TRIO-TECH INTERNATIONAL
For the period ended Jun 30, 2026. Filed Sep 24, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Sep 24, 2026
TRT$4.70+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-06-30; filed 2025-09-19.
0001437749-25-029455
Item 7. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-K
Period ended 2026-06-30; filed 2026-09-24.
0001437749-26-031124
Item 7. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 146 previous paragraphs and 125 current paragraphs.
42 unchanged; 30 reworded; 53 added; 74 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (53)
Current report
Cash and cash equivalents totaled $21,428 as of June 30, 2026, an increase of $10,538, or 96.8%, compared to $10,890 as of June 30, 2025. The increase was primarily attributable to proceeds from the issuance of shares and higher operating cash flows driven by improved revenue. The increase was partially offset by capital expenditures for PPE and cash used to acquire a non-controlling interest in the Malaysia subsidiary. Short-term deposits and restricted term deposits decreased by $1,507 from $8,568 to $7,061. The decrease in short-term deposits reflects management's strategy to preserve liquidity and enhance financial flexibility, positioning the Company to respond to expected customer orders and evolving business requirements.
Current report
Trade accounts receivable as of June 30, 2026 were $13,546, an increase of $2,742 or 25.4%, compared to $10,804 as of June 30, 2025. The increase was primarily attributable to higher revenue across both business segments, driven mainly by the Company’s operations in Malaysia and Singapore. The number of days' sales outstanding improved to 70 days for the year ended June 30, 2026, from 106 days for the year ended June 30, 2025.
Current report
Other receivables as of June 30, 2026 were $1,056, an increase of $448, or 73.7%, compared to $608 as of June 30, 2025. The increase was mainly attributable tohigher other receivables arising from the Company's expanded operation in Malaysia, as well as higher advance payments made to suppliers for goods and services in the Company’s Singapore operations.
Current report
Inventories as of June 30, 2026 were $3,406, an increase of $1,144, or 50.6%, compared to $2,262 as of June 30, 2025. The increase was primarily attributable to higher backlog levels in the Company’s Singapore operations, which required the Company to maintain higher inventory levels to support ongoing order fulfillment. As inventory levels increased relative to sales, days inventory held increased to 112 days at the end of Fiscal 2026, compared to 88 days at the end of Fiscal 2025.
Current report
Prepaid expense and other current assets as of June 30, 2026 were $395, an increase of $11 or 2.9%, compared to $384 as of June 30, 2025. Prepaid expenses primarily comprise prepaid software licensing fees and information technology maintenance contracts.
Current report
PPE as of June 30, 2026 was $6,598, an increase of $577 or 9.6% compared to $6,021 as of June 30, 2025. The increase was primarily attributable to the acquisition of machinery and equipment at the Company's Malaysia, Singapore and China operations to expand capacity to support new burn-in testing services, partially offset by depreciation expense and foreign currency translation movements during Fiscal 2026.
Current report
Other assets as of June 30, 2026 were $774, an increase of $543, or 235.1%, compared to $231 as of June 30, 2025. This was primarily due to security and utility deposit paid in connection with new leaseof plant in Malaysia and foreign currency exchange movement between June 30, 2025 and June 30, 2026.
Current report
Lines of credit as of June 30, 2026 were $nil, a decrease of $141, compared to $141 as of June 30, 2025. Company has sufficient cash resources to fund its ongoing operations, reducing the need for borrowings under its lines of credit.
Current report
Accounts payable as of June 30, 2026 were $7,577, an increase of $5,681, or 299.6% from $1,896 as of June 30, 2025. The increase was consistent with revenue growth in the Company's Malaysia and Singapore operations and reflected higher procurement activity to support expanding business operations.
Current report
Accrued expense as of June 30, 2026 were $2,812, a decrease of$224, or 7.4% from $3,036 as of June 30, 2025. Thedecrease was primarily attributable to the renewal of existing leases for a term longer than twelve months, resulting in the reclassification of the related provision for reinstatement costs from current to non-current liabilities, partially offset by higher employee-related costs reflecting performance-based compensation driven by improved operational performance in the Company's Singapore, Malaysia and Thailand operations.
Current report
Income tax payable as of June 30, 2026 was$213, an increase of$91, or 74.6% from$122 as of June 30, 2025. Theincrease was mainly due to higher taxable profit in Singapore and Thailand operations in Fiscal 2026.
Current report
Bank loans payable as of June 30, 2026 were$445, a decrease of$239 or 34.9% from$684 as of June 30, 2025. Thedecrease wasprimarily attributable to loan repayments, with no new borrowings during Fiscal 2026.
Current report
Finance leases as of June 30, 2026 were $nil, a decrease of $43 or 100.0% as compared to $43 as of June 30, 2025. The decrease primarily reflected the full repayment of finance lease obligations for the Company’s Singapore and Malaysia operations, with no new finance lease additions during fiscal 2026.
Current report
Other non-current liabilities as of June 30, 2026 were $938, an increase of $907 or 2925.8% as compared to $31 as of June 30, 2025. The increase was primarily attributable to the provision for reinstatement costs recognized in connection with a new plant lease in Malaysia, as well as provisions associated with existing leases renewed for terms exceeding twelve months.
Current report
Operating lease right-of-use assets as of June 30, 2026 were $5,481, an increase of $4,617 or 534% as compared to $864 as of June 30, 2025. The corresponding lease liabilities as of June 30, 2026 were $5,465, an increase of $4,601 or 532.5% as compared to $864 as of June 30, 2025. The increase was primarily attributable to the commencement of new leases in Malaysia operation, as well as renewal of existing lease by other subsidiaries during Fiscal 2026.
