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Mar 01, 2025
Richardson Electronics Q3 2025 Earnings Report
Richardson Electronics reported Q3 2025 results, highlighted by a strategic divestiture and solid performance in key segments.
Key Takeaways
Richardson Electronics saw a year-over-year increase in revenue and non-GAAP operating income in Q3 2025, despite a GAAP net loss due to a one-time charge from the sale of its Healthcare business. The company emphasized growth in semiconductor-related sales and improved margins in core segments.
Net sales rose to $53.8 million, marking a 2.7% increase year-over-year.
Non-GAAP net income reached $1.6 million despite a GAAP net loss of $2.1 million.
Semiconductor wafer fab sales drove a 6.6% increase in PMT segment revenue.
Healthcare segment largely divested, generating $8.2 million in cash and simplifying operations.
Revenue by Segment
Forward Guidance
The company plans to focus on higher-growth, higher-margin segments, especially Green Energy Solutions, following the sale of its Healthcare business.
Positive Outlook
- Strengthened balance sheet with $36.7 million in cash and no debt.
- Positive operating cash flow for the fourth consecutive quarter.
- Strong growth in semiconductor-related PMT sales.
- Improved gross margin across PMT and GES.
- Non-GAAP profitability despite macroeconomic challenges.
Challenges Ahead
- Healthcare divestiture resulted in a $4.9 million one-time charge.
- GES revenue declined 19.4% due to project-based variability.
- Backlog decreased to $134.1 million, down from $142.6 million last quarter.
- Foreign currency losses impacted results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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