,000, reflecting a growth of 55.42%[18] Assets and Liabilities - Total assets increased to $42,940,000 as of September 30, 2024, up from $42,540,000 on June 30, 2024, reflecting a growth of 0.94%[17] - Total liabilities and equity remained consistent at $42,940,000 as of September 30, 2024[18] Inventory and Receivables - Trade account receivables increased to $12,094,000, up 13.41% from $10,661,000[17] - Inventories decreased to $2,872,000, down 9.14% from $3,162,000[17] Strategic Focus - The company has adjusted its financial segment reporting to better align with its business focus, creating new segments for "Semiconductor Back-end Solutions" and "Industrial Electronics"[7] - The company aims to achieve profitability despite a volatile market environment by focusing on controllable factors[8] Other Comprehensive Income - Accumulated other comprehensive income-translation adjustments increased significantly to $2,548,000 from $660,000[18]

Revenue Performance - Total revenue decreased by $167, or 1.7%, to $9,799 in the first quarter of Fiscal 2025, compared to $9,966 for the same period in Fiscal 2024[147] - Semiconductor Back-end Solutions segment revenue decreased by $297, or 4.1%, to $6,879 for the first quarter of Fiscal 2025, compared to $7,176 for the same period in Fiscal 2024[147] - Industrial Electronics segment revenue increased by $131, or 4.7%, to $2,914 for the first quarter of Fiscal 2025, compared to $2,783 for the same period in Fiscal 2024[147] - Revenue in the SBS segment as a percentage of total revenue was 70.2% for the three months ended September 30, 2024, a decrease from 72.0% in the same period of Fiscal 2024[150] - Revenue in the IE segment as a percentage of total revenue was 29.7% for the three months ended September 30, 2024, an increase from 27.9% in the same period in Fiscal 2024[156] - Revenue for the three months ended September 30, 2024, was $6,879 million, a decrease from $7,176 million in the same period of Fiscal 2024[183] Profitability and Income - Overall gross profit margin decreased by 1.6% to 23.7% for the first quarter of Fiscal 2025, from 25.3% for the same period in Fiscal 2024[147] - Income from operations was $133 for the first quarter of Fiscal 2025, an increase of $134 compared to a loss from operations of $1 for the same period in Fiscal 2024[147] - Basic loss per share for the first quarter of Fiscal 2025 was $0.06, compared to earnings per share of $0.06 in the same period in Fiscal 2024[147] - Overall gross margin decreased by 1.6% to 23.7% for the three months ended September 30, 2024, from 25.3% for the same period in Fiscal 2024[163] - Income from operations increased to $133 million for the three months ended September 30, 2024, compared to a loss of $1 million for the same period in Fiscal 2024[170] - Net loss attributable to common shareholders was $236 million for the three months ended September 30, 2024, a change of $466 million from a net income of $230 million for the same period in Fiscal 2024[178] Assets and Liabilities - Total assets increased by $400 to $42,940 as of September 30, 2024, compared to $42,540 as of June 30, 2024[147] - Total liabilities decreased by $1,462 to $9,500 as of September 30, 2024, compared to $10,962 as of June 30, 2024[147] - Trade accounts receivable increased by $1,433 million to $12,094 million as of September 30, 2024, from $10,661 million as of June 30, 2024[189] - Inventories decreased by $290 million to $2,872 million as of September 30, 2024, compared to $3,162 million as of June 30, 2024[191] - Accounts payable decreased by $800 million to $2,375 million as of September 30, 2024, compared to $3,175 million as of June 30, 2024, due to payments made to suppliers[193] - Accrued expenses decreased by $374 million to $3,260 million as of September 30, 2024, compared to $3,634 million as of June 30, 2024[194] - Contract liabilities increased by $73 million to $827 million as of September 30, 2024, compared to $754 million as of June 30, 2024, due to an increase in customer deposits received[194] Cash Flow and Expenses - Cash and cash equivalents decreased by $1,087 million to $8,948 million as of September 30, 2024, from $10,035 million as of June 30, 2024[188] - Net cash used in operating activities increased to an outflow of $1,857 million for the three months ended September 30, 2024, compared to an outflow of $24 million for the same period in Fiscal 2024[197] - Net cash provided by investing activities decreased by $733 million to $81 million for the three months ended September 30, 2024, compared to the same period in Fiscal 2024[198] - Net cash used in financing activities was $93 million for the three months ended September 30, 2024, a decrease of $237 million compared to cash inflow of $144 million during the same period in 2023[199] - General and administrative expenses decreased by $194 million, or 9.0%, from $2,158 million to $1,964 million for the three months ended September 30, 2024[168] - Interest expense decreased by $11 million, or 45.8%, to $13 million for the three months ended September 30, 2024, compared to $24 million for the same period in Fiscal 2024[171] Government Grants and Investments - The company received government grants amounting to $66 million for the three months ended September 30, 2024, compared to $73 million for the same period in Fiscal 2024[173] - Investment properties' net in China decreased to $404 million as of September 30, 2024, from $407 million as of June 30, 2024, primarily due to foreign currency exchange movements[192] - Property, plant and equipment increased by $336 million to $6,273 million as of September 30, 2024, from $5,937 million as of June 30, 2024, mainly due to foreign currency exchange movements[192] Capital Raising - The company filed a shelf registration statement to raise capital of up to $10,000 million for expansion of testing capacity and working capital purposes[200]

Revenue Performance - Fourth quarter revenue increased by 7% to $9,746,000, driven by a 60% increase in manufacturing revenue and a 30% increase in distribution revenue[3] - For fiscal year 2024, distribution revenue increased by 32% to $8,297,000, while manufacturing revenue rose by 16% to $16,057,000[4] - Total revenue for fiscal 2024 decreased by 2% to $42,312,000, down from $43,250,000 in fiscal 2023[4] - Revenue for the three months ended June 30, 2024, was $9,746,000, a 7.4% increase from $9,079,000 in the same period of 2023[10] Profitability - Gross margin for the fourth quarter improved by 17% to $2,685,000, representing 28% of revenue, compared to 25% in the same quarter last year[3] - Net income for the fourth quarter rose to $243,000, or $0.06 per diluted share, up from $162,000, or $0.04 per diluted share, in the prior year[3] - Net income attributable to shareholders for fiscal 2024 was $1,050,000, or $0.24 per diluted share, compared to $1,544,000, or $0.37 per diluted share, for fiscal 2023[5] - Gross margin for fiscal 2024 slightly decreased to 25% of revenue, down from 27% in fiscal 2023[5] - Net income attributable to Trio-Tech International for the three months ended June 30, 2024, was $243,000, up from $162,000 in the same period of 2023, representing a 50% increase[10] - Basic earnings per share for continuing operations was $0.06 for the three months ended June 30, 2024, compared to $0.04 in the same period of 2023, a 50% increase[10] Expenses and Losses - Total operating expenses for the three months ended June 30, 2024, were $2,327,000, an increase from $2,161,000 in the same period of 2023, reflecting a 7.7% rise[10] - Comprehensive loss attributable to Trio-Tech International for the three months ended June 30, 2024, was $(77,000), compared to a loss of $(886,000) in the same period of 2023[11] - The company reported a foreign currency translation loss of $(328,000) for the three months ended June 30, 2024, compared to a loss of $(1,137,000) in the same period of 2023[11] - Research and development expenses for the three months ended June 30, 2024, were $87,000, slightly up from $86,000 in the same period of 2023[10] Assets and Liabilities - Total current assets increased to $32,182,000 from $28,827,000, a growth of 4.5% year-over-year[12] - Cash and cash equivalents increased to $10,035,000 at June 30, 2024, compared to $7,583,000 a year earlier[7] - Total liabilities decreased to $10,962,000 from $12,615,000, a reduction of 13.1% year-over-year[12] - Total equity increased to $31,578,000 from $29,571,000, reflecting a growth of 6.8%[13] - Total non-current assets decreased to $10,358,000 from $13,359,000, a decline of 22.4%[12] - Operating lease right-of-use assets decreased to $1,887,000 from $2,609,000, a drop of 27.6%[12] - Total assets slightly increased to $42,540,000 from $42,186,000, a growth of 0.8%[13] Backlog and Future Outlook - Backlog at June 30, 2024, was $14,422,000, down from a record backlog of $17,437,000 at June 30, 2023[6] - The company is focusing on growth opportunities in manufacturing and distribution, evaluating potential acquisitions, and increasing sales efforts[4]