Current report
The U.S. tariff regime announced in April 2025 could potentially influence downstream demand variability among our customers. Trade and tariff policy affecting the semiconductor industry has continued to evolve. In January 2026, the U.S. government imposed a Section 232 tariff on certain advanced semiconductor articles, and additional tariffs or trade restrictions affecting semiconductors, semiconductor manufacturing equipment, and related products remain under active consideration by U.S. trade authorities. While we do not have significant direct exposure to these tariffs, secondary effects may arise if our customers adjust their procurement, manufacturing, or sourcing strategies in response to trade policy developments. Based on our observations, certain customers have continued to shift testing activities away from China to alternative geographies, as discussed above in connection with our SBS segment results. The ultimate scope, duration, and impact of these trade measures on macroeconomic and industry-specific demand remain uncertain, and continued trade tensions between the U.S. and China could result in further revenue volatility or declining economic conditions affecting our business. We continue to evaluate capacity adjustments in alignment with observable demand signals while maintaining operational flexibility to adapt to changing market conditions.
Current report
The semiconductor industry is currently experiencing a global shortage of memory components, driven by a structural reallocation of manufacturing capacity toward high-bandwidth memory used in artificial intelligence infrastructure. While this shortage has primarily affected semiconductor device manufacturers reliant on memory inputs, it has contributed to extended lead times and increased costs for certain electronic components used in the manufacture and servicing of our testing equipment. At the same time, sustained demand for testing services related to AI-related semiconductor devices has continued to support revenue growth in our SBS segment, as discussed above. The extent and duration of the memory shortage, and its effect on our supply chain, equipment costs, and customer demand, remain uncertain, and we continue to monitor developments in the memory and broader semiconductor markets and to adjust our procurement and inventory practices accordingly.
Current report
During Fiscal 2026, an armed conflict in the Middle East involving Israel, Iran, and other parties resulted in significant disruption to global oil and natural gas markets, including a period of substantial disruption to shipping through the Strait of Hormuz and damage to regional energy infrastructure. These events led to significant volatility in global energy prices and contributed to broader inflationary pressures across global supply chains during the period. A ceasefire was subsequently reached, though tensions in the region have continued to evolve, including a breakdown of the ceasefire and renewed price volatility after our fiscal year-end. Based on our assessment, the Company has experienced minimal direct impact on its supply chain to date, due to its indirect exposure to the affected region and the geographic diversification of its suppliers and customers. The Company's approach has been to absorb incremental costs where necessary to remain competitive, while passing through a portion of such cost increases to customers, mitigating the impact on our operating results. However, continued or renewed disruption in the region could result in further volatility in energy prices and broader inflationary pressures that may adversely affect our operating costs and those of our customers and suppliers.
Current report
Critical Accounting Estimates
Current report
Our consolidated financial statements are prepared in accordance with GAAP, which requires us to make estimates and apply judgments that affect the reported amounts. In the Notes to the Consolidated Financial Statements, we describe the significant accounting policies used in preparing the consolidated financial statements. Our management has discussed the development, selection, and disclosure of our critical accounting estimates with the Audit & Risk Committee of our Board of Directors. The following items require significant estimation or judgment:
Current report
If the sum of estimated undiscounted cash flows is less than the carrying value, an impairment loss is recognized for the amount by which the carrying value exceeds the estimated fair value of the asset group.
Current report
See Notes to Consolidated Financial Statements in this Form 10-K for a discussion of new accounting pronouncements, which is incorporated herein by reference.
Current report
Revenue during Fiscal 2026 was $62,605, an increase of $26,132, or 72%, compared to $36,473 during Fiscal 2025. Revenue for both SBS and IE segment have been improved.
Current report
SBS segment accounted for 78.3% of revenue for Fiscal 2026, an increase of 10.6% compared to 67.7% during Fiscal 2025. Revenue generated by the SBS segment for Fiscal 2026 was $49,018, reflecting an increase of $24,336, or 99%, compared to $24,682 during Fiscal 2025. The SBS segment reported revenue growth across all subsidiaries except for our China operations, primarily supported by stronger demand for artificial intelligence ("AI") and automotive related semiconductor testing services and products.
Current report
The Company's Malaysia operation recorded significant revenue growth following the commencement of final test services for AI chips in the first quarter of Fiscal 2026. The Company’s Thailand operations also recorded higher testing revenue as a result of increased customer testing volumes.
Current report
The Company’s Singapore operations benefited from growth in both product sales and testing services. Product sales were particularly strong in the fourth quarter of Fiscal 2026, with burn-in board sales for the full year increasing by approximately 58.4% compared with Fiscal 2025.
Current report
The growth in Malaysia, Thailand and Singapore was partially offset by lower revenue from the Company’s China operations. During Fiscal 2026, certain customers relocated their testing activities to other geographic markets in response to cross-border tariffs and geopolitical considerations. Management continues to monitor global trade developments and changes in customers’ geographic preferences and will adjust operating capacity and costs across the Company’s locations as appropriate.
Current report
As of June 30, 2026, the backlog in the SBS segment was $19,773, reflecting an increase of $13,078 from $6,695 as of June 30, 2025.
Current report
Revenue generated by the IE segment accounted for 21.6% of total revenue during Fiscal 2026, a decrease of 10.6% compared to 32.2% during Fiscal 2025. The decrease in the IE segment's contribution to group revenue was primarily attributable to the significant revenue growth in the SBS segment in Fiscal 2026. Despite the lower percentage contribution, the IE segment reported year-over-year revenue growth, reflecting continued improvement in customer demand and business activity. IE segment revenue for Fiscal 2026 was $13,554, reflecting an increase of $1,798, or 15%, compared to $11,756 for Fiscal 2025. This improvement was primarily driven by a nearly twofold increase of aerospace-related products sales, together with growing distribution sales, partially offset by a decrease in equipment sales.
