Richardson Electronics Reports First Quarter Results; Declares Quarterly Cash Dividend
Richardson Electronics (NASDAQ: RELL) reported a 2.2% increase in Q1 FY25 net sales, marking the first quarterly year-over-year increase since Q3 FY23. The company achieved positive operating cash flow for the second consecutive quarter, ending with $23.0 million in cash and no debt. Management expects year-over-year sales growth and higher profitability for FY25.
Key highlights include:
- Net sales of $53.7 million, up from $52.6 million in Q1 FY24
- Gross margin of 30.6%, compared to 32.8% in Q1 FY24
- Operating income of $0.3 million, down from $1.5 million in Q1 FY24
- Net income of $0.6 million, or $0.04 per diluted share
- EBITDA of $1.7 million, compared to $2.6 million in Q1 FY24
The company also declared a quarterly cash dividend of $0.06 per share for common stock holders.
Richardson Electronics (NASDAQ: RELL) ha riportato un aumento del 2,2% nelle vendite nette del primo trimestre dell'anno fiscale 25, segnando il primo aumento anno su anno dal terzo trimestre dell'anno fiscale 23. L'azienda ha registrato un flusso di cassa operativo positivo per il secondo trimestre consecutivo, chiudendo con 23,0 milioni di dollari in contante e senza debiti. La direzione prevede una crescita delle vendite anno su anno e una maggiore redditività per l'anno fiscale 25.
I punti salienti includono:
- Vendite nette di 53,7 milioni di dollari, in aumento rispetto ai 52,6 milioni di dollari nel primo trimestre dell'anno fiscale 24
- Margine lordo del 30,6%, rispetto al 32,8% nel primo trimestre dell'anno fiscale 24
- Risultato operativo di 0,3 milioni di dollari, in calo rispetto a 1,5 milioni di dollari nel primo trimestre dell'anno fiscale 24
- Utile netto di 0,6 milioni di dollari, pari a 0,04 dollari per azione diluita
- EBITDA di 1,7 milioni di dollari, rispetto a 2,6 milioni di dollari nel primo trimestre dell'anno fiscale 24
L'azienda ha anche dichiarato un dividendo in contante trimestrale di 0,06 dollari per azione per gli azionisti ordinari.
Richardson Electronics (NASDAQ: RELL) reportó un incremento del 2.2% en las ventas netas del primer trimestre del año fiscal 25, marcando el primer aumento interanual en un trimestre desde el tercer trimestre del año fiscal 23. La compañía logró un flujo de efectivo operativo positivo por segundo trimestre consecutivo, cerrando con 23.0 millones de dólares en efectivo y sin deudas. La dirección espera un crecimiento de ventas interanual y una mayor rentabilidad para el año fiscal 25.
Los puntos destacados incluyen:
- Ventas netas de 53.7 millones de dólares, en comparación con 52.6 millones de dólares en el primer trimestre del año fiscal 24
- Margen bruto del 30.6%, comparado con 32.8% en el primer trimestre del año fiscal 24
- Ingreso operativo de 0.3 millones de dólares, abajo de 1.5 millones de dólares en el primer trimestre del año fiscal 24
- Ingreso neto de 0.6 millones de dólares, o 0.04 dólares por acción diluida
- EBITDA de 1.7 millones de dólares, comparado con 2.6 millones de dólares en el primer trimestre del año fiscal 24
La compañía también declaró un dividendo en efectivo trimestral de 0.06 dólares por acción para los accionistas comunes.
리차드슨 일렉트로닉스 (NASDAQ: RELL)는 2025 회계 연도 1분기 순매출이 2.2% 증가했다고 보고하며, 이는 2023 회계 연도 3분기 이후 처음으로 전년 동기 대비 증가한 분기입니다. 이 회사는 두 번째 연속 분기 동안 긍정적인 운영 현금 흐름을 기록하며, 2300만 달러의 현금과 부채가 없는 상태로 마감했다고 밝혔습니다. 경영진은 2025 회계 연도 동안 연간 매출 성장과 높은 수익성을 기대하고 있습니다.
