Richardson Electronics Q2 2024 Earnings Report
Key Takeaways
Richardson Electronics reported a 33.0% decrease in net sales to $44.1 million for the second quarter of fiscal 2024, compared to $65.9 million in the prior year's second quarter. The company experienced an operating loss of $2.0 million, compared to an operating income of $7.2 million in the prior year's second quarter. Net loss for the quarter was $1.8 million, compared to a net income of $5.5 million in the same quarter last year.
Net sales decreased by 33.0% to $44.1 million compared to the prior year's second quarter.
Operating loss was $2.0 million, a significant downturn from the previous year's operating income of $7.2 million.
Net loss amounted to $1.8 million, contrasting with a net income of $5.5 million in the prior year's second quarter.
Backlog increased 2% over the past three months, indicating stabilizing demand.
Richardson Electronics
Richardson Electronics
Richardson Electronics Revenue by Segment
Forward Guidance
Richardson Electronics anticipates improving sales trends within its GES business in the second half of fiscal 2024 to offset continued weakness in the semiconductor wafer fab market. The company is focused on controlling operating expenses, improving operating cash flow, and prudently managing working capital requirements amidst difficult economic conditions.
Positive Outlook
- Stabilization in backlog indicates stabilizing demand.
- Improving sales trends are expected within the GES business in the second half of fiscal 2024.
- Expansion of product roadmap for green energy solutions is adding new customers and programs.
- Focus on controlling operating expenses.
- Focus on improving operating cash flow.
Challenges Ahead
- Challenging economic conditions are expected to remain over the near term.
- Second quarter results fell short of expectations.
- Decline in sales to semiconductor wafer fab customers.
- Project delays across the Company’s GES business.
- Continued weakness is being experienced in the semiconductor wafer fab market.
Revenue & Expenses
Visualization of income flow from segment revenue to net income