{"id":950009,"date":"2026-04-08T16:20:04","date_gmt":"2026-04-08T20:20:04","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/richardson-electronics-reports-third-quarter-results-declares-quarterly-cash-dividend-2\/"},"modified":"2026-04-08T16:20:04","modified_gmt":"2026-04-08T20:20:04","slug":"richardson-electronics-reports-third-quarter-results-declares-quarterly-cash-dividend-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/richardson-electronics-reports-third-quarter-results-declares-quarterly-cash-dividend-2\/","title":{"rendered":"Richardson Electronics Reports Third Quarter Results; Declares Quarterly Cash Dividend"},"content":{"rendered":"
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\n Third-Quarter Net Income of $0.9 million, or $0.07 per diluted share<\/em>\n <\/p>\n

\n Q3 FY26 net sales increase led by a 9.7% YoY increase in <\/em>
\n PMT net sales<\/em>\n <\/p>\n

\n Total backlog at February 28, 2026, was up 11.4% from end of the fiscal second quarter<\/em>\n <\/p>\n

LAFOX, Ill., April 08, 2026 (GLOBE NEWSWIRE) — Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its third quarter ended February 28, 2026.\u00a0The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.<\/p>\n

\u201cI am pleased to report that Richardson Electronics has now delivered seven consecutive quarters of year-over-year sales growth, reflecting continued progress in executing our multi-year strategy. Our performance this quarter was led by strong momentum in PMT, particularly in EDG and the semifab equipment market. Third quarter sales growth was supported by continued discipline around gross margin and operating expenses. Our performance reflects the strength of our team, as we continue to invest across the organization to build depth, technical expertise, and operating performance,\u201d said Edward J. Richardson, Chairman, CEO, and President.<\/p>\n

\u201cAs we look ahead, our backlog now stands at its highest level in nearly three years, providing us with confidence in our future growth outlook. We are seeing sustained demand across key end markets, particularly in power management, energy transition, and semiconductor applications, and we believe our focused investments in engineering, product development, and customer engagement are positioning us to capitalize on these opportunities. With a strengthened pipeline, strong balance sheet, and improving order trends, we remain confident in our ability to drive continued growth and deliver long-term value for our shareholders,\u201d Mr. Richardson concluded.\u00a0<\/p>\n

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\n Third Quarter Results<\/u>
\n <\/strong>\n <\/p>\n

Net sales for the third quarter of fiscal 2026 were $55.5 million, a 3.1% increase from $53.8 million in the prior year\u2019s third quarter. When excluding Healthcare, net sales increased 6.0% year-over-year.<\/p>\n

\u00a0Year-over-year net sales growth was due to higher sales in PMT. PMT sales increased due to strong growth in semi-conductor wafer fab and RF and Microwave products. Since the January 2025 Healthcare asset sale, the Healthcare segment was consolidated into the PMT segment. When excluding Healthcare net sales, PMT net sales increased by 14.5%. GES sales decreased by $0.5 million, or 5.4% due to project timing. Canvys\u2019 sales decreased $1.2 million, or 13.5%, due to project timing in North America.<\/p>\n

\u00a0Backlog grew 11.4% to $151.2 million at the end of the third quarter of fiscal 2026, versus $135.7 million at the end of the second quarter of fiscal 2026, primarily driven by an increase in PMT. While total GES backlog improved slightly, core backlog grew more, highlighting continued strength in underlying demand for both new products and existing programs.<\/p>\n

\u00a0Gross margin for the third quarter was 31.9% of net sales, compared to 31.0% during the third quarter of fiscal 2025. PMT gross margin increased to 32.1%, compared to 29.9%, as a result of product mix and lower manufacturing under absorption. GES gross margin decreased to 30.8%, from 32.8% due to product mix.\u00a0Canvys gross margin decreased to 32.2%, from 33.2% primarily due to unfavorable manufacturing absorption and higher freight costs.<\/p>\n

Operating expenses were $16.2 million, compared to $14.5 million in the third quarter of fiscal 2025. The increase in operating expenses resulted from higher salaries and incentives associated with critical adds to staff and in support of our existing employees, as well as related medical benefits and travel expenses. Also, the operating expenses in the third quarter of fiscal 2025 were historically low.<\/p>\n

Operating income was $1.5 million for the third quarter of fiscal 2026, compared to an operating loss of $2.7 million and non-GAAP operating income* of $2.2 million in the prior year\u2019s third quarter. Other expenses for the third quarter of fiscal 2026, including interest income and foreign exchange were $0.3 million, compared to other expenses of $0.3 million in the third quarter of fiscal 2025.<\/p>\n

Income tax provision was $0.3 million for the third quarter of fiscal 2026, versus an income tax benefit of $1.0 million and non-GAAP income tax provision* of $0.2 million in the prior year\u2019s third quarter. The effective tax rate for the third quarter of fiscal 2026 was 25.3%.<\/p>\n

Net income was $0.9 million for the third quarter of fiscal 2026, compared to net loss of $2.1 million and non-GAAP net income* of $1.6 million for the third quarter of fiscal 2025. Earnings per common share (diluted) were $0.07 in the third quarter of fiscal 2026, compared to net loss per common share (diluted) of\u00a0$0.15 and non-GAAP earnings per common share (diluted)* of $0.11 in the third quarter of fiscal 2025.<\/p>\n

EBITDA* was $2.2 million in the third quarter of fiscal 2026. EBITDA* for the third quarter of fiscal 2025 was a negative $2.1 million.\u00a0EBITDA* after adjusting to exclude the loss on the sale of the majority of Healthcare assets (Adjusted EBITDA*) was $2.8 million in the third quarter of fiscal 2025.<\/p>\n

The Company maintained its solid financial position with cash and cash equivalents of $29.5 million as of February 28, 2026, versus $33.1 million as of November 29, 2025. Cash used during the third quarter of fiscal 2026 primarily related to inventory associated with final buys from a critical supplier and the payment of dividends. The Company also invested $0.8 million during the quarter in capital expenditures, primarily related to its manufacturing business, facilities improvements, and IT systems, versus $0.5 million during last year\u2019s third quarter.<\/p>\n

As of the end of the third quarter of fiscal 2026, the Company had no outstanding debt on its revolving line of credit with PNC Bank.
Financial Summary for the Nine Months Ended February 28, 2026<\/u><\/strong><\/p>\n