주요 내용은 다음과 같습니다:
- 순매출 5370만 달러, 2024 회계 연도 1분기 5260만 달러에서 증가
- 총 마진 30.6%, 2024 회계 연도 1분기 32.8% 대비
- 운영 수익 30만 달러, 2024 회계 연도 1분기 150만 달러에서 감소
- 순이익 60만 달러, 또는 희석 주당 0.04달러
- EBITDA 170만 달러, 2024 회계 연도 1분기 260만 달러 대비
회사는 또한 보통주주를 위해 주당 0.06달러의 분기 배당금을 선언했습니다.
Richardson Electronics (NASDAQ: RELL) a annoncé une augmentation de 2,2 % de son chiffre d'affaires net au premier trimestre de l'exercice 25, marquant la première augmentation d'une année sur l'autre depuis le troisième trimestre de l'exercice 23. L'entreprise a réalisé un flux de trésorerie opérationnel positif pour le deuxième trimestre consécutif, clôturant avec 23,0 millions de dollars en liquidités et aucune dette. La direction prévoit une croissance des ventes d'une année sur l'autre et une rentabilité accrue pour l'exercice 25.
Les points clés incluent :
- Chiffre d'affaires net de 53,7 millions de dollars, en hausse par rapport à 52,6 millions de dollars au premier trimestre de l'exercice 24
- Marge brute de 30,6 %, contre 32,8 % au premier trimestre de l'exercice 24
- Résultat opérationnel de 0,3 million de dollars, en baisse par rapport à 1,5 million de dollars au premier trimestre de l'exercice 24
- Résultat net de 0,6 million de dollars, soit 0,04 dollar par action diluée
- EBITDA de 1,7 million de dollars, par rapport à 2,6 millions de dollars au premier trimestre de l'exercice 24
L'entreprise a également déclaré un dividende en espèces trimestriel de 0,06 dollar par action pour les actionnaires ordinaires.
Richardson Electronics (NASDAQ: RELL) meldete einen Anstieg der Nettoumsätze im ersten Quartal des Geschäftsjahres 25 von 2,2%, was den ersten Anstieg im Vergleich zum Vorjahr seit dem dritten Quartal des Geschäftsjahres 23 markiert. Das Unternehmen erzielte positive operative Cashflows für das zweite aufeinanderfolgende Quartal und schloss mit 23,0 Millionen Dollar in bar und ohne Schulden. Das Management erwartet ein Umsatzwachstum im Jahresvergleich und eine höhere Rentabilität für das Geschäftsjahr 25.
Zu den Höhepunkten gehören:
- Nettoumsätze von 53,7 Millionen Dollar, ein Anstieg von 52,6 Millionen Dollar im ersten Quartal des Geschäftsjahres 24
- Bruttomarge von 30,6%, im Vergleich zu 32,8% im ersten Quartal des Geschäftsjahres 24
- Betriebsergebnis von 0,3 Millionen Dollar, ein Rückgang von 1,5 Millionen Dollar im ersten Quartal des Geschäftsjahres 24
- Nettogewinn von 0,6 Millionen Dollar oder 0,04 Dollar pro verwässerter Aktie
- EBITDA von 1,7 Millionen Dollar, im Vergleich zu 2,6 Millionen Dollar im ersten Quartal des Geschäftsjahres 24
Das Unternehmen erklärte außerdem eine vierteljährliche Bardividende von 0,06 Dollar pro Anteil für die Aktionäre der Stammaktien.
- First quarterly year-over-year net sales increase since Q3 FY23, up 2.2%
- Positive operating cash flow for the second consecutive quarter
- Strong balance sheet with $23.0 million in cash and no debt
- 84% year-over-year increase in GES sales
- 48.7% year-over-year increase in Healthcare sales
- Management expects year-over-year sales growth and higher profitability for FY25
- Declared quarterly cash dividend of $0.06 per share
- Operating income decreased to $0.3 million from $1.5 million in Q1 FY24
- Gross margin declined to 30.6% from 32.8% in Q1 FY24
- EBITDA decreased to $1.7 million from $2.6 million in Q1 FY24
- 4.3% decrease in PMT sales
- Canvys sales declined due to challenging market conditions in North America and Europe
- Backlog decreased to $137.4 million from $147.8 million at the end of Q4 FY24
Insights
Richardson Electronics' Q1 FY25 results show promising signs of recovery and growth. Net sales increased by
The company's financial position remains strong with
While earnings per share decreased to
Investors should monitor the company's ability to convert its robust sales pipeline into actual orders and improve gross margins in the coming quarters to fully realize the projected growth and profitability for FY25.
