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Jun 01, 2024

Richardson Electronics Q4 2024 Earnings Report

Reported a challenging year with decreased sales and profitability due to conditions in the semiconductor wafer fab market and program delays, but focused on maintaining gross margins, reducing inventory, and strengthening the balance sheet.

Key Takeaways

Richardson Electronics reported a decrease in net sales for the fourth quarter of fiscal 2024, driven by lower sales in PMT, GES, and Canