[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Richardson Electronics closed FY25 with strong Q4 sales and positive operating cash flow, driven by Green Energy Solutions, focusing on engineered solutions [Key Highlights](index=1&type=section&id=Key%20Highlights) Richardson Electronics achieved strong Q4 and FY25 sales growth, positive operating cash flow, and declared a dividend, driven by Green Energy Solutions - Q4 FY25 net sales increased **9.5%** YoY, marking the **4th consecutive quarter** of growth[1](index=1&type=chunk)[3](index=3&type=chunk) - FY25 annual net sales grew **6.3%** YoY, with Green Energy Solutions (GES) increasing by **23.6%**[1](index=1&type=chunk)[13](index=13&type=chunk) - Ended Q4 FY25 with **positive operating cash flow** for the **5th consecutive quarter**[1](index=1&type=chunk)[2](index=2&type=chunk) - Board of Directors declared a **$0.06** per share quarterly cash dividend[1](index=1&type=chunk)[19](index=19&type=chunk) - The company's strategic focus is on expanding value-added engineered solutions, scaling the GES business, and identifying opportunities for sales and profitability growth[2](index=2&type=chunk) [About Richardson Electronics, Ltd.](index=7&type=section&id=About%20Richardson%20Electronics%2C%20Ltd.) Richardson Electronics manufactures engineered solutions and green energy products, emphasizing in-house production and specialized technical expertise - Richardson Electronics is a global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, power conversion, RF and microwave components, and customized display solutions[29](index=29&type=chunk) - Over **55%** of products are manufactured in LaFox, IL, Marlborough, MA, Donaueschingen, Germany, or by global manufacturing partners adhering to strict specifications and a Supplier Code of Conduct[29](index=29&type=chunk) - The company serves markets such as alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor[29](index=29&type=chunk) - Strategy involves providing specialized technical expertise and 'engineered solutions' through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service[29](index=29&type=chunk) [Fourth Quarter Fiscal Year 2025 Financial Performance](index=2&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Financial%20Performance) Q4 FY25 saw a **9.5%** net sales increase, improved gross margin, and positive operating income, driven by PMT and GES growth [Net Sales by Segment](index=2&type=section&id=Net%20Sales%20by%20Segment_Q4) Q4 FY25 net sales increased **9.5%** to **$51.9 million**, driven by PMT, GES, and Canvys, despite Healthcare asset divestiture Q4 FY25 Net Sales by Strategic Business Unit (SBU) | SBU | May 31, 2025 (in thousands) | June 1, 2024 (in thousands) | % Change YoY | | :---- | :-------------------------- | :-------------------------- | :----------- | | PMT | $35,937 | $30,498 | 17.8% | | GES | $5,360 | $4,699 | 14.1% | | Canvys | $9,461 | $8,674 | 9.1% | | Healthcare | $1,131 | $3,503 | -67.7% | | **Total** | **$51,889** | **$47,374** | **9.5%** | - PMT sales increased due to higher demand from semiconductor wafer fab customers and distributed products for RF and Microwave applications[4](index=4&type=chunk) - GES sales growth was driven by higher sales of wind turbine battery modules[4](index=4&type=chunk) - Canvys sales improved due to better market conditions in Europe[4](index=4&type=chunk) - The sale of most Healthcare assets in January 2025 reduced Q4 sales by **$2.4 million** compared to the prior year[4](index=4&type=chunk) - Backlog totaled **$134.2 million** at the end of Q4 FY25, stable compared to **$134.1 million** at the end of Q3 FY25, with GES backlog increasing[5](index=5&type=chunk) [Gross Profit and Margin by Segment](index=2&type=section&id=Gross%20Profit%20and%20Margin%20by%20Segment_Q4) Q4 gross margin expanded to **31.6%** due to favorable product mix in PMT and GES, despite declines in Canvys and Healthcare Q4 FY25 Gross Profit and Margin by Strategic Business Unit (SBU) | SBU | May 31, 2025 Gross Profit (in thousands) | May 31, 2025 % of Net Sales | June 1, 2024 Gross Profit (in thousands) | June 1, 2024 % of Net Sales | | :---- | :----------------------------------- | :------------------------- | :----------------------------------- | :------------------------- | | PMT | $11,680 | 32.5% | $9,486 | 31.1% | | GES | $1,693 | 31.6% | $1,196 | 25.5% | | Canvys | $3,041 | 32.1% | $2,903 | 33.5% | | Healthcare | ($39) | -3.4% | $1,139 | 32.5% | | **Total** | **$16,375** | **31.6%** | **$14,724** | **31.1%** | - PMT and GES gross margins increased due to a favorable product mix[6](index=6&type=chunk) - Canvys gross margin decreased primarily due to product mix and higher freight costs[6](index=6&type=chunk) [Operating Expenses and Income](index=2&type=section&id=Operating%20Expenses%20and%20Income_Q4) Q4 FY25 operating expenses rose to **$15.6 million**, resulting in GAAP operating income of **$0.6 million** and non-GAAP of **$0.8 million** Q4 FY25 Operating Performance (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | Operating Expenses | $15,600 | $14,800 | | Loss on disposal of assets | $20 | $0 | | GAAP Operating Income (Loss) | $631 | ($114) | | Non-GAAP Operating Income (Loss) | $789 | ($114) | - Increase in operating expenses resulted from higher employee compensation expenses, partially offset by lower R&D expenses[7](index=7&type=chunk) - Loss on disposal of assets of **$0.2 million** resulted from a closing adjustment from the sale of Healthcare assets[7](index=7&type=chunk) - Other income, including interest and foreign exchange, was **$1.3 million**, compared to other expense of less than **$0.1 million** in the prior year[8](index=8&type=chunk) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS_Q4) Q4 FY25 GAAP net income reached **$1.1 million** (EPS **$0.08**), with non-GAAP net income at **$1.8 million** (EPS **$0.12**) Q4 FY25 Net Income and EPS (in thousands, except per share) | Metric | May 31, 2025 | June 1, 2024 | | :----------------------------------- | :----------- | :----------- | | GAAP Net Income (Loss) | $1,075 | ($119) | | Non-GAAP Net Income | $1,809 | $280 | | GAAP Diluted EPS | $0.08 | ($0.01) | | Non-GAAP Diluted EPS | $0.12 | $0.02 | Q4 FY25 Income Tax Provision (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | GAAP Income Tax Provision (Benefit) | $889 | ($20) | | Non-GAAP Income Tax Provision (Benefit) | $313 | ($419) | [EBITDA and Adjusted EBITDA](index=2&type=section&id=EBITDA%20and%20Adjusted%20EBITDA_Q4) Q4 FY25 EBITDA was **$2.9 million**, with Adjusted EBITDA reaching **$3.1 million**, significantly up from **$1.0 million** prior year Q4 FY25 EBITDA and Adjusted EBITDA (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------- | :----------- | :----------- | | EBITDA | $2,929 | $950 | | Adjusted EBITDA | $3,087 | $950 | [Financial Position](index=3&type=section&id=Financial%20Position_Q4) Richardson Electronics ended Q4 FY25 with **$35.9 million** in cash, with **$0.8 million** in capital expenditures and dividend payments Q4 FY25 Cash and Capital Expenditures (in thousands) | Metric | May 31, 2025 | March 1, 2025 | June 1, 2024 | | :-------------------- | :----------- | :------------ | :----------- | | Cash and cash equivalents | $35,901 | $36,700 | $24,263 | | Capital expenditures | $800 | N/A | $1,000 | - Cash used during the fourth quarter primarily related to the payment of dividends[12](index=12&type=chunk) - Capital expenditures were mainly for manufacturing business, facilities improvements, and IT systems[12](index=12&type=chunk) [Full Fiscal Year 2025 Financial Performance](index=3&type=section&id=Full%20Fiscal%20Year%202025%20Financial%20Performance) FY25 net sales grew **6.3%**, led by GES, with improved gross profit and a non-GAAP operating income despite a GAAP loss [Net Sales by Segment](index=3&type=section&id=Net%20Sales%20by%20Segment_FY25) FY25 net sales grew **6.3%** to **$208.9 million**, led by **23.6%** GES growth, despite Healthcare asset divestiture FY25 Net Sales by Strategic Business Unit (SBU) | SBU | May 31, 2025 (in thousands) | June 1, 2024 (in thousands) | % Change YoY | | :---- | :-------------------------- | :-------------------------- | :----------- | | PMT | $137,752 | $128,697 | 7.0% | | GES | $28,719 | $23,233 | 23.6% | | Canvys | $33,145 | $32,444 | 2.2% | | Healthcare | $9,293 | $12,086 | -23.1% | | **Total** | **$208,909** | **$196,460** | **6.3%** | [Gross Profit and Operating Expenses](index=3&type=section&id=Gross%20Profit%20and%20Operating%20Expenses_FY25) FY25 