Revenue and Customer Base - Revenue from the Manufacturing, Testing, and Distribution segments accounted for 99.9% of total revenue for the years ended June 30, 2024, and 2023[12]. - Combined sales to the three largest customers represented approximately 49.5% of total net revenue for the year ended June 30, 2024, down from 59.4% in 2023[21]. - The major customer contributed $8,700 million (20.6%) to total net revenue in 2024, compared to $14,595 million (33.7%) in 2023[21]. - The backlog for Manufacturing was $8,056 million, Testing services was $5,402 million, Distribution was $3,882 million, and Real estate was $97 million as of June 30, 2024[22]. - The backlog as of June 30, 2024, was $17,437 million, with manufacturing backlog at $8,056 million, testing services backlog at $5,402 million, and distribution backlog at $3,882 million[22]. Research and Development - Research and development expenses were $392 million and $397 million for the years ended June 30, 2024, and 2023, respectively[20]. - Research and development expenses were $392 million and $397 million for the years ended June 30, 2024, and 2023, respectively, showing a slight decrease of 1.3%[20]. Employee Growth and Structure - As of June 30, 2024, the company had approximately 673 full-time employees, an increase from 573 full-time employees as of June 30, 2023, representing a growth of 17.5%[31]. - The testing services segment employed approximately 582 employees as of June 30, 2024, compared to 481 employees in the same segment as of June 30, 2023, indicating a growth of approximately 21%[32]. - As of June 30, 2024, the company had approximately 59 employees in the manufacturing segment, a slight increase from 56 employees in the previous year[31][32]. - The company has three part-time employees as of June 30, 2024, indicating a shift in workforce structure compared to the previous year when there were no part-time employees[31]. - The company has no employees represented by a labor union, which may affect labor relations and operational flexibility[31]. Competitive Position and Market Strategy - The company operates in the U.S., Singapore, Malaysia, Thailand, and China, focusing on the semiconductor industry[12]. - The company plans to expand its geographic reach and develop new products and technologies to capture additional market share[14]. - The company is actively pursuing new business opportunities in the semiconductor industry to enhance its competitive position and maximize shareholder value[15]. - The principal competitive factors include product performance, reliability, service, and technical support, where the company believes it competes favorably[26]. - The distribution segment offers a one-stop service alternative, enhancing customer value through design consultancy and other services, despite the competitive nature of the semiconductor equipment industry[28]. - The company believes that its reputation, long service history, and strong customer relationships are key factors in maintaining market position despite competition[27]. Supply Chain and Strategic Relationships - The company has no written contracts with key suppliers, believing that the loss of any one supplier would not materially affect operations[24]. - The company has no written contracts with key suppliers, indicating a flexible supply chain management approach[24]. - The company continues to assess opportunities for strategic relationships, including acquisitions and joint development projects[14]. Risks and Challenges - The company faces potential threats to its testing services revenue from competing laboratories and semiconductor manufacturers, which could impact future earnings[27]. - The company did not register any patents in the U.S. during the years ended June 30, 2024 and 2023, which may impact its competitive position in the semiconductor industry[29]. - The company is not currently facing any patent infringement claims, but potential litigation could materially affect its business and financial condition[29].

