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 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].

Richardson Electronics, Ltd. (NASDAQ:RELL) Q3 2025 Earnings Conference Call April 10, 2025 10:00 AM ET Company Participants Ed Richardson - Chief Executive Officer Bob Ben - Chief Financial Officer Greg Peloquin - General Manager, Power & Microwave Technologies Group Jens Ruppert - General Manager, Canvys Wendy Diddell - Chief Operating Officer Conference Call Participants Anja Soderstrom - Sidoti Barry Mandel - Mandel Money Management P. Ross Taylor - ARS Investment Partners Operator Good day, and thank yo ...

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]

Q3 FY25 net sales increase YoY for third consecutive quarter Richardson Electronics ended Q3 with positive operating cash flow for the fourth consecutive quarter Strategic asset sale of a majority of Richardson Healthcare during the quarter further strengthened the Company’s balance sheet, while expected to simplify the business and improve the financial model LAFOX, Ill., April 09, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its third quarter e ...

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]

Group 1 - Richardson Electronics sold a majority of its Healthcare assets to DirectMed Imaging, with the transaction closing on January 24, 2025 [1][2] - The sale includes a 10-year global supply agreement for repaired Siemens CT X-ray tubes, and Richardson will continue manufacturing ALTA CT X-ray tubes for DirectMed for 12 to 18 months [2] - The remaining assets of Richardson Healthcare will be consolidated into the PMT reportable segment, aligning with the company's strategic priorities to support its Green Energy Solutions business [3] Group 2 - The transaction is expected to simplify Richardson Electronics' business model and allow the company to focus on profitable opportunities in higher growth markets [3] - DirectMed Imaging is a leading provider of aftermarket diagnostic imaging parts and services, with over 100,000 parts in stock [8] - DirectMed also owns LBN Medical ApS and ScanMed, expanding its capabilities in the medical imaging equipment market [9]

Core Points - Richardson Electronics has sold a majority of its Richardson Healthcare assets to DirectMed Imaging, with the transaction closing on January 24, 2025 [1][2] - The sale includes a substantial portion of the Richardson Healthcare reportable segment, along with a 10-year global supply agreement for Siemens CT X-ray tubes [2] - The remaining healthcare operations will be consolidated into the PMT reportable segment, focusing on CT X-ray tube manufacturing and repair [2][3] Company Strategy - The transaction aligns with the company's strategic priorities by reallocating assets to support the growth of its Green Energy Solutions business [3] - The CEO emphasized that the partnership with DirectMed is mutually beneficial and will simplify the business model while prioritizing profitable opportunities in higher growth markets [3] Company Overview - Richardson Electronics is a global manufacturer of engineered solutions, including green energy products and diagnostic imaging equipment [6] - The company serves various markets, including healthcare, alternative energy, and industrial sectors, with approximately 50% of its products manufactured in the U.S. and Germany [6] DirectMed Imaging Overview - DirectMed Imaging is a leading provider of aftermarket diagnostic imaging parts and services, with a large inventory of over 100,000 parts [8] - The company supports major brands like GE, Siemens, Philips, and Canon/Toshiba in the healthcare sector [8][9]

Financial Performance - Consolidated net sales for the second quarter of fiscal 2025 were $49.5 million, an increase of 12.1% compared to $44.1 million in the same period of fiscal 2024[90]. - For the first six months of fiscal 2025, consolidated net sales increased by 6.7% to $103.2 million compared to $96.7 million in the first six months of fiscal 2024[94]. - Net sales for the Power and Microwave Technologies (PMT) segment increased by 9.9% to $34.4 million in the second quarter of fiscal 2025[92]. - Green Energy Solutions (GES) segment saw a significant increase in sales of 129.0%, reaching $6.0 million in the second quarter of fiscal 2025[92]. - Healthcare segment experienced a decline in sales of 22.8%, totaling $2.3 million in the second quarter of fiscal 2025[92]. - PMT net sales increased 9.9% to $34.4 million in Q2 FY2025 from $31.3 million in Q2 FY2024, driven by higher sales of electron devices and RF components[99]. - GES net sales surged 129.0% to $6.0 million in Q2 FY2025 from $2.6 million in Q2 FY2024, primarily due to increased shipments of power management products[101]. - Canvys net sales decreased 6.0% to $6.9 million in Q2 FY2025 from $7.3 million in Q2 FY2024, attributed to lower sales in European markets[103]. - Healthcare net sales decreased 22.8% to $2.3 million in Q2 FY2025 from $2.9 million in Q2 FY2024, reflecting declines across all product lines[105]. Profitability and Expenses - Gross margin increased to 31.0% during the second quarter of fiscal 2025, up from 28.4% in the second quarter of fiscal 2024[96]. - Consolidated gross profit for the second quarter of fiscal 2025 was $15.4 million, compared to $12.5 million in the second quarter of fiscal 2024[96]. - Selling, general and administrative expenses were $16.0 million, representing 32.3% of net sales in the second quarter of fiscal 2025[90]. - SG&A expenses increased 10.4% to $16.0 million in Q2 FY2025 from $14.5 million in Q2 FY2024, mainly due to higher incentives related to sales growth[107]. - The operating loss for the second quarter of fiscal 2025 was $0.7 million, an improvement from the $2.0 million loss in the same period of fiscal 2024[90]. - Net loss for Q2 FY2025 was $0.8 million, or $0.05 per diluted share, compared to a net loss of $1.8 million, or $0.13 per diluted share in Q2 FY2024[116]. Cash Flow and Financing - Cash and cash equivalents were $26.6 million as of November 30, 2024, with no cash repatriated to the U.S. in the first six months of FY2025[120]. - Operating activities generated $5.9 million of cash during the first six months of FY2025, despite a net loss of $0.2 million[126]. - Cash used in investing activities was $1.4 million in the first six months of FY2025, primarily for capital expenditures related to IT systems and manufacturing facilities[129]. - Cash used in financing activities was $1.6 million in the first six months of fiscal 2025, primarily due to $1.7 million in dividend payments to stockholders, partially offset by $0.3 million from stock issuance[132]. - Cash used in financing activities was $1.5 million in the first six months of fiscal 2024, with similar reasons as fiscal 2025[132]. - The Company established a $30 million revolving credit facility on March 20, 2023, with no amounts outstanding as of the end of Q2 FY2025[124]. Risk Management and Accounting - The company is exposed to foreign currency exchange risks due to operations, assets, and liabilities denominated in foreign currencies[135]. - The management of market risks is conducted through normal operating and financing activities[135]. - Additional disclosures regarding market risks are available in the Annual Report on Form 10-K for the fiscal year ended June 1, 2024[136]. - There have been no material changes in critical accounting estimates from the previous fiscal year, as disclosed in the Annual Report on Form 10-K for the year ended June 1, 2024[133].