Trio-Tech International reported a significant decline in financial performance for the third quarter of fiscal year 2025, with total revenue decreasing by 29% to $7.4 million, down from $10.4 million in the same period last year. The Semiconductor Back-end Solutions (SBS) segment, which constitutes a major part of the company's operations, saw revenue drop by 29.5% to $5.4 million, while the Industrial Electronics (IE) segment experienced a 27.6% decrease to $1.95 million. The overall gross profit margin improved slightly to 26.8%, up from 26.0% in the prior year, but the company still reported a loss from operations of $343, a stark contrast to the income of $59 recorded in the same quarter of the previous year.
The company's financial results reflect broader market challenges, particularly in the semiconductor industry, which has been affected by ongoing trade tensions and a general downturn in demand. The revenue decline was attributed to reduced testing services in China, although there were signs of recovery in Malaysia and Thailand. The company has adjusted its operational strategy to reduce its historical reliance on the semiconductor sector, reorganizing its business segments to better align with market demands.
Operationally, Trio-Tech's total assets decreased to $39.96 million as of March 31, 2025, down from $42.54 million at the end of the previous fiscal year. This decline was primarily due to reductions in trade accounts receivable and inventories, which fell to $8.97 million and $2.24 million, respectively. The company also reported a decrease in total liabilities to $7.23 million, down from $10.96 million, indicating improved financial health in terms of debt management.
Looking ahead, Trio-Tech's management remains cautious about the market outlook, particularly in light of the semiconductor industry's cyclical nature and ongoing geopolitical tensions. The company is focused on maintaining financial flexibility and aligning its operational capacity with current demand levels. Additionally, it is exploring new markets and products to mitigate the impact of external market dynamics. The company’s strategic shift aims to enhance its resilience against market fluctuations while positioning itself for potential growth opportunities in the future.
About TRIO-TECH INTERNATIONAL
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