Richardson Electronics' Q1 results reveal several key market trends worth noting:
- The 84% growth in GES sales indicates strong demand for electric locomotive and wind turbine battery modules, suggesting a positive outlook for the green energy sector.
- A 16% increase in sales to wafer fab customers points to a potential recovery in the semiconductor industry, which could benefit Richardson's PMT segment in the long term.
- The 48.7% growth in Healthcare sales demonstrates rising demand for CT tubes, parts and systems, reflecting a robust healthcare equipment market.
- Canvys' sales decline highlights challenging market conditions in North America and Europe, possibly due to economic uncertainties.
The company's backlog of
Investors should keep an eye on the company's ability to capitalize on the growing green energy and healthcare markets while navigating the challenges in traditional electronics sectors.
Q1 FY25 net sales increase
Richardson Electronics ended Q1 with positive operating cash flow for the second consecutive quarter,
Management expects YoY sales growth and higher profitability for FY25
LAFOX, Ill., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its first quarter ended August 31, 2024. The Company also announced that its Board of Directors declared a
“Our first quarter results are encouraging and benefited from the strategies underway to drive sales growth, improve profitability, and generate positive operating cash flow,” said Edward J. Richardson, Chairman, CEO, and President. "For the first quarter of fiscal 2025, new program wins, combined with improving demand trends for legacy programs, drove an
“We also remain focused on improving inventory management and we expect sales growth throughout fiscal 2025 to reduce inventory levels over the next several quarters. For the first quarter we generated positive operating cash flow for the second straight quarter and ended the quarter with no debt and
First Quarter Results
Net sales for the first quarter of fiscal 2025 were
This growth in net sales for the first quarter of fiscal 2025 was due to higher sales in GES and Healthcare. GES sales increased
Sales growth for the first quarter of fiscal 2025 was partially offset by a
Backlog totaled
Gross margin for the first quarter was
Operating expenses were
Operating income was
Income tax provision was
Net income for the first quarter of fiscal 2025 was
The Company maintained its solid financial footing, reporting cash and cash equivalents of
CASH DIVIDEND DECLARED
The Board of Directors of Richardson Electronics declared a
NON-GAAP FINANCIAL MEASURE
In addition to the results reported in accordance with generally accepted accounting principles in the United States (GAAP) included throughout this press release, the Company has provided information regarding “EBITDA” (a “non-GAAP financial measure”). This non-GAAP financial measure reflects earnings before interest, income tax, depreciation and amortization expenses. Detailed reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
Management believes that the disclosure of this non-GAAP financial measure provides useful information to investors in assessing the Company’s financial performance excluding items that are not considered by the Company to be indicative of the Company’s ongoing results. Our management uses this non-GAAP financial measure along with the most directly comparable GAAP financial measure in evaluating our financial performance and when planning, forecasting and analyzing future periods. The non-GAAP financial measure presented herein, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. The non-GAAP financial measure incorporated herein is not intended to be used as a substitute for the related GAAP measurements. The non-GAAP financial measure should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.
CONFERENCE CALL INFORMATION
The Company will host a conference call and question-and-answer session on Thursday, October 10, 2024, at 9:00 a.m. Central Time, to discuss its first quarter fiscal-year 2025 results.
Participants may register for the call here. While not required, it is recommended you join 10 minutes prior to the event start. A replay of the call will be available beginning at 1:00 p.m. Central Time on October 11, 2024, for seven days. Registration instructions are also on our website at www.rell.com.
In addition, the webcast link is available here.
