Richardson Electronics Reports Third Quarter Results; Declares Quarterly Cash Dividend
Richardson Electronics (NASDAQ: RELL) reported Q3 FY25 financial results with net sales of $53.8 million, up 2.7% year-over-year. The company achieved significant growth in key segments, with semiconductor wafer fab sales surging 139% and Canvys sales increasing 39.5%.
The quarter was marked by the strategic sale of Healthcare assets to DirectMed Imaging, resulting in a one-time $4.9 million charge. Excluding this charge, non-GAAP operating income rose to $2.2 million from $1.0 million last year. The company maintained strong financial health with $36.7 million in cash and no debt.
Gross margin improved to 31.0% compared to 29.5% in Q3 FY24. The Board declared a quarterly cash dividend of $0.06 per share. Backlog stood at $134.1 million, down from $142.6 million in Q2 FY25, primarily due to decreases in GES, Canvys, and Healthcare segments.
Richardson Electronics (NASDAQ: RELL) ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2025, con vendite nette di 53,8 milioni di dollari, in aumento del 2,7% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa in segmenti chiave, con le vendite di wafer semiconduttori che sono aumentate del 139% e le vendite di Canvys che sono cresciute del 39,5%.
Il trimestre è stato caratterizzato dalla vendita strategica di asset nel settore sanitario a DirectMed Imaging, che ha comportato un onere una tantum di 4,9 milioni di dollari. Escludendo questo onere, il reddito operativo non-GAAP è aumentato a 2,2 milioni di dollari rispetto a 1,0 milioni di dollari dell'anno scorso. L'azienda ha mantenuto una solida salute finanziaria con 36,7 milioni di dollari in contante e senza debiti.
Il margine lordo è migliorato al 31,0% rispetto al 29,5% del terzo trimestre dell'anno fiscale 2024. Il Consiglio ha dichiarato un dividendo in contante trimestrale di 0,06 dollari per azione. Il portafoglio ordini si è attestato a 134,1 milioni di dollari, in calo rispetto ai 142,6 milioni di dollari del secondo trimestre dell'anno fiscale 2025, principalmente a causa delle diminuzioni nei segmenti GES, Canvys e Healthcare.
Richardson Electronics (NASDAQ: RELL) reportó los resultados financieros del tercer trimestre del año fiscal 2025, con ventas netas de 53,8 millones de dólares, un aumento del 2,7% en comparación con el año anterior. La empresa logró un crecimiento significativo en segmentos clave, con las ventas de obleas de semiconductores aumentando un 139% y las ventas de Canvys incrementándose un 39,5%.
El trimestre se caracterizó por la venta estratégica de activos de salud a DirectMed Imaging, lo que resultó en un cargo único de 4,9 millones de dólares. Excluyendo este cargo, el ingreso operativo no-GAAP aumentó a 2,2 millones de dólares desde 1,0 millones de dólares del año pasado. La empresa mantuvo una sólida salud financiera con 36,7 millones de dólares en efectivo y sin deudas.
El margen bruto mejoró al 31,0% en comparación con el 29,5% en el tercer trimestre del año fiscal 2024. La Junta declaró un dividendo en efectivo trimestral de 0,06 dólares por acción. El backlog se situó en 134,1 millones de dólares, disminuyendo desde 142,6 millones de dólares en el segundo trimestre del año fiscal 2025, principalmente debido a disminuciones en los segmentos de GES, Canvys y Healthcare.
리차드슨 일렉트로닉스 (NASDAQ: RELL)는 2025 회계연도 3분기 재무 결과를 발표했으며, 순매출은 5,380만 달러로 전년 대비 2.7% 증가했습니다. 이 회사는 반도체 웨이퍼 팹 판매가 139% 증가하고 Canvys 판매가 39.5% 증가하는 등 주요 부문에서 상당한 성장을 달성했습니다.
