Richardson Electronics(US:RELL)2024-07-24 21:10Financial 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].