Current report
Gross margin as a percentage of revenue in the SBS segment was 15.7% in Fiscal 2026, a decrease of 11.7%, compared to 27.4% in Fiscal 2025. Gross profit for the SBS segment in Fiscal 2026 was $7,704, an increase of $938 or 14%, compared to $6,766 in Fiscal 2025. Despite revenue from markets outside China trending upward, the associated margins remained relatively compressed. The incremental revenue relating to final testing services that commenced in Fiscal 2026 was attributable to new service streams that required no capital investment, resulting in lower margin profiles that reflect the reduced risk exposure. As the revenue mix increasingly shifts toward final testing services, gross profit margin is expected to trend below historical levels for the SBS segment, partially offset by continued growth in service volumes and improvements in operating efficiency.
Current report
Gross margin as a percentage of revenue in the IE segment was 20.3% in Fiscal 2026, a decrease of 0.2%, compared to 20.5% in Fiscal 2025. Gross profit in the IE segment in Fiscal 2026 was $2,752, an increase of $340, or 14%, compared to $2,412 in Fiscal 2025. While IE gross profit improved in absolute terms, gross margin declined, reflecting a less favorable sales mix, mainly attributable to a lower proportion of high-margin equipment sales in Fiscal 2026.
Current report
General and administrative expenses were$9,377 in Fiscal 2026, an increase of$1,487 or 19%, compared to$7,890 in Fiscal 2025. The increase in general and administrative expenses was driven by expenses associated with elevated corporate activities, including the stock split, investor relations and communication efforts, together with higher stock-based compensation expense attributable to the appreciation in the Company's share price. The increase also reflected higher personnel-related costs from increased headcount to support the SBS and IE segments, and higher incentive compensation associated with improved performance in Singapore, Malaysia and Thailand.
Current report
Selling expense was $847 in Fiscal 2026, an increase of $129 or 18% compared to $718 in Fiscal 2025. The increase in selling expense was primarily attributable to higher business travel expenses and increased commissionable sales across both the SBS and IE segments in Fiscal 2026 as compared to Fiscal 2025.
Current report
Loss from Operations
Current report
Loss from operations was $204 in Fiscal 2026, compared to income from operations of $254 in Fiscal 2025, a decline of $458. Despite lower gross profit margins in the SBS and IE segments, overall revenue growth during Fiscal 2026 was sufficient to absorb the higher operating expenses associated with the expansion of both segments. As a result, both operating segments continued to generate operating profit. However, increased corporate-level expenses, primarily professional fee and stock-based compensation, resulted in a consolidated loss from operations.
Current report
Interest expense was $65 in Fiscal 2026, an increase of $20 compared to $45 in Fiscal 2025 due to increased utilization of credit facilities at the Singapore operation. As of June 30, 2026, the Company had an unused line of credit of$5,646, comp ared to $6,074 as of June 30, 2025.
Current report
Other Income / (Expense)
Current report
Other income / (expense) for the years ended June 30, 2026 and 2025 were as follows:
Current report
During Fiscal 2026, the Company recorded other income of $641, a favorable shift of $822 compared to other expense of $181 in Fiscal 2025. The change was primarily due tolower foreign exchange losses and dividend income received by Prestal Sdn. Bhd., one of the Company’s subsidiaries, from an investment in unquoted shares.
Current report
Our net income is exposed to foreign exchange fluctuations as our subsidiaries' functional currencies differ from the U.S. dollar. For the year ended June 30, 2026, the strengthening of the Singapore dollar against the U.S. dollar resulted in foreign exchange loss, primarily from the remeasurement of U.S. dollar-denominated monetary assets and liabilities. The impact of this fluctuation was partially mitigated by the change in functional currency of Universal Far East, which reduced the overall exposure to U.S. dollar movements.
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Removed paragraphs (74)
Previous report
Cash and cash equivalents totaled $10,890 as of June 30, 2025, an increase of $855, or 8.5%, compared to $10,035 as of June 30, 2024. The increase was due to favorable foreign exchange movements as SGD appreciated against USD, which resulted in higher USD equivalent value of Cash and cash equivalents as of June 30, 2025. The increase in cash and cash equivalents was offset by a decrease of $450, or 5.0% in short-term deposits and restricted term deposits, which as of June 30, 2025 were $8,568, as compared to $9,018 at June 30, 2024. The decrease in short-term deposits reflects strategic decision to retain a higher proportion of funds in one-month deposits for the purpose of maintaining sufficient liquidity.
Previous report
Trade account receivables as of June 30, 2025 was $10,804, an increase of $143 or 1.3%, compared to $10,661 as of June 30, 2024. The increase was due to higher sales in our Industrial Electronics segment's Singapore operations during the fourth fiscal quarter, partially offset by lower sales in our China operations. The number of days’ sales outstanding in account receivables was 106 days and 90 days for the years ended June 30, 2025 and 2024 respectively.
Previous report
Other receivables as of June 30, 2025 were $608, an increase of $67, or 12.4%, compared to $541 as of June 30, 2024. Other receivables mainly comprise of advance payments to creditors, indirect taxes refundable in Singapore and China operations and interest receivable from short term deposits.
Previous report
Inventories as of June 30, 2025 were $2,262, a decrease of $900, or 28.5%, compared to $3,162 as of June 30, 2024. The decrease was driven by order fulfillment in our Singapore operations, along with a reduced backlog, which led to lower inventory levels. The number of days’ inventory held was 88 days at the end of Fiscal 2025, compared to 96 days at the end of Fiscal 2024.