이번 분기는 DirectMed Imaging에 헬스케어 자산을 전략적으로 매각하면서 490만 달러의 일회성 비용이 발생했습니다. 이 비용을 제외하면 비-GAAP 운영 수익은 지난해 100만 달러에서 220만 달러로 증가했습니다. 회사는 3,670만 달러의 현금과 무부채로 강력한 재무 건전성을 유지했습니다.
총 마진은 2024 회계연도 3분기 29.5%에 비해 31.0%로 개선되었습니다. 이사회는 주당 0.06달러의 분기 현금 배당금을 선언했습니다. 백로그는 1억 3,410만 달러로, 2025 회계연도 2분기 1억 4,260만 달러에서 감소했으며, 이는 주로 GES, Canvys 및 헬스케어 부문에서의 감소 때문입니다.
Richardson Electronics (NASDAQ: RELL) a annoncé les résultats financiers du troisième trimestre de l'exercice 2025, avec des ventes nettes de 53,8 millions de dollars, en hausse de 2,7 % par rapport à l'année précédente. L'entreprise a réalisé une croissance significative dans des segments clés, avec des ventes de plaquettes de semi-conducteurs en hausse de 139 % et des ventes de Canvys en augmentation de 39,5 %.
Ce trimestre a été marqué par la vente stratégique d'actifs de santé à DirectMed Imaging, entraînant une charge unique de 4,9 millions de dollars. En excluant cette charge, le revenu opérationnel non-GAAP a augmenté à 2,2 millions de dollars contre 1,0 million de dollars l'année dernière. L'entreprise a maintenu une solide santé financière avec 36,7 millions de dollars en liquidités et aucune dette.
La marge brute s'est améliorée à 31,0 % par rapport à 29,5 % au troisième trimestre de l'exercice 2024. Le Conseil a déclaré un dividende en espèces trimestriel de 0,06 dollar par action. Le carnet de commandes s'élevait à 134,1 millions de dollars, en baisse par rapport à 142,6 millions de dollars au deuxième trimestre de l'exercice 2025, principalement en raison de diminutions dans les segments GES, Canvys et Healthcare.
Richardson Electronics (NASDAQ: RELL) hat die finanziellen Ergebnisse des dritten Quartals des Geschäftsjahres 2025 veröffentlicht, mit Nettoumsätzen von 53,8 Millionen Dollar, was einem Anstieg von 2,7 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein signifikantes Wachstum in wichtigen Segmenten, wobei die Verkäufe von Halbleiterwafern um 139 % und die Verkäufe von Canvys um 39,5 % zunahmen.
Das Quartal war geprägt von dem strategischen Verkauf von Gesundheitsvermögen an DirectMed Imaging, was zu einer einmaligen Belastung von 4,9 Millionen Dollar führte. Ohne diese Belastung stieg der Non-GAAP-Betriebsgewinn von 1,0 Millionen Dollar im Vorjahr auf 2,2 Millionen Dollar. Das Unternehmen wies eine starke finanzielle Gesundheit mit 36,7 Millionen Dollar in bar und ohne Schulden auf.
Die Bruttomarge verbesserte sich auf 31,0 % im Vergleich zu 29,5 % im dritten Quartal des Geschäftsjahres 2024. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,06 Dollar pro Aktie. Der Auftragsbestand belief sich auf 134,1 Millionen Dollar, ein Rückgang von 142,6 Millionen Dollar im zweiten Quartal des Geschäftsjahres 2025, hauptsächlich aufgrund von Rückgängen in den Segmenten GES, Canvys und Healthcare.
