Trio-Tech International(US:TRT)2023-02-10 16:34Revenue Performance - Total revenue increased by $1,468, or 13.4%, to $12,390 in the second quarter of Fiscal 2023 compared to $10,922 for the same period in Fiscal 2022[144] - Manufacturing segment revenue increased by $1,516, or 43%, to $5,044 in the second quarter of Fiscal 2023 compared to $3,528 for the same period in Fiscal 2022[144] - Testing segment revenue increased by $682, or 13.7%, to $5,648 in the second quarter of Fiscal 2023 compared to $4,966 for the same period in Fiscal 2022[144] - Distribution segment revenue decreased by $726, or 30%, to $1,694 in the second quarter of Fiscal 2023 compared to $2,420 for the same period in Fiscal 2022[144] - Revenue in the Manufacturing segment accounted for 40.7% of total revenue for the three months ended December 31, 2022, an increase from 32.3% in the same period of Fiscal 2022[151] - Revenue in the Testing segment was 45.6% for the three months ended December 31, 2022, representing a marginal increase from 45.4% for the same period of Fiscal 2022[153] - Manufacturing segment revenue increased to $8,629 million for the six months ended December 31, 2022, from $7,090 million in the same period of 2021, with a gross margin of 26.1%[213] - Testing segment revenue rose to $12,012 million for the six months ended December 31, 2022, compared to $9,566 million in the same period of 2021, with a gross margin of 34.5%[215] - Distribution segment revenue decreased to $3,676 million for the six months ended December 31, 2022, down from $4,418 million in the same period of 2021, with a gross margin of 16.0%[217] Profitability Metrics - Overall gross profit margin increased by 0.4% to 26.9% in the second quarter of Fiscal 2023 from 26.5% for the same period in Fiscal 2022[144] - Income from operations was $1,069 for the second quarter of Fiscal 2023, an increase of $413 compared to $656 for the same period in Fiscal 2022[144] - For the three months ended December 31, 2022, the overall gross margin increased by 0.4% to 26.9%, with gross profits rising by $445 to $3,335 compared to the same period in Fiscal 2022[167] - Revenue for the Manufacturing segment increased to $5,044, with a gross margin of 23.7%, up from 18.5% in the same period of Fiscal 2022, resulting in income from operations of $301 compared to a loss of $48[185] - The Testing segment reported revenue of $5,648, with a gross margin of 33.7%, down from 37.8% in the same period of Fiscal 2022, leading to income from operations of $547, a decrease from $588[186] - Overall gross margin for the six months ended December 31, 2022, was 28.6%, a slight decrease from 28.8% in the same period of 2021, with gross profit increasing by $888 million to $6,957 million[192] - Corporate operating profit improved to $32 million in Q4 2022 from a loss of $133 million in Q4 2021[189] Income and Expenses - Net income attributable to common shareholders was $507 for the three months ended December 31, 2022, a decrease of $348 compared to $855 for the same period in Fiscal 2022[181] - Basic earnings per share from continuing operations were $0.12 for the three months ended December 31, 2022, down from $0.22 in the same period of Fiscal 2022[182] - The income tax expense increased to $241 for the three months ended December 31, 2022, up from $153 in the same period of Fiscal 2022, primarily due to increased taxable income[179] - Total operating expenses for the six months ended December 31, 2022, increased to $4,821 million from $4,443 million in the same period of 2021, driven by higher general and administrative expenses[198] - Interest expense significantly decreased by 64.3% to $10 for the three months ended December 31, 2022, compared to $28 for the same period in Fiscal 2022[176] - Interest expense decreased to $54 million for the six months ended December 31, 2022, from $56 million in the same period of 2021[201] Assets and Liabilities - Total assets increased by $2,775 to $46,196 as of December 31, 2022, compared to $43,421 as of June 30, 2022[144] - Total liabilities increased by $804 to $16,223 as of December 31, 2022, compared to $15,419 as of June 30, 2022[144] - Cash and cash equivalents decreased by $1,319 million to $6,379 million as of December 31, 2022, primarily due to additional term deposits and repayment of lines of credit[222] - Trade accounts receivable increased by $1,740 million to $13,332 million as of December 31, 2022, reflecting an increase in overall revenue[224] - Inventories rose by $961 million to $3,219 million as of December 31, 2022, in line with the backlog in manufacturing and distribution segments[225] Cash Flow - Net cash provided by operating activities increased by $2,942 million to an inflow of $3,779 million for the six months ended December 31, 2022[234] - Net cash outflow from financing activities was $1,032 million for the six months ended December 31, 2022, a decrease of $1,105 million compared to cash inflow of $73 million in the same period of 2021[236] Other Information - The Company experienced a negative foreign currency impact, which adversely affected net income due to the strengthening of the Singapore dollar against the U.S. dollar[178] - The share of non-controlling interest in net profit from subsidiaries increased to $58 for the three months ended December 31, 2022, compared to $1 for the same period in Fiscal 2022, attributed to improved performance in the China operation[180] - Real Estate segment revenue was $4 million in Q4 2022, down from $8 million in Q4 2021, with a gross margin of -350.0%[188] - Real Estate segment revenue was $12 million for the six months ended December 31, 2022, compared to $19 million in 2021, with a gross loss margin of 200.0%[219] - The company may raise capital of $10,000,000 USD for expansion of testing capacity and working capital purposes as per the effective Registration Statement on Form S-3[237]