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 that 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 5, 2024, 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 manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. Nearly
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 31, 2024 | June 1, 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 23,035 | $ | 24,263 | ||||
Accounts receivable, less allowance for credit losses of | 30,862 | 24,845 | ||||||
Inventories, net | 110,994 | 110,149 | ||||||
Prepaid expenses and other assets | 2,488 | 2,397 | ||||||
Total current assets | 167,379 | 161,654 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 20,612 | 20,681 | ||||||
Intangible assets, net | 1,582 | 1,641 | ||||||
Right of use lease assets | 2,538 | 2,760 | ||||||
Deferred income tax assets | 5,555 | 5,500 | ||||||
Other non-current assets | 197 | 209 | ||||||
Total non-current assets | 30,484 | 30,791 | ||||||
Total assets | $ | 197,863 | $ | 192,445 | ||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 19,758 | $ | 15,458 | ||||
Accrued liabilities | 15,403 | 15,404 | ||||||
Lease liabilities current | 1,107 | 1,169 | ||||||
Total current liabilities | 36,268 | 32,031 | ||||||
Non-current liabilities: | ||||||||
Deferred income tax liabilities | 79 | 90 | ||||||
Lease liabilities non-current | 1,431 | 1,591 | ||||||
Other non-current liabilities | 1,021 | 781 | ||||||
Total non-current liabilities | 2,531 | 2,462 | ||||||
Total liabilities | 38,799 | 34,493 | ||||||
Stockholders’ Equity | ||||||||
Common stock, and outstanding on August 31, 2024 and June 1, 2024, respectively | 617 | 613 | ||||||
Class B common stock, convertible, and outstanding on August 31, 2024 and June 1, 2024 | 102 | 102 | ||||||
Preferred stock, | — | — | ||||||
Additional paid-in-capital | 73,315 | 72,744 | ||||||
Retained earnings | 83,630 | 83,729 | ||||||
Accumulated other comprehensive income | 1,400 | 764 | ||||||
Total stockholders' equity | 159,064 | 157,952 | ||||||
Total liabilities and stockholders’ equity | $ | 197,863 | $ | 192,445 |
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive Income (in thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
August 31, 2024 | September 2, 2023 | |||||||
Net sales | $ | 53,725 | $ | 52,581 | ||||
Cost of sales, exclusive of depreciation and amortization | 37,299 | 35,317 | ||||||
Gross profit | 16,426 | 17,264 | ||||||
Selling, general and administrative expenses, inclusive of depreciation and amortization | 16,112 | 15,792 | ||||||
Gain on disposal of assets | (2 | ) | — | |||||
Operating income | 316 | 1,472 | ||||||
Other (income) expense: | ||||||||
Interest income | (58 | ) | (71 | ) | ||||
Foreign exchange gain | (277 | ) | (97 | ) | ||||
Other, net | 3 | 32 | ||||||
Total other income | (332 | ) | (136 | ) | ||||
Income before income taxes | 648 | 1,608 | ||||||
Income tax provision | 58 | 381 | ||||||
Net income | 590 | 1,227 | ||||||
Foreign currency translation gain (loss), net of tax | 636 | (41 | ) | |||||
Comprehensive income | $ | 1,226 | $ | 1,186 | ||||
Net income per share: | ||||||||
Common shares - Basic | $ | 0.04 | $ | 0.09 | ||||
Class B common shares - Basic | 0.04 | 0.08 | ||||||
Common shares - Diluted | 0.04 | 0.09 | ||||||
Class B common shares - Diluted | 0.04 | 0.08 | ||||||
Weighted average number of shares: | ||||||||
Common shares – Basic | 12,200 | 12,171 | ||||||
Class B common shares – Basic | 2,049 | 2,052 | ||||||
Common shares – Diluted | 12,431 | 12,539 | ||||||