Previous report
Prepaid expense as of June 30, 2025 were $384 as of June 30, 2025, compared to $536 as of June 30, 2024. The decrease was due to the amortization of rental expenses of our China operations during Fiscal 2025 relating to advance rental payments made as of June 30, 2024.
Previous report
Property, plant and equipment as of June 30, 2025 was $6,021, an increase of $84 or 1.4% compared to $5,937 as of June 30, 2024. The increase was primarily attributed to higher capital expenditures and additions to property, plant and equipment, which was partially offset by depreciation of existing property, plant and equipment recorded during Fiscal 2025 between June 30, 2024 and June 30, 2025.
Previous report
Other assets as of June 30, 2025 were $231, a decrease of $1, or 0.4%, compared to $232 as of June 30, 2024.
Previous report
Lines of credit as of June 30, 2025 were $141, an increase of $141, compared to nil as of June 30, 2024. The increase in the line of credit reflects borrowings to support working capital needs of IE segment in our Singapore operations in Fiscal 2025.
Previous report
Accounts payable as of June 30, 2025 were $1,896, a decrease of $1,279, or 40.3% from $3,175 as of June 30, 2024. The decrease reflects efforts to scale down purchases when sales slowed and inventory needs decreased.
Previous report
Accrued expense as of June 30, 2025 were $3,036, a decrease of $598, or 16.5% from $3,634 as of June 30, 2024. The decrease was mainly due to reduction in performance linked bonus provisions in Fiscal 2025.
Previous report
Income tax payable as of June 30, 2025 were $122, a decrease of $398, or 76.5% from $520 as of June 30, 2024. The decrease was mainly due to lower taxable profit in Fiscal 2025.
Previous report
Bank loans payable as of June 30, 2025 were $684, a decrease of $190 or 21.7% from $874 as of June 30, 2024. The decrease was due to the repayments made and no new loan arrangements entered during Fiscal 2025.
Previous report
Finance leases as of June 30, 2025 were $43, a decrease of $48 or 52.7% as compared to $91 as of June 30, 2024. The decrease was due to the repayments made in our Singapore and Malaysia operations.
Previous report
Other non-current liabilities as of June 30, 2025 were $31, an increase of $4 or 14.8% as compared to $27 as of June 30, 2024.
Previous report
Operating lease right-of-use assets and the corresponding lease liabilities as of June 30, 2025 were $864, a decrease of $1,023 or 54.2% as compared to $1,887 as of June 30, 2024. This was due to operating lease expense recognized for the period and partially driven by business model restructuring in one of our China operations, which reduced the need for space, resulting in a decrease in operating lease right-of-use assets and the corresponding lease liabilities. The decrease is partially offset by lease renewals for our Singapore office.
Previous report
On August 9, 2022, the CHIPS and Science Act of 2022 (“CHIPS Act”) was enacted in the United States. The CHIPS Act will provide financial incentives to the semiconductor industry which are primarily directed at manufacturing activities within the U.S. We continue to evaluate the business impact and potential opportunities related to the CHIPS Act. As of date, we do not see any direct effect of the CHIPS Act on the Company in the foreseeable future.
Previous report
The U.S. tariff regime announced in April 2025 could potentially influence downstream demand variability among our customers. The policy's implementation remains uncertain—while the administration initially paused the tariffs, certain measures are now set to take effect in August 2025, with revised rates for some countries lower than originally proposed. While we have no direct significant exposure to these tariffs, secondary effects may arise if customers adjust their procurement strategies in response to trade policy changes. Based on our preliminary observations, demand appears to shift from China to other countries in the region. However, potential effects on macro demand in the future are far from clear, although we recognize the risk of revenue volatility should global demand continue to weaken due to the continued trade tensions between China and the U.S. and the potential that such continued trade tensions result in declining economic conditions. We continue to evaluate capacity adjustments in alignment with observable demand signals while maintaining operational flexibility to adapt to changing market conditions.
Previous report
Critical Accounting Estimates & Policies
Previous report
The discussion and analysis of the Company’s financial condition presented in this section are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the U.S. During the preparation of the consolidated financial statements, we are required to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to sales, returns, pricing concessions, bad debts, inventories, investments, fixed assets, intangible assets, income taxes and other impairments. Due to the events listed above, there has been uncertainty and disruption in the global economy and financial markets. These estimates and assumptions may change as new events occur and additional information is obtained. Actual results may differ from these estimates under different assumptions or conditions.
Previous report
In response to the SEC’s Release No. 33-8040,Cautionary Advice Regarding Disclosure about Critical Accounting Policy, we have identified the most critical accounting policies upon which our financial statements depend. We determined that those critical accounting policies are related to the inventory valuation; allowance for doubtful accounts; revenue recognition; impairment of property, plant and equipment; investment properties and income tax. These accounting policies are discussed in the relevant sections in this management’s discussion and analysis, including the Recently Issued Accounting Pronouncements discussed below.
Previous report
Property, Plant and Equipment & Investment Properties
Previous report
Property, plant and equipment and investment properties are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method.
Previous report
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to property, plant and equipment are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss.
Previous report
Foreign Currency Translation and Transactions
Previous report
The United States dollar (“U.S. dollar”) is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. We also have business entities in Malaysia, Thailand, China and Indonesia, of which the Malaysian ringgit (“RM”), Thai baht, Chinese renminbi (“RMB”) and Indonesian rupiah are the national currencies. The Company uses the U.S. dollar for financial reporting purposes.
Previous report
The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the balance sheet date, and the statement of operations is measured using average rates in effect for the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated comprehensive income or loss translation adjustment. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period.
Previous report
Revenue Recognition
Previous report
The Company follows Accounting Standards Update (“ASU”) No. 2014-09, Accounting Standards Codification (“ASC”) Topic 606,Revenue from Contracts with Customers (“ASC Topic 606”). This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers.
