Richardson Electronics Reports Second Quarter Results; Declares Quarterly Cash Dividend

Core Insights - Richardson Electronics, Ltd. reported a 12.1% year-over-year increase in net sales for Q2 FY25, reaching $49.5 million, marking the second consecutive quarterly increase [4][11] - The Green Energy Solutions (GES) segment saw a significant sales increase of 129% year-over-year, driven by higher sales of wind turbine battery modules [5][33] - The company ended Q2 with positive operating cash flow for the third consecutive quarter, holding $26.6 million in cash and cash equivalents with no debt [3][12] Financial Performance - Net sales for Q2 FY25 were $49.5 million, up from $44.1 million in Q2 FY24, reflecting strong performance in GES and Power and Microwave Technologies Group (PMT) [4][5] - GES sales increased by $3.4 million, or 129%, while PMT sales rose by $3.1 million, or 9.9% [2][5] - Healthcare sales declined by $0.7 million, or 22.8%, due to lower demand for CT tubes and systems [6] Profitability and Margins - Gross margin for Q2 FY25 improved to 31.0% from 28.4% in Q2 FY24, with GES gross margin increasing to 32.0% [8] - Operating expenses rose to $16.0 million from $14.5 million in the prior year, primarily due to higher employee compensation [9] - The company reported a net loss of $0.8 million for Q2 FY25, an improvement from a net loss of $1.8 million in Q2 FY24 [11] Cash Flow and Dividends - The company generated positive operating cash flow of $5.5 million in Q2 FY25, with cash and cash equivalents increasing from $23.0 million at the end of Q1 FY25 [12][3] - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on February 26, 2025 [14] Backlog and Future Outlook - Backlog at the end of Q2 FY25 totaled $142.6 million, up from $137.4 million at the end of Q1 FY25, indicating a robust sales pipeline [7] - Management anticipates continued year-over-year sales growth and higher profitability for FY25, supported by backlog growth [3][2]