TRIO-TECH REPORTS 72% FISCAL 2026 REVENUE GROWTH, DRIVEN BY CONTINUED AI AND AUTOMOTIVE SEMICONDUCTOR MOMENTUM

Trio-Tech closed fiscal 2026 with substantially higher scale. Total revenue increased 72% to $62.6 million, led by 99% growth in Semiconductor Back-end Solutions revenue to $49.0 million. Industrial Electronics revenue increased 15% to $13.6 million for the year, although Q4 IE revenue declined to $2.8 million from $4.1 million in the prior-year quarter. Management attributed SBS growth to semiconductor reliability-testing demand, including AI-related chip testing, as customers expanded advanced-computing programs and diversified testing activity across Southeast Asia.

The profitability outcome did not match the revenue growth. Fiscal 2026 gross profit was $10.4 million and gross margin was 17% of revenue, compared with $9.1 million and 25% of revenue in fiscal 2025. Total operating expense increased to $10.6 million from $8.9 million, producing an operating loss of $204,000 versus operating income of $254,000. The Company identified higher general and administrative expense related to corporate activity, the stock split, investor relations and communications initiatives, and higher stock-based compensation expense as primary factors in the year-over-year operating change.

The fourth quarter showed the same margin and earnings pressure. Revenue was $14.9 million, up approximately 40%, with SBS revenue up approximately 85% to $12.1 million. Gross margin was 19% of revenue versus 25% in the prior-year quarter, and total operating expense rose to $3.0 million from $2.2 million. The result was an operating loss of $266,000 and a net loss attributable to common shareholders of $199,000, compared with operating income of $467,000 and net income of $183,000 in Q4 fiscal 2025.

Liquidity and demand visibility improved. Net cash provided by operating activities increased to $3.4 million from $0.4 million, while cash, cash equivalents, short-term deposits and restricted term deposits totaled approximately $28.5 million at June 30, 2026. Total backlog was $24.2 million versus $11.0 million a year earlier, including approximately $19.8 million in SBS and approximately $4.4 million in IE. The outlook does not provide quantitative revenue or profit guidance, but cites remaining burn-in board orders, a new approximately $1.5 million purchase order, a three-year automotive contract, expanded Malaysia capacity, and approximately $4.6 million of IE first-quarter bookings to date.

The key fiscal 2027 execution points are conversion of the elevated backlog and order activity into revenue, the planned progressive production increase beginning in the second quarter, and recovery in margin and operating profitability. The expanded Perai, Penang facility provides approximately 104,000 square feet of additional space, while the Company expects demand across AI, high-performance computing, automotive, aerospace, display solutions and other industrial markets. The reported results establish demand momentum and improved cash generation, but also show that higher costs and lower gross margin offset much of the benefit of fiscal 2026 revenue growth.