Previous report
We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.
Previous report
Revenue derived from testing services in SBS and IE segment is recognized when services are rendered. Revenue generated from sale of products for both SBS and IE segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the control has been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain equipment sold in SBS and IE segment. These services are mainly for helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well, and these do not significantly modify the product. The Company recognizes the revenue at the point in time when the Company has satisfied its performance obligations.
Previous report
Investment
Previous report
The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making a Variable Interest Entity (“VIE”) determination. The Company would consolidate a venture that is determined to be a VIE if it was the primary beneficiary. Beginning January 1, 2010, a new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined. Through a primarily qualitative approach, the variable interest holder, if any, who has the power to direct the VIE’s most significant activities is the primary beneficiary. To the extent that the investment does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the venture should be consolidated.
Previous report
Cost Method
Previous report
Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company’s share of the earnings or losses of such investee companies is not included in the consolidated balance sheets or consolidated statements of operations and comprehensive income or loss. However, impairment charges are recognized in the consolidated statements of operations and comprehensive income or loss. If circumstances suggest that the value of the investee company has subsequently recovered, such recovery is not recorded.
Previous report
Fair Value Measurements
Previous report
Under the standard ASC Topic 820,* Fair Value Measurements* and Disclosures (“ASC Topic 820”),* *fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants in the market in which the reporting entity transacts its business. ASC Topic 820 clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, ASC Topic 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy.
Previous report
Stock-Based Compensation
Previous report
We calculate compensation expense related to stock option awards made to employees and directors based on the fair value of stock-based awards on the date of grant. We determine the grant date fair value of our stock option awards using the Black-Scholes option pricing model and for awards without performance condition, the related stock-based compensation is recognized over the period in which a participant is required to provide service in exchange for the stock-based award, which is generally four years. We recognize stock-based compensation expense in the consolidated statements of shareholders' equity based on awards ultimately expected to vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates.
Previous report
Determining the fair value of stock-based awards at the grant date requires significant judgment. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected by our estimated common stock fair value as well as other subjective assumptions including the expected term of the awards, the expected volatility over the expected term of the awards, expected dividend yield and risk-free interest rates. The assumptions used in our option-pricing model represent management’s best estimates and are as follows:
Previous report
Non-controlling Interests in Consolidated Financial Statements
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Reworded paragraphs (30)
Previous wording
Our core business is and historically has been in the semiconductor industry, including manufacturing of test equipment, testing services, and distribution of test and other semiconductor equipment and electronic components. TTI develops and manufactures an extensive range of test equipment used in the “front-end” and the “back-end” manufacturing processes of semiconductors. Our equipment includes leak detectors, autoclaves, centrifuges, burn-in systems and boards, HAST testers, temperature-controlled chucks, and more. TTI provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in our testing laboratories.
Current wording
Our core business is and historically has been in the semiconductor industry, including manufacturing test equipment, testing services, and distribution of test and other semiconductor equipment and electronic components. TTI develops and manufactures an extensive range of test equipment used in the “front-end” and the “back-end” manufacturing processes of semiconductors. Our equipment includes leak detectors, autoclaves, centrifuges, burn-in systems and boards, HAST testers, temperature-controlled chucks, and more. TTI provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in our testing laboratories.
Previous wording
In addition to marketing our proprietary products, we distribute complementary products made by manufacturers around the world. We act as value-added resellers by enhancing the value of the distributed products by customizing them to the needs of our customers through our expert design, engineering and integration. We also support our customers as their extended research and development arm in product design, leveraging the expert skills of our component engineers and design engineers.
Current wording
In addition to marketing our proprietary products, we distribute complementary products made by manufacturers around the world. Leveraging our engineering and integration expertise, we customize and optimize these solutions to meet the unique requirements of each customer, delivering enhanced performance, reliability, and value. We also support our customers as their extended research and development arm in product design, leveraging the expert skills of our component engineers and design engineers.
Previous wording
During the years ended June 30, 2025 (“Fiscal 2025”) and June 30, 2024 (“Fiscal 2024”), Trio-Tech International revenue from Semiconductor Back-end Solutions and Industrial Electronics represented 67.7% and 32.2% of our revenue, respectively, as compared to 71.1% and 28.8% respectively, during Fiscal 2024. Revenue from the semiconductor industry, or our Semiconductor Back-end Solutions and Industrial Electronics segments, accounted for more than 99.9% of our total revenue for the years ended June 30, 2025 and 2024, respectively.
Current wording
During the years ended June 30, 2026 (“Fiscal 2026”) and June 30, 2025 (“Fiscal 2025”), Trio-Tech International revenue from Semiconductor Back-end Solutions and Industrial Electronics represented 78.3% and 21.6% of our revenue, respectively, as compared to 67.7% and 32.2% respectively, during Fiscal 2025. Revenue from our Semiconductor Back-end Solutions and Industrial Electronics segments accounted for more than 99.9% of our total revenue for the years ended June 30, 2026 and 2025, respectively.
Previous wording
Total assets as of June 30, 2025 were $41,068, a decrease of $1,472, or 3.5%, compared to $42,540 as of June 30, 2024. The decrease was primarily due to an decrease in short term deposits, inventories and operating lease right-of-use assets. The decrease was partially offset by an increase in cash and cash equivalents, restricted term deposits, trade accounts receivables, other receivables and property, plant and equipment.
Current wording
Total assets as of June 30, 2026 were $60,687, an increase of $19,619, or 47.8%, compared to $41,068 as of June 30, 2025. The increase was primarily due to an increase in cash and cash equivalents, trade accounts and other receivables, inventories, prepaid expense, property, plant and equipment (“PPE”) and operating lease right-of-use assets.