- Net sales increased 2.7% YoY to $53.8M
- Semiconductor wafer fab sales surged 139%
- Canvys sales grew 39.5% YoY
- Gross margin improved to 31.0% from 29.5%
- Strong cash position of $36.7M with no debt
- Non-GAAP operating income increased to $2.2M from $1.0M
- $4.9M one-time loss from Healthcare assets sale
- Backlog decreased to $134.1M from $142.6M
- GES sales declined 19.4% due to lower wind turbine battery module sales
- Healthcare sales decreased 32.3%
- Net loss of $2.1M reported for Q3 FY25
Insights
Richardson Electronics reported Q3 FY25 results with net sales of $53.8 million, a
Looking at segment performance, PMT sales grew
The headline GAAP net loss of $2.1 million (
The Healthcare divestiture appears strategically sound, allowing management to focus on higher-growth segments like Green Energy Solutions. Despite a
The maintained quarterly dividend of
Q3 FY25 net sales increase YoY for third consecutive quarter
Richardson Electronics ended Q3 with positive operating cash flow for the fourth consecutive quarter
Strategic asset sale of a majority of Richardson Healthcare during the quarter further strengthened the Company’s balance sheet, while expected to simplify the business and improve the financial model
LAFOX, Ill., April 09, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its third quarter ended March 1, 2025. The Company also announced that its Board of Directors declared a
“During the third quarter, we experienced significant year-over-year growth across key segments. Semiconductor wafer fab sales surged by
Mr. Richardson added, “We are encouraged by our fiscal Q3 2025 results despite the one-time
Third Quarter Results
Net sales for the third quarter of fiscal 2025 were
Year-over-year net sales growth was due to higher sales in the Power and Microwave Technologies Group (PMT) and Canvys. PMT sales increased
Backlog totaled
Gross margin for the third quarter was
Operating expenses were
Loss on disposal of assets of
Operating loss was
Income tax benefit was
Net loss was
EBITDA* for the third quarter of fiscal 2025 was a negative
The Company improved its solid financial position and had cash and cash equivalents of
Financial Summary for the Nine Months Ended March 1, 2025
- Net sales for the first nine months of fiscal 2025 were
$157.0 million , an increase of5.3% , compared to net sales of$149.1 million during the first nine months of fiscal 2024. Sales increased by$3.6 million or3.7% for PMT,$4.8 million or26.0% for GES, partially offset by a decrease of$0.4 million or4.9% for Healthcare and a decrease of$0.1 million or0.4% for Canvys. - Gross profit increased to
$48.4 million during the first nine months of fiscal 2025, compared to$45.2 million during the first nine months of fiscal 2024. As a percentage of net sales, gross margin was30.8% of net sales during the first nine months of fiscal 2025, compared to30.3% during the first nine months of fiscal 2024 primarily due to product mix. - Operating expenses increased to
$46.6 million for the first nine months of fiscal 2025, compared to$44.7 million for the first nine months of fiscal 2024. The increase in operating expenses resulted from higher employee compensation expenses, partially offset by lower R&D expenses. - Loss on disposal of assets of
$4.9 million resulted from the sale of the majority of Healthcare assets to DirectMed Imaging on January 24, 2025. - Operating loss was
$3.1 million and non-GAAP operating income* was$1.8 million during the first nine months of fiscal 2025, compared to operating income of$0.5 million during the first nine months of fiscal 2024. - Other expense for the first nine months of fiscal 2025, including interest income and foreign exchange, was
$0.4 million , compared to other expense of$0.2 million in the first nine months of fiscal 2024. - The income tax benefit was
$1.3 million and the non-GAAP income tax provision* was$1,000 for the first nine months of fiscal 2025 compared to an income tax provision of$0.1 million during the first nine months of fiscal 2024. - Net loss was
$2.2 million and non-GAAP net income* was$1.4 million for the first nine months of fiscal 2025, versus a net income of$0.2 million during the first nine months of fiscal 2024. Net loss per common share (diluted) was$0.16 and non-GAAP earnings per common share* was$0.10 for the first nine months of fiscal 2025 compared to$0.01 earnings per common share (diluted) for the first nine months of fiscal 2024. - EBITDA* for the first nine months of fiscal 2025 was a negative
$0.5 million . EBITDA* after adjusting to exclude the loss on the sale of Healthcare assets (Adjusted EBITDA*) was$4.5 million , versus$3.5 million in the prior year’s first nine months.
* Please refer to Unaudited Reconciliation between GAAP and non-GAAP Financial Measures below for a reconciliation of non-GAAP items to the comparable GAAP measures.
