Financial Performance - Net sales for the first quarter of fiscal 2025 were $53.7 million, a 2.2% increase from $52.6 million in the first quarter of fiscal 2024[69]. - Gross margin decreased to 30.6% in the first quarter of fiscal 2025, down from 32.8% in the first quarter of fiscal 2024[72]. - PMT segment net sales decreased by 4.3% to $34.2 million, while GES segment net sales increased by 84.0% to $8.1 million[70]. - Canvys segment net sales decreased by 22.8% to $7.6 million, and Healthcare segment net sales increased by 48.7% to $3.8 million[70]. - Consolidated gross profit decreased to $16.4 million in the first quarter of fiscal 2025 from $17.3 million in the first quarter of fiscal 2024[72]. - Net income for Q1 fiscal 2025 was $0.6 million, down from $1.2 million in Q1 fiscal 2024, representing a decrease of 50%[82]. Expenses and Income - Selling, general and administrative expenses were $16.1 million, representing 30.0% of net sales, unchanged from the previous year[77]. - Other income increased to $0.3 million in the first quarter of fiscal 2025, compared to $0.1 million in the same period of fiscal 2024[78]. - The effective income tax rate for the first quarter of fiscal 2025 was 9.0%, down from 23.7% in the first quarter of fiscal 2024[79]. Cash Flow and Liquidity - Cash and cash equivalents were $23.0 million as of August 31, 2024, compared to $24.3 million on June 1, 2024, indicating a decrease of 5.4%[83][84]. - Cash flows from operating activities generated $0.4 million in Q1 fiscal 2025, a decline from $1.0 million in Q1 fiscal 2024, reflecting a decrease of 60%[87][88]. - The company utilized $1.0 million from a revolving credit facility in Q1 fiscal 2025, which was fully repaid during the same period[86]. - Cash used in investing activities was $0.9 million in Q1 fiscal 2025, primarily for capital expenditures related to IT systems and LaFox manufacturing[89]. - Cash used in financing activities was $0.9 million in Q1 fiscal 2025, mainly due to dividend payments to stockholders[90]. - Changes in operating assets and liabilities used $1.9 million in cash during Q1 fiscal 2025, driven by a $5.9 million increase in accounts receivable[87]. - The company believes existing liquidity sources will meet capital requirements and working capital needs for the next twelve months[85]. Regulatory and Tax Matters - The company recorded a liability of $0.3 million for uncertain tax positions as of August 31, 2024, up from $0.1 million on June 1, 2024[81]. - The company is under examination in Germany for fiscal years 2019 to 2022, with no current open audits in the U.S.[80]. Challenges - The decrease in gross margin was primarily due to unfavorable product mix and manufacturing under absorption in PMT[72]. - The company continues to face challenges from tariffs on products imported from China, which may impact sales and gross margins[62].

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 FY 2025 were $53.7 million, a 2.2% increase from $52.6 million in Q1 FY 2024, despite a reduction in weeks from 14 to 13 [7][8] - Gross margin decreased to 30.6% from 32.8% year-over-year, primarily due to product mix and under-absorption in manufacturing [8][9] - Net income for Q1 FY 2025 was $0.6 million, or $0.04 per diluted share, down from $1.2 million, or $0.09 per diluted share in the prior year [9][10] Business Line Data and Key Metrics Changes - Green Energy Solutions (GES) sales grew 84% to $8.1 million, driven by new programs and products [13][15] - Healthcare division reported sales of $3.8 million, a 48.8% increase compared to the same quarter last year, with a notable 50.6% increase in CT tube business [21][22] - Power and Microwave Technologies (PMT) sales decreased by 4.3% to $34.2 million, with gross margin declining due to product mix [8][16] Market Data and Key Metrics Changes - Canvys net sales decreased 22.8% to $7.6 million, attributed to lower sales in North American and European markets [24] - The backlog for GES and PMT combined remains strong at over $97 million, indicating future growth potential [17] Company Strategy and Development Direction - The company is focused on diversifying its business and expanding its global technology partnerships to enhance growth [5][18] - New product launches in the green energy sector are anticipated to drive higher manufacturing demand and improve gross margins [4][29] - The company aims to leverage engineered solutions to support global energy transformation initiatives, aligning with increasing demand for renewable energy [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand recovery in key business areas despite global economic uncertainties [5][30] - The semiconductor wafer fabrication market is expected to grow, providing opportunities for increased revenue [30] - Management remains committed to maintaining a healthy balance sheet while investing in long-term growth strategies [30] Other Important Information - Cash and cash equivalents at the end of Q1 FY 2025 were $23.0 million, with no outstanding debt [10] - The company declared a regular quarterly cash dividend of $0.06 per common share for Q2 FY 2025 [10] Q&A Session Summary Question: Inquiry about new program wins and legacy program wins driving GES sales - Management highlighted large orders for ULTRA3000 used in wind turbine repowering programs as significant new wins [33] Question: Feedback on the recent trade show in Europe - The trade show confirmed high demand for ULTRA3000 products in Europe, with ongoing discussions for beta testing with potential customers [35] Question: Progress on the system in India - The program in India is progressing well, with expectations for production orders to start soon [39] Question: Inventory management and expectations - Management indicated that inventory levels are being carefully managed, with some growth expected in green energy products [41][44] Question: Cash flow and potential stock repurchase - Management acknowledged the potential for stock repurchase but emphasized the need for cash to support growth in the semiconductor wafer fab business [45][46]

