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VAN NUYS, Calif. - Trio-Tech International (NYSE MKT: TRT), a provider of semiconductor testing services and electronic equipment with a market capitalization of $22.53 million, reported a decrease in revenue and a net loss for its fiscal 2025 third quarter ended March 31, 2025. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, despite recent challenges. In response to the current financial results, the company’s Board of Directors has approved a share repurchase program of up to $1.0 million over the next two years.
The company experienced a downturn in revenue, with total revenue for the quarter at $7.4 million, down from $10.4 million in the same period last year. Revenue from the Semiconductor Back-End Solutions (SBS) segment fell to $5.4 million from $7.7 million, while Industrial Electronics (IE) revenue dropped to $2.0 million from $2.7 million. The gross margin remained relatively stable at 27% of revenue, although the actual gross margin decreased to $2.0 million from $2.7 million a year ago. InvestingPro data shows the company maintains strong financial health with a current ratio of 4.54, indicating robust liquidity to meet short-term obligations.
Trio-Tech’s operating expenses saw a slight decline to $2.3 million from $2.6 million in the previous year. However, the company reported a loss from operations of $343,000, compared to a modest operating income of $59,000 in the same quarter of the prior year. The net loss attributable to common shareholders was $495,000, or $0.12 per diluted share, a shift from a net income of $70,000, or $0.02 per diluted share, in the fiscal year 2024 third quarter.
For the first nine months of fiscal 2025, total revenue was $25.8 million, down from $32.6 million in the same period last year, with a net loss of $224,000 compared to a net income of $807,000.
The share repurchase program will be conducted at the discretion of a Repurchase Committee and may be modified, suspended, or terminated due to various factors, including market conditions and investment opportunities. There is no guarantee that any shares will be repurchased under the program.
Trio-Tech operates internationally, with a presence in the United States, Singapore, Malaysia, Thailand, and China. The company aims to align its cost structure with current demand while maintaining financial flexibility to capitalize on market improvements. InvestingPro analysis reveals two key strengths: the company holds more cash than debt on its balance sheet and maintains high shareholder yield. Additional InvestingPro Tips are available for subscribers seeking deeper insights into the company’s financial position.
This article is based on a press release statement from Trio-Tech International.
In other recent news, Trio-Tech International reported a decrease in revenue for the second quarter ending December 31, 2024, with total revenue dropping to $8.6 million from $12.2 million in the previous year. Despite this decline, the company noted progress in shipping dynamic tester systems for Silicon Carbide (SiC) and Gallium Nitride (GaN) power modules, which are increasingly important in high-performance power electronics. Trio-Tech’s gross margin improved to 26% from 23% a year earlier, and operating expenses remained stable at $2.2 million. The company experienced a minor operational loss of $3,000, contrasting with an operational income of $677,000 in the same period last year, while net income attributable to common shareholders stayed constant at $507,000.
In other developments, Trio-Tech secured a mass production order for electronic components, including advanced LCD touchscreen displays for a new generation of point-of-sale systems, from a long-standing customer in the hospitality industry. This order highlights the company’s ongoing role as a supplier of high-performance electronic components. Trio-Tech’s CEO, S.W. Yong, acknowledged the challenging semiconductor market but expressed optimism about the demand for SiC and GaN materials and the company’s engagement with potential new customers. The company’s cash and cash equivalents increased slightly to $10.3 million as of December 31, 2024. These updates reflect Trio-Tech’s current financial performance and strategic initiatives in the semiconductor and electronics markets.
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