Trio-Tech International(TRT) - 2026 Q2 - Quarterly Report

Revenue Growth - Semiconductor Back-end Solutions (SBS) segment revenue for the six months ended December 31, 2025, was $23,809 million, a 87.5% increase from $12,688 million in the same period of 2024[72] - Industrial Electronics (IE) segment revenue for the six months ended December 31, 2025, was $7,336 million, a 28.3% increase from $5,715 million in the same period of 2024[72] - Total company revenue for the six months ended December 31, 2025, was $31,163 million, compared to $18,418 million for the same period in 2024, representing a 69.0% increase[72] Profitability - The gross profit for the total company for the six months ended December 31, 2025, was $5,084 million, compared to $4,540 million for the same period in 2024, indicating an increase of 12.0%[72] - The operating income for the total company for the six months ended December 31, 2025, was $143 million, compared to $130 million for the same period in 2024, reflecting a 10.0% increase[72] Assets and Liabilities - The total assets of the company as of December 31, 2025, were $45,729 million, up from $39,800 million as of December 31, 2024, marking a 14.7% increase[72] - As of December 31, 2025, trade accounts receivable stood at $13,455 million, up from $10,804 million as of June 30, 2025, reflecting a growth of 24.4%[100] - The total future minimum lease payments under operating leases as of December 31, 2025, amount to $2,830,000, with a present value of net minimum lease payments of $2,551,000[127] Tax and Other Income - The effective tax rate (ETR) from continuing operations for the six months ended December 31, 2025, was 26.2%, down from 38.3% for the same period in 2024[81] - Other income for the three months ended December 31, 2025, totaled $237 million, a decrease from $686 million in the same period in 2024[75] Business Strategy - Management is considering potential divestitures of business segments to focus on areas with anticipated revenue growth opportunities[74] Sales Performance - Product sales for the three and six months ended December 31, 2025, were $4,969 million and $11,188 million, respectively, compared to $4,600 million and $9,954 million for the same period in Fiscal 2025, representing an increase of 8% and 12.4% year-over-year[93] - Service sales for the same periods were $10,672 million and $19,957 million, compared to $4,010 million and $8,449 million in Fiscal 2025, indicating a significant increase of 166% and 135% year-over-year[97] Stock Options and Compensation - The company recognized $113 million in stock-based compensation expense during the six months ended December 31, 2025, compared to $125 million in the same period of 2024[109] - The weighted average exercise price of vested stock options as of December 31, 2025, was $2.82, with a remaining contractual term of 2.06 years[111] - The company had 711,404 outstanding stock options as of December 31, 2025, with an intrinsic value of $2,460 million[112] - The company’s stock options plan allows for the grant of options covering up to 1,200,000 shares of common stock, reflecting an increase from the previous limit of 600,000 shares[107] - As of December 31, 2025, there were vested stock options covering a total of 902,321 shares with a weighted average exercise price of $2.91 and a remaining contractual term of 2.34 years[119] - The Company did not grant any stock options during the six-month periods ended December 31, 2025, and December 31, 2024, and recognized no stock-based compensation expense during these periods[117][118] Customer Concentration - Major customers accounted for significant revenue concentration, with Customer A contributing 41.2% of revenue for the six months ended December 31, 2025, compared to 3.9% in 2024[131] Shareholder Returns - The Company has a share repurchase program authorized for up to $1 million, with the full amount remaining available for repurchases as of December 31, 2025[132][133] Lease Income - Future minimum rental income from non-cancelable operating leases in China and Thailand is contractually due to total $389,000 from Fiscal 2026 to Fiscal 2029[123] - The Company recognized lease costs of $421,000 for operating leases during the six months ended December 31, 2025[126] Stock Split - A two-for-one stock split was executed subsequent to December 31, 2025, with no change to total shareholders' equity[134]