Trio-Tech International (TRT) Q4 2024 earnings summary

Executive summary

• Revenue for fiscal year ended June 30, 2024 decreased 2.2% to $42.3M, with net income attributable to shareholders down to $1.05M from $1.54M year-over-year.

• Manufacturing and Distribution segments grew, while Testing segment revenue and margin declined sharply due to challenging semiconductor market conditions.

• Gross margin fell to 25.4% from 27.1%, mainly due to underperformance in Testing.

• Working capital increased 16.7% to $22.8M, and cash and cash equivalents rose 32.3% to $10M.

Financial highlights

• Manufacturing revenue rose 16.1% to $16.1M; Distribution up 32.3% to $8.3M; Testing fell 22.5% to $17.9M.

• Net profit attributable to shareholders was $1.05M, down from $1.54M; EPS was $0.25 basic, $0.24 diluted.

• Operating income dropped to $1.1M from $2.2M; overall gross profit margin declined by 1.7 percentage points.

• Total assets increased slightly to $42.5M; total liabilities decreased 13.1% to $11M.

Outlook and guidance

• Management expects continued supply chain and inflationary pressures in the near term.

• Customer capital spending in Manufacturing is likely to slow over the next two quarters, with potential improvement thereafter.

• Distribution segment is expected to perform better in fiscal 2025 despite a weak backlog.