Class B common shares – Diluted | 2,049 | 2,052 | ||||||
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Cash Flows (in thousands) | ||||||||
Three Months Ended | ||||||||
August 31, 2024 | September 2, 2023 | |||||||
Operating activities: | ||||||||
Net income | $ | 590 | $ | 1,227 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Unrealized foreign currency gain | (382 | ) | (37 | ) | ||||
Depreciation and amortization | 1,044 | 998 | ||||||
Inventory provisions | 139 | 85 | ||||||
Share-based compensation expense | 593 | 483 | ||||||
Gain on disposal of assets | (2 | ) | — | |||||
Deferred income taxes | (58 | ) | (5 | ) | ||||
Change in assets and liabilities: | ||||||||
Accounts receivable | (5,858 | ) | 4,462 | |||||
Inventories | (124 | ) | (3,151 | ) | ||||
Prepaid expenses and other assets | (29 | ) | 409 | |||||
Accounts payable | 4,164 | (2,365 | ) | |||||
Accrued liabilities | (95 | ) | (1,124 | ) | ||||
Other | 430 | 33 | ||||||
Net cash provided by operating activities | 412 | 1,015 | ||||||
Investing activities: | ||||||||
Capital expenditures | (926 | ) | (1,141 | ) | ||||
Proceeds from sale of property, plant & equipment | 7 | — | ||||||
Net cash used in investing activities | (919 | ) | (1,141 | ) | ||||
Financing activities: | ||||||||
Proceeds from issuance of common stock | 144 | 327 | ||||||
Cash dividends paid on common and Class B common stock | (850 | ) | (843 | ) | ||||
Proceeds from revolving credit facility | 1,000 | — | ||||||
Repayment of revolving credit facility | (1,000 | ) | — | |||||
Other | (162 | ) | (119 | ) | ||||
Net cash used in financing activities | (868 | ) | (635 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 147 | (96 | ) | |||||
Decrease in cash and cash equivalents | (1,228 | ) | (857 | ) | ||||
Cash and cash equivalents at beginning of period | 24,263 | 24,981 | ||||||
Cash and cash equivalents at end of period | $ | 23,035 | $ | 24,124 |
Richardson Electronics, Ltd. Unaudited Net Sales and Gross Profit For the First Quarter of Fiscal 2025 and 2024 ($ in thousands) | ||||||||||||
By Strategic Business Unit | ||||||||||||
Net Sales | Three Months Ended | FY25 vs. FY24 % Change | ||||||||||
August 31, 2024 | September 2, 2023 | |||||||||||
PMT | $ | 34,202 | $ | 35,744 | -4.3 | % | ||||||
GES | 8,086 | 4,394 | 84.0 | % | ||||||||
Canvys | 7,638 | 9,889 | -22.8 | % | ||||||||
Healthcare | 3,799 | 2,554 | 48.7 | % | ||||||||
Total | $ | 53,725 | $ | 52,581 | 2.2 | % |
Gross Profit | Three Months Ended | |||||||||||||||
August 31, 2024 | % of Net Sales | September 2, 2023 | % of Net Sales | |||||||||||||
PMT | $ | 10,202 | 29.8 | % | $ | 11,511 | 32.2 | % | ||||||||
GES | 2,374 | 29.4 | % | 1,580 | 36.0 | % | ||||||||||
Canvys | 2,621 | 34.3 | % | 3,365 | 34.0 | % | ||||||||||
Healthcare | 1,229 | 32.4 | % | 808 | 31.6 | % | ||||||||||
Total | $ | 16,426 | 30.6 | % | $ | 17,264 | 32.8 | % |
Richardson Electronics, Ltd. Unaudited Reconciliation Between GAAP and Non-GAAP Financial Measures For the First Quarter of Fiscal 2025 and 2024 ($ in thousands) | ||||||||
EBITDA | ||||||||
Three Months Ended | ||||||||
August 31, 2024 | September 2, 2023 | |||||||
Net income | $ | 590 | $ | 1,227 | ||||
Income tax expense | 58 | 381 | ||||||
Depreciation & amortization | 1,044 | 998 | ||||||
EBITDA | $ | 1,692 | $ | 2,606 |
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) 208-2320 | (630) 208-2203 | (630) 208-2200 | Fax: (630) 208-2550 |
FAQ
What was Richardson Electronics' (RELL) net sales growth in Q1 FY25?
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