Richardson Electronics Reports Third Quarter Results; Declares Quarterly Cash Dividend

Financial Performance - Richardson Electronics reported net sales of $53.8 million for Q3 FY25, a 2.7% increase from $52.4 million in Q3 FY24 [4] - The year-over-year growth was driven by a 139% surge in semiconductor wafer fab sales and a 39.5% increase in Canvys sales [2][5] - The company achieved positive operating cash flow for the fourth consecutive quarter and ended the quarter with no debt and $36.7 million in cash and equivalents [2][15] Strategic Developments - The strategic sale of a majority of Richardson Healthcare assets during the quarter strengthened the company's balance sheet and is expected to simplify operations [1][3] - The company recorded a one-time loss of $4.9 million from the sale of Healthcare assets, but non-GAAP operating income rose to $2.2 million, up from $1.0 million in the previous year [3][11] Segment Performance - Power and Microwave Technologies Group (PMT) sales increased by $2.1 million, or 6.6%, primarily due to higher demand from semiconductor wafer fab customers [5] - Canvys sales increased by $2.6 million, or 39.5%, reflecting improved market conditions in North America [5] - Healthcare sales decreased by $1.0 million, or 32.3%, due to lower net sales following the asset sale [5] Gross Margin and Operating Expenses - Gross margin for Q3 FY25 was 31.0%, up from 29.5% in Q3 FY24, with PMT and GES showing improvements in gross margin [7][39] - Operating expenses slightly increased to $14.5 million from $14.4 million in Q3 FY24, primarily due to higher employee compensation [8] Backlog and Future Outlook - The backlog at the end of Q3 FY25 totaled $134.1 million, down from $142.6 million at the end of Q2 FY25, with decreases noted in GES, Canvys, and Healthcare [6] - The company maintains a solid sales pipeline, although the timing of new orders may vary [6] Cash Dividend - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 28, 2025, to common stockholders of record as of May 9, 2025 [18]