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Trio-Tech Reports 58% Revenue Growth in Q1 FY2026, Driven by AI Chip Testing Demand and Industrial Electronics Expansion

businesswire.com

VAN NUYS, Calif.--( BUSINESS WIRE)--Trio-Tech International (NYSE MKT: TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced financial results for its fiscal first quarter ended September 30, 2025. The Company reported 58% year-over-year revenue growth, driven by strong performance across both its Semiconductor Back-End and Industrial Electronics segments.

Trio-Tech International Chairman and CEO S.W. Yong’s Comments

“We began fiscal 2026 with strong momentum, delivering solid revenue growth and profitability. Our Semiconductor Back-End segment achieved significant growth, driven by our successful entry into providing final testing services for next-generation high-performance AI devices for a leading AI chip manufacturer. This milestone reinforces our reputation for reliability, performance, and security in mission-critical applications and demonstrates our ability to meet the highest standards before full-scale deployment. We’re proud to support this customer’s innovation journey and look forward to delivering outstanding results.

“Also, as the global semiconductor industry continues its shift from cost optimization to resilience, our Semiconductor Back-End solutions segment is benefiting from our regional expertise in Southeast Asia and deep, long-standing customer relationships.

“At the same time, our Industrial Electronics segment continued to scale, expanding into new aerospace channels and broadening its customer base. Notably, U.S. sales in the segment have grown for two consecutive quarters, reflecting increasing demand and the strength of our diversified portfolio. Our focus on operational discipline and strategic growth gives us confidence in achieving sustainable long-term success.”

Fiscal 2026 First Quarter Financial Results

Outlook

Trio-Tech expects continued momentum through fiscal 2026. The Company anticipates steady growth in its Industrial Electronics segment and additional revenue from its AI chip manufacturing customer for final test services. Trio-Tech remains focused on cost control, operational efficiency, and strategic growth investments to support profitability and cash generation.

About Trio-Tech International

Trio-Tech International (NYSE MKT: TRT) is a California-based company operating in the United States, Singapore, Malaysia, Thailand, and China. Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services. The Company’s diversified business segments include Semiconductor Back-End Solutions and Industrial Electronics.

For more information, visit www.triotech.com and www.universalfareast.com.

Forward-Looking Statements

This press release contains statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward looking statements made by or on behalf of the Company: market acceptance of Company products and services; the divestiture of one or more business segments in response to, among other factors, changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, imposition of tariffs, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; trade tension between U.S. and China and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this release are forward looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology. Forward looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

Three Months Ended

September 30,

September 30,

2025

2024

Revenue

Semiconductor Back-end Solutions

$

11,452

$

6,879

Industrial Electronics

4,052

2,914

Others

10

6

15,514

9,799

Cost of Sales

12,929

7,477

Gross Margin

2,585

2,322

Operating Expense:

General and administrative

2,174

1,964

Selling

271

150

Research and development

94

88

Gain on disposal of property, plant and equipment

-

(13

)

Total operating expense

2,539

2,189

Income from Operations

46

133

Other Income / (Expense)

Interest expense

(8

)

(13

)

Other income / (expense), net

185

(365

)

Government grant

4

66

Total other income / (expense)

181

(312

)

Income / (Loss) from Continuing Operations before Income Taxes

227

(179

)

Income Tax Expense

(64

)

(51

)

Income / (Loss) from Continuing Operations before Non-controlling Interest, Net of Taxes

163

(230

)

Discontinued Operations

Income from discontinued operations, net of tax

2

7

Net Income / (Loss)

165

(223

)

Less: Net income attributable to non-controlling interest

88

13

Net Income / (Loss) Attributable to Common Shareholders

$

77

$

(236

)

Amounts Attributable to Common Shareholders:

Income / (loss) from continuing operations, net of tax

76

(240

)

Income from discontinued operations, net of tax

1

4

Net Income / (Loss) Attributable to Common Shareholders

$

77

$

(236

)

Basic Earnings / (Loss) per Share:

Basic earnings /(loss) per share from continuing operations

$

0.02

$

(0.06

)

Basic earnings / (loss) from discontinued operations

-

-

Basic Earnings / (Loss) per Share from Net Income / (Loss)

$

0.02

$

(0.06

)

Diluted Earnings / (Loss) per Share:

Diluted earnings / (loss) per share from continuing operations

$

0.02

$

(0.06

)

Diluted earnings / (loss) per share from discontinued operations

-

-

Diluted Earnings / (Loss) per Share from Net Income / (Loss)

$

0.02

$

(0.06

)

Weighted Average Number of Common Shares Outstanding

Basic

4,313

4,250

Dilutive effect of stock options

49

85

Number of Shares Used to Compute Earnings Per Share Diluted

4,362

4,335

Three Months Ended

September 30,

September 30,

2025

2024

Comprehensive (Loss) / Income Attributable to Common Shareholders:

Net income / (loss)

$

165

$

(223

)

Foreign currency translation, net of tax

(70

)

2,014

Comprehensive Income

95

1,791

Less: comprehensive income attributable to non- controlling interest

125

139

Comprehensive (Loss) / Income Attributable to Common Shareholders

$

(30

)

$

1,652

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT NUMBER OF SHARES)

September 30,

June 30,

2025

2025

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

12,262

$

10,890

Short-term deposits

5,101

5,817

Trade accounts receivable, less allowance for expected credit losses of $59 and $35, respectively

15,860

10,804

Other receivables

705

608

Inventories, less provision for obsolete inventories of $823 and $851, respectively

2,404

2,262

Prepaid expense and other current assets

494

384

Restricted term deposits

815

816

Total current assets

37,641

31,581

NON-CURRENT ASSETS:

Deferred tax assets

92

91

Investment properties, net

330

345

Property, plant and equipment, net

5,753

6,021

Operating lease right-of-use assets

1,401

864

Other assets

236

231

Restricted term deposits

1,925

1,935

Total non-current assets

9,737

9,487

TOTAL ASSETS

$

47,378

$

41,068

LIABILITIES

CURRENT LIABILITIES:

Lines of credit

$

-

$

141

Accounts payable

7,821

1,896

Accrued expense

2,969

3,036

Contract liabilities

255

250

Income taxes payable

93

122

Current portion of bank loans payable

257

256

Current portion of finance leases

32

43

Current portion of operating leases

527

540

Total current liabilities

11,954

6,284

NON-CURRENT LIABILITIES:

Bank loans payable, net of current portion

365

428

Operating leases, net of current portion

874

324

Deferred tax liabilities

9

10

Other non-current liabilities

32

31

Total non-current liabilities

1,280

793

TOTAL LIABILITIES

$

13,234

$

7,077

EQUITY

TRIO-TECH INTERNATIONAL SHAREHOLDERS’ EQUITY:

Common stock, no par value, 15,000,000 shares authorized; 4,312,805 shares issued outstanding as at September 30, 2025 and June 30, 2025, respectively

$

13,490

$

13,490

Paid-in capital

6,037

5,979

Accumulated retained earnings

12,114

12,037

Accumulated other comprehensive income-translation adjustments

2,415

2,522

Total Trio-Tech International shareholders’ equity

34,056

34,028

Non-controlling interest

88

(37

)

TOTAL EQUITY

$

34,144

$

33,991

TOTAL LIABILITIES AND EQUITY

$

47,378

$

41,068