CASH DIVIDEND DECLARED
The Board of Directors of Richardson Electronics declared a
NON-GAAP FINANCIAL MEASURES
In addition to financial measures (“GAAP financial measures”) prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), we have included financial measures in this press release that are not defined by or calculated in accordance with GAAP (collectively, “non-GAAP financial measures”). For each of the non-GAAP financial measures referenced in this release, we are providing below a reconciliation of differences between the non-GAAP financial measure and the most directly comparable GAAP financial measure. We also provide an explanation of why the Company believes these non-GAAP financial measures provide useful information to investors, and any additional material purposes for which our management or Board of Directors use these non-GAAP financial measures.
Non-GAAP Operating Income: Non-GAAP operating income is GAAP operating income (loss), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of non-GAAP Operating Income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| (Loss) income from operations | $ | (2,743 | ) | $ | 1,006 | $ | (3,094 | ) | $ | 462 | ||||||
| Disposal of Healthcare assets | 4,916 | — | 4,916 | — | ||||||||||||
| Non-GAAP Operating Income | $ | 2,173 | $ | 1,006 | $ | 1,822 | $ | 462 | ||||||||
Non-GAAP Income Before Taxes: Non-GAAP Income Before Taxes is income before taxes, adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of non-GAAP Income Before Taxes for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| (Loss) income before income taxes | $ | (3,088 | ) | $ | 979 | $ | (3,495 | ) | $ | 296 | ||||||
| Disposal of Healthcare assets | 4,916 | — | 4,916 | — | ||||||||||||
| Non-GAAP Income Before Taxes | $ | 1,828 | $ | 979 | $ | 1,421 | $ | 296 | ||||||||
Non-GAAP Income Tax Benefit or Expense: Non-GAAP Income Tax Benefit or Expense is income tax (benefit) provision, adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of non-GAAP Income Tax (Benefit) Expense for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Income tax (benefit) provision | $ | (1,031 | ) | $ | 229 | $ | (1,277 | ) | $ | 116 | ||||||
| Disposal of Healthcare assets | 1,278 | — | 1,278 | — | ||||||||||||
| Non-GAAP Income Tax Benefit or Expense | $ | 247 | $ | 229 | $ | 1 | $ | 116 | ||||||||
Non-GAAP Net Income: Non-GAAP Net Income is net (loss) income, adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of non-GAAP Net Income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Disposal of Healthcare assets | 3,638 | — | 3,638 | — | ||||||||||||
| Non-GAAP Net Income | $ | 1,581 | $ | 750 | $ | 1,420 | $ | 180 | ||||||||
Non-GAAP Earnings Per Common Share (Diluted): Non-GAAP Earnings Per Common Share (Diluted) is net (loss) income per share (diluted), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of non-GAAP Earnings Per Common Share (diluted) for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net (loss) income per share (diluted) | $ | (0.15 | ) | $ | 0.05 | $ | (0.16 | ) | $ | 0.01 | ||||||
| Loss on sale of Healthcare assets | 0.26 | — | 0.26 | — | ||||||||||||
| Non-GAAP Earnings Per Common Share (Diluted) | $ | 0.11 | $ | 0.05 | $ | 0.10 | $ | 0.01 | ||||||||
EBITDA: EBITDA is net (loss) income, plus income tax expense (benefit) and depreciation and amortization expense. The following table represents the Company’s calculation of EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Income tax expense (benefit) | (1,031 | ) | 229 | (1,277 | ) | 116 | ||||||||||
| Depreciation & amortization | 978 | 1,104 | 3,037 | 3,218 | ||||||||||||
| EBITDA | $ | (2,110 | ) | $ | 2,083 | $ | (458 | ) | $ | 3,514 | ||||||
Adjusted EBITDA: Adjusted EBITDA is EBITDA (a non-GAAP financial measure defined and calculated in accordance with the above), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business. The following table represents the Company’s calculation of Adjusted EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited ($ in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Income tax expense (benefit) | (1,031 | ) | 229 | (1,277 | ) | 116 | ||||||||||
| Depreciation & amortization | 978 | 1,104 | 3,037 | 3,218 | ||||||||||||
| EBITDA | $ | (2,110 | ) | $ | 2,083 | $ | (458 | ) | $ | 3,514 | ||||||
| Disposal of Healthcare assets | 4,916 | — | $ | 4,916 | — | |||||||||||
| Adjusted EBITDA | $ | 2,806 | $ | 2,083 | $ | 4,458 | $ | 3,514 | ||||||||
Management believes the non-GAAP financial measures referenced herein provide useful information to investors in assessing the Company’s financial performance because items that are not considered by the Company to be indicative of the Company’s ongoing results, such as the one-time loss on the sale of assets of the Company’s Healthcare business, are excluded.
