Two new products deliver critical voltage and temperature monitoring systemsLAFOX, Ill., May 27, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for renewable energy and other power management applications, announced a new line of monitoring relays for the wind and renewables markets. The first of these to be launched are temperature and voltage monitoring relays to meet safety needs, as well as the performance of the critical turbine monitorin ...

LAFOX, Ill., April 22, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL), a global provider of engineered solutions for renewable energy and other power management applications, today announced the expansion of its customer base through a supply agreement with TransAlta Corporation* for its patented pitch energy modules designed for GE* wind turbines and SSB* platforms. TransAlta Corporation is one of Canada's largest publicly traded power generators, owning and operating a diverse fleet a ...

Company to deliver patented pitch energy modules and accessoriesLAFOX, Ill., April 22, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for renewable energy and other power management applications, today announced the expansion of its customer base through a supply agreement with TransAlta Corporation* for its patented pitch energy modules designed for GE* wind turbines and SSB* platforms. TransAlta Corporation is one of Canada’s largest publicl ...

Core Viewpoint - Richardson Electronics, Ltd. will present at the Planet MicroCap Showcase: VEGAS 2025 on April 23, 2025, highlighting its engineered solutions for various markets [1][2]. Company Overview - Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, power management, and custom display solutions [2]. - The company produces over 50% of its products in LaFox, Illinois, Marlborough, Massachusetts, and Donaueschingen, Germany, as well as through global manufacturing partners [2]. - The company serves diverse markets including alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor sectors [2]. - Richardson Electronics focuses on providing specialized technical expertise and engineered solutions through design-in support, systems integration, prototype design, testing, logistics, and aftermarket services [2]. Event Details - The presentation at the Planet MicroCap Showcase will take place on April 23, 2025, from 11:30 AM to 12:00 PM PT [1]. - Investors can access the live presentation via a provided webcast link [1]. - One-on-one investor meetings will be conducted in person at the conference venue, Paris Hotel & Casino in Las Vegas, NV [1].

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 FY 2025 increased by 2.7% to $53.8 million compared to $52.4 million in Q3 FY 2024, marking the third consecutive quarterly year-over-year increase in sales [11] - Non-GAAP operating profit for Q3 FY 2025 rose to $2.2 million, up from $1 million in the prior year [6][14] - Consolidated gross margin for Q3 FY 2025 was 31.0%, up from 29.5% in Q3 FY 2024, driven by margin expansion in PMT and GES [13] - Net loss for Q3 FY 2025 was $2.1 million, while non-GAAP net income was $1.6 million, compared to a net income of $0.8 million in Q3 FY 2024 [15] Business Line Data and Key Metrics Changes - Semiconductor wafer fab sales surged by 139% year-over-year, contributing significantly to overall sales growth [5][12] - Canvys sales increased by 39.5% to $9.2 million in Q3 FY 2025, driven by higher sales in North American markets [36] - GES sales totaled $9.3 million, a 55% increase over Q2 FY 2025 but down 19% year-over-year due to lower sales of wind turbine battery modules [23] Market Data and Key Metrics Changes - The backlog for GES and PMT remained strong at $95 million at the end of Q3 FY 2025, indicating robust future demand [27] - Canvys' backlog at the end of Q3 FY 2025 was $36.6 million, providing a solid foundation for future business [36] Company Strategy and Development Direction - The company is focusing on core businesses, particularly Green Energy Solutions, following the sale of its Healthcare assets [7][42] - The strategic transaction is expected to simplify the business and improve the financial model long-term, allowing for prioritization of profitable opportunities in high-growth markets [42][48] - The company plans to invest proceeds from the Healthcare asset sale into growth initiatives, especially in Green Energy Solutions and other high-growth complementary businesses [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about capitalizing on policies driving manufacturing back to the US and the need for US content [8] - The current operating environment is described as fluid, with expectations of limited market growth in the US but opportunities for market share growth and new product introductions [29] - The company is well-positioned to differentiate itself in global niche markets like energy storage, with significant projected growth in the energy storage market [47][48] Other Important Information - The company achieved positive operating cash flow for the fourth consecutive quarter, ending with $36.7 million in cash and equivalents [5][19] - Capital expenditures in Q3 FY 2025 were $0.5 million, primarily related to facilities and IT systems [20] Q&A Session Summary Question: What should we expect in terms of sequential growth for GES? - Management expects growth in Q4 FY 2025 and FY 2026 based on strong backlog and inventory position [57] Question: Are there any cancellations or delays in projects? - No cancellations reported; all identified programs are moving forward, although timing has been slower than desired [60] Question: How is the semiconductor wafer fab business performing? - The business is expected to grow in Q4 FY 2025, with strong performance anticipated for the fiscal year [62] Question: How will capital allocation be handled post-Healthcare sale? - Initial investments will focus on expanding existing products and technologies, with M&A strategy to be discussed later [86] Question: Can you provide updates on Progress Rail and Wabtec? - Significant orders are being processed, with shipments expected to begin in FY 2026 [94][97] Question: What are the expected losses from the Healthcare segment? - Specific figures are not disclosed, but efforts are being made to minimize losses as the company transitions [104]

