Richardson Electronics Reports First Quarter Fiscal 2021 Results and Declares Quarterly Cash Dividend
Richardson Electronics reported Q1 FY21 net sales of $38.8 million, down 4.5% from $40.7 million in Q1 FY20, primarily impacted by COVID-19. Gross margin remained stable at 31.8%, slightly lower than 31.9% last year. An operating loss of $0.6 million was noted, compared to a profit of $0.1 million in Q1 FY20. Net loss increased to $1.1 million from a net income of $0.2 million year-over-year. The company declared a quarterly cash dividend of $0.06 per share.
- Sales grew in PMG and Canvys North America.
- Increased sales of semiconductor wafer fab equipment.
- PMT margin improved to 33.0% from 31.7% due to favorable product mix.
- Overall sales decreased 4.5% compared to Q1 FY20.
- Operating loss of $0.6 million compared to a profit of $0.1 million in Q1 FY20.
- Healthcare sales down 34.2% due to frozen budgets and reduced capital expenditures.
PMG, North America Display and Semiconductor Wafer Fab Revenues Grow Versus Q1 FY20; All SBUs Grow Versus Q4 FY20
Q1 and FY21 Highlights
- Net sales of
$38.8 million were down less than5% from last year’s first quarter despite the COVID-19 impact on all three of our strategic business units. - Sales increased for PMG, Canvys display solutions in North America and Semiconductor Wafer Fabrication equipment products in the first quarter of fiscal 2021 versus the first quarter of fiscal 2020.
- Gross margin was
31.8% of net sales for the first quarter of fiscal 2021 versus31.9% of net sales in the prior year’s first quarter. - Operating expenses increased
$0.2 million to$13.0 million compared to the prior year’s first quarter. Legal expenses increased by$0.4 million . - Operating loss was
$0.6 million compared to an operating income of$0.1 million in last year’s first quarter. - Cash and investments were
$42.5 million as of August 29, 2020 versus$46.5 million at both May 30, 2020 and August 31, 2019.
LAFOX, Ill., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its first quarter ended August 29, 2020. The Company also announced that its Board of Directors declared a
First Quarter Results
Net sales for the first quarter of fiscal 2021 decreased
Gross margin was
Operating expenses were
As a result, the Company reported an operating loss of
The income tax provision of
“While our overall results continued to be negatively impacted by the coronavirus, we were pleased with the sales growth in PMG, Canvys North America and in semiconductor wafer fab equipment products as well as higher sales overall compared to the fourth quarter of Fiscal 2020,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “We continue to capitalize on all revenue opportunities as well as manage expenses and cash flow appropriately given the ongoing uncertainty in the global economy,” he concluded.
CASH DIVIDEND AND POSITION
The Company also announced today that its Board of Directors declared a
Cash and investments at the end of the first quarter of fiscal 2021 were
CONFERENCE CALL INFORMATION
On Thursday, October 8, 2020, at 9:00 a.m. CDT, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s first quarter fiscal year 2021 results. A question and answer session will be included as part of the call’s agenda.
Participant Instructions
To listen to the call, please dial (USA/CANADA) (866) 784-8065 or (International) (602) 563-8684 and enter Conference ID: 2286803 approximately five minutes before the start of the call. A replay of the call will be available beginning at 1:00 p.m. CDT on October 8, 2020, for seven days. The telephone number for the replay is (800) 585-8367; Conference ID: 2286803.
FORWARD-LOOKING STATEMENTS
This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company’s business which are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 3, 2020, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events, or otherwise.
ABOUT RICHARDSON ELECTRONICS, LTD.
Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high- value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.
Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
Richardson Electronics, Ltd. Consolidated Balance Sheets (in thousands, except per share amounts) | ||||||||
Unaudited | Audited | |||||||
August 29, 2020 | May 30, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 33,495 | $ | 30,535 | ||||
Accounts receivable, less allowance of | 21,591 | 20,197 | ||||||
Inventories, net | 60,160 | 57,492 | ||||||
Prepaid expenses and other assets | 2,390 | 2,442 | ||||||
Investments - current | 9,000 | 16,000 | ||||||
Total current assets | 126,636 | 126,666 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 17,611 | 17,674 | ||||||
Intangible assets, net | 2,450 | 2,505 | ||||||
Lease ROU asset | 3,151 | 3,419 | ||||||
Non-current deferred income taxes | 468 | 456 | ||||||
Total non-current assets | 23,680 | 24,054 | ||||||
Total assets | $ | 150,316 | $ | 150,720 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 14,809 | $ | 17,372 | ||||
Accrued liabilities | 12,302 | 10,324 | ||||||
Lease liability current | 1,423 | 1,485 | ||||||
Total current liabilities | 28,534 | 29,181 | ||||||
Non-current liabilities: | ||||||||
Non-current deferred income tax liabilities | 170 | 161 | ||||||
Lease liability non-current | 1,701 | 1,941 | ||||||
