Trio-Tech International(US:TRT)2023-09-27 15:37Revenue and Profitability - For the fiscal year ended June 30, 2023, revenue from the semiconductor industry accounted for 99.9% of total revenue, consistent with the previous year[23]. - Total revenue decreased by $815, or 1.8%, to $43,250 in Fiscal 2023, compared to $44,065 in Fiscal 2022[70]. - Revenue from the Testing segment increased by $3,653, or 18.8%, to $23,130 in Fiscal 2023, compared to $19,477 in Fiscal 2022[70]. - Revenue from the Distribution segment decreased by $4,767, or 43.2%, to $6,270 in Fiscal 2023, compared to $11,037 in Fiscal 2022[70]. - Net profit attributable to Trio-Tech International for Fiscal 2023 was $1,544, compared to net profit of $2,395 in Fiscal 2022[70]. - Basic earnings per share from continuing operations was $0.38 in Fiscal 2023, compared to $0.61 in Fiscal 2022[144]. - Net income attributable to Trio-Tech International common shareholders for the year ended June 30, 2023, was $1,544,000, down 35.6% from $2,395,000 in 2022[199]. Expenses and Liabilities - Research and development expenses were $397,000 for the year ended June 30, 2023, compared to $375,000 for the previous year, reflecting a 5.9% increase[33]. - Operating expenses for Fiscal 2023 totaled $9,477 million, an increase of $97 million or 1.0% compared to $9,380 million in Fiscal 2022[132]. - Total liabilities as of June 30, 2023, were $12,615, a decrease of $2,804, or 18.2%, compared to $15,419 as of June 30, 2022[72]. - Interest expense decreased by $17 to $105 million in Fiscal 2023, compared to $122 million in Fiscal 2022[136]. - Cash paid for income taxes increased to $558,000 in 2023 from $403,000 in 2022, representing a 38.5% increase[206]. Backlog and Market Position - The combined sales of equipment and services to the three largest customers accounted for approximately 59.4% of total net revenue in 2023, down from 65.9% in 2022[35]. - The manufacturing backlog as of June 30, 2023, was $8,056,000, an increase from $6,977,000 in 2022, representing a 15.5% growth[36]. - The testing services backlog decreased to $5,402,000 in 2023 from $5,698,000 in 2022, a decline of 5.2%[36]. - The distribution backlog also decreased to $3,882,000 in 2023 from $4,687,000 in 2022, a drop of 17.2%[36]. - The company continues to assess opportunities for strategic relationships, including acquisitions and joint development projects, to expand its markets[25]. - The company focuses on expanding geographic reach and developing new products and technologies to serve new markets[29]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2023, were $7,583, a decrease of $115, or 1.5%, compared to $7,698 at June 30, 2022[65]. - Total assets as of June 30, 2023, were $42,186, a decrease of $1,235, or 2.8%, compared to $43,421 as of June 30, 2022[64]. - Working capital increased by $2,228, or 12.9%, to $19,501 as of June 30, 2023, compared to $17,273 as of June 30, 2022[70]. - Net cash provided by operating activities increased significantly to $8,110,000 in 2023 from $2,123,000 in 2022, marking a 282.5% increase[206]. - Cash flow from investing activities showed a net outflow of $6,074,000 in 2023, compared to a smaller outflow of $444,000 in 2022[206]. Operational Insights - The company may continue to experience supply shortages and inflationary cost pressures in the near term, which could negatively impact revenue and gross margin[80]. - The company is exploring new markets and products, seeking new customers, and upgrading burn-in technology while improving testing methods for higher technology chips[78]. - The company maintains higher inventories to meet manufacturing customers' demands upon short notice, while working closely with customers to avoid stockpiling[78]. - The company’s primary exposure to foreign currency exchange rate movements relates to non-U.S. dollar-denominated sales, which could adversely affect sales and earnings[79]. Financial Reporting and Controls - The Company concluded that its disclosure controls and procedures were effective as of June 30, 2023[166]. - The Company assessed the effectiveness of its internal controls over financial reporting as of June 30, 2023, and found them to be effective[170]. - There were no changes in the Company's internal control over financial reporting during the fourth quarter of Fiscal 2023 that materially affected its effectiveness[171]. - The consolidated financial statements present fairly the financial position of the Company as of June 30, 2023, in conformity with U.S. generally accepted accounting principles[190]. - The independent auditors have served as the Company's auditors since 2009, indicating a long-standing relationship[196].