Trio-Tech International (NASDAQ: TRT), a provider of semiconductor back-end solutions and value-added industrial electronic products and services, today announced its first-quarter fiscal 2027 financial results for the period ended September 30, 2026.

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

“We began fiscal 2027 with 29% year-over-year revenue growth and a substantial improvement in profitability, driven by higher sales and margins in our Semiconductor Back-End Solutions (SBS) business. Strong demand for AI GPU burn-in boards, along with higher testing volumes for EV, data center, and AI-related semiconductor applications, contributed to 39% SBS revenue growth.

“Our consolidated gross margin expanded to 20.6% from 16.7% a year ago, reflecting a more favorable SBS product mix and improved capacity utilization across our operations, including Malaysia. Gross profit increased 59%, while operating expense rose 13%, resulting in operating income of $1.3 million compared with $46,000 in the prior-year quarter. These results demonstrate our ability to convert higher revenue into improved operating profitability.

“We continue to see an expanding pipeline of opportunities across our semiconductor back-end products and testing services supporting AI, data center and EV Automotive applications. Our Malaysia facility expansion, which began initial operations in September, provides substantial additional capacity to support these opportunities. Across our operations, we remain focused on fulfilling customer programs and managing the working capital required to support growth. In Industrial Electronics, growing distribution backlog and stronger aerospace sales provide opportunities for growth, although component shortages continue to affect shipment timing. Our strong balance sheet also provides flexibility to invest in growth opportunities while returning capital to shareholders, as reflected in our Board’s recent approval of an additional $1.0 million under our share repurchase program.”

Fiscal 2027 First Quarter Financial Results

  • Total revenue increased 33% sequentially and 29% year-over-year to $19.9 million, compared with $14.9 million in the fourth quarter of 2026 and $15.5 million in the first quarter of fiscal 2026.

  • SBS revenue increased 39% to $15.9 million, compared with $11.5 million in the prior-year quarter. Burn-in board sales increased 227%, and testing services revenue increased approximately 18% (YoY).

  • IE revenue was $4.0 million, compared with $4.0 million a year ago. Aerospace-related product sales increased 63%, partially offsetting a 10% decline in distribution sales associated with component shortages and longer supplier lead times.

  • Gross profit increased 59% to $4.1 million, or 20.6% of revenue, compared with $2.6 million, or 16.7% of revenue, in the prior-year quarter. SBS gross margin increased to 21.5% from 14.9%, while IE gross margin decreased to 17.5% from 21.8%, due to the product mix in the quarter.

  • Total operating expense was $2.9 million, compared with $2.5 million a year ago.

  • Operating income was $1.3 million, compared with $46,000 in the prior-year quarter.

  • Total other expense was $58,000, compared with total other income of $181,000 a year ago.

  • Net income attributable to Trio-Tech common shareholders was $846,000, compared with $77,000 a year ago. Basic and diluted earnings per share were $0.08 and $0.07, respectively, compared with $0.01 per basic and diluted share in the prior-year quarter. Prior-year per-share amounts reflect the Company’s two-for-one stock split.

  • Net cash used in operating activities was $3.3 million, compared with net cash provided by operating activities of $0.9 million in the prior-year quarter, reflecting increased investment in receivables and inventories.

  • Cash, cash equivalents, short-term deposits and restricted term deposits totaled $25.6 million at September 30, 2026, compared with $28.5 million at June 30, 2026. Working capital was $33.3 million, compared with $32.2 million at June 30, 2026.

  • During the first quarter of fiscal 2027, Trio-Tech purchased 10,327 shares of its common stock in the open market. Subsequent to September 30, 2026, and through today, the Company purchased an additional 112,869 shares in the open market, bringing total purchases during these periods to 123,196 shares for approximately $696,000. On November 9, 2026, the Board of Directors approved an additional $1.0 million under the Company’s existing share repurchase program and extended the program for 24 months from that date.

Outlook

Trio-Tech continues to see demand for semiconductor back-end products and testing services supporting AI, data center, and EV automotive applications. The Company’s expanded facility began operations in September 2026, and management expects testing volumes at the facility to increase sequentially in the second quarter of fiscal 2027.

As of September 30, 2026, the SBS segment had a total backlog of approximately $22.4 million, consisting of contracted hard backlog of approximately $12.1 million and soft backlog of approximately $10.3 million. Soft backlog represents management’s estimate of customer demand over the next three months under blanket purchase orders, where actual volumes are subject to customer demand and do not constitute firm commitments. The IE segment had a hard backlog of approximately $5.7 million. The combined hard backlog for the two segments was approximately $17.8 million. Including the SBS soft backlog, the combined amount was approximately $28.1 million, compared with $24.2 million at June 30, 2026.