Revenue Performance - Total revenue for Q3 2024 increased by 6% to $10,398,000 compared to $9,842,000 in Q3 2023[3] - Manufacturing segment revenue surged by 62% to $4,813,000, while Distribution segment revenue rose by 51% to $1,783,000[3] - Testing Services segment revenue decreased by 33% to $3,796,000, reflecting ongoing weakness in global semiconductor demand[3][8] - For the first nine months of fiscal 2024, total revenue decreased by 5% to $32,566,000 compared to $34,171,000 in the same period last year[9] - Manufacturing revenue for the first nine months increased by 8% to $12,488,000, while Distribution revenue rose by 33% to $6,453,000[9] Profitability - Gross margin for Q3 2024 improved to $2,703,000, representing 26% of revenue, up from 25% in the same quarter last year[4] - Net income attributable to common shareholders for Q3 2024 was $70,000, or $0.02 per diluted share, compared to a net loss of $7,000 in Q3 2023[6] - Net income for the three months ended March 31, 2024, was $163,000, compared to $54,000 for the same period in 2023, representing a significant increase[19] - Comprehensive loss attributable to Trio-Tech International for the three months ended March 31, 2024, was $(683,000), compared to a comprehensive income of $305,000 for the same period in 2023[19] Financial Position - Cash, cash equivalents, and short-term deposits increased to $17,025,000, or $4.04 per outstanding share, as of March 31, 2024[13] - Shareholders' equity increased to $31,452,000, or $7.47 per outstanding share, compared to $29,571,000 at June 30, 2023[13] - Total current assets increased to $32,270,000 as of March 31, 2024, from $28,827,000 as of June 30, 2023, reflecting a growth of approximately 15.9%[21] - Cash and cash equivalents rose to $10,716,000 as of March 31, 2024, compared to $7,583,000 as of June 30, 2023, indicating an increase of about 41.9%[21] - Total liabilities decreased to $11,635,000 as of March 31, 2024, from $12,615,000 as of June 30, 2023, showing a reduction of approximately 7.8%[21] - Shareholders' equity for Trio-Tech International increased to $31,242,000 as of March 31, 2024, up from $29,406,000 as of June 30, 2023, representing an increase of about 6.3%[21] - The company’s accumulated retained earnings increased to $11,570,000 as of March 31, 2024, from $10,763,000 as of June 30, 2023, showing a growth of approximately 7.5%[21] Currency and Asset Changes - The company reported a foreign currency translation loss of $(753,000) for the three months ended March 31, 2024, compared to a gain of $166,000 for the same period in 2023[19] - Total non-current assets decreased to $10,817,000 as of March 31, 2024, from $13,359,000 as of June 30, 2023, reflecting a decline of approximately 19.0%[21] - Accounts payable increased to $2,406,000 as of March 31, 2024, compared to $1,660,000 as of June 30, 2023, indicating a rise of about 45.0%[21] Management Outlook - The CEO expressed cautious optimism regarding continued favorable trends in revenue and profitability for the Manufacturing and Distribution segments[7]

Revenue Performance - Total revenue increased by $556, or 5.6%, to $10,398 in Q3 Fiscal 2024, compared to $9,842 in Q3 Fiscal 2023[143] - Manufacturing segment revenue increased by $1,850, or 62.4%, to $4,813 in Q3 Fiscal 2024, compared to $2,963 in Q3 Fiscal 2023[143] - Testing segment revenue decreased by $1,901, or 33.4%, to $3,796 in Q3 Fiscal 2024, compared to $5,697 in Q3 Fiscal 2023[143] - Distribution segment revenue increased by $604, or 51.2%, to $1,783 in Q3 Fiscal 2024, compared to $1,179 in Q3 Fiscal 2023[143] - Revenue in the Manufacturing segment accounted for 46.3% of total revenue in Q3 Fiscal 2024, up from 30.1% in Q3 Fiscal 2023[145] - Revenue in the Testing segment accounted for 36.5% of total revenue in Q3 Fiscal 2024, down from 57.9% in Q3 Fiscal 2023[145] - Distribution segment revenue increased to $1,783 million for the three months ended March 31, 2024, up from $1,179 million in 2023, with income from operations rising to $222 million from $151 million[183] - Manufacturing segment revenue increased to $12,488 million for the nine months ended March 31, 2024, up from $11,592 million in 2023, with income from operations rising to $447 million from $373 million[206] - Testing segment revenue decreased to $13,606 million for the nine months ended March 31, 2024, down from $17,709 million in 2023, resulting in a loss from operations of $463 million compared to an income of $1,445 million[207] - Distribution segment revenue for the nine months ended March 31, 2024, was $6,453 million, an increase of 33% from $4,855 million in the same period of 2023[208] Profitability and Margins - Overall gross profit margin increased by 