Trio-Tech International(US:TRT)2025-02-13 15:28Revenue 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].