Our management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating our financial performance and when planning, forecasting and analyzing future periods.
The non-GAAP financial measures presented herein, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. These non-GAAP financial measures are not intended to be used as a substitute for the related GAAP financial measures. The non-GAAP financial measures 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, April 10, 2025, at 9:00 a.m. Central Time, to discuss its third 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 April 11, 2025, 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; tubes for diagnostic imaging equipment; and customized display solutions. Approximately
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 | ||||||||
| March 1, 2025 | June 1, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 36,675 | $ | 24,263 | ||||
| Accounts receivable, less allowance for credit losses of | 24,932 | 24,845 | ||||||
| Inventories, net | 98,369 | 110,149 | ||||||
| Prepaid expenses and other assets | 3,538 | 2,397 | ||||||
| Total current assets | 163,514 | 161,654 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 18,138 | 20,681 | ||||||
| Intangible assets, net | 358 | 1,641 | ||||||
| Right of use lease assets | 2,035 | 2,760 | ||||||
| Deferred income tax assets | 5,565 | 5,500 | ||||||
| Other non-current assets | 200 | 209 | ||||||
| Total non-current assets | 26,296 | 30,791 | ||||||
| Total assets | $ | 189,810 | $ | 192,445 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 22,485 | $ | 15,458 | ||||
| Accrued liabilities | 11,268 | 15,404 | ||||||
| Lease liabilities current | 986 | 1,169 | ||||||
| Total current liabilities | 34,739 | 32,031 | ||||||
| Non-current liabilities: | ||||||||
| Deferred income tax liabilities | 74 | 90 | ||||||
| Lease liabilities non-current | 1,049 | 1,591 | ||||||
| Other non-current liabilities | 1,048 | 781 | ||||||
| Total non-current liabilities | 2,171 | 2,462 | ||||||
| Total liabilities | 36,910 | 34,493 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock, | 618 | 613 | ||||||
| Class B common stock, convertible, | 102 | 102 | ||||||
| Preferred stock, | — | — | ||||||
| Additional paid-in-capital | 74,113 | 72,744 | ||||||
| Retained earnings | 79,117 | 83,729 | ||||||
| Accumulated other comprehensive (loss) income | (1,050 | ) | 764 | |||||
| Total stockholders' equity | 152,900 | 157,952 | ||||||
| Total liabilities and stockholders’ equity | $ | 189,810 | $ | 192,445 | ||||
| Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive (Loss) Income (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net sales | $ | 53,804 | $ | 52,375 | $ | 157,020 | $ | 149,086 | ||||||||
| Cost of sales | 37,131 | 36,939 | 108,595 | 103,844 | ||||||||||||
| Gross profit | 16,673 | 15,436 | 48,425 | 45,242 | ||||||||||||
| Selling, general and administrative expenses | 14,500 | 14,430 | 46,607 | 44,710 | ||||||||||||
| (Gain) loss on disposal of property, plant and equipment | — | — | (4 | ) | 70 | |||||||||||
