Executive Summary:
- QQ3 2024 revenue was $10.398 million, up 5.65% year over year but down 14.78% quarter over quarter, reflecting seasonal and scale-related dynamics in a small-cap semiconductor equipment supplier.
- Gross profit reached $2.703 million with a gross margin of 25.99%, marking a modest YoY improvement but a softer QoQ trajectory, consistent with a low-volume base and relatively stable cost structure.
- Operating income was $0.059 million (0.57% margin) and net income was $0.070 million (0.67% margin), indicating the business remains near breakeven at the operating line despite positive cash flow generation. EBITDA stood at $1.085 million, with EBITDA margin of ~10.4%.
- The company exhibits strong liquidity and a conservative capital structure: cash and cash equivalents of $11.47 million, total short-term investments of $6.31 million, and a net cash position of about $8.14 million. Total assets were $43.09 million against liabilities of $11.64 million, yielding a healthy balance sheet with a current ratio of 3.29 and a cash conversion cycle of roughly 101 days. Free cash flow was $1.19 million for the quarter.
- In sum, TRT delivered positive cash flow and a stable balance sheet in QQ3 2024, but near-term profitability hinges on revenue stabilization and modest margin expansion. The stock trades at a lower revenue multiple relative to peers, reflecting its small scale and early-stage profitability profile, which could pose a margin of safety for investors with a long-duration growth thesis in semiconductor testing and related services.