Company Performance - Richardson Electronics reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, compared to earnings of $0.09 per share a year ago [1] - The earnings surprise for this quarter was 500%, following a previous quarter where the company posted earnings of $0.02 against an expected loss of $0.05, resulting in a surprise of 140% [2] - The company achieved revenues of $53.73 million for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 8.66%, compared to revenues of $52.58 million in the same quarter last year [3] Market Performance - Richardson Electronics shares have declined approximately 6.4% since the beginning of the year, while the S&P 500 has gained 20.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $52.31 million, and for the current fiscal year, it is $0.44 on revenues of $220 million [8] Industry Outlook - The Electronics - Parts Distribution industry, to which Richardson Electronics belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of Richardson Electronics may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Performance - Q1 FY25 net sales were $53.7 million, a 2.2% increase from $52.6 million in Q1 FY24[3] - Net sales for the three months ended August 31, 2024, were $53,725,000, representing a 2.2% increase from $52,581,000 for the same period in 2023[16] - GES sales increased by $3.7 million, or 84.0% year-over-year, driven by electric locomotive and wind turbine battery module sales[2] - Healthcare sales rose by $1.2 million, or 48.7% year-over-year, due to higher demand for CT tubes and parts[3] - The PMT segment reported net sales of $34,202,000, a decrease of 4.3% from $35,744,000 in the previous year[19] - The GES segment saw a significant increase in net sales, rising 84.0% to $8,086,000 from $4,394,000 year-over-year[19] - The Healthcare segment experienced a 48.7% increase in net sales, reaching $3,799,000 compared to $2,554,000 in the prior year[19] Profitability - Gross margin for Q1 FY25 was 30.6%, down from 32.8% in Q1 FY24[5] - Gross profit decreased to $16,426,000, which is 30.6% of net sales, down from $17,264,000 or 32.8% of net sales in the prior year[20] - Operating income was $0.3 million, compared to $1.5 million in the prior year's first quarter[6] - Operating income for the three months ended August 31, 2024, was $316,000, a significant decrease from $1,472,000 in the same period last year[16] - Net income for Q1 FY25 was $0.6 million, down from $1.2 million in Q1 FY24[6] - Net income for the three months ended August 31, 2024, was $590,000, a decline of 52.1% compared to $1,227,000 in the same period last year[18] - EBITDA for the three months ended August 31, 2024, was $1,692,000, down from $2,606,000 in the prior year[21] Cash and Dividends - Cash and cash equivalents at the end of Q1 FY25 were $23.0 million, down from $24.3 million at the end of Q4 FY24[7] - Cash and cash equivalents at the end of the period were $23,035,000, down from $24,124,000 at the end of the previous year[18] - The Board declared a quarterly cash dividend of $0.06 per share, payable on November 27, 2024[8] Backlog and Foreign Currency - Backlog totaled $137.4 million at the end of Q1 FY25, down from $147.8 million at the end of Q4 FY24[4] - The company reported a foreign currency translation gain of $636,000 for the period, compared to a loss of $41,000 in the previous year[16]

Richardson Electronics, Ltd. (NASDAQ:RELL) Q4 2024 Earnings Conference Call July 25, 2024 10:00 AM ET Company Participants Edward Richardson - CEO Robert Ben - CFO Gregory Peloquin - GM, Power & Microwave Technologies Group, Green Energy Solutions Wendy Diddell - COO & GM for Richardson Healthcare Jens Ruppert - GM, Canvys Conference Call Participants Robert Brooks - Northland Capital Markets Anja Soderstrom - Sidoti Ross Taylor - ARS Investment Partners Chip Rewey - Rewey Asset Management Andrew Rem - Odin ...