| Loss on disposal of healthcare assets and related charges | 4,916 | — | 4,916 | — | ||||||||||||
| Operating (loss) income | (2,743 | ) | 1,006 | (3,094 | ) | 462 | ||||||||||
| Other expense (income): | ||||||||||||||||
| Interest income | (84 | ) | (67 | ) | (187 | ) | (224 | ) | ||||||||
| Foreign exchange loss | 456 | 101 | 616 | 347 | ||||||||||||
| Other, net | (27 | ) | (7 | ) | (28 | ) | 43 | |||||||||
| Total other expense | 345 | 27 | 401 | 166 | ||||||||||||
| (Loss) income before income taxes | (3,088 | ) | 979 | (3,495 | ) | 296 | ||||||||||
| Income tax (benefit) provision | (1,031 | ) | 229 | (1,277 | ) | 116 | ||||||||||
| Net (loss) income | (2,057 | ) | 750 | (2,218 | ) | 180 | ||||||||||
| Foreign currency translation (loss) gain, net of tax | (702 | ) | (205 | ) | (1,814 | ) | 385 | |||||||||
| Comprehensive (loss) income | $ | (2,759 | ) | $ | 545 | $ | (4,032 | ) | $ | 565 | ||||||
| Net (loss) income per share: | ||||||||||||||||
| Common shares - Basic | $ | (0.15 | ) | $ | 0.05 | $ | (0.16 | ) | $ | 0.01 | ||||||
| Class B common shares - Basic | (0.13 | ) | 0.05 | (0.14 | ) | 0.01 | ||||||||||
| Common shares - Diluted | (0.15 | ) | 0.05 | (0.16 | ) | 0.01 | ||||||||||
| Class B common shares - Diluted | (0.13 | ) | 0.05 | (0.14 | ) | 0.01 | ||||||||||
| Weighted average number of shares: | ||||||||||||||||
| Common shares – Basic | 12,333 | 12,227 | 12,283 | 12,208 | ||||||||||||
| Class B common shares – Basic | 2,049 | 2,052 | 2,049 | 2,052 | ||||||||||||
| Common shares – Diluted | 12,333 | 12,445 | 12,283 | 12,480 | ||||||||||||
| Class B common shares – Diluted | 2,049 | 2,052 | 2,049 | 2,052 | ||||||||||||
| Richardson Electronics, Ltd. Unaudited Consolidated Statements of Cash Flows (in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: | ||||||||||||||||
| Unrealized foreign currency loss (gain) | 456 | 5 | 429 | (300 | ) | |||||||||||
| Depreciation and amortization | 978 | 1,104 | 3,037 | 3,218 | ||||||||||||
| Inventory provisions | 123 | 173 | 346 | 450 | ||||||||||||
| Share-based compensation expense | 320 | 279 | 1,226 | 1,045 | ||||||||||||
| (Gain) loss on disposal of property, plant and equipment | — | — | (4 | ) | 70 | |||||||||||
| Deferred income taxes | (3 | ) | (4 | ) | (82 | ) | 42 | |||||||||
| Loss on disposal of healthcare assets and related charges | 4,916 | — | 4,916 | — | ||||||||||||
| Change in assets and liabilities: | ||||||||||||||||
| Accounts receivable | (333 | ) | (5,254 | ) | (1,470 | ) | 998 | |||||||||
| Inventories | 2,873 | 3,974 | 1,132 | (2,246 | ) | |||||||||||
| Prepaid expenses and other assets | (382 | ) | 151 | (344 | ) | (58 | ) | |||||||||
| Accounts payable | 2,585 | (4,072 | ) | 7,249 | (5,204 | ) | ||||||||||
| Accrued liabilities | (4,661 | ) | 247 | (4,115 | ) | 625 | ||||||||||
| Other | (214 | ) | 116 | 376 | 464 | |||||||||||
| Net cash provided by (used in) operating activities | 4,601 | (2,531 | ) | 10,478 | (716 | ) | ||||||||||
| Investing activities: | ||||||||||||||||
| Capital expenditures | (549 | ) | (401 | ) | (1,992 | ) | (3,057 | ) | ||||||||