Other non-current liabilities | 841 | 777 | ||||||
Total non-current liabilities | 2,712 | 2,879 | ||||||
Total liabilities | 31,246 | 32,060 | ||||||
Stockholders’ equity | ||||||||
Common stock, August 29, 2020 and 11,038 shares at May 30, 2020 | 556 | 552 | ||||||
Class B common stock, convertible, 2,097 shares at August 29, 2020 and May 30, 2020 | 105 | 105 | ||||||
Preferred stock, | — | — | ||||||
Additional paid-in-capital | 61,946 | 61,749 | ||||||
Retained earnings | 52,837 | 54,764 | ||||||
Accumulated other comprehensive income | 3,626 | 1,490 | ||||||
Total stockholders’ equity | 119,070 | 118,660 | ||||||
Total liabilities and stockholders’ equity | $ | 150,316 | $ | 150,720 | ||||
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
August 29, 2020 | August 31, 2019 | |||||||
Statements of Comprehensive Income (Loss) | ||||||||
Net sales | $ | 38,812 | $ | 40,653 | ||||
Cost of sales | 26,453 | 27,702 | ||||||
Gross profit | 12,359 | 12,951 | ||||||
Selling, general and administrative expenses | 12,976 | 12,847 | ||||||
Loss on disposal of assets | — | 1 | ||||||
Operating (loss) income | (617 | ) | 103 | |||||
Other expense (income): | ||||||||
Investment/interest income | (18 | ) | (120 | ) | ||||
Foreign exchange loss (income) | 442 | (110 | ) | |||||
Other, net | (18 | ) | (1 | ) | ||||
Total other expense (income) | 406 | (231 | ) | |||||
(Loss) income before income taxes | (1,023 | ) | 334 | |||||
Income tax provision | 124 | 177 | ||||||
Net (loss) income | (1,147 | ) | 157 | |||||
Foreign currency translation gain (loss), net of tax | 2,136 | (716 | ) | |||||
Comprehensive income (loss) | $ | 989 | $ | (559 | ) | |||
Net (loss) income per share | ||||||||
Common shares - Basic | $ | (0.09 | ) | $ | 0.01 | |||
Class B common shares - Basic | $ | (0.08 | ) | $ | 0.01 | |||
Common shares - Diluted | $ | (0.09 | ) | $ | 0.01 | |||
Class B common shares - Diluted | $ | (0.08 | ) | $ | 0.01 | |||
Weighted average number of shares: | ||||||||
Common shares – Basic | 11,070 | 10,990 | ||||||
Class B common shares – Basic | 2,097 | 2,097 | ||||||
Common shares – Diluted | 11,070 | 10,990 | ||||||
Class B common shares – Diluted | 2,097 | 2,097 | ||||||
Dividends per common share | $ | 0.060 | $ | 0.060 | ||||
Dividends per Class B common share | $ | 0.054 | $ | 0.054 | ||||
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Cash Flows (in thousands) | ||||||||
Three Months Ended | ||||||||
August 29, 2020 | August 31, 2019 | |||||||
Operating activities: | ||||||||
Net (loss) income | $ | (1,147 | ) | $ | 157 | |||
Adjustments to reconcile net (loss) income to cash used in operating activities: | ||||||||
Depreciation and amortization | 873 | 833 | ||||||
Inventory provisions | 237 | 161 | ||||||
Loss on disposal of assets | — | 1 | ||||||
Share-based compensation expense | 201 | 188 | ||||||
Deferred income taxes | 2 | (48 | ) | |||||
Change in assets and liabilities: | ||||||||
Accounts receivable | (854 | ) | 2,161 | |||||
Inventories | (1,621 | ) | (1,357 | ) | ||||
Prepaid expenses and other assets | 109 | 625 | ||||||
Accounts payable | (2,734 | ) | (3,955 | ) | ||||
Accrued liabilities | 1,779 | (876 | ) | |||||
Other | (202 | ) | 56 | |||||
Net cash used in operating activities | (3,357 | ) | (2,054 | ) | ||||
Investing activities: | ||||||||
Capital expenditures | (718 | ) | (339 | ) | ||||
Proceeds from maturity of investments | 16,000 | 8,000 | ||||||
Purchases of investments | (9,000 | ) | — | |||||
Net cash provided by investing activities | 6,282 | 7,661 | ||||||
Financing activities: | ||||||||
Cash dividends paid | (780 | ) | (775 | ) | ||||
Payment of financing lease principal | (45 | ) | (30 | ) | ||||
Other | — | 4 | ||||||
Net cash used in financing activities | (825 | ) | (801 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 860 | (368 | ) | |||||
Increase in cash and cash equivalents | 2,960 | 4,438 | ||||||
Cash and cash equivalents at beginning of period | 30,535 | 42,019 | ||||||
Cash and cash equivalents at end of period | $ | 33,495 | $ | 46,457 |
Richardson Electronics, Ltd. Net Sales and Gross Profit For the First Quarter of Fiscal 2021 and Fiscal 2020 ($ in thousands) | ||||||||||||||||
By Strategic Business Unit: | ||||||||||||||||
Net Sales | ||||||||||||||||
Q1 FY 2021 | Q1 FY 2020 | % Change | ||||||||||||||
PMT | $ | 30,252 | $ | 30,567 | -1.0 | % | ||||||||||
Canvys | 6,712 | 7,277 | -7.8 | % | ||||||||||||
Healthcare | 1,848 | 2,809 | -34.2 | % | ||||||||||||
Total | $ | 38,812 | $ | 40,653 | -4.5 | % | ||||||||||
Gross Profit | ||||||||||||||||
Q1 FY 2021 | % of Net Sales | Q1 FY 2020 | % of Net Sales | |||||||||||||
PMT | $ | 9,971 | 33.0 | % | $ | 9,679 | 31.7 | % | ||||||||
Canvys | 2,284 | 34.0 | % | 2,321 | 31.9 | % | ||||||||||
Healthcare | 104 | 5.6 | % | 951 | 33.9 | % | ||||||||||
Total | $ | 12,359 | 31.8 | % | $ | 12,951 | 31.9 | % |
For Details Contact: | 40W267 Keslinger Road | |
Edward J. Richardson | Robert J. Ben | PO BOX 393 |
Chairman and CEO | EVP & CFO | LaFox, IL 60147-0393 USA |
Phone: (630) 208-2205 | (630) 208-2203 | (630) 208-2200 | Fax: (630) 208-2550 |
FAQ
What were Richardson Electronics' net sales for Q1 FY21?
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Did Richardson Electronics declare a dividend in Q1 FY21?