Within Industrial Electronics, distribution backlog has continued to grow since quarter-end, supporting management’s expectation for year-over-year revenue growth in the distribution business. Component shortages may persist through the end of the second quarter of fiscal 2027 and could affect the timing of order fulfillment.

First-quarter SBS gross margin benefited from a favorable product mix. The segment’s gross margin percentage will continue to depend on the mix of products and testing services, as well as capacity utilization across its operations. As AI-related testing services account for a larger share of SBS revenue, management expects the segment’s gross margin percentage to moderate from its first-quarter level.

To support fulfillment of its backlog, Trio-Tech expects inventory purchases and advance payments to keep working capital requirements elevated in the second quarter. At quarter end, Trio-Tech had $46.3 million of shareholder’s equity, $33.3 million of working capital, $22.8 million of net unrestricted cash and a $5 million untapped line of credit. This strong financial position provides flexibility to manage the working capital requirements of our growth initiatives while continuing to invest in our business.

About Trio-Tech International

Trio-Tech International (NASDAQ: TRT) provides semiconductor testing services and equipment, manufacturing solutions, and industrial electronic products and services. The Company operates through its Semiconductor Back-End Solutions and Industrial Electronics segments, with operations in the United States, Singapore, Malaysia, Thailand and China. Additional information is available at www.triotech.com and www.universalfareast.com.

Forward-Looking Statements

This release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements concern, among other matters, demand for the Company’s products and services, customer programs, backlog and its conversion to revenue, persistent component shortages, supply availability, capacity requirements, growth opportunities and future profitability. Estimates of customer demand included in soft backlog are not confirmed orders and may not result in revenue. Actual results may differ materially because of changes in semiconductor and industrial demand; customer order timing, reductions or cancellations; product mix and capacity utilization; competition and technological change; component shortages and supplier delays; working capital and capital requirements; foreign currency movements; tariffs and trade restrictions; economic, political and regulatory conditions in the markets where the Company operates, and changes in trade, tax, policies affecting AI, whether through legislation, executive action or the absence of legislative action under a divided federal government; and increased congressional oversight or investigations affecting the AI industry. Further risks are described in the Company’s SEC filings, including its Forms 10-K and 10-Q. Forward-looking statements reflect information available as of this release’s date. The Company assumes no obligation to revise these statements except as required by law.

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

September 30,

 

 

June 30,

 

 

 

2026

 

 

2026

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

18,541

 

 

$

21,428

 

Short-term deposits

 

 

4,295

 

 

 

4,294

 

Short-term investment

 

 

–

 

 

 

368

 

Trade accounts receivable, less allowance for expected credit losses of $196 and $194, respectively

 

 

18,913

 

 

 

13,546

 

Other receivables

 

 

2,393

 

 

 

1,056

 

Inventories, less provision for obsolete inventories of $843 and $821, respectively

 

 

6,965

 

 

 

3,406

 

Prepaid expense and other current assets

 

 

571

 

 

 

395

 

Restricted term deposits

 

 

833

 

 

 

819

 

Total current assets

 

 

52,511

 

 

 

45,312

 

NON-CURRENT ASSETS:

 

 

 

 

 

 

 

 

Deferred tax assets

 

 

196

 

 

 

281

 

Investment properties, net

 

 

279

 

 

 

293

 

Property, plant and equipment, net

 

 

7,035

 

 

 

6,598

 

Operating lease right-of-use assets

 

 

5,250

 

 

 

5,481

 

Other assets

 

 

775

 

 

 

774

 

Restricted term deposits

 

 

1,967

 

 

 

1,948

 

Total non-current assets

 

 

15,502

 

 

 

15,375

 

TOTAL ASSETS

 

$

68,013

 

 

$

60,687

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Lines of credit

 

$

541

 

 

$

–

 

Accounts payable

 

 

11,149

 

 

 

7,577

 

Accrued expense

 

 

4,459

 

 

 

2,812

 

Contract liabilities

 

 

317

 

 

 

200

 

Income taxes payable

 

 

478

 

 

 

213

 

Current portion of bank loans payable

 

 

229

 

 

 

246

 

Current portion of operating leases

 

 

2,066

 

 

 

2,109

 

Total current liabilities

 

 

19,239

 

 

 

13,157

 

NON-CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Bank loans payable, net of current portion

 

 

147

 

 

 

199

 

Operating leases, net of current portion

 

 

3,168

 

 

 

3,356

 

Deferred tax liabilities

 

 

1

 

 

 

22

 

Other non-current liabilities

 

 

1,009

 

 

 

938

 

Total non-current liabilities

 

 

4,325

 

 

 

4,515

 

TOTAL LIABILITIES

 

$

23,564

 

 

$

17,672

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

TRIO-TECH INTERNATIONAL SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, no par value, with 15,000,000 shares authorized; 10,444,204 and 10,371,192 shares issued as of September 30, 2026 and June 30, 2026, respectively; and 10,431,134 and 10,368,449 shares outstanding as of those dates, respectively.

