Richardson Electronics(US:RELL)2026-01-08 18:44Financial Performance - Consolidated net sales for the second quarter of fiscal 2026 were $52.3 million, an increase of 5.7% compared to $49.5 million in the same period of fiscal 2025[95]. - Net sales for the Power and Microwave Technologies (PMT) segment decreased by 4.0% to $35.2 million in the second quarter of fiscal 2026, while Green Energy Solutions (GES) and Canvys segments saw increases of 39.0% and 28.1%, respectively[94][96]. - Gross margin for the second quarter of fiscal 2026 decreased to 30.8% from 31.0% in the second quarter of fiscal 2025[95]. - Operating income for the second quarter of fiscal 2026 was $0.1 million, compared to an operating loss of $0.7 million in the same quarter of fiscal 2025[95]. - Net income for the first six months of fiscal 2026 was $1.8 million, a turnaround from a net loss of $0.2 million in the first six months of fiscal 2025[95]. - Consolidated gross profit for the second quarter of fiscal 2026 increased to $16.1 million from $15.3 million in the second quarter of fiscal 2025[99]. - The first six months of fiscal 2026 saw consolidated net sales of $106.9 million, up 3.6% from $103.2 million in the first six months of fiscal 2025[95]. - Net loss for Q2 FY2026 was $0.1 million, or $0.01 per diluted common share, compared to a net loss of $0.8 million, or $0.05 per diluted common share, in Q2 FY2025[117]. - Net income for the first six months of FY2026 was $1.8 million, or $0.12 per diluted common share, compared to a net loss of $0.2 million, or $0.01 per diluted common share, in the same period of FY2025[118]. Segment Performance - The decrease in PMT sales was attributed to a decline in Electron Device and Healthcare products, partially offset by higher RF and Microwave products[96][97]. - PMT net sales decreased 4.0% to $35.2 million in Q2 FY2026 from $36.7 million in Q2 FY2025, primarily due to declines in Electron Device and Healthcare products[102]. - GES net sales increased 39.0% to $8.3 million in Q2 FY2026 from $6.0 million in Q2 FY2025, driven by strong market adoption of Power Management products[104]. - Canvys net sales increased 28.1% to $8.8 million in Q2 FY2026 from $6.9 million in Q2 FY2025, mainly due to higher sales in North America[106]. Expenses and Cash Flow - Selling, general and administrative expenses for the first six months of fiscal 2026 were $31.9 million, or 29.8% of net sales, compared to $32.1 million, or 31.1% of net sales, in the same period of fiscal 2025[95]. - SG&A expenses decreased to $15.9 million in Q2 FY2026 from $16.0 million in Q2 FY2025, representing 30.5% of net sales compared to 32.3% in the prior year[108]. - Cash and cash equivalents were $33.1 million as of November 29, 2025, with $10.5 million in North America and $12.5 million in Europe[120]. - Cash flows from operating activities generated $1.3 million during the first six months of FY2026, with net income of $1.8 million adjusted for non-cash items[126]. - Cash used in investing activities was $2.6 million in the first six months of FY2026, primarily for capital expenditures related to IT systems and LaFox manufacturing[128]. Risk Management - The Company executed a three-year extension to the PNC Credit Agreement with a maximum borrowing limit of $20 million, with no amounts outstanding as of November 29, 2025[124]. - No material changes in critical accounting estimates from the previous Annual Report on Form 10-K for the year ended May 31, 2025[133]. - Company is exposed to foreign currency exchange risks due to operations, assets, and liabilities denominated in foreign currencies[135]. - Risk management strategies are implemented through normal operating and financing activities to mitigate market risks[135]. - Variances in exchange rates may influence other economic factors affecting operations, as noted in the Annual Report on Form 10-K[136].