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 ...

IMS 2024 (IEEE MTT-S International Microwave Symposium) is an in-person conference week dedicated to all things microwaves and RF. It will also include the IEEE MTT-S Radio Frequency Integrated Circuits Symposium (RFIC) and the Automatic Radio Frequency Techniques Group (ARFTG). IMS2024 is the world's largest gathering and industry exhibition for Microwave professionals. The development of RF, microwave, mm-wave, and THz systems continues to expand in several areas with many applications. To register for IM ...

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 ...

Richardson Electronics, Ltd. (NASDAQ:RELL) Q3 2024 Earnings Call Transcript April 11, 2024 10:00 AM ET Company Participants Ed Richardson - CEO Robert Ben - CFO Greg Peloquin - GM, Power & Microwave Technologies Group, Green Energy Solutions Wendy Diddell - COO & GM for Richardson Healthcare Jens Ruppert - GM, Canvys Conference Call Participants Anja Soderstrom - Sidoti Ross Taylor - ARS Investment Partners Barry Mendel - Mendel Money Management Joseph Nerges - Segren Investments Operator Good day, and than ...

Richardson Electronics (RELL) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this electronic components and communication products company would post earnings of $0.01 per share when it actually produced a loss of $0.13, delivering a surprise ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Richardson Electronics reported strong sequential sales growth and improved Q3 FY2024 profitability, driven by diversification and inventory reduction efforts [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Richardson Electronics reported an 18.7% sequential increase in sales for Q3 FY2024, alongside a $4.0 million sequential decrease in inventory, reflecting improved business conditions and a focus on working capital - Sales increased **18.7% sequentially**, indicating improving business conditions[1](index=1&type=chunk) - Inventory decreased **$4.0 million sequentially**, reflecting a focus on improving working capital levels[2](index=2&type=chunk) - A quarterly cash dividend of **$0.06 per share** was declared[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted the encouraging sequential increase in sales and profitability, attributing it to diversification strategies and a focus on enhancing the balance sheet - Sequential increase in sales and profitability is encouraging, reflecting benefits of diversification strategies and focus on enhancing profitability and strengthening the balance sheet[3](index=3&type=chunk) - Sales to semiconductor wafer fab customers had an **$11.5 million negative impact** during the quarter, but GES business success demonstrates the importance of diversification[3](index=3&type=chunk) - Company focused on decreasing inventory levels throughout fiscal 2024, marking the first decline in over two years[4](index=4&type=chunk) - Anticipates sequential sales growth and further improvements in profitability in fiscal 2024 fourth quarter, driven by expected demand growth in semiconductor and GES markets[4](index=4&type=chunk) [Third Quarter Fiscal 2024 Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) Q3 FY2024 results show significant year-over-year declines in net sales, gross margin, and net income, primarily impacting PMT and Canvys [Net Sales Performance (Q3 FY2024)](index=2&type=section&id=Q3%20Net%20Sales%20Performance) Net sales for the third quarter of fiscal 2024 decreased by 25.6% year-over-year to $52.4 million, primarily due to lower sales in PMT and Canvys Q3 FY2024 Net Sales Overview | Metric | Q3 FY2024 (in thousands) | Q3 FY2023 (in thousands) | % Change YoY | | :----- | :----------------------- | :----------------------- | :----------- | | Net Sales | $52,375 | $70,364 | -25.6% | | PMT | $31,163 | $46,822 | -33.4% | | GES | $11,531 | $11,471 | 0.5% | | Canvys | $6,590 | $9,685 | -32.0% | | Healthcare | $3,091 | $2,386 | 29.5% | - PMT sales decreased **$15.7 million** primarily due to lower sales of manufactured products for semiconductor wafer fabrication equipment customers[5](index=5&type=chunk) - Canvys sales decreased by **$3.1 million**, primarily due to short-term customer pushouts in North America[5](index=5&type=chunk) [Backlog (Q3 FY2024)](index=2&type=section&id=Q3%20Backlog) Total