Financial Performance - Net sales for the fourth quarter of fiscal 2024 were $47.4 million, a 19.5% decrease from $58.8 million in the prior year's fourth quarter[3]. - Fiscal 2024 net sales totaled $196.5 million, down 25.2% from $262.7 million in fiscal 2023, with significant declines in PMT (21.7%), GES (51.2%), and Canvys (17.5%) sales[6]. - The company reported a net loss of $0.1 million for the fourth quarter, compared to a net income of $4.1 million in the same quarter of fiscal 2023[5]. - Operating income for fiscal 2024 was $0.3 million, a significant decrease from $25.0 million in fiscal 2023[37]. - Net income for fiscal 2024 was $0.1 million, a significant decrease from $22.3 million in fiscal 2023[38]. - Non-GAAP net income for fiscal 2024 was $0.5 million, compared to $20.0 million in fiscal 2023, indicating a substantial decline[38]. - Net loss for the three months ended June 1, 2024, was $119 million, compared to a net income of $4,120 million for the three months ended May 27, 2023[51]. - Total net income for the twelve months ended June 1, 2024, was $61 million, compared to $22,333 million for the twelve months ended May 27, 2023[51]. - The company experienced a significant decrease in net income and non-GAAP metrics compared to the previous year, indicating potential challenges in performance[51]. Cash Flow and Assets - The company generated $7.2 million in operating cash flow during the fourth quarter, ending the year with $24.3 million in cash and cash equivalents and no debt[32]. - Cash and cash equivalents at the end of the period were $24.3 million, down from $25.0 million at the beginning of the period[48]. - The company reported a net cash provided by operating activities of $6.5 million for the year ended June 1, 2024, compared to a net cash used of $(8.2) million in the previous year[48]. - Total assets decreased from $198.0 million as of May 27, 2023, to $192.4 million as of June 1, 2024[46]. Operating Expenses and Margins - Operating expenses for fiscal 2024 were $59.5 million, slightly up from $58.7 million in fiscal 2023, driven by higher R&D and salary expenses[14]. - Gross margin for the fourth quarter improved to 31.1%, up 320 basis points year-over-year, with notable increases in PMT (31.1%), GES (25.5%), and Healthcare (32.5%) segments[11]. - Gross profit for the twelve months ended June 1, 2024, was $59.97 million, which is a decrease from $83.69 million in the previous year, reflecting a gross margin of 30.5%[50]. Backlog and Future Outlook - The backlog at the end of the fourth quarter was $147.8 million, with a sequential increase in GES backlog by $5.5 million[33]. - Management expects to return to year-over-year sales growth and higher profitability in fiscal 2025, citing early signs of improving demand in semiconductor wafer fab markets[32]. Dividends - The company declared a quarterly cash dividend of $0.06 per share[9]. - The company declared a quarterly cash dividend of $0.06 per share for common stockholders, payable on August 28, 2024[40]. Foreign Currency and Other Adjustments - The company experienced a foreign currency translation loss of $(236) thousand for the three months ended June 1, 2024[47]. - The valuation allowance adjustment for the three months ended June 1, 2024, was $(861) million, compared to $1,755 million for the three months ended May 27, 2023[51]. - The income tax provision for the three months ended June 1, 2024, was $(20) million, compared to $(2,584) million for the three months ended May 27, 2023[51]. - The prior years' R&D credit for the three months ended June 1, 2024, was $462 million, consistent with the prior year[51].

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Richardson Electronics, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of ...

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LAFOX, Ill., April 30, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL), a global provider of engineered solutions for renewable energy and other power management applications, announced a strategic partnership with Suzlon Energy Limited, India's largest renewable energy solutions provider. Richardson Electronics will develop pitch energy modules for Suzlon's global fleet of wind turbines, a testament to their engineered solutions expertise and commitment to advancing renewable energy sol ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from To Commission File Number: 0-12906 RICHARDSON ELECTRONICS, LTD. (Exact name of registrant as specified in its charter) Delaware 36-2096643 (State or other juri ...