Previous wording
Investment properties as of June 30, 2025 were $345, a decrease of $62 or 15.2% from $407 as of June 30, 2024. The decrease was attributable to the depreciation charged for the year.
Current wording
Investment properties as of June 30, 2026 were $293, a decrease of $52 or 15.1% from $345 as of June 30, 2025. The decrease was attributable to the depreciation charged for the year.
Previous wording
Total liabilities as of June 30, 2025 were $7,077, a decrease of $3,885, or 35.4%, compared to $10,962 as of June 30, 2024. The decrease in liabilities was primarily due to a decrease in accounts payable, accrued expense, contract liabilities, income tax payable, bank loans payable, operating and finance lease.
Current wording
Total liabilities as of June 30, 2026 were $17,672, an increase of $10,595, or 149.7%, compared to $7,077 as of June 30, 2025. The increase in liabilities was primarily due to an increase in accounts payable, accrued expense, income tax payable and operating lease.
Previous wording
The Company maintains monetary assets and liabilities denominated in currencies other than its functional currency. At each reporting date, these items are remeasured into the functional currency at the period-end spot rate. Resulting unrealized foreign currency gains or losses are included in net income and reported as reconciling items in the statement of cash flows under the indirect method. Our operations in Singapore hold certain monetary assets, including U.S. dollar-denominated accounts receivable and cash balances. The weakening of the U.S. dollar against the Singapore dollar resulted in an unrealized foreign currency loss when these U.S. dollar balances were remeasured into Singapore dollars, which is the functional currency of the subsidiary. While such impacts affect reported earnings in the period, they are unrealized in nature and may reverse in future periods depending on exchange rate movements and the timing of settlement of these balances.
Current wording
The Company maintains monetary assets and liabilities denominated in currencies other than its functional currency. At each reporting date, these items are remeasured into the functional currency at the period-end spot rate. Resulting unrealized foreign currency gains or losses are included in net income and reported as reconciling items in the statement of cash flows under the indirect method. Our operations in Singapore and Malaysia hold certain monetary assets, including U.S. Dollar-denominated accounts receivable and cash balances. The weakening of the U.S. Dollar against the Singapore Dollar and Malaysian Ringgit could result in an unrealized foreign currency loss upon remeasurement of these U.S. Dollar balances into the functional currency of respective subsidiaries. While such impacts affect reported earnings in the period, they are unrealized in nature and may reverse in future periods depending on exchange rate movements and the timing of settlement of these balances.
Previous wording
As of June 30, 2025, although we have seen improvements in both our operations and those of our suppliers, we may continue to experience supply shortages as well as inflationary cost pressures in at least the near term. Risks and uncertainties related to supply chain challenges, uncertainty regarding tariffs, and inflationary pressures may continue to negatively impact our revenue and gross margin. We continue to monitor and evaluate the business impact to react proactively.
Current wording
Risks and uncertainties related to supply chain challenges, uncertainty regarding tariffs, and inflationary pressures may continue to negatively impact our gross margin and operating results. We continue to closely monitor these developments and their broader impacts, as well as evaluate appropriate actions to mitigate potential business impacts.
Previous wording
The Company accounts for allowance for credit losses under the current expected credit loss (“CECL”) impairment model for its financial assets, including accounts receivable, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, communications with its customers, and macro-economic conditions. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible.
Current wording
The Company accounts for allowance for credit losses under the current expected credit loss (“CECL”) impairment model for its financial assets, including accounts receivable, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers forecasts of future economic conditions in addition to information about past events and current conditions. Estimation of expected credit losses requires significant management judgment and the use of subjective assumptions. Based on this model, the Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, communications with its customers, and macro-economic conditions. Actual credit losses may differ from these estimates if customer financial conditions deteriorate or if future macroeconomic conditions vary from our projections. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible.
Previous wording
Inventories of our SBS and IE segments, consisting principally of raw materials, works in progress, and finished goods, are stated at the lower of cost and net realizable value, using the first-in, first-out (“FIFO”) method. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and swiftly changing demand. Provisions for estimated excess and obsolete inventory are based on regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not-saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on sale ability and obsolescence.
Current wording
Inventories of our SBS and IE segments, consisting principally of raw materials, works in progress, and finished goods, are stated at the lower of cost and net realizable value, using the first-in, first-out (“FIFO”) method. Determining the net realizable value and necessary excess or obsolescence reserves requires significant management judgment and estimation. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and swiftly changing demand. Provisions for estimated excess and obsolete inventory are based on regular reviews of inventory quantities on hand and management's key assumptions regarding the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not-saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on sale ability and obsolescence. Due to the estimation uncertainty inherent in forecasting future demand, actual results may differ from our estimates.
Previous wording
Our business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand. We have recorded intangible assets with finite lives related to our acquisitions.
Current wording
Our business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand. Evaluating the recoverability of these assets involves significant management judgment and estimation.
Previous wording
We evaluate our long-lived assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in our stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on undiscounted cash flow analysis, if there is significant adverse change.
Current wording
We evaluate our long-lived assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in our stock price for a sustained period of time. Determining recoverability requires estimating future undiscounted cash flows expected to be generated over the remaining useful life of the asset group. Key management assumptions used in these forecasts include projected production volumes and labor costs. These estimates are inherently uncertain and subject to market volatility.
Previous wording
We have not identified any changes in circumstances requiring further impairment test in Fiscal 2025. Our assessments established that the fair value of our primary assets continued to exceed their carrying amounts, resulting in no impairment charges for Fiscal 2025. We will continue to monitor impairment indicators, such as disposition activity, stock price declines or changes in forecasted cash flows in future periods. If the fair value of our reporting unit declines below the carrying value in the future, we will perform impairment testing and recognize impairment charges accordingly.
