Trio-Tech International(TRT) - 2025 Q4 - Annual Results

Executive Summary & Business Highlights This section provides an overview of Trio-Tech's strategic direction, highlighting key business achievements and future positioning CEO Commentary 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] - 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] - 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] - 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] - 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] Financial Performance Analysis 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 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] - Other expense was $358,000, mainly due to foreign currency movement, compared to other income of $134,000 a year ago[8] Fiscal 2025 Full Year Results 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] - Backlog decreased to $11 million as of June 30, 2025, compared to $14.4 million a year ago[8] - Cash, cash equivalents, and restricted cash increased to $19.5 million as of June 30, 2025, from $19.1 million a year ago[9] Consolidated Financial Statements 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) 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 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 This section provides background on Trio-Tech International, outlines forward-looking statement risks, and lists investor relations contacts About Trio-Tech International 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] - Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services[10] - The Company's diversified business segments include semiconductor back-end solutions and industrial electronics[10] Forward-Looking Statements 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] - 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] Investor Relations Contact 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]