gross profit rose to **$64.8 million** (margin **31.0%**), while operating expenses increased to **$62.2 million** FY25 Gross Profit and Operating Expenses (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------------------- | :----------- | :----------- | | Gross Profit | $64,800 | $59,966 | | Gross Margin (% of net sales) | 31.0% | 30.5% | | Operating Expenses | $62,173 | $59,548 | - Increase in operating expenses resulted from higher employee compensation expenses, partially offset by lower R&D expenses[14](index=14&type=chunk) [Operating Income (Loss)](index=3&type=section&id=Operating%20Income%20(Loss)_FY25) FY25 GAAP operating loss was **$2.5 million** due to a **$5.1 million** asset disposal loss, but non-GAAP operating income was **$2.6 million** FY25 Operating Performance (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | Loss on disposal of assets | $5,074 | $0 | | GAAP Operating Income (Loss) | ($2,463) | $348 | | Non-GAAP Operating Income (Loss) | $2,611 | $348 | - Other income for fiscal 2025, including interest income and foreign exchange, was **$0.9 million**, compared to other expense of **$0.2 million** in fiscal 2024[15](index=15&type=chunk) [Net Income (Loss) and EPS](index=3&type=section&id=Net%20Income%20(Loss)%20and%20EPS_FY25) FY25 GAAP net loss was **$1.1 million** (EPS **$0.08**), while non-GAAP net income reached **$3.2 million** (EPS **$0.22**) FY25 Net Income and EPS (in thousands, except per share) | Metric | May 31, 2025 | June 1, 2024 | | :----------------------------------- | :----------- | :----------- | | GAAP Net Income (Loss) | ($1,143) | $61 | | Non-GAAP Net Income | $3,229 | $460 | | GAAP Diluted EPS | ($0.08) | $0.00 | | Non-GAAP Diluted EPS | $0.22 | $0.03 | FY25 Income Tax Provision (Benefit) (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | GAAP Income Tax Provision (Benefit) | ($388) | $96 | | Non-GAAP Income Tax Provision (Benefit) | $314 | ($303) | [EBITDA and Adjusted EBITDA](index=3&type=section&id=EBITDA%20and%20Adjusted%20EBITDA_FY25) FY25 EBITDA was **$2.5 million**, with Adjusted EBITDA significantly increasing to **$7.5 million** from **$4.5 million** FY25 EBITDA and Adjusted EBITDA (in thousands) | Metric | May 31, 2025 | June 1, 2024 | | :-------------- | :----------- | :----------- | | EBITDA | $2,471 | $4,464 | | Adjusted EBITDA | $7,545 | $4,464 | [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) The Board declared a quarterly cash dividend of **$0.06** per common share and **$0.054** per Class B share, payable August 27, 2025 [Quarterly Cash Dividend](index=3&type=section&id=Quarterly%20Cash%20Dividend) The Board declared a quarterly cash dividend of **$0.06** per common share and **$0.054** per Class B share, payable August 27, 2025 - A **$0.06** quarterly cash dividend per share was declared for common stock[19](index=19&type=chunk) - A **$0.054** cash dividend per share was declared for Class B common stock[19](index=19&type=chunk) - The dividend is payable on August 27, 2025, to stockholders of record as of August 8, 2025[19](index=19&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, excluding one-time charges for a clearer view of core performance [Non-GAAP Operating Income](index=4&type=section&id=Non-GAAP%20Operating%20Income) Non-GAAP operating income adjusts GAAP by excluding a one-time loss on Healthcare asset sales for clearer operational view Non-GAAP Operating Income Reconciliation (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Income (loss) from operations | $631 | ($114) | ($2,463) | $348 | | Loss on disposal of healthcare assets and other charges | $158 | — | $5,074 | — | | **Non-GAAP operating income (loss)** | **$789** | **($114)** | **$2,611** | **$348** | [Non-GAAP Income Before Taxes](index=4&type=section&id=Non-GAAP%20Income%20Before%20Taxes) Non-GAAP income before taxes excludes the one-time loss on Healthcare asset sales, providing a normalized pre-tax view Non-GAAP Income Before Taxes Reconciliation (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Income (loss) before income taxes | $1,964 | ($139) | ($1,531) | $157 | | Loss on disposal of healthcare assets and other charges | $158 | — | $5,074 | — | | **Non-GAAP income (loss) before