Current wording
We have not identified any changes in circumstances requiring further impairment test in Fiscal 2026. Our assessments established that theestimated undiscounted cash flows for our primary asset groups continued to exceed their carrying amounts, resulting in no impairment charges for Fiscal 2026. We will continue to monitor impairment indicators, such aschanges in forecasted cash flows, customer demands, or disposition activity in future periods. If future cash flow expectations decline, we may be required to record impairment of the asset groups.
Previous wording
We account for income taxes using the liability method in accordance with the provisions of ASC Topic 740*, Accounting for Income Taxes*(“ASC Topic 740”), which requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expense or benefits in the period that covers the enactment date. Management believed it was more likely than not that the future benefits from these timing differences would not be realized. Accordingly, a valuation allowance was provided asof June 30, 2025 and 2024.
Current wording
We account for income taxes using the liability method in accordance with the provisions of ASC Topic 740*, Accounting for Income Taxes*(“ASC Topic 740”), which requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expense or benefits in the period that covers the enactment date. Establishing deferred tax assets and associated valuation allow ances involves significant management judgment and estimation. Management evaluates the realizability of deferred tax assets across individual tax jurisdictions based on key assumptions, including historical profitability, projected future taxable income and the timing of the reversal of temporary differences. Management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, a valuation allowance was provided as of June 30, 2026 and 2025.
Previous wording
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. We recognize potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.
Current wording
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. We recognize potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Due to the inherent estimation uncertainty in forecasting future taxable income across jurisdictions and predicting audit outcomes, actual results may differ from our estimates.
Previous wording
Revenue comprises of mainly revenue from the SBS and IE segments. The components of revenue for Fiscal 2025 and 2024 were as follows:
Current wording
Revenue comprises mainly revenue from the SBS and IE segments. The components of revenue for Fiscal 2026 and 2025 were as follows:
Previous wording
Backlog in the IE segment as of June 30, 2025 was $4,335, a decrease of $154, compared to $4,489 at June 30, 2024. The decline of backlog mainly attributable in equipment sales, driven by adverse macroeconomic conditions, was partially offset by an increase in backlog of component sales. The equipment and electronic components market is highly competitive, with commoditized products widely available. Our differentiation lies in our value-added distribution model, with enhancement of standard products through customized design, engineering, integration, and sub-assembly services tailored to customer specifications, securing a competitive advantage for the long term.
Current wording
Backlog in the IE segment as of June 30, 2026 was $4,399, an increase of $64, or 1%, compared to $4,335 as of June 30, 2025. The increase was mainly attributable to higher backlog for aviation products, partially offset by lower equipment and electronic component sales backlog. The equipment and electronic components market remained highly competitive, with commoditized products widely available. Our differentiation lies in our value-added distribution model, with enhancement of standard products through customized design, engineering, integration, and sub-assembly services tailored to customer specifications, sustaining our competitive advantage over the long term.
Previous wording
Gross margin as a percentage of revenue was 25.1% in Fiscal 2025, a decrease of 0.3% compared to 25.4% in Fiscal 2024. Overall gross profit for Fiscal 2025 was $9,144, a decrease of $1,618, or 15%, compared to $10,762 for Fiscal 2024.
Current wording
Gross margin as a percentage of revenue was 16.6% in Fiscal 2026, a decrease of 8.5% compared to 25.1% in Fiscal 2025. Overall gross profit for Fiscal 2026 was $10,417, an increase of $1,273, or 14%, compared to $9,144 for Fiscal 2025.
Previous wording
Operating expense for the years ended June 30, 2025 and 2024 was as follows:
Current wording
Operating expense for the years ended June 30, 2026 and 2025 were as follows:
Previous wording
During Fiscal 2024, the Company received government grants amounting to $113, $23 of which was financial assistance received from the Singapore government for local resident recruitment, $57 from the U.S. government related to ERC and the remaining related to capital expenditure subsidy received from the government in China.
Current wording
During Fiscal 2026, the Company received government grants amounting to $17, of which $15 was an incentive from the Singapore government for local resident recruitment and the remaining $2 was related to capital expenditure subsidy received from the government in China.
Previous wording
During Fiscal 2025, the Company received government grants amounting to $145, $82 of which was an incentive from the Singapore government for local resident recruitment, $48 from the U.S. government related to Employee Retention Credit (“ERC”) and the remaining $15 related to capital expenditure subsidy received from the government in China.
Current wording
During Fiscal 2025, the Company received government grants amounting to $145, of which $82 was an incentive from the Singapore government for local resident recruitment, $48 was related to the U.S. government's Employee Retention Credit (“ERC”) and the remaining $15 related to capital expenditure subsidy received from the government in China.
Previous wording
Income tax expense for Fiscal 2025 was $168, representing a decrease of $318, as compared to income tax expense of $486 for Fiscal 2024. The decrease was primarily due to lower taxable income in Fiscal 2025 compared to Fiscal 2024.
Current wording
Income tax expense for Fiscal 2026 was $228, representing an increase of$60, as compared to income tax expense of $168 for Fiscal 2025. The increase was primarily due to higher taxable income in Fiscal 2026 compared to Fiscal 2025.
Previous wording
At June 30, 2025, the Company had no federal net operating loss carry-forwards, and a state net operating loss carry-forward of$2,384, which expires in 2034. These carryovers may be subject to limitations under I.R.C. Section 382. In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these criteria, management believes it is more likely than not the Company will not realize the benefits of the federal, state, and foreign deductible differences. Accordingly, a valuation allowance has been established against deferred tax assets recorded in the US and various foreign jurisdictions.
