Richardson Electronics(US:RELL)2026-01-07 21:57Financial Performance - Net sales for Q2 FY26 were $52.3 million, a 5.7% increase from $49.5 million in Q2 FY25, with a 9% increase when excluding Healthcare[4] - Operating income improved to $0.1 million in Q2 FY26 from an operating loss of $0.7 million in Q2 FY25[9] - Net loss narrowed to $0.1 million in Q2 FY26 compared to a net loss of $0.8 million in Q2 FY25, with diluted loss per share improving to $0.01[11] - EBITDA for Q2 FY26 was $0.7 million, up from breakeven in Q2 FY25[11] - Operating income for the three months ended November 29, 2025, was $132, a significant improvement from a loss of $667 in the same period last year[29] - Net loss for the three months ended November 29, 2025, was $121, compared to a loss of $751 in the prior year[31] - EBITDA for the three months ended November 29, 2025, was $741, a recovery from a negative EBITDA of $40 in the same period last year[36] - The company reported a comprehensive loss of $512 for the three months ended November 29, 2025, compared to a loss of $2,499 in the same period last year[29] Sales Performance - Green Energy Solutions (GES) net sales increased by $2.3 million, or 39%, driven by higher sales in power management products[5] - Canvys sales rose by $1.9 million, or 28.1%, reflecting increased sales in North America[5] - Net sales for the three months ended November 29, 2025, increased by 5.7% to $52,288, compared to $49,491 for the same period in 2024[29] - The PMT segment reported a 4.0% decrease in net sales for the three months ended November 29, 2025, totaling $35,208, while GES and Canvys segments saw increases of 39.0% and 28.1%, respectively[33] Margins and Expenses - Gross margin for Q2 FY26 was 30.8%, slightly down from 31.0% in Q2 FY25[7] - Operating expenses were $15.9 million, improving to 30.5% of net sales from 32.3% in the prior year[8] - Gross profit for the three months ended November 29, 2025, was $16,077, representing 30.8% of net sales, compared to $15,326 or 31.0% in the prior year[34] Cash Position and Backlog - Cash and cash equivalents decreased to $33.1 million as of November 29, 2025, from $35.7 million as of August 30, 2025[12] - Cash and cash equivalents at the end of the period were $33,138, down from $35,654 at the beginning of the period[31] - The backlog totaled $135.7 million at the end of Q2 FY26, up from $134.7 million at the end of Q1 FY26[6] Strategic Focus - The company plans to continue focusing on strategic business units to drive growth and improve profitability in the upcoming quarters[29]