taxes** | **$2,122** | **($139)** | **$3,543** | **$157** | [Non-GAAP Income Tax Provision (Benefit)](index=5&type=section&id=Non-GAAP%20Income%20Tax%20Provision%20(Benefit)) Non-GAAP income tax adjusts GAAP by excluding asset sale loss, R&D credit, and valuation allowance for representative tax expense Non-GAAP Income Tax Provision (Benefit) Reconciliation (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Income tax provision (benefit) | $889 | ($20) | ($388) | $96 | | Loss on disposal of healthcare assets and other charges | $41 | — | $1,319 | — | | Prior years' research and development credit | — | $462 | — | $462 | | Valuation allowance adjustment | ($617) | ($861) | ($617) | ($861) | | **Non-GAAP income tax provision (benefit)** | **$313** | **($419)** | **$314** | **($303)** | [Non-GAAP Net Income](index=5&type=section&id=Non-GAAP%20Net%20Income) Non-GAAP net income clarifies core profitability by excluding asset sale loss, R&D credit, and state tax valuation adjustments Non-GAAP Net Income Reconciliation (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) | $1,075 | ($119) | ($1,143) | $61 | | Loss on disposal of healthcare assets and other charges | $117 | — | $3,755 | — | | Prior years' research and development credit | — | ($462) | — | ($462) | | Valuation allowance adjustment | $617 | $861 | $617 | $861 | | **Non-GAAP net income** | **$1,809** | **$280** | **$3,229** | **$460** | [Non-GAAP Earnings Per Common Share (Diluted)](index=6&type=section&id=Non-GAAP%20Earnings%20Per%20Common%20Share%20(Diluted)) Non-GAAP diluted EPS adjusts GAAP by excluding asset sale loss and valuation allowance for a normalized per-share metric Non-GAAP Earnings Per Common Share (Diluted) Reconciliation | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) per share (diluted) | $0.08 | ($0.01) | ($0.08) | $0.00 | | Loss on disposal of healthcare assets and other charges | — | — | $0.26 | — | | Valuation allowance adjustment and prior years research and development credit | $0.04 | $0.03 | $0.04 | $0.03 | | **Non-GAAP net income per share (diluted)** | **$0.12** | **$0.02** | **$0.22** | **$0.03** | [EBITDA and Adjusted EBITDA](index=6&type=section&id=EBITDA%20and%20Adjusted%20EBITDA_NonGAAP) EBITDA is net income (loss) plus tax, depreciation, and amortization; Adjusted EBITDA further excludes the Healthcare asset sale loss EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :-------------------------- | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) | $1,075 | ($119) | ($1,143) | $61 | | Income tax provision (benefit) | $889 | ($20) | ($388) | $96 | | Depreciation & amortization | $965 | $1,089 | $4,002 | $4,307 | | **EBITDA** | **$2,929** | **$950** | **$2,471** | **$4,464** | | Disposal of healthcare assets | $158 | — | $5,074 | — | | **Adjusted EBITDA** | **$3,087** | **$950** | **$7,545** | **$4,464** | - Management believes non-GAAP measures provide useful information by excluding items not indicative of ongoing results, such as the one-time loss on the sale of Healthcare assets[23](index=23&type=chunk)[24](index=24&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Consolidated statements show FY25 asset growth, increased operating cash flow, and a shift to a GAAP net loss due to asset disposal [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached **$195.8 million** as of May 31, 2025, with increased cash and accounts payable, and decreased inventories Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | May 31, 2025 | June 1, 2024 | | :------------------------------------ | :----------- | :----------- | | **Assets:** | | | | Cash and cash equivalents | $35,901 | $24,263 | | Accounts receivable, net | $24,117 | $24,845 | | Inventories, net | $102,799 | $110,149 | | Total current assets | $166,326 | $161,654 | | Property, plant and equipment, net | $17,916 | $20,681 | | Total non-current assets | $29,509 | $30,791 | | **Total assets** | **$195,835** | **$192,445** | | **Liabilities:** | | | | Accounts payable | $21,339 | $15,458 | | Accrued liabilities | $14,276 | $15,404 | | Total current liabilities | $36,786 | $32,031 | | Total non-current liabilities | $2,390 | $2,462 | | **Total liabilities** | **$39,176** | **$34,493** | | **Stockholders' Equity:** | | | | Total