| Proceeds from sale of property, plant & equipment | — | — | 7 | — | ||||||||||||
| Proceeds from disposal of Healthcare assets | 6,985 | — | 6,985 | — | ||||||||||||
| Net cash provided by (used in) investing activities | 6,436 | (401 | ) | 5,000 | (3,057 | ) | ||||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from issuance of common stock | — | — | 307 | 342 | ||||||||||||
| Cash dividends paid on common and Class B common stock | (852 | ) | (844 | ) | (2,555 | ) | (2,532 | ) | ||||||||
| Proceeds from revolving credit facility | — | 3,744 | 1,000 | 3,744 | ||||||||||||
| Repayment of revolving credit facility | — | (3,744 | ) | (1,000 | ) | (3,744 | ) | |||||||||
| Other | — | — | (159 | ) | (119 | ) | ||||||||||
| Net cash used in financing activities | (852 | ) | (844 | ) | (2,407 | ) | (2,309 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (145 | ) | (113 | ) | (659 | ) | (19 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 10,040 | (3,889 | ) | 12,412 | (6,101 | ) | ||||||||||
| Cash and cash equivalents at beginning of period | 26,635 | 22,769 | 24,263 | 24,981 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 36,675 | $ | 18,880 | $ | 36,675 | $ | 18,880 | ||||||||
| Richardson Electronics, Ltd. Unaudited Net Sales and Gross Profit For the Third Quarter and First Nine Months of Fiscal 2025 and 2024 ($ in thousands) | ||||||||||||
| By Strategic Business Unit | ||||||||||||
| Net Sales | ||||||||||||
| Three Months Ended | FY25 vs. FY24 | |||||||||||
| March 1, 2025 | March 2, 2024 | % Change | ||||||||||
| PMT | $ | 33,216 | $ | 31,163 | 6.6 | % | ||||||
| GES | 9,299 | 11,531 | -19.4 | % | ||||||||
| Canvys | 9,195 | 6,590 | 39.5 | % | ||||||||
| Healthcare | 2,094 | 3,091 | -32.3 | % | ||||||||
| Total | $ | 53,804 | $ | 52,375 | 2.7 | % | ||||||
| Nine Months Ended | FY25 vs. FY24 | |||||||||||
| March 1, 2025 | March 2, 2024 | % Change | ||||||||||
| PMT | $ | 101,815 | $ | 98,199 | 3.7 | % | ||||||
| GES | 23,359 | 18,534 | 26.0 | % | ||||||||
| Canvys | 23,684 | 23,770 | -0.4 | % | ||||||||
| Healthcare | 8,162 | 8,583 | -4.9 | % | ||||||||
| Total | $ | 157,020 | $ | 149,086 | 5.3 | % | ||||||
Gross Profit
| Three Months Ended | ||||||||||||||||
| March 1, 2025 | % of Net Sales | March 2, 2024 | % of Net Sales | |||||||||||||
| PMT | $ | 10,243 | 30.8 | % | $ | 8,815 | 28.3 | % | ||||||||
| GES | 3,049 | 32.8 | % | 3,070 | 26.6 | % | ||||||||||
| Canvys | 3,056 | 33.2 | % | 2,265 | 34.4 | % | ||||||||||
| Healthcare | 325 | 15.5 | % | 1,286 | 41.6 | % | ||||||||||
| Total | $ | 16,673 | 31.0 | % | $ | 15,436 | 29.5 | % | ||||||||
| Nine Months Ended | ||||||||||||||||
| March 1, 2025 | % of Net Sales | March 2, 2024 | % of Net Sales | |||||||||||||
| PMT | $ | 30,875 | 30.3 | % | $ | 29,231 | 29.8 | % | ||||||||
| GES | 7,337 | 31.4 | % | 5,411 | 29.2 | % | ||||||||||
| Canvys | 7,848 | 33.1 | % | 8,070 | 34.0 | % | ||||||||||
| Healthcare | 2,365 | 29.0 | % | 2,530 | 29.5 | % | ||||||||||
| Total | $ | 48,425 | 30.8 | % | $ | 45,242 | 30.3 | % | ||||||||
