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Trio-Tech reported that its revenue for the full year reached about 62.6 million dollars, a sharp rise from the year before. The growth was led by its semiconductor testing business, which nearly doubled in size. This part of the company handles "burn-in" services, where chips are tested under high stress to ensure they won't fail in the field. Demand is surging because AI and electric vehicle chips require much more rigorous testing than older electronics.
The most important detail for the future is the company's backlog, which represents orders that are signed but not yet billed. That backlog more than doubled to 24.2 million dollars by the end of June. While the company reported a small loss of 2 cents per share for the quarter, the massive growth in orders suggests the expansion into AI and automotive markets is working. The main challenge now is finishing a large new facility in Malaysia to handle this extra work.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company secured a new three-year agreement to provide reliability testing for automotive semiconductors. The deal includes a minimum commitment of 4.7 million dollars and could grow to 6 million dollars as the customer scales up. This is a meaningful win because it helps diversify the company's customer base beyond its main partners in Asia.
Automotive chips are a high-growth area because modern cars require hundreds of semiconductors that must work perfectly for years. Winning a contract with a new customer in Europe and North America shows that Trio-Tech's specialized testing equipment is competitive on a global scale. This deal adds more predictable, long-term revenue to the company's growing backlog.
Source: Business Wire
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