Trio-Tech International(US:TRT)2024-09-23 16:54Revenue 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].