Trio-Tech International(TRT) - 2026 Q1 - Quarterly Report

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]