{"id":798704,"date":"2025-01-07T16:24:07","date_gmt":"2025-01-07T21:24:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/richardson-electronics-reports-second-quarter-results-declares-quarterly-cash-dividend\/"},"modified":"2025-01-07T16:24:07","modified_gmt":"2025-01-07T21:24:07","slug":"richardson-electronics-reports-second-quarter-results-declares-quarterly-cash-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/richardson-electronics-reports-second-quarter-results-declares-quarterly-cash-dividend\/","title":{"rendered":"Richardson Electronics Reports Second Quarter Results; Declares Quarterly Cash Dividend"},"content":{"rendered":"
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\n Q2 FY25 net sales increased 12.1% YoY, the second consecutive quarterly YoY increase<\/em>\n <\/p>\n

\n Green Energy Solutions (GES) net sales increased 129% from Q2 FY24<\/em>\n <\/p>\n

\n Richardson Electronics ended Q2 with positive operating cash flow for the third consecutive quarter,\u00a0$26.6 million in cash and cash equivalents and no debt<\/em>\n <\/p>\n

\n Management expects YoY sales growth and higher profitability for FY25<\/em>\n <\/p>\n

LAFOX, Ill., Jan. 07, 2025 (GLOBE NEWSWIRE) — Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its second quarter ended November 30, 2024.\u00a0The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.<\/p>\n

\u201cOur second quarter results included new program wins and continued improvement in demand across our GES and PMT markets. These trends drove a 129%, or $3.4 million year-over-year increase in GES sales and an 85% increase in sales to our semi-conductor wafer fab customers. While Canvys sales declined by $0.4 million year-over-year, we expect a pick-up in Canvys sales for the remainder of fiscal 2025,” said Edward J. Richardson, Chairman, CEO, and President.<\/p>\n

\u201cWe generated positive operating cash flow for the third straight quarter, ending the quarter with no debt and $26.6 million in cash and cash equivalents. Our strong balance sheet allows us to support current business needs and make investments in our long-term growth strategies. We continue to expect higher year-over-year sales and profitability for the full fiscal year supported by sequential backlog growth,\u201d concluded Mr. Richardson.<\/p>\n

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\n Second Quarter Results<\/u>
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Net sales for the second quarter of fiscal 2025 were $49.5 million, a 12.1% increase from $44.1 million in the prior year\u2019s second quarter.<\/p>\n

Year-over-year net sales growth for the second quarter of fiscal 2025 was due to higher sales in GES and the Power and Microwave Technologies Group (PMT). GES sales increased $3.4 million, or 129.0% from last year\u2019s second quarter driven by higher sales of wind turbine battery modules. PMT sales increased $3.1 million, or 9.9% from the second quarter of fiscal 2024 primarily because of higher demand from the Company\u2019s semiconductor wafer fab customers.<\/p>\n

Sales growth for the second quarter of fiscal 2025 was partially offset by a $0.7 million, or 22.8% decrease in Healthcare sales due to lower CT tube, system and parts demand. Canvys sales also declined year-over-year by $0.4 million or 6.0%, reflecting challenging market conditions in Europe.<\/p>\n

Backlog totaled $142.6 million at the end of the second quarter of fiscal 2025 versus $137.4 million at the end of the first quarter of fiscal 2025. The sequential increase was primarily in GES with a small increase in Canvys. The Company\u2019s sales pipeline remains robust, and while the timing of orders can vary quarter-to-quarter, management expects backlog to continue to strengthen in fiscal 2025.<\/p>\n

Gross margin for the second quarter was 31.0% of net sales compared to 28.4% during the second quarter of fiscal 2024. Richardson Healthcare\u2019s gross margin improved to 35.7%, up from 14.8%, as a result of an improved product mix and manufacturing efficiencies. GES gross margin increased to 32.0% from 29.2% due to product mix.\u00a0PMT also posted an increase in gross margin to 30.3%, compared to 28.5%, due to favorable product mix. Canvys gross margin decreased to 31.7% from 33.5% primarily due to higher freight costs.<\/p>\n

Operating expenses were $16.0 million, compared to $14.5 million in the second quarter of fiscal 2024. The increase in operating expenses resulted from higher employee compensation expenses, including incentives expense tied to sales growth.<\/p>\n

Operating loss was $0.7 million for the second quarter of fiscal 2025, compared to an operating loss of $2.0 million in the prior year\u2019s second quarter. Other expense for the second quarter of fiscal 2025, including interest income and foreign exchange, was $0.4 million, compared to other expense of $0.3 million in the second quarter of fiscal 2024.<\/p>\n

Income tax benefit was $0.3 million, or an effective tax rate of approximately 28.8%, versus an income tax benefit of $0.5 million, or an effective tax rate of 21.6% in the prior year\u2019s second quarter.<\/p>\n

Net loss for the second quarter of fiscal 2025 was $0.8 million, compared to a net loss of $1.8 million in the second quarter of fiscal 2024. Loss per common share (diluted) was $0.05 in the second quarter of fiscal 2025 compared to loss per common share (diluted) of $0.13 in the second quarter of fiscal 2024.<\/p>\n

EBITDA for the second quarter of fiscal 2025 was approximately breakeven versus negative $1.2 million in the prior year\u2019s second quarter.<\/p>\n

The Company improved its solid financial position and had cash and cash equivalents of $26.6 million as of November 30, 2024, versus $23.0 million as of August 31, 2024. Cash generated during the second quarter of fiscal 2025 primarily related to lower accounts receivable. The Company invested $0.5 million during the quarter in capital expenditures related to its facilities and IT systems, versus $1.5 million during last year\u2019s second quarter.<\/p>\n

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\n Financial Summary for the Six Months Ended November 30, 2024<\/u>
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