1.0% to 26.0% in Q3 Fiscal 2024, from 25.0% in Q3 Fiscal 2023[143] - For the three months ended March 31, 2024, overall gross margin increased by 1.0% to 26.0%, with gross profits rising by $245 to $2,703 compared to $2,458 in the same period of Fiscal 2023[162] - Manufacturing segment revenue increased to $4,813, with gross margin rising to 25.3% from 17.3%, resulting in income from operations of $298 compared to a loss of $104 in the same period of Fiscal 2023[181] - Testing segment revenue decreased to $3,796, with a gross margin of 31.5%, resulting in a loss from operations of $183, down from income of $37 in the same period of Fiscal 2023[182] - Distribution segment gross profit increased by $97 to $301, despite a marginal decrease in gross profit margin to 16.9% from 17.3%[165] - Overall gross margin decreased by 2.8% to 24.8% for the nine months ended March 31, 2024, down from 27.6% in the same period of 2023, with gross profits decreasing by $1,338 million to $8,077 million[188] - Gross margin for the Distribution segment improved to 17.6% in 2024 from 16.3% in 2023[208] Operating Income and Expenses - Income from operations was $59 in Q3 Fiscal 2024, an increase of $96 compared to a loss of $37 in Q3 Fiscal 2023[143] - General and administrative expenses increased by $103, or 4.6%, to $2,351, primarily due to higher professional fees and remuneration expenses[169] - Selling expenses increased by $44, or 27.5%, to $204, mainly due to increased travel costs associated with business travel[170] - Corporate operating loss increased to $255 million for the three months ended March 31, 2024, compared to a loss of $87 million in the same period in 2023, primarily due to higher stock compensation and professional fees[186] - Corporate loss from operations decreased to $41 million in 2024 from $276 million in 2023[210] Net Income and Earnings Per Share - Net income attributable to common shareholders was $39 for the three months ended March 31, 2024, a change of $46 from a net loss of $7 in the same period of Fiscal 2023[177] - Basic earnings per share from continuing operations were $0.02 for the three months ended March 31, 2024, compared to $nil for the same period in Fiscal 2023[178] - Net income attributable to common shareholders decreased to $776 million for the nine months ended March 31, 2024, down from $1,382 million in 2023, primarily due to decreased revenue and gross margin[202] - Basic earnings per share from continuing operations was $0.19 for the nine months ended March 31, 2024, compared to $0.34 for the same period in 2023[203] Assets and Liabilities - Total assets increased by $901 to $43,087 as of March 31, 2024, compared to $42,186 as of June 30, 2023[143] - Total liabilities decreased by $980 to $11,635 as of March 31, 2024, compared to $12,615 as of June 30, 2023[143] - Cash and cash equivalents rose by $3,133 million to $10,716 million as of March 31, 2024, attributed to cash generated from operations[212] - Trade accounts receivable increased by $279 million to $10,083 million as of March 31, 2024, primarily due to longer credit terms in Singapore operations[214] Other Income and Expenses - Interest expense decreased by $12, or 41.4%, to $17 for the three months ended March 31, 2024, due to lower utilization of credit facilities[172] - Interest expense decreased by $20 to $63 million for the nine months ended March 31, 2024, from $83 million in the same period of 2023 due to lower utilization of credit facilities[197] - Other income increased by $212 to $252, primarily driven by favorable foreign currency impacts and increased interest income[173] - Other income increased to $366 million for the nine months ended March 31, 2024, compared to an expense of $49 million in 2023, driven by favorable foreign currency impacts and increased interest income[198] Real Estate Segment - Real Estate segment revenue was $6 million for the three months ended March 31, 2024, compared to $3 million in 2023, with a loss from operations of $23 million, improved from a loss of $34 million[184] - Real Estate segment revenue was $19 million for the nine months ended March 31, 2024, up from $15 million in 2023[209] Financing Activities - The company filed a shelf registration statement to raise up to $10,000 million for expansion and working capital purposes[227]

