Richardson Electronics Reports Q3 FY25 Results

Richardson Electronics, Ltd., a global manufacturer of engineered solutions, green energy products, and power grid and microwave tubes, has released its financial results for the third quarter of fiscal year 2025, ending March 1, 2025. The company also announced a quarterly cash dividend of $0.06 per share.

Financial Highlights

For the third quarter of fiscal 2025, Richardson Electronics reported net sales of $53.8 million, a 2.7% increase from $52.4 million in the same period last year. The company achieved a gross margin of 31.0%, up from 29.5% in the prior year. However, the company reported a net loss of $2.1 million, compared to a net income of $0.8 million in the third quarter of fiscal 2024. Non-GAAP net income was $1.6 million, up from $0.8 million last year.

Business and Operational Highlights

Richardson Electronics saw significant growth in its Semiconductor Wafer Fab and Canvys segments, with sales increasing by 139% and 39.5% year-over-year, respectively. The company ended the quarter with no debt and $36.7 million in cash and equivalents. The strategic sale of a majority of Richardson Healthcare assets for $8.2 million further strengthened the balance sheet.

Strategic Initiatives and Corporate Developments

The company completed a strategic asset sale of a majority of its Richardson Healthcare business, which is expected to simplify operations and improve the financial model. The Board of Directors declared a $0.06 per share quarterly cash dividend, payable on May 28, 2025, to common stockholders of record as of May 9, 2025.

Management's Perspective

Edward J. Richardson, Chairman, CEO, and President, commented, "We experienced significant year-over-year growth across key segments. Despite a one-time $4.9 million Healthcare charge, our non-GAAP operating income for the quarter rose to $2.2 million, up from $1.0 million last year. This sale marks the initial step in our strategic focus to pursue higher growth, higher margin market opportunities, particularly our Green Energy Solutions segment."

Future Outlook

The company remains optimistic about its long-term strategies to pursue high ROI business opportunities, supported by a strong balance sheet and positive operating cash flow for the fourth consecutive quarter. The focus will be on higher growth and higher margin market opportunities, especially in the Green Energy Solutions segment.

SEC Filing: RICHARDSON ELECTRONICS, LTD. [ RELL ] - 8-K - Apr. 09, 2025