Trio-Tech International Inc. narrowed its fiscal second quarter loss, the result of higher sales and cost-cutting measures, the company announced Thursday.

The Van Nuys manufacturer reported a net loss of $506,000 (-15 cents a share) for the quarter ended Dec. 31, compared with a loss of $1.2 million (-36 cents) in the same period a year earlier. Revenue increased 11 percent to $7.4 million.

The company’s core business is building and selling semiconductor test equipment. In 2011, the company expanded into making parts used on oil and natural-gas drilling rigs.

“Our core operations performed well in the second quarter, and our cash position is improving,” said Chief Executive S.W. Yong in a statement. “We are optimistic about the outlook for our testing business, especially in China.”

Shares fell 9 cents, or 4.5 percent, to close at $1.90 on the New York Stock Exchange.