Financial Performance - Revenue for the three months ended December 31, 2023, was $12,202,000, a slight decrease of 1.5% compared to $12,390,000 for the same period in 2022[12] - Net income attributable to Trio-Tech International common shareholders for the six months ended December 31, 2023, was $737,000, down from $1,389,000 in the same period of 2022, reflecting a decline of 47%[12] - Comprehensive income attributable to Trio-Tech International common shareholders for the six months ended December 31, 2023, was $1,742,000, compared to $1,686,000 in the same period of 2022, showing an increase of 3.3%[15] - Net income for the six months ended December 31, 2023, was $693, a decrease of 55.1% compared to $1,543 for the same period in 2022[20] - For the six months ended December 31, 2023, total company net revenue was $22,168 million, down from $24,329 million in the same period of 2022, representing a decline of approximately 8.9%[68] - The company recorded an operating income of $676 million for the six months ended December 31, 2023, down from $2,136 million in the same period of 2022, a decrease of approximately 68.4%[68] Assets and Liabilities - Total assets increased to $46,598,000 as of December 31, 2023, up from $42,186,000 on June 30, 2023, representing a growth of 10.7%[10] - Total current liabilities increased to $12,875,000 as of December 31, 2023, from $9,326,000 on June 30, 2023, marking a rise of 38.5%[10] - Total equity increased to $31,528,000 as of December 31, 2023, from $29,571,000 on June 30, 2023, reflecting a growth of 6.6%[11] - Total cash, cash equivalents, and restricted cash at the end of the period was $13,506, an increase of 52.5% from $8,868 at the end of December 2022[21] - The company’s total liabilities decreased by $1,136 in cash flow from investing activities for the six months ended December 31, 2023, compared to a cash outflow of $3,428 in the same period of 2022[20] Revenue by Segment - The manufacturing segment reported net revenue of $7,675 million for the six months ended December 31, 2023, compared to $8,629 million in 2022, a decrease of 11.1%[68] - The testing services segment generated net revenue of $9,810 million for the six months ended December 31, 2023, down from $12,012 million in 2022, reflecting a decline of 18.3%[68] - The distribution segment achieved net revenue of $4,670 million for the six months ended December 31, 2023, an increase of 27.1% compared to $3,676 million in 2022[68] Expenses and Income - Operating expenses for the three months ended December 31, 2023, were $2,177,000, a decrease of 3.9% compared to $2,266,000 for the same period in 2022[12] - Interest expense increased by $12, or 120.0%, to $22 for the three months ended December 31, 2023, due to utilization of credit facilities[171] - General and administrative expenses decreased by $102, or 5.3%, to $1,817 for the three months ended December 31, 2023[168] - Selling expenses increased by $55, or 28.5%, to $248 for the three months ended December 31, 2023, primarily due to increased commission costs[169] Cash Flow and Investments - Cash provided by operating activities for the six months ended December 31, 2023, was $1,276, down from $3,779 in the prior year, representing a decline of 66.2%[20] - The company recognized stock option expenses of $90 for the six months ended December 31, 2023, compared to $54 in the same period of 2022, marking a 66.7% increase[20] - The company’s cash paid for interest during the period was $21, down from $53 in the same period last year, indicating a decrease of 60.4%[20] Government Grants and Tax - In the three months ended December 31, 2023, the Company received government grants amounting to $4, a decrease from $21 in the same period of 2022[73] - For the six months ended December 31, 2023, the Company received total government grants of $77, compared to $42 in the same period of 2022, with $57 from the U.S. government related to Employee Retention Credit[74] - The Company's income tax expense was $95 for the three months ended December 31, 2023, down from $241 in the same period of 2022, reflecting a decrease in the effective tax rate from 29.5% to 16.5%[77] Stock Options and Compensation - In the first two quarters of Fiscal 2024, 48,000 stock options were granted under the 2017 Employee Plan, with 63,875 stock options exercised, resulting in a stock-based compensation expense of $90[103] - As of December 31, 2023, there were 197,000 outstanding stock options under the 2017 Employee Plan, with a weighted-average exercise price of $5.48 and a weighted average remaining contractual term of 3.51 years[106] - The total vested stock options under the 2017 Employee Plan as of December 31, 2023, covered 88,250 shares with a weighted-average exercise price of $5.59[105] Market and Business Strategy - Management is evaluating the potential divestiture of one or more business segments, including the testing segment, to focus on areas with anticipated revenue growth opportunities[71] - The company is exploring new markets and products while upgrading burn-in technology and improving testing methods for higher technology chips[156]