Financial Performance - Net sales for the third quarter of fiscal 2025 were $53.8 million, an increase of 2.7% compared to $52.4 million in the same period of fiscal 2024[106]. - Net sales for the first nine months of fiscal 2025 were $157.0 million, reflecting a 5.3% increase from $149.1 million in the first nine months of fiscal 2024[108]. - Sales for the Power and Microwave Technologies (PMT) segment increased by 6.6% in the third quarter of fiscal 2025, primarily due to higher sales of engineered solutions for the semiconductor wafer fabrication market[107]. - The Green Energy Solutions (GES) segment saw a 26.0% increase in sales during the first nine months of fiscal 2025, driven by increased shipments of power management products[108]. - The Healthcare segment experienced a 32.3% decrease in sales during the third quarter of fiscal 2025, attributed to the sale of the majority of Healthcare assets to DirectMed[107]. Profitability and Margins - Gross margin increased to 31.0% during the third quarter of fiscal 2025, up from 29.5% in the third quarter of fiscal 2024[106]. - Consolidated gross profit increased to $16.7 million in Q3 FY2025, up from $15.4 million in Q3 FY2024, with a gross margin of 31.0% compared to 29.5%[110]. - Gross profit for the PMT segment was $10.2 million, representing 30.8% of net sales in the third quarter of fiscal 2025, compared to $8.8 million, or 28.3%, in the same period of fiscal 2024[109]. - GES net sales decreased 19.4% to $9.3 million in Q3 FY2025, primarily due to a large order in Q3 FY2024 that did not repeat, while gross margin improved to 32.8%[114]. - Healthcare net sales fell 32.3% to $2.1 million in Q3 FY2025, with gross margin dropping to 15.5% from 41.6% due to manufacturing issues[118]. Expenses and Losses - Selling, general and administrative expenses were $14.5 million, or 26.9% of net sales, during the third quarter of fiscal 2025, compared to $14.4 million, or 27.6% of net sales, in the same period of fiscal 2024[106]. - Operating loss for the third quarter of fiscal 2025 was $2.7 million, compared to an operating income of $1.0 million in the third quarter of fiscal 2024[106]. - Net loss for Q3 FY2025 was $2.1 million, or $0.15 per diluted share, compared to a net income of $0.8 million in Q3 FY2024[129]. Cash Flow and Financing - Cash and cash equivalents were $36.7 million as of March 1, 2025, with $20.3 million in North America[133]. - Operating activities generated $10.5 million of cash during the first nine months of FY2025, despite a net loss of $2.2 million[139]. - The company established a $30 million revolving credit facility, with no amounts outstanding as of the end of Q3 FY2025[137]. - Cash provided by investing activities was $5.0 million during the first nine months of fiscal 2025, primarily from $7.0 million proceeds from the disposal of Healthcare assets[141]. - Cash used by financing activities was $2.4 million during the first nine months of fiscal 2025, primarily due to $2.6 million in dividend payments[144]. Accounting and Risk Management - There have been no material changes in critical accounting estimates from the previous annual report[145]. - No specific events or circumstances have been identified that would require updates to estimates, assumptions, and judgments[145]. - The company is exposed to foreign currency exchange risks, managing these through normal operating and financing activities[148]. Other Financial Metrics - Non-cash stock-based compensation expense was $1.0 million, with inventory reserve provisions of $0.5 million and depreciation and amortization expense of $3.2 million[140]. - Changes in operating assets and liabilities used $5.7 million in cash, including a $2.2 million increase in inventory and a $5.2 million decrease in accounts payable[140]. - Cash used in investing activities was $3.1 million during the first nine months of fiscal 2024, primarily for capital expenditures related to IT systems and LaFox manufacturing[142]. - Cash used by financing activities was $2.3 million during the first nine months of fiscal 2024, primarily due to $2.5 million in dividend payments[144].

