Trio-Tech International (TRT) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter ended December 31, 2024, declined 29.4% year-over-year to $8,619, reflecting softness in the semiconductor market and slower electronic equipment sales.

• Net income attributable to common shareholders was $507 for the quarter, unchanged from the prior year, while six-month net income fell to $271 from $737 year-over-year.

• Gross margin improved to 25.7% from 23.4% year-over-year, despite lower absolute gross profit due to reduced depreciation and cost controls.

• The company reorganized its reporting structure, now focusing on Semiconductor Back-end Solutions (SBS) and Industrial Electronics (IE) segments.

• Progress was made in shipments of dynamic tester systems for the growing Silicon Carbide (SiC) and Gallium Nitride (GaN) power module markets, targeting high-efficiency power solutions.

Financial highlights

• SBS segment revenue fell 26.4% to $5,809, and IE segment revenue dropped 34.9% to $2,801 for the quarter, both reflecting industry-wide softness.

• Operating loss for the quarter was $3, down from operating income of $677 a year ago; six-month operating income was $130, down from $676.

• Diluted EPS for the quarter was $0.12, flat year-over-year; six-month diluted EPS was $0.06, down from $0.17.

• Cash and cash equivalents increased to $10,323, while short-term deposits decreased to $6,222.

• For the first six months, revenue was $18,400 (down from $22,200), with net income of $271 (down from $737) and EPS of $0.06 (down from $0.17).

Outlook and guidance

• Management expects continued volatility in semiconductor and electronics demand, with ongoing cost controls and efforts to diversify revenue streams.

• The company is positioned to benefit from any industry recovery and is exploring new markets and services, including further engagement in SiC and GaN power module markets.

• The company anticipates providing further updates on progress in these markets throughout the fiscal year.