stockholders' equity | $156,659 | $157,952 | | **Total liabilities and stockholders' equity** | **$195,835** | **$192,445** | [Consolidated Statements of Comprehensive Income (Loss)](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated statements show a shift from FY24 net income to a FY25 net loss of **$1.1 million**, influenced by asset disposal Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended June 1, 2024 | Twelve Months Ended May 31, 2025 | Twelve Months Ended June 1, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net sales | $51,889 | $47,374 | $208,909 | $196,460 | | Gross profit | $16,375 | $14,724 | $64,800 | $59,966 | | Selling, general and administrative expenses | $15,566 | $14,838 | $62,173 | $59,548 | | Loss on disposal of healthcare assets and other charges | $158 | — | $5,074 | — | | Operating income (loss) | $631 | ($114) | ($2,463) | $348 | | Net income (loss) | $1,075 | ($119) | ($1,143) | $61 | | Comprehensive income (loss) | $4,279 | ($355) | $247 | $210 | | Net income (loss) per share (Diluted) | $0.08 | ($0.01) | ($0.08) | $0.00 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY25 operating cash flow increased to **$10.6 million**, investing activities generated **$4.0 million**, and financing used **$3.2 million** Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Fiscal Year Ended May 31, 2025 | Fiscal Year Ended June 1, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net (loss) income | ($1,143) | $61 | | Depreciation and amortization | $4,002 | $4,307 | | Loss on disposal of healthcare assets and other charges | $5,074 | — | | Net cash provided by operating activities | $10,552 | $6,524 | | Capital expenditures | ($2,811) | ($4,041) | | Proceeds from disposal of healthcare assets | $6,827 | — | | Net cash provided by (used in) investing activities | $4,023 | ($4,041) | | Cash dividends paid | ($3,407) | ($3,376) | | Net cash used in financing activities | ($3,246) | ($2,905) | | Increase (decrease) in cash and cash equivalents | $11,638 | ($718) | | Cash and cash equivalents at end of period | $35,901 | $24,263 | [Additional Information](index=7&type=section&id=Additional%20Information) This section provides conference call details and important disclaimers regarding forward-looking statements and associated risks [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) A conference call to discuss Q4 and FY25 results is scheduled for July 24, 2025, at 9:00 a.m. Central Time - Conference call to discuss Q4 and FY25 results scheduled for Thursday, July 24, 2025, at 9:00 a.m. Central Time[26](index=26&type=chunk) - A replay of the call will be available for seven days starting July 25, 2025, at 1:00 p.m. Central Time[27](index=27&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to SEC-defined risks, with no obligation to update, advising Form 10-K review - The release includes forward-looking statements as defined by the SEC, which involve risks and uncertainties[28](index=28&type=chunk) - Readers are advised to refer to Item 1A, 'Risk Factors' in the Company's Annual Report on Form 10-K for a discussion of such risks[28](index=28&type=chunk) - The Company assumes no responsibility to update forward-looking statements[28](index=28&type=chunk)

Core Insights - Richardson Electronics, Ltd. reported a 9.5% increase in net sales for Q4 FY25, reaching $51.9 million, marking the fourth consecutive quarter of year-over-year growth [3][4] - The company achieved a 6.3% increase in annual net sales for FY25, totaling $208.9 million, driven by a significant 23.6% growth in Green Energy Solutions (GES) [14][2] - The Board of Directors declared a quarterly cash dividend of $0.06 per share [21] Financial Performance - Q4 FY25 non-GAAP operating income was $0.8 million, compared to an operating loss of $0.1 million in the same quarter of the previous year [8][11] - Gross margin for Q4 FY25 improved to 31.6%, up from 31.1% in Q4 FY24, with notable increases in the Power and Microwave Technologies Group (PMT) and GES [6][45] - Operating expenses rose to $15.6 million in Q4 FY25, up from $14.8 million in Q4 FY24, primarily due to higher employee compensation [7][15] Segment Performance - The PMT segment saw a 17.8% increase in sales, contributing $5.4 