Core Insights - Richardson Electronics (RELL) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.05 per share a year ago [1] - The earnings surprise was 37.50%, contrasting with a previous quarter where a loss of $0.02 per share was expected, but the company reported a loss of $0.05, resulting in a surprise of -150% [2] - The company posted revenues of $53.8 million for the quarter, missing the Zacks Consensus Estimate by 1.70%, compared to $52.38 million in the same quarter last year [3] Financial Performance - Over the last four quarters, Richardson Electronics has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates only once in the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $56.32 million, and for the current fiscal year, it is $0.22 on revenues of $214.26 million [8] Market Position - Richardson Electronics shares have declined approximately 34.9% since the beginning of the year, while the S&P 500 has decreased by 15.3% [4] - The Zacks Industry Rank for Electronics - Parts Distribution is in the bottom 23% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [9] Future Outlook - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [7] - The trend of estimate revisions for Richardson Electronics has been unfavorable ahead of the earnings release, which may change following the recent report [6][7]

Financial Performance - Q3 FY25 net sales were $53.8 million, a 2.7% increase from $52.4 million in Q3 FY24[4] - Year-to-date net sales for the first nine months of FY25 were $157.0 million, a 5.3% increase from $149.1 million in the same period of FY24[17] - Net sales for the three months ended March 1, 2025, were $53,804 thousand, representing a 2.7% increase from $52,375 thousand for the same period in 2024[37] - The PMT segment saw a 6.6% increase in net sales to $33,216 thousand for the three months ended March 1, 2025, while the GES segment experienced a 19.4% decline to $9,299 thousand[37] - The healthcare segment's net sales decreased by 32.3% to $2,094 thousand for the three months ended March 1, 2025[37] Profitability - Non-GAAP operating income for Q3 FY25 rose to $2.2 million, up from $1.0 million in the prior year[3] - Non-GAAP net income for the three months ended March 1, 2025, was $1,581 thousand compared to $750 thousand in the same period last year[39] - Non-GAAP Earnings Per Common Share (Diluted) for the three months ended March 1, 2025, was $0.11, up from $0.05 in the same period of 2024[21] - Adjusted EBITDA for the three months ended March 1, 2025, was $2,806,000, compared to $2,083,000 for the same period in 2024, indicating growth[22] - The company reported a net loss of $2.1 million for Q3 FY25, compared to a net income of $0.8 million in Q3 FY24[12] - The company reported a net loss of $2,057 thousand for the three months ended March 1, 2025, compared to a net income of $750 thousand for the same period in 2024[35] - The company reported a comprehensive loss of $(2,759) thousand for the three months ended March 1, 2025, compared to a comprehensive income of $545 thousand for the same period in 2024[35] Expenses and Liabilities - Operating expenses were $14.5 million, slightly up from $14.4 million in Q3 FY24[8] - Total liabilities as of March 1, 2025, were $36,910,000, compared to $34,493,000 on June 1, 2024, showing an increase[31] - Depreciation and amortization expenses for the nine months ended March 1, 2025, totaled $3,037 million, down from $3,218 million for the same period in 2024[40] Cash and Assets - The company ended Q3 FY25 with $36.7 million in cash and equivalents, with no debt[2] - Cash and cash equivalents increased to $36,675,000 as of March 1, 2025, from $24,263,000 on June 1, 2024[31] - Total current assets as of March 1, 2025, were $163,514,000, slightly up from $161,654,000 on June 1, 2024[31] - The company’s total assets decreased to $189,810,000 as of March 1, 2025, from $192,445,000 on June 1, 2024[31] - The company’s retained earnings decreased to $79,117,000 as of March 1, 2025, from $83,729,000 on June 1, 2024[31] Future Outlook - The company plans to host a conference call on April 10, 2025, to discuss its third quarter fiscal-year 2025 results[25] - The company declared a quarterly cash dividend of $0.06 per share, payable on May 28, 2025[18] Adjusted Metrics - The adjusted EBITDA for the nine months ended March 1, 2025, was $4,458 million, an increase from $3,514 million for the same period in 2024[40] - The adjusted EBITDA for the three months ended March 1, 2025, was $2,806 million, an increase from $2,083 million for the same period in 2024[40] - The company reported a decrease in EBITDA for the nine months ended March 1, 2025, to $(458) million from $3,514 million for the same period in 2024[40]

