Trio-Tech Reports Growth in Fourth Quarter Financials
Trio-Tech Reports Growth in Fourth Quarter Financials
Trio-Tech International (NYSE MKT: TRT) recently unveiled its financial performance for the fourth quarter and full fiscal year. The company showcased significant improvements, driven by strategic focuses in manufacturing and distribution sectors. For the most recent quarter, revenue climbed 7% to reach $9,746,000, compared to $9,079,000 in the same quarter last year, helped by a robust 60% surge in manufacturing revenue and a 30% rise in distribution revenue.
Fourth Quarter Highlights
In line with growth, the gross margin rose 17% to $2,685,000, representing 28% of total revenue. This was an increase from the previous year's margin of $2,290,000 or 25%. The operational efficiency was evident as the income from operations surged by 178%, amounting to $358,000, compared to $129,000 during the same quarter last year.
Net Income Growth
Trio-Tech's net income for the fourth quarter of fiscal 2024 also saw a notable increase, reaching $243,000 or $0.06 per diluted share, contrasting sharply with the prior year's earnings of $162,000 or $0.04 per diluted share, underlining the effectiveness of the company's growth strategy.
Overall Fiscal Performance
During fiscal 2024, which concluded at the end of June, the distribution revenue experienced an impressive 32% increase, hitting $8,297,000 compared to $6,270,000 the previous year. Manufacturing revenue followed suit, growing by 16% to $16,057,000 from $13,827,000, bolstered by improved market share through partnerships with key customers. However, the testing services segment did not fare as well, recording a 22% decrease in revenue, totaling $17,933,000.
Total Revenue and Operating Expenses
Despite these variances across different sectors, the company’s total revenue for the fiscal year slightly decreased by 2%, totaling $42,312,000 versus $43,250,000 in fiscal 2023. Operating expenses also saw a minor uptick of 2% to $9,669,000, which represented 23% of revenues compared to 22% the previous year.
Net Income and Shareholder Equity
Net income attributable to Trio-Tech shareholders for fiscal 2024 amounted to $1,050,000, equating to $0.24 per diluted share, reflecting a decrease from the prior year's net income of $1,544,000 or $0.37 per diluted share. Despite the decline in total income, the company’s backlog on June 30, 2024, was reported at $14,422,000, down from a record of $17,437,000 on the same date the previous year.
Balance Sheet Insights
The financial health of Trio-Tech was evidenced through notable improvements in its balance sheet. Cash and cash equivalents saw a healthy growth, rising to $10,035,000 from $7,583,000 the previous year, while working capital also expanded to $22,760,000, growing from $19,501,000. Shareholder equity exhibited a promising increase as well, climbing to $31,578,000 or $7.43 per outstanding share, from the previous year's $29,571,000 or $7.22 per share.
The Future Path
Chairman and CEO S.W. Yong highlighted that the success in the fourth quarter was attributed to their strategic focus on growth opportunities in manufacturing and distribution sectors. The company remains committed to evaluating future paths for its operational segments, concentrating on products and markets ripe for expansion. By gearing up sales efforts and rolling out new products, they aim to bolster growth further. The prospect of potential acquisitions and joint development initiatives with key partners is also being explored as part of Trio-Tech's strategy for sustained success and enhancing shareholder value.
Frequently Asked Questions
What were the significant changes in Trio-Tech's fourth quarter results?
Trio-Tech reported a 7% increase in revenue, reaching $9,746,000, and a rise in net income to $243,000, or $0.06 per diluted share, compared to the previous year's quarter.
How did the fiscal year 2024 perform compared to fiscal 2023?
The total revenue for fiscal 2024 decreased by 2% to $42,312,000, with a notable increase in distribution and manufacturing revenues but a decline in testing services revenue.
What strategic focuses contributed to Trio-Tech's success?
The company's success was driven by concentrating on growth in the manufacturing and distribution sectors, enhancing market share, and evaluating potential acquisitions.
What is the current status of Trio-Tech's backlog?
As of June 30, 2024, Trio-Tech's backlog stood at $14,422,000, reflecting a decrease from the record backlog of $17,437,000 a year prior.
How did Trio-Tech's financial health look at the end of fiscal 2024?
Trio-Tech's financial health showed improvement with cash and cash equivalents increasing to $10,035,000 and shareholder equity rising to $31,578,000 per share.
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