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May 30, 2020

Richardson Electronics Q4 2020 Earnings Report

Richardson Electronics reported Q4 and Fiscal 2020 results and declared quarterly cash dividend.

Key Takeaways

Richardson Electronics reported a decrease in net sales for the fourth quarter of fiscal 2020 by 11.4% to $37.4 million compared to the prior year's fourth quarter, primarily due to the COVID-19 impact. However, gross margin increased to 30.4% due to an improved product mix and manufacturing efficiencies. The company reported an operating loss of $1.3 million compared to an operating loss of $6.4 million in the prior year's fourth quarter, which included a non-cash goodwill impairment.

Net sales decreased by 11.4% compared to last year's fourth quarter, mainly due to the COVID-19 impact.

Sales increased for Canvys display solutions in North America and Semiconductor Wafer Fabrication equipment products.

Gross margin increased to 30.4% of net sales versus 29.7% due to an improved product mix and manufacturing efficiencies for PMT.

Operating loss was $1.3 million compared to an operating loss of $6.4 million in last year’s fourth quarter, which included a non-cash goodwill impairment charge of $6.3 million.

Total Revenue
$37.4M
Previous year: $42.2M
-11.4%
EPS
-$0.1
Previous year: -$0.5
-80.0%
Gross Margin
30.4%
Gross Profit
$11.4M
Cash and Equivalents
$30.5M
Total Assets
$151M

Richardson Electronics

Richardson Electronics

Richardson Electronics Revenue by Segment

Forward Guidance

The company will continue to closely manage expenses and cash flow given the ever-changing situation in the global economy. It is difficult to predict what the new 'normal' will look like, but the company believes its business will be stronger with ongoing investments in growth initiatives.

Revenue & Expenses

Visualization of income flow from segment revenue to net income