Financial Performance - Richardson Electronics reported net sales of $53.8 million for Q3 FY25, a 2.7% increase from $52.4 million in Q3 FY24 [4] - The year-over-year growth was driven by a 139% surge in semiconductor wafer fab sales and a 39.5% increase in Canvys sales [2][5] - The company achieved positive operating cash flow for the fourth consecutive quarter and ended the quarter with no debt and $36.7 million in cash and equivalents [2][15] Strategic Developments - The strategic sale of a majority of Richardson Healthcare assets during the quarter strengthened the company's balance sheet and is expected to simplify operations [1][3] - The company recorded a one-time loss of $4.9 million from the sale of Healthcare assets, but non-GAAP operating income rose to $2.2 million, up from $1.0 million in the previous year [3][11] Segment Performance - Power and Microwave Technologies Group (PMT) sales increased by $2.1 million, or 6.6%, primarily due to higher demand from semiconductor wafer fab customers [5] - Canvys sales increased by $2.6 million, or 39.5%, reflecting improved market conditions in North America [5] - Healthcare sales decreased by $1.0 million, or 32.3%, due to lower net sales following the asset sale [5] Gross Margin and Operating Expenses - Gross margin for Q3 FY25 was 31.0%, up from 29.5% in Q3 FY24, with PMT and GES showing improvements in gross margin [7][39] - Operating expenses slightly increased to $14.5 million from $14.4 million in Q3 FY24, primarily due to higher employee compensation [8] Backlog and Future Outlook - The backlog at the end of Q3 FY25 totaled $134.1 million, down from $142.6 million at the end of Q2 FY25, with decreases noted in GES, Canvys, and Healthcare [6] - The company maintains a solid sales pipeline, although the timing of new orders may vary [6] Cash Dividend - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 28, 2025, to common stockholders of record as of May 9, 2025 [18]

Company Overview - Richardson Electronics, Ltd. is a leading global manufacturer specializing in engineered solutions, green energy products, power grid and microwave tubes, and related consumables [4] - The company serves various markets including alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor [4] - Approximately 50% of the company's products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by manufacturing partners worldwide [4] Financial Results Announcement - Richardson Electronics plans to release its financial results for the third quarter ended March 1, 2025, after the close of business on April 9, 2025 [1] - A conference call to discuss the third quarter fiscal year 2025 results will be hosted on April 10, 2025, at 9:00 a.m. Central Time by the Chairman and CEO, Edward J. Richardson, and CFO, Robert J. Ben [2] Participant Information - Participants can register for the conference call and are recommended to join 10 minutes prior to the event start [3] - A replay of the call will be available starting at 1:00 p.m. Central Time on April 11, 2025, for seven days [3] Stock Information - Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL [5]