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Mar 02, 2024
Richardson Electronics Q3 2024 Earnings Report
Reported increased sales and profitability, reflecting diversification strategies and focus on profitability enhancement and balance sheet strengthening.
Key Takeaways
Richardson Electronics reported a decrease in net sales by 25.6% to $52.4 million compared to the prior year's third quarter. However, sales increased 18.7% sequentially. The company reported a net income of $0.8 million, or $0.05 per diluted share, and declared a quarterly cash dividend of $0.06 per share.
Sales increased 18.7% sequentially reflecting improving business conditions.
Inventory decreased $4.0 million sequentially, reflecting focus on improving working capital levels.
GES sales increased $0.1 million from last year’s third quarter.
Backlog totaled $147.7 million at the end of the third quarter of fiscal 2024.
Richardson Electronics
Richardson Electronics
Richardson Electronics Revenue by Segment
Revenue by Segment
Power & Microwave Tech Revenue
CapyFin.comCanvys Revenue
CapyFin.comHealthcare Revenue
CapyFin.comGreen Energy Solutions Revenue
CapyFin.com Forward Guidance
Richardson Electronics anticipates sequential sales growth in their fiscal 2024 fourth quarter, as well as further improvements in profitability.
Positive Outlook
- Expected demand growth in the semiconductor market.
- Expected demand growth in the GES market.
- Pursuing significant long-term growth strategies.
- Taking advantage of opportunities created by recent government stimulus programs.
- Taking advantage of global energy transition trends.
Challenges Ahead
- Net sales continue to reflect the cyclical nature of sales to semiconductor wafer fab customers that had an $11.5 million negative impact on sales during the quarter.
- PMT sales decreased $15.7 million from last year’s third quarter primarily due to lower sales of manufactured products for the Company’s semiconductor wafer fabrication equipment customers.
- Canvys sales decreased by $3.1 million, primarily due to short-term customer pushouts in North America.
- Gross margin was 29.5% of net sales during the third quarter of fiscal 2024, compared to 31.8% during the third quarter of fiscal 2023.
- PMT gross margin decreased to 28.3% from 32.9% due to product mix and $0.8 million of manufacturing under absorption.
Revenue & Expenses
Visualization of income flow from segment revenue to net income