Richardson Electronics Reports Q1 Fiscal 2025 Financial Results

Richardson Electronics, Ltd. Reports First Quarter Fiscal 2025 Financial Results

Overview of Financial Performance

Richardson Electronics, Ltd. has announced its unaudited financial results for the first quarter of fiscal year 2025, ending August 31, 2024. The company reported net sales of $53.7 million, a 2.2% increase compared to $52.6 million in the same quarter of the previous year. Despite the rise in sales, the company experienced a decrease in gross profit, which fell to $16.4 million from $17.3 million, reflecting a gross profit margin decline from 32.8% to 30.6%.

Detailed Financial Results

• Net Income and Comprehensive Income: Richardson Electronics reported a net income of $590,000, down from $1.2 million in the previous year. The comprehensive income for the quarter was $1.2 million, slightly above last year’s $1.2 million, due to a foreign currency translation gain.

• Operating Income: The operating income for the quarter was $316,000, a significant decrease from $1.5 million in the previous year.

• EBITDA: The company's EBITDA was $1.7 million, compared to $2.6 million in the prior year.

Segment Performance

• Power & Microwave Technologies (PMT): The PMT segment saw a decrease in net sales by 4.3%, amounting to $34.2 million. The gross profit margin also declined to 29.8% from 32.2%.

• Green Energy Solutions (GES): This segment experienced substantial growth, with net sales increasing by 84% to $8.1 million.

• Canvys: The Canvys segment faced a 22.8% decline in net sales, totaling $7.6 million.

• Healthcare: The Healthcare segment showed strong performance with a 48.7% increase in net sales, reaching $3.8 million.

Cash Flow and Financial Position

• Operating Activities: Net cash provided by operating activities was $412,000, compared to $1 million in the previous year.

• Investing and Financing Activities: The company invested $926,000 in capital expenditures and used $868,000 in financing activities, resulting in a decrease in cash and cash equivalents to $23 million from $24.1 million at the beginning of the period.

Outlook

Despite challenges in certain segments, Richardson Electronics is optimistic about future growth opportunities, particularly in the GES and Healthcare sectors. The company continues to focus on strategic investments to enhance its market position.

For further details, contact:

Edward J. Richardson, Chairman and CEO

Robert J. Ben, EVP & CFO

40W267 Keslinger Road, PO BOX 393, LaFox, IL 60147-0393 USA

Phone: (630) 208-2320 | (630) 208-2203 | Fax: (630) 208-2550