Trio-Tech Second Quarter Operating Income Increases 63% on a 13% Gain in Revenue

Trio-Tech International (NYSE:TRT) today announced financial results for the second quarter and first six months of fiscal 2023.

Fiscal 2023 Second Quarter Results

For the three months ended December 31, 2022, revenue increased 13% to $12,390,000, compared to $10,922,000 for the same quarter last year, driven by a 43% increase in revenue in the Company's manufacturing segment.

Reflecting the growth in revenue and an increase in gross margin for the second quarter to 27% of revenue compared to 26% of revenue for the second quarter of fiscal 2022, operating income surged 63% to $1,069,000 compared to $656,000 last year.

Net income for the second quarter of fiscal 2023 was $507,000, or $0.12 per diluted share, compared to net income of $855,000, or $0.20 per diluted share, for the second quarter of fiscal 2022. Net income for this year's second quarter was affected by a non-cash currency exchange loss of $349,000 associated with a weakening of the US dollar against the Singapore dollar during the quarter. This compares to an exchange loss of $38,000 for the second quarter of fiscal 2022.

Shareholders' equity at December 31, 2022 increased to $29,973,000, or $7.35 per outstanding share, compared to $28,002,000, or $6.88 per outstanding share, at June 30, 2022. There were approximately 4,076,680 and 4,071,680 shares of common stock outstanding at December 31, 2022 and June 30, 2022, respectively.

CEO Comments

S.W. Yong, Trio-Tech's CEO, said, "We are pleased by growth in revenue and operating income that we delivered for the first half of the new fiscal year. Looking ahead, despite the potential impact of semiconductor industry capacity adjustments on our business in the second half, we remain optimistic that we will achieve our goals for long-term growth and profitability as we remain focused on improving operating efficiency, controlling expenses, and working closely with current and prospective customers to expand our business opportunities."

Fiscal 2022 First Half Results

For the first six months of fiscal 2023, revenue increased 15% to $24,329,000 compared to $21,093,000 for the same period last year.

Gross margin for the first six months of fiscal 2023 increased 15% to $6,957,000 compared to $6,069,000 for the same period last year and represented approximately 29% of revenue for both periods.

Income from operations increased 31% to $2,136,000, or 9% of revenue, compared to $1,626,000, or 8% of revenue, for the same period last year.

Net income for the first half of fiscal 2023 was $1,389,000, or $0.33 per diluted share, compared to $1,772,000, or $0.43 per diluted share, for the same period last year. Net income for this year's first half reflected a non-cash currency exchange loss of $279,000 versus an exchange loss of $4,000 for the first six months of fiscal 2022.

About Trio‑Tech

Established in 1958, Trio-Tech International is located in Van Nuys, California, with its Principal Executive Office and regional headquarters in Singapore. Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate. Our subsidiary locations include Tianjin, Suzhou, Chongqing and Jiangsu in China, as well as Kuala Lumpur, Malaysia and Bangkok, Thailand. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at 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; 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; on-going public health issues related to the COVID-19 pandemic; geopolitical conflicts, including the current war in Ukraine; political and trade tension between U.S and China, other economic, financial and regulatory factors beyond the Company's control and, uncertainties relating to our ability to operate our business in China; uncertainties regarding the enforcement of laws and the fact that rules and regulation in China can change quickly with little advance notice, along with the risk that the Chinese government may intervene or influence our operation at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers could result in a material change in our operations, financial performance and/or the value of our common stock or impair our ability to raise money. Other than statements of historical fact, all statements made in this Quarterly Report 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.

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