million to the growth, driven by demand from semiconductor wafer fab customers [4][44] - GES sales increased by 14.1%, attributed to higher sales of wind turbine battery modules [4][44] - Canvys sales grew by 9.1%, reflecting improved market conditions in Europe, while Healthcare sales decreased significantly by 67.7% due to the sale of most of its assets [4][14] Backlog and Cash Flow - The backlog at the end of Q4 FY25 was stable at $134.2 million, slightly up from $134.1 million in the previous quarter [5] - The company reported positive operating cash flow for the fifth consecutive quarter, indicating strong operational efficiency [2][13] Annual Overview - For FY25, net income was reported at $1.1 million, with non-GAAP net income at $3.2 million, contrasting with a net income of $0.1 million in FY24 [18][11] - EBITDA for FY25 was $2.5 million, with adjusted EBITDA at $7.5 million, reflecting improved operational performance [19][12]

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] - More than 55% 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 fourth quarter ended May 31, 2025, after the close of business on July 23, 2025 [1] - A conference call will be hosted on July 24, 2025, at 9:00 a.m. Central Time to discuss the fourth quarter fiscal year 2025 results, including a question-and-answer session [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 July 25, 2025, for seven days [3]

Core Insights - Richardson Electronics has entered a global technology partner agreement with Pakal Technologies to supply advanced 650V and 1200V silicon-based power switches, enhancing efficiency for customers worldwide [1][3] - Pakal Technologies has introduced the IGTO(t) - a new high-voltage silicon power semiconductor, which offers up to 30% lower conduction losses compared to modern IGBTs, making it suitable for various applications including electric vehicles and renewable energy systems [2][8] - The partnership aims to leverage Richardson Electronics' global reach and experience in launching high-performance power products to bring Pakal's innovative technology to market [3] Company Overview - Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, and power conversion components, with over 50% of its products manufactured in the U.S. and Germany [4] - The company has a strong focus on providing specialized technical expertise and engineered solutions across various markets, including alternative energy, healthcare, and industrial sectors [4][6] - Pakal Technologies is a pioneering power semiconductor company based in San Francisco, known for its proprietary IGTO(t) architecture that supports next-generation electrification in multiple sectors [8]

Company Overview - Richardson Electronics, Ltd. is a global provider of engineered solutions for renewable energy and power management applications, with a focus on innovation and customer-centric solutions [5][8]. - The company manufactures over 50% of its products in LaFox, Illinois, Marlborough, Massachusetts, and Donaueschingen, Germany, adhering to strict specifications and supplier codes of conduct [5]. New Product Launch - Richardson Electronics announced the launch of two new monitoring relays, the TurbineGuard™ Temperature Signal Relay and the TurbineGuard™ Voltage Signal Relay, aimed at the wind and renewables markets [1][3]. - These products are designed to enhance safety and performance in turbine monitoring systems, addressing the needs of aging turbine fleets and regulatory compliance [1][3]. Product Features - The TurbineGuard™ Temperature Signal Relay includes features such as a temperature LCD readout, programmable temperature set points, and compatibility with both ultracapacitor and lead-acid battery technologies [6]. - The TurbineGuard™ Voltage Signal Relay offers a voltage LCD readout, programmable voltage set points, and status LEDs, ensuring user-friendly operation [6]. Strategic Focus - The company emphasizes its commitment to creating engineered solutions that deliver real value to users, reflecting a customer-first approach in product design and development [3]. - Richardson Electronics aims to meet the evolving needs of the renewable power generation market through continuous innovation and quality improvements [3].