| Richardson Electronics, Ltd. Unaudited Reconciliation Between GAAP and Non-GAAP Financial Measures For the Third Quarter and First Nine Months of Fiscal 2025 and 2024 ($ in thousands) | ||||||||||||||||
| NON-GAAP INCOME (LOSS) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Operating (loss) income reconciliation | ||||||||||||||||
| (Loss) income from operations | $ | (2,743 | ) | $ | 1,006 | $ | (3,094 | ) | $ | 462 | ||||||
| Loss on disposal of healthcare assets and related charges | 4,916 | — | 4,916 | — | ||||||||||||
| Non-GAAP operating income | $ | 2,173 | $ | 1,006 | $ | 1,822 | $ | 462 | ||||||||
| (Loss) income before income taxes reconciliation | ||||||||||||||||
| (Loss) income before income taxes | $ | (3,088 | ) | $ | 979 | $ | (3,495 | ) | $ | 296 | ||||||
| Loss on disposal of healthcare assets and related charges | 4,916 | — | 4,916 | — | ||||||||||||
| Non-GAAP income before taxes | $ | 1,828 | $ | 979 | $ | 1,421 | $ | 296 | ||||||||
| Income tax (benefit) provision reconciliation | ||||||||||||||||
| Income tax (benefit) provision | $ | (1,031 | ) | $ | 229 | $ | (1,277 | ) | $ | 116 | ||||||
| Loss on disposal of healthcare assets and related charges | 1,278 | — | 1,278 | — | ||||||||||||
| Non-GAAP income tax provision | $ | 247 | $ | 229 | $ | 1 | $ | 116 | ||||||||
| Net (loss) income reconciliation | ||||||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Loss on disposal of healthcare assets and related charges | 3,638 | — | 3,638 | — | ||||||||||||
| Non-GAAP net income | $ | 1,581 | $ | 750 | $ | 1,420 | $ | 180 | ||||||||
| Net (loss) income per share (diluted) reconciliation | ||||||||||||||||
| Net (loss) income per share (diluted) | $ | (0.15 | ) | $ | 0.05 | $ | (0.16 | ) | $ | 0.01 | ||||||
| Loss on disposal of healthcare assets and related charges | 0.26 | — | 0.26 | — | ||||||||||||
| Non-GAAP net income per share (diluted) | $ | 0.11 | $ | 0.05 | $ | 0.10 | $ | 0.01 | ||||||||
| EBITDA | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||||||||||
| Net (loss) income | $ | (2,057 | ) | $ | 750 | $ | (2,218 | ) | $ | 180 | ||||||
| Income tax (benefit) provision | (1,031 | ) | 229 | (1,277 | ) | 116 | ||||||||||
| Depreciation & amortization | 978 | 1,104 | 3,037 | 3,218 | ||||||||||||
| EBITDA | (2,110 | ) | 2,083 | (458 | ) | 3,514 | ||||||||||
| Disposal of Healthcare assets | 4,916 | - | 4,916 | - | ||||||||||||
| Adjusted EBITDA | $ | 2,806 | $ | 2,083 | $ | 4,458 | $ | 3,514 | ||||||||
| For Details Contact: | ||
| Edward J. Richardson | Robert J. Ben | |
| Chairman and CEO | EVP & CFO | |
| Phone: (630) 208-2320 | (630) 208-2203 | |
| 40W267 Keslinger Road | ||
| PO BOX 393 | ||
| LaFox, IL 60147-0393 USA | ||
| (630) 208-2200 | Fax: (630) 208-2550 | ||
FAQ
What was RELL's Q3 FY25 revenue growth and key segment performance?
How much did Richardson Electronics (RELL) receive from the Healthcare assets sale?
What is RELL's current cash position and debt status as of Q3 FY25?
What dividend did Richardson Electronics (RELL) declare for Q3 FY25?
How did RELL's gross margin perform in Q3 FY25 compared to last year?
