Trio-Tech International (TRT) Stock: Why The Price Surged Today

By Amit Chowdhry ● Nov 15, 2021
  • The stock price of Trio-Tech International (NYSEAMERICAN: TRT) increased by over 35% during intraday trading today. This is why it happened.

The stock price of Trio-Tech International (NYSEAMERICAN: TRT) increased by over 35% during intraday trading today. Investors are responding positively to Trio-Tech announcing the financial results for the first quarter of fiscal 2022.

The total revenue for the 3 months ended September 30, 2021 increased 49% to $10,171,000 compared to $6,841,000 for the first quarter of fiscal 2021. And manufacturing revenue advanced 36%, testing services revenue increased 56%, and distribution revenue rose 59% compared to the year-earlier period.

The overall gross margin increased to 31% of total revenue compared to 22% for last year’s first quarter while operating expenses declined to 22% of revenue from 27%. And as a result, the operating income increased to $970,000 for this year’s first quarter, compared to an operating loss of $327,000 for the same quarter a year ago.

The net income for the first quarter of fiscal 2022 was $917,000, or $0.23 per diluted share. And this compares to a net loss of $8,000, or $0.00 per share, for the first quarter a year ago.

The shareholders’ equity at September 30, 2021 increased to $26,704,000, or $6.82 per outstanding share, compared to $26,053,000, or $6.66 per outstanding share, at June 30, 2021. And there were approximately 3,913,055 common shares outstanding at both September 30, and June 30, 2021.

KEY QUOTE:

“The 49% growth in first quarter revenue, and the improvements in gross margin, operating and net income reflect higher order rates from customers across our operations, improved operating efficiency, firming prices for testing services and a favorable product mix. Our backlog remains strong, as we continue to benefit from our strategy of providing close-in product and testing services for our major customers. We remain optimistic regarding opportunities for the remainder of the fiscal year as we work to finalize a contract with our customer for testing and burn-in services related to a variety of semiconductor components with applications in computing and automotive electronics.”

— S.W. Yong, Trio-Tech’s CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.