backlog at the end of Q3 FY2024 was $147.7 million, a sequential decline from $150.7 million at the end of Q2 FY2024, primarily in PMT and Canvys Backlog Comparison | Metric | End of Q3 FY2024 (in millions) | End of Q2 FY2024 (in millions) | | :----- | :----------------------------- | :----------------------------- | | Total Backlog | $147.7 | $150.7 | | GES Backlog | $36.8 | $35.7 (implied, $1.1M increase) | - The sequential decline in total backlog was observed in PMT and Canvys[6](index=6&type=chunk) [Gross Margin Analysis (Q3 FY2024)](index=2&type=section&id=Q3%20Gross%20Margin%20Analysis) Consolidated gross margin decreased to 29.5% in Q3 FY2024 from 31.8% in the prior year, mainly due to product mix and manufacturing under absorption in PMT Q3 FY2024 Gross Margin by Segment | Segment | Q3 FY2024 Gross Margin | Q3 FY2023 Gross Margin | | :------ | :--------------------- | :--------------------- | | Consolidated | 29.5% | 31.8% | | PMT | 28.3% | 32.9% | | GES | 26.6% | 25.7% | | Canvys | 34.4% | 32.0% | | Healthcare | 41.6% | 39.8% | - PMT gross margin decreased due to product mix and **$0.8 million** of manufacturing under absorption[7](index=7&type=chunk) - GES, Healthcare, and Canvys segments experienced increased gross margins due to improved product mix[7](index=7&type=chunk) [Operating Expenses & Income (Q3 FY2024)](index=2&type=section&id=Q3%20Operating%20Expenses%20%26%20Income) Operating expenses decreased slightly to $14.4 million in Q3 FY2024, driven by lower incentive expenses, partially offset by increased R&D, leading to a significant year-over-year decline in operating income Q3 FY2024 Operating Performance | Metric | Q3 FY2024 (in millions) | Q3 FY2023 (in millions) | | :----- | :---------------------- | :---------------------- | | Operating Expenses | $14.4 | $14.8 | | Operating Income | $1.0 | $7.6 | | Other Expense (Income) | < $0.1 | $0.4 (income) | - Decrease in operating expenses resulted from lower incentive expenses, partially offset by higher R&D expenses in support of growth initiatives[8](index=8&type=chunk) [Net Income & EPS (Q3 FY2024)](index=2&type=section&id=Q3%20Net%20Income%20%26%20EPS) Net income for Q3 FY2024 was $0.8 million, or $0.05 per diluted share, a substantial decrease from $6.3 million, or $0.44 per diluted share, in the prior year's third quarter Q3 FY2024 Net Income and EPS | Metric | Q3 FY2024 | Q3 FY2023 | | :----- | :-------- | :-------- | | Net Income | $0.8 million | $6.3 million | | Diluted EPS | $0.05 | $0.44 | | Income Tax Provision | $0.2 million | $1.7 million | | Effective Tax Rate | 23.4% | 20.7% | [Cash and Investments (Q3 FY2024)](index=2&type=section&id=Q3%20Cash%20and%20Investments) Cash and investments decreased to $18.9 million as of March 2, 2024, from $22.8 million at December 2, 2023, primarily due to increased accounts receivable and decreased accounts payable Cash and Investments Snapshot | Metric | March 2, 2024 (in millions) | December 2, 2023 (in millions) | | :----- | :-------------------------- | :----------------------------- | | Cash and Investments | $18.9 | $22.8 | - Primary uses of cash during Q3 FY2024 included a **$5.3 million increase** in accounts receivable, a **$4.1 million decrease** in accounts payable, and **$0.4 million** in capital expenditures[11](index=11&type=chunk) - Cash usage was partially offset by a **$4.0 million decrease** in inventory[11](index=11&type=chunk) [Nine Months Fiscal 2024 Financial Summary](index=3&type=section&id=Nine%20Months%20Fiscal%202024%20Financial%20Summary) Nine months FY2024 results show substantial year-over-year declines in net sales, gross profit, operating income, and net income [Net Sales Performance (Nine Months FY2024)](index=3&type=section&id=9M%20Net%20Sales%20Performance) Net sales for the first nine months of fiscal 2024 significantly decreased by 26.9% to $149.1 million compared to the prior year, with all strategic business units experiencing declines Nine Months FY2024 Net Sales Overview | Metric | 9M FY2024 (in millions) | 9M FY2023 (in millions) | % Change YoY | | :----- | :---------------------- | :---------------------- | :----------- | | Net Sales | $149.1 | $203.8 | -26.9% | | PMT | $98.2 | $132.8 | -26.0% | | GES | $18.5 | $32.3 | -42.6% | | Canvys | $23.8 | $30.2 | -21.2% | | Healthcare | $8.6 | $8.6 | -0.3% | [Gross Profit & Margin (Nine Months FY2024)](index=3&type=section&id=9M%20Gross%20Profit%20%26%20Margin) Gross profit for the first nine months of fiscal 2024 decreased to $45.2 million, with the gross margin falling to 30.3% from 33.0% in the prior year, primarily due to product mix and manufacturing under absorption Nine Months FY2024 Gross Profit and Margin | Metric | 9M FY2024 (in millions) | 9M FY2023 (in millions) | % of Net Sales (9M FY24) | % of Net Sales (9M FY23) | | :----- | :---------------------- | :---------------------- | :----------------------- | :----------------------- | | Gross Profit | $45.2 | $67.3 | 30.3% | 33.0% | | PMT Gross Profit | $29.2 | $45.0 | 29.8% | 33.9% | | GES Gross Profit | $5.4 | $10.1 | 29.2% | 31.4% | | Canvys Gross Profit | $8.1 | $9.4 | 34.0% | 31.0% | | Healthcare Gross Profit | $2.5 | $2.8 | 29.5% | 32.9% | - Gross margin decrease primarily due to product mix and manufacturing under absorption in PMT, product mix in GES, and increased scrap expense and manufacturing under absorption in Healthcare[16](index=16&type=chunk) - Partially offset by a favorable product mix and lower freight costs in Canvys[16](index=16&type=chunk) [Operating Expenses & Income (Nine Months FY2024)](index=3&type=section&id=9M%20Operating%20Expenses%20%26%20Income) Operating expenses for the first nine months of fiscal 2024 increased by 2.3% to $44.7 million, mainly due to higher salaries and R&D expenses, resulting in a substantial drop in operating income Nine Months FY2024 Operating Performance | Metric | 9M FY2024 (in millions) | 9M FY2023 (in millions) | % Change YoY | | :----- | :---------------------- | :---------------------- | :----------- | | Operating Expenses | $44.7 | $43.7 | 2.3% | | Operating Income | $0.5 | $23.6 | -97.9% | | Other Expense | $0.2 | $0.1 | 100.0% | - Increase in operating expenses resulted from higher salaries and R&D expenses, partially offset by lower incentive expense[16](index=16&type=chunk) [Net Income & EPS (Nine Months FY2024)](index=3&type=section&id=9M%20Net%20Income%20%26%20EPS) Net income for the first nine months of fiscal 2024 plummeted to $0.2 million, or $0.01 per diluted share, a significant decline from $18.2 million, or $1.27 per diluted share, in the prior year Nine Months FY2024 Net Income and EPS | Metric | 9M FY2024 | 9M FY2023 | | :----- | :-------- | :-------- | | Net Income | $0.2 million | $18.2 million | | Diluted EPS | $0.01 | $1.27 | | Income Tax Provision | $0.1 million | $5.3 million | | Effective Tax Rate | 39.2% | 22.5% | [Corporate Actions & Information](index=3&type=section&id=Corporate%20Actions%20%26%20Information) This section covers quarterly dividends, Q3 conference call details, forward-looking statement disclaimers, and Richardson Electronics' business overview [Quarterly Cash Dividend](index=3&type=section&id=Quarterly%20Cash%20Dividend) Richardson Electronics' Board of Directors declared a quarterly cash dividend of $0.06 per share for common stock and $0.054 per share for Class B common stock, payable on May 29, 2024 - Declared a **$0.06 quarterly cash dividend** per share to holders of common stock[13](index=13&type=chunk) - Declared a **$0.054 cash dividend** per share to holders of Class B common stock[13](index=13&type=chunk) - Dividend payable on May 29, 2024, to common stockholders of record as of May 10, 2024[13](index=13&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company will host a conference call on Thursday, April 11, 2024, at 9:00 a.m. Central Time, to discuss its third quarter fiscal 2024 results, with a replay available for seven days - Conference call to discuss Q3 FY2024 results scheduled for Thursday, April 11, 2024, at 9:00 a.m. Central Time[14](index=14&type=chunk) - A replay of the call will be available for seven days starting at 1:00 p.m. Central Time on April 11, 2024[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer regarding forward-looking statements, noting that they involve risks and uncertainties that could cause actual results to differ - Release includes 'forward-looking' statements that involve risks and uncertainties[17](index=17&type=chunk) - Readers are directed to Item 1A, 'Risk Factors' in the Company's Annual Report on Form 10-K for a discussion of such risks[17](index=17&type=chunk) - The Company assumes no responsibility to update forward-looking statements[17](index=17&type=chunk) [About Richardson Electronics, Ltd.](index=4&type=section&id=About%20Richardson%20Electronics%2C%20Ltd.) Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, power grid and microwave tubes, power conversion components, high-value replacement parts for diagnostic imaging, and customized display solutions - Richardson Electronics is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, power conversion and RF/microwave components, high-value replacement parts for diagnostic imaging equipment, and customized display solutions[18](index=18&type=chunk) - The company serves customers in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets[18](index=18&type=chunk) - Strategy is to provide specialized technical expertise and 'engineered solutions' through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair[18](index=18&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, comprehensive income, and cash flow statements for the periods ended March 2, 2024 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position as of March 2, 2024, and May 27, 2023, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Metric | March 2, 2024 | May 27, 2023 | | :-------------------------- | :------------ | :----------- | | Cash and cash equivalents | $18,880 | $24,981 | | Accounts receivable, net | $29,131 | $30,067 | | Inventories, net | $112,635 | $110,402 | | Total current assets | $163,387 | $168,083 | | Total assets | $193,605 | $198,048 | | Accounts payable | $18,393 | $23,535 | | Total current liabilities | $32,287 | $36,589 | | Total liabilities | $34,984 | $38,728 | | Total stockholders' equity | $158,621 | $159,320 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income provide a detailed breakdown of revenues, costs, and profits for the three and nine months ended March 2, 2024, and February 25, 2023 Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | Three Months Ended March 2, 2024 | Three Months Ended Feb 25, 2023 | Nine Months Ended March 2, 2024 | Nine Months Ended Feb 25, 2023 | | :-------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Net sales | $52,375 | $70,364 | $149,086 | $203,826 | | Gross profit | $15,436 | $22,405 | $45,242 | $67,283 | | Operating income | $1,006 | $7,613 | $462 | $23,591 | | Income before income taxes | $979 | $7,995 | $296 | $23,494 | | Net income | $750 | $6,340 | $180 | $18,213 | | Diluted EPS (Common) | $0.05 | $0.44 | $0.01 | $1.27 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows illustrate the cash movements from operating, investing, and financing activities for the three and nine months ended March 2, 2024, and February 25, 2023 Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended March 2, 2024 | Three Months Ended Feb 25, 2023 | Nine Months Ended March 2, 2024 | Nine Months Ended Feb 25, 2023 | | :---------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(2,531) | $(4,260) | $(716) | $(11,413) | | Net cash (used in) provided by investing activities | $(401) | $2,770 | $(3,057) | $220 | | Net cash (used in) provided by financing activities | $(844) | $(323) | $(2,309) | $860 | | Decrease in cash and cash equivalents | $(3,889) | $(1,461) | $(6,101) | $(10,850) | | Cash and cash equivalents at end of period | $18,880 | $24,645 | $18,880 | $24,645 |

LAFOX, Ill., March 14, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL), a global provider of engineered solutions for renewable energy and other power management applications, has reached a significant milestone with the shipment and installation of over 50,000 patented ULTRA3000® pitch energy modules ("PEMs"). PEMs store and manage energy required to adjust the blade angles to ensure effective operation of the wind turbine. This achievement marks the largest retrofit of ultracapacitors ...

LAFOX, Ill., Jan. 24, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL) announced today a global agreement has been reached with Microwave Components, Inc. (MCI). Microwave Components, Inc. of Dracut, Massachusetts is a Veteran-owned, U.S. company that has been a leading manufacturer of custom miniature electronic air coils since 1978. MCI coils are manufactured to meet its customers' specifications. MCI's High Q, miniature air coils are used in a variety of RF and Microwave applications a ...