Core Viewpoint - Richardson Electronics, Ltd. has expanded its customer base through a supply agreement with TransAlta Corporation for its patented pitch energy modules designed for GE wind turbines and SSB platforms, enhancing the efficiency and reliability of wind energy operations [1][2]. Group 1: Agreement and Product Details - The supply agreement will see Richardson Electronics provide its ULTRA3000® and ULTRAPEM™ modules to various wind farms in Canada and the United States, with shipments expected throughout 2025 [2]. - The pitch energy modules are ultracapacitor-based and are intended to replace lead acid batteries in wind turbine platforms that utilize electric pitch systems, thereby improving energy management for blade angle adjustments [3]. Group 2: Customer Feedback and Impact - TransAlta Corporation highlighted the significant operational improvements achieved through the use of Richardson's ultracapacitor technology, noting that pitch faults due to weak batteries were a leading cause of downtime and lost production [4]. - The successful trial of the Ultra-caps over a year led to positive feedback, with expectations that the technology will reduce maintenance needs and increase revenue by minimizing production losses [4]. Group 3: Company Overview - Richardson Electronics is a global manufacturer specializing in engineered solutions, green energy products, and power management applications, with over 50% of its products manufactured in the U.S. and Germany [6][9]. - The company serves a diverse range of markets, including alternative energy, healthcare, and military, and focuses on providing specialized technical expertise and engineered solutions [7][9].

Core Viewpoint - Richardson Electronics, Ltd. has expanded its customer base through a supply agreement with TransAlta Corporation to provide patented pitch energy modules for wind turbines, enhancing operational efficiency and reducing downtime [1][2][4]. Group 1: Agreement and Product Details - The agreement entails Richardson Electronics supplying its ULTRA3000 and ULTRAPEM™ modules to various wind farms in Canada and the United States, with shipments expected throughout 2025 [2]. - The pitch energy modules are ultracapacitor-based and are designed to replace lead acid batteries in wind turbine platforms, managing energy for blade angle adjustments [3]. Group 2: Customer Feedback and Impact - TransAlta Corporation highlighted that pitch faults due to weak batteries are a leading cause of downtime, and the switch to Richardson's ultracapacitors has been an excellent upgrade, reducing the need for hub entries and increasing revenue potential [4]. - The positive feedback from TransAlta reflects the effectiveness of Richardson's innovative solutions in enhancing operational efficiency and reducing maintenance challenges [4]. Group 3: Company Overview - Richardson Electronics is a global manufacturer of engineered solutions, with over 50% of its products manufactured in the U.S. and Germany, serving various markets including alternative energy and healthcare [6][9]. - The company focuses on providing specialized technical expertise and engineered solutions, emphasizing design-in support, systems integration, and aftermarket services [7][10].

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].

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][12] - 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, while Canvys sales increased by 39.5% [5][12] - PMT sales grew by 6.6% due to higher sales to semiconductor wafer fab customers [12] - 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] - Canvys net sales increased by 39.5% to $9.2 million in Q3 FY 2025, driven by higher sales in North American markets [36] Market Data and Key Metrics Changes - The backlog for GES and PMT remained strong at $95 million at the end of Q3 FY 2025 [27] - Canvys' backlog at the end of Q3 FY 2025 was $36.6 million, providing a robust 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 business [7][42] - The strategic transaction is expected to simplify the business and improve the financial model long-term [42] - The company aims to capitalize on policies driving manufacturing back to the US and increase the need for US content [8] - Investments will be made in business development and engineering teams to improve market reach and time to market [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in semiconductor wafer fab equipment and Green Energy Solutions [53] - The current operating environment is described as fluid, with expectations of limited market growth in the US but continued sales growth through market share gains [29] - The company is well-positioned to differentiate itself in global niche markets like energy storage [48] Other Important Information - The company ended Q3 FY 2025 with no debt and $36.7 million in cash and equivalents [19] - A quarterly cash dividend of $0.06 per common share was declared, to be paid in Q4 FY 2025 [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 backlog and inventory position [57] Question: Are there any cancellations or delays in projects? - No cancellations reported; all identified programs are moving forward [60] Question: How is the semiconductor wafer fab business performing? - Strong growth is expected to continue, with visibility from corporate and engineering teams [62] Question: How will capital allocation be handled post-Healthcare sale? - Initial investments will focus on expanding existing products and technologies [86] Question: Can you provide updates on Progress Rail and Wabtec? - Significant orders are being processed, with shipments expected in FY 2026 [94][97] Question: What are the expected losses from the Healthcare segment? - Specific loss figures are not disclosed, but efforts are being made to minimize them [104]