Trio-Tech International Reports 29.4% Revenue Decline in Q2 Fiscal 2025

Trio-Tech International reported a significant decline in financial performance for the second quarter of fiscal year 2025, with total revenue decreasing by 29.4% to $8.619 million, down from $12.202 million in the same period last year. The Semiconductor Back-end Solutions (SBS) segment generated $5.809 million, a 26.4% drop from $7.896 million, while the Industrial Electronics (IE) segment saw a 34.9% decrease to $2.801 million from $4.300 million. The overall gross profit margin improved slightly to 25.7%, up from 23.4%, despite a reduction in gross profit, which fell to $2.218 million from $2.854 million.

The company's operating expenses increased marginally, with general and administrative costs rising by 8.1% to $1.965 million, while selling expenses decreased by 29% to $176,000. The loss from operations was reported at $3, a decline from an income of $677,000 in the prior year. However, other income surged to $686,000, compared to an expense of $82,000 in the previous year, primarily due to favorable foreign currency movements. Net income attributable to common shareholders remained stable at $507,000, with basic and diluted earnings per share holding steady at $0.12.

In terms of operational metrics, total assets decreased to $39.800 million from $42.540 million, while total liabilities also fell to $7.571 million from $10.962 million. The company’s cash and cash equivalents increased to $10.323 million, reflecting a positive cash flow despite the overall decline in revenue. The number of days' sales outstanding in accounts receivable increased to 101 days, indicating a longer collection period.

Strategically, Trio-Tech has restructured its reporting segments to better align with its focus areas, now categorizing its operations into Semiconductor Back-end Solutions and Industrial Electronics. This change aims to reduce the company's historical concentration on the semiconductor industry while enhancing its operational efficiency. The company is also exploring new markets and products to mitigate the impact of the current downturn in demand.

Looking ahead, Trio-Tech anticipates challenges due to ongoing market volatility and competition within the semiconductor industry. The company is committed to cost control measures and is optimistic about potential recovery in the market, which could provide opportunities for growth. Management remains focused on enhancing customer service and exploring new technologies to adapt to changing market conditions.