Trio-Tech International(TRT) - 2023 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2023, was $9,842, a decrease of $1,296 or 11.6% compared to $11,138 for the same period in Fiscal 2022[145] - Revenue from the Testing segment increased by $1,280 or 29.0% to $5,697 for the three months ended March 31, 2023, compared to $4,417 for the same period in Fiscal 2022[145] - Revenue in the Manufacturing segment decreased by $134 or 4.3% to $2,963 for the three months ended March 31, 2023, compared to $3,097 for the same period in Fiscal 2022[145] - Distribution segment revenue decreased by $2,441 or 67.4% to $1,179 for the three months ended March 31, 2023, compared to $3,620 for the same period in Fiscal 2022[145] - Real estate segment revenue decreased to $3 for the three months ended March 31, 2023, compared to $4 for the same period in Fiscal 2022[156] - Testing segment revenue increased to $5,697 million in Q1 2023 from $4,417 million in Q1 2022, with a gross margin of 30.8% compared to 28.3%[183] - Distribution segment revenue decreased to $1,179 million in Q1 2023 from $3,620 million in Q1 2022, with a gross margin of 17.3% down from 18.6%[184] - Manufacturing segment revenue increased to $11,592 million for the nine months ended March 31, 2023, with income from operations rising to $373 million from $107 million in the same period of 2022[208] - Testing segment revenue increased to $17,709 million for the nine months ended March 31, 2023, up from $13,983 million in 2022, with income from operations rising to $1,445 million from $999 million[209] - Distribution segment revenue decreased to $4,855 million for the nine months ended March 31, 2023, down from $8,038 million in 2022, with income from operations falling to $633 million from $1,107 million[211] - Real Estate segment revenue was $15 million for the nine months ended March 31, 2023, down from $23 million in 2022, with a loss from operations of $76 million, an improvement from a loss of $86 million[212] Financial Position - Total assets increased by $1,953 to $45,374 as of March 31, 2023, compared to $43,421 as of June 30, 2022[145] - Total liabilities decreased by $521 to $14,898 as of March 31, 2023, compared to $15,419 as of June 30, 2022[145] - Cash and cash equivalents rose to $8,430 million as of March 31, 2023, an increase of $732 million from $7,698 million as of June 30, 2022[215] - Property, plant and equipment increased by $1,506 million to $9,987 million as of March 31, 2023, from $8,481 million as of June 30, 2022, mainly due to acquisitions in China operations[219] Profitability and Expenses - For the three months ended March 31, 2023, overall gross margin increased by 2.8% to 25.0% from 22.2% in the same period of Fiscal 2022[165] - Gross profit in the Testing segment increased by $519 to $1,757 for the three months ended March 31, 2023, compared to $1,248 for the same period in Fiscal 2022, with a gross profit margin increase of 2.5% to 30.8%[167] - The Company experienced a gross profit margin decrease of 1.0% to 17.3% in the Manufacturing segment for the three months ended March 31, 2023, compared to 18.3% in the same period of Fiscal 2022[166] - General and administrative expenses decreased by $130 or 5.5% to $2,248 for the three months ended March 31, 2023, compared to $2,378 in the same period of Fiscal 2022[171] - Interest expense decreased by $2 or 6.4% to $29 for the three months ended March 31, 2023, compared to $31 for the same period in Fiscal 2022[174] - Total operating expenses for the three months ended March 31, 2023, were $2,495, a decrease from $2,604 in the same period of Fiscal 2022[170] - Corporate operating loss reduced to $87 million in Q1 2023 from $402 million in Q1 2022[186] Net Income and Loss - Net loss attributable to common shareholders for the three months ended March 31, 2023, was $7, a change of $160 from a net loss of $167 in the same period of Fiscal 2022[178] - The share of non-controlling interest in net profit from subsidiaries for the three months ended March 31, 2023, was $61, an increase of $98 compared to a net loss of $37 for the same period in Fiscal 2022[177] - Net income attributable to common shareholders was $1,382 million for the nine months ended March 31, 2023, a decrease from $1,605 million in the same period of 2022[204] - Basic earnings per share from continuing operations was $0.34 for the nine months ended March 31, 2023, compared to $0.40 for the same period in 2022[205] Cash Flow - Net cash provided by operating activities increased to $6,411 million for the nine months ended March 31, 2023, up from $579 million in the same period of Fiscal 2022[225] - Net cash outflow from financing activities was $1,078 million for the nine months ended March 31, 2023, a decrease of $1,588 million compared to cash inflow of $510 million in the same period of 2022[227] Operational Challenges - The Company continues to face uncertainties related to supply shortages and inflationary cost pressures, which may impact revenue and gross margin in the near term[159] - The number of days' sales outstanding in accounts receivable increased to 87 days as of March 31, 2023, compared to 81 days at the end of Fiscal 2022[216] - Operating expenses in the Testing segment increased to $4,730 million for the nine months ended March 31, 2023, from $3,843 million in 2022, primarily due to increased corporate overheads[209]