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Sep 02, 2023
Richardson Electronics Q1 2024 Earnings Report
Richardson Electronics' first quarter results were impacted by weaker demand from semiconductor wafer fab customers and lower sales of power modules for existing wind turbines.
Key Takeaways
Richardson Electronics reported a decrease in net sales by 22.2% to $52.6 million compared to the previous year's first quarter, primarily due to reduced sales in the PMT, GES, Canvys, and Healthcare sectors. The company's operating income also decreased to $1.5 million from $8.8 million in the same quarter last year. Earnings per share (diluted) were $0.09, down from $0.45 in the first quarter of fiscal year 2023.
Net sales decreased by 22.2% year-over-year, totaling $52.6 million, due to lower sales in PMT, GES, Canvys and Healthcare.
Backlog totaled $148.1 million, down from $160.4 million at the end of the previous quarter.
Gross margin was 32.8%, a decrease from 34.1% in the prior year’s first quarter, driven primarily by a less profitable mix of sales.
Operating income decreased to $1.5 million, compared to $8.8 million for the first quarter of fiscal year 2023.
Revenue by Segment
Forward Guidance
The company expects the semiconductor wafer fab market to remain difficult until the third quarter of calendar 2024 but anticipates improving sales trends within its GES business in the coming quarters. Focus is on controlling costs, operating expenses, improving operating cash flow through prudent working capital management, and investing in large, multi-year sales opportunities within the GES business.
Positive Outlook
- Expect improving sales trends within GES business in the coming quarters.
- Confidence in GES business is reflected in the current pipeline of existing projects and new sales opportunities globally.
- Opportunities include expected sales in the second half of this fiscal year for power management systems for wind turbines and electric locomotives applications.
- Focused on controlling costs and operating expenses.
- Improving operating cash flow through prudent working capital management.
Challenges Ahead
- Semiconductor wafer fab market expected to remain difficult until the third quarter of calendar 2024.
- First quarter results were challenged primarily by weaker demand from semiconductor wafer fab customers.
Revenue & Expenses
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