Richardson Electronics(RELL) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 FY25 net sales increased by 12.1% year-over-year to $49.5 million, up from $44.1 million in Q2 FY24[4] - Net sales for the three months ended November 30, 2024, were $49,491 thousand, representing a 12.1% increase compared to $44,130 thousand for the same period in 2023[31] - The PMT segment achieved net sales of $34,397 thousand for the three months ended November 30, 2024, a 9.9% increase from $31,292 thousand in the prior year[31] - The GES segment saw a significant increase in net sales, reaching $5,974 thousand, up 129.0% from $2,609 thousand in the same period last year[31] - Green Energy Solutions (GES) net sales surged by 129% year-over-year, contributing an additional $3.4 million in sales[2] Profitability and Loss - Operating loss narrowed to $0.7 million in Q2 FY25, compared to a loss of $2.0 million in Q2 FY24[10] - Net loss for Q2 FY25 was $0.8 million, an improvement from a net loss of $1.8 million in Q2 FY24, with loss per share reduced to $0.05[11] - The company reported a net loss of $751 thousand for the three months ended November 30, 2024, an improvement from a net loss of $1,797 thousand in the same period of 2023[29] - The company’s comprehensive loss for the three months ended November 30, 2024, was $(2,499) thousand, compared to $(1,166) thousand in the same period last year[29] Cash Flow and Financial Health - Positive operating cash flow for the third consecutive quarter, with cash and cash equivalents totaling $26.6 million and no debt[3] - Cash and cash equivalents at the end of the period were $26,635 thousand, an increase from $22,769 thousand at the end of the same period last year[29] Operating Metrics - Gross margin improved to 31.0% in Q2 FY25, compared to 28.4% in Q2 FY24, with GES gross margin rising to 32.0%[8] - Gross profit for the three months ended November 30, 2024, was $15,326 thousand, with a gross margin of 31.0%, up from $12,542 thousand and 28.4% in the same period last year[32] Backlog and Future Outlook - Backlog increased to $142.6 million at the end of Q2 FY25, up from $137.4 million at the end of Q1 FY25, indicating strong sales pipeline[7] - Management anticipates year-over-year sales growth and higher profitability for FY25, supported by backlog growth[3] Operating Expenses - Operating expenses increased to $16.0 million in Q2 FY25, up from $14.5 million in Q2 FY24, primarily due to higher employee compensation[9] Dividends - The Board declared a quarterly cash dividend of $0.06 per share, payable on February 26, 2025[15] Other Expenses - The company incurred total other expenses of $388 thousand for the three months ended November 30, 2024, compared to $275 thousand in the same period last year[29] Segment Performance - The healthcare segment experienced a decline in net sales, reporting $2,269 thousand, down 22.8% from $2,938 thousand in the prior year[31] EBITDA - EBITDA for the six months ended November 30, 2024, was $1,652 thousand, compared to $1,431 thousand for the same period in 2023[34]