Current wording
On June 30, 2026, the Company had $65 federal net operating loss carry-forwards, and a state net operating loss carry-forward of $2,529, which expires in 2039. These carryovers may be subject to limitations under I.R.C. Section 382. In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these criteria, management believes it is more likely than not that the Company will not realize the benefits of the federal, state, and foreign deductible differences. Accordingly, a valuation allowance has been established against deferred tax assets recorded in the US and various foreign jurisdictions.
Previous wording
As of June 30, 2025, the Company held a 55% interest in each of Trio-Tech (Malaysia) Sdn. Bhd., SHI International Pte Ltd, and 52% interest in PT SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd. The share of non-controlling interest for Fiscal 2025, in the net income of subsidiaries, was $41, a decrease of $51 compared to a non-controlling interest in the net income of $92 for the previous fiscal year, due to the decrease in net income generated by the Company's China operations during Fiscal 2025 before the Company's acquisition of the remaining 49% of the equity interest in Trio-Tech (Jiangsu) Co. Ltd, resulting in the acquisition of all the equity interest in Trio-Tech (Jiangsu) Co. Ltd as of June 30, 2025.
Current wording
As of June 30, 2026, the Company held a 55% interest in SHI International Pte. Ltd. and 76% interest in Prestal Enterprise Sdn. Bhd. The share of non-controlling interest for Fiscal 2026, in the net income of subsidiaries, was $253, an increase of $212 compared to a non-controlling interest in the net income of $41 for Fiscal 2025.
Previous wording
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders
Current wording
Net Loss Attributable to Trio-Tech International Common Shareholders
Previous wording
Basic loss per share from continuing operations was$0.01 in Fiscal 2025, as compared to basic earnings per share of $0.25 in Fiscal 2024. Basic earnings per share from discontinued operations was $nil for Fiscal 2025 and Fiscal 2024.
Current wording
Basic loss per share from continuing operations were$0.00 for Fiscal 2026 and Fiscal 2025. Basic earnings per share from discontinued operations were $nil for Fiscal 2026 and Fiscal 2025.
Previous wording
Diluted loss per share from continuing operations was$0.01 in Fiscal 2025, as compared to diluted earnings per share $0.24 in Fiscal 2024. Diluted earnings per share from discontinued operations was $nil for Fiscal 2025 and Fiscal 2024.
Current wording
Diluted loss per share from continuing operations was$0.00 for Fiscal 2026 and Fiscal 2025. Diluted earnings per share from discontinued operations were $nil for Fiscal 2026 and Fiscal 2025.
Previous wording
Income from operations in the IE segment in Fiscal 2025 was $236, as compared to income from operations of $509 in Fiscal 2024. The decrease in income from operations was mainly due to a decrease in revenue in absolute dollar amounts. Operating expense was $2,177 and $1,922 for Fiscal 2025 and 2024, respectively. The increase of $255 in operating expense was driven by higher travel costs from the pursuit of new business opportunities to expand into new markets, along with higher selling and distribution expenses from more agency commission payments, tied to higher proportion of commissionable revenue in the IE segment.
Current wording
Income from operations in the IE segment was $176 in Fiscal 2026, compared to income from operations of $236 in Fiscal 2025. The decrease in income from operations was primarily attributable to higher operating expenses during the year. Operating expense were $2,576 and $2,176 for Fiscal 2026 and 2025, respectively. The increase of $400 in operating expense included an increase of $350 in general and administrative expenses. The increase was primarily attributable to costs associated with the Company’s expansion into the aerospace market and related business development activities. The increase also reflected a $47 increase in selling and distribution expenses, primarily due to higher agency commissions resulting from a greater proportion of commissionable revenue in the IE segment, as well as $194 of expected credit loss expense.
Previous wording
Our working capital (defined as current assets minus current liabilities) has historically been generated primarily from the following sources: operating cash flow, availability under our revolving line of credit, and short-term loans. Working capital was $25,297 as of June 30, 2025, representing an increase of $2,537, or 11.1%, compared to working capital of $22,760 as of June 30, 2024. The increase in working capital was mainly due to decreases in current liabilities, including accounts payable, accrued expense, contract liabilities, income taxes payable and operating leases. Such fluctuations were partially offset by decreases in current assets, including short-term deposits and prepaid expenses and increases in current liabilities, including lines of credit.
Current wording
Our working capital (defined as current assets minus current liabilities) has historically been funded primarily from the following sources: operating cash flow, availability under our revolving line of credit, and short-term loans. Working capital was $32,155 as of June 30, 2026, representing an increase of $6,858, or 27.1%, compared to working capital of $25,297 as of June 30, 2025. The increase in working capital was mainly driven by higher cash and cash equivalent, trade accounts receivable, other receivables, inventories and prepaid expenses. The increase in current assets was partially offset by increase in current liabilities, including accounts payable, accrued expense, income tax payable and operation leases.
Previous wording
The majority of our capital expenditures are based on demands from our customers, as we are operating in a capital-intensive industry. Our capital expenditures were $967 and $542 for the years ended June 30, 2025 and 2024, respectively. The capital expenditures in Fiscal 2025 were primarily for machinery & equipment in Singapore, Malaysia and Thailand operations and leasehold improvement in China and Singapore operations. We financed our capital expenditures and other operating expense through operating cash flows.
Current wording
The majority of our capital expenditures are based on demand from our customers, as we are operating in a capital-intensive industry. Our capital expenditures were$1,741 and $967 for the years ended June 30, 2026 and 2025, respectively. The capital expenditures in Fiscal 2026 were primarily for machinery & equipment in Malaysia, Singapore, China operations and building improvement in Malaysia and Singapore operations. We financed our capital expenditure and other operating expense through operating cash flows.