Trio-Tech Reports Fiscal 2025 Second Quarter Financial Results and Shipments of Dynamic Tester Systems for the Growing Silicon Carbide and GaN Power Module Markets

Trio-Tech International (NYSE:TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced its financial results for the second quarter that ended on December 31, 2024. The company also announced shipments of dynamic tester systems for Silicon Carbide (SiC) and Gallium Nitride (GaN) power modules during the quarter.

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

"While our second quarter results were affected by softness in the semiconductor market and slower electronic equipment sales, we made progress with shipments of our dynamic tester systems for the growing SiC and GaN power module markets.

"SiC and GaN are revolutionizing power electronics, particularly in high-performance applications where efficiency and thermal management are crucial. Unlike traditional silicon (Si) technology, SiC and GaN facilitate faster switching with reduced energy loss and greater power capacity. As industries prioritize performance, durability, and cost-effectiveness, we believe they will recognize the advantages of these materials, which ultimately need to be tested by systems like our dynamic tester that complies with relevant automotive qualification guidelines (AQG).

"SiC and GaN provide significant benefits in efficiency, power density, and thermal tolerance, making them well-suited for demanding applications like industrial power systems, electric vehicles, and advanced computing like AI. Their capability to manage higher voltages and temperatures while reducing energy loss ensures their importance in next-generation power electronics.

"While Silicon remains dominant in many markets today, SiC and GaN are positioned to gain traction due to their superior power-handling capabilities and efficiency advantages. Our target customers include suppliers of power modules and inverters to automotive manufacturers, power semiconductor manufacturers, and third-party testing laboratories that provide certification and compliance services for mission-critical applications.

"Given the strong global demand for SiC and GaN and the encouraging initial response to our dynamic tester, we are actively engaging with several potential new customers who are developing applications for high-efficiency power solutions. We look forward to providing updates on our progress throughout the remainder of our fiscal year."

Fiscal 2025 Second Quarter Financial Results

• Total revenue was $8.6 million, compared to $12.2 million a year ago.
• Gross margin was $2.2 million, or 26% of revenue, compared to $2.9 million, or 23% of revenue a year ago.
• Total operating expense was $2.2 million, compared to $2.2 million a year ago.
• Loss from operations was $3,000, compared to income from operations of $677,000 a year ago.
• Other income was $678,000 mainly due to favorable foreign currency movement, compared to other expense of $100,000 a year ago.
• Net income attributable to common shareholders was $507,000, compared to $507,000 a year ago.
• Net income per diluted share was $0.12, compared to $0.12 a year ago.
• Cash and cash equivalents were $10.3 million on December 31, 2024, compared to $10.0 million on June 30, 2024.

Fiscal 2025 First Six Months Financial Results

• Total revenue was $18.4 million, compared to $22.2 million a year ago.
• Gross margin was $4.5 million, or 25% of revenue, compared to $5.4 million, or 24% of revenue a year ago.
• Total operating expense was $4.4 million, compared to $4.7 million a year ago.
• Income from operations was $130,000, compared to income from operations of $676,000 a year ago.
• Other income was $366,000, compared to $145,000 a year ago.
• Net income attributable to common shareholders was $271,000, compared to $737,000 a year ago.
• Net income per diluted share was $0.06, compared to $0.17 a year ago.

About Trio-Tech International

Trio-Tech International (NYSE: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, 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.

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