Richardson Electronics Q3 2022 Earnings Report
Key Takeaways
Richardson Electronics reported a 22.3% increase in net sales to $55.3 million for the third quarter of fiscal 2022, driven by growth in all three business units. Net income increased to $2.9 million, or $0.21 per diluted share, compared to $0.2 million, or $0.02 per diluted share, in the prior year's third quarter. The company's backlog also increased to $175.6 million.
Net sales increased by 22.3% compared to the third quarter of fiscal year 2021, reaching $55.3 million.
Sales increased across all business units: PMT, Canvys, and Healthcare.
Backlog grew to $175.6 million, up from $146.9 million in the previous quarter and $98.7 million in the third quarter of the last fiscal year.
Operating income rose to $3.6 million compared to $0.3 million in the third quarter of fiscal year 2021.
Richardson Electronics
Richardson Electronics
Forward Guidance
Company remains confident that despite the challenging economic environment, fiscal year 2022 will finish with strong sales and improved profitability.
Positive Outlook
- Continued growth in backlog in all three business units.
- New customers expressing interest in growing range of engineered solutions.
- Strong sales expected for the remainder of fiscal year 2022.
- Improved profitability anticipated for fiscal year 2022.
- Demand within PMT was driven by strong growth from new Power and Microwave Technology partners for various applications including Power Management and 5G infrastructure, as well as increasing shipments of our patented ULTRA3000.
Challenges Ahead
- Challenging economic environment.
- Gross margin decreased to 31.8% due to product mix and higher global freight costs.
- PMT margin decreased to 32.2% from 34.9% primarily due to product mix.
- Canvys margin decreased to 32.2% from 35.2% because of higher global freight costs.
- Healthcare gross margin was 25.1% compared to 33.0% due to an increase in component scrap expense and rising freight costs.