 

$

25,131

 

 

$

24,878

 

Paid-in capital

 

 

6,685

 

 

 

6,548

 

Treasury stock, at cost

 

 

(75

)

 

 

(12

)

Accumulated retained earnings

 

 

11,678

 

 

 

10,832

 

Accumulated other comprehensive income-translation adjustments

 

 

2,893

 

 

 

2,632

 

Total Trio-Tech International shareholders’ equity

 

 

46,312

 

 

 

44,878

 

Non-controlling interest

 

 

(1,863

)

 

 

(1,863

)

TOTAL EQUITY

 

$

44,449

 

 

$

43,015

 

TOTAL LIABILITIES AND EQUITY

 

$

68,013

 

 

$

60,687

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

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

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

 

Three Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

Revenue

 

 

 

 

 

 

 

 

Semiconductor Back-end Solutions

 

$

15,894

 

 

$

11,452

 

Industrial Electronics

 

 

4,045

 

 

 

4,052

 

Others

 

 

10

 

 

 

10

 

 

 

 

19,949

 

 

 

15,514

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

15,833

 

 

 

12,929

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

 

4,116

 

 

 

2,585

 

 

 

 

 

 

 

 

 

 

Operating Expense:

 

 

 

 

 

 

 

 

General and administrative

 

 

2,489

 

 

 

2,174

 

Selling

 

 

274

 

 

 

271

 

Research and development

 

 

98

 

 

 

94

 

Loss on disposal of property, plant and equipment

 

 

1

 

 

 

–

 

Total operating expense

 

 

2,862

 

 

 

2,539

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

 

1,254

 

 

 

46

 

 

 

 

 

 

 

 

 

 

Other (Expense) / Income

 

 

 

 

 

 

 

 

Interest expense

 

 

(9

)

 

 

(8

)

Other (expense) / Income, net

 

 

(54

)

 

 

185

 

Government grant

 

 

5

 

 

 

4

 

Total other (expense) / income

 

 

(58

)

 

 

181

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations before Income Taxes

 

 

1,196

 

 

 

227

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

 

(350

)

 

 

(64

)

 

 

 

 

 

 

 

 

 

Income from Continuing Operations before Non-controlling Interest, Net of Taxes

 

 

846

 

 

 

163

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Income from discontinued operations, net of tax

 

 

–

 

 

 

2

 

Net Income

 

 

846

 

 

 

165

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interest

 

 

–

 

 

 

88

 

Net Income Attributable to Common Shareholders

 

$

846

 

 

$

77

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

 

846

 

 

 

76

 

Income from discontinued operations, net of tax

 

 

–

 

 

 

1

 

Net Income Attributable to Common Shareholders

 

$

846

 

 

$

77

 

 

 

 

 

 

 

 

 

 

Basic Earnings per Share:

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations

 

$

0.08

 

 

$

0.01

 

Basic earnings per share from discontinued operations

 

 

–

 

 

 

–

 

Basic Earnings per Share from Net Income

 

$

0.08

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share:

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$

0.07

 

 

$

0.01

 

Diluted earnings per share from discontinued operations

 

 

–

 

 

 

–

 

Diluted Earnings per Share from Net Income

 

$

0.07

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding (1)

 

 

 

 

 

 

 

 

Basic

 

 

10,381

 

 

 

8,626

 

Dilutive effect of stock options

 

 

1,022

 

 

 

98

 

Number of Shares Used to Compute Earnings Per Share Diluted

 

 

11,403

 

 

 

8,724

 

(1)

On January 5, 2026, the Company effected a two-for-one forward stock split of the Company’s issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split.

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

UNAUDITED (IN THOUSANDS)

 

 

Three Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

Comprehensive Income Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

846

 

 

$

165

 

Foreign currency translation, net of tax

 

 

261

 

 

 

(70

)

Comprehensive Income

 

 

1,107

 

 

 

95

 

Less: comprehensive income attributable to non-controlling interest

 

 

–

 

 

 

125

 

Comprehensive Income/ (Loss) Attributable to Common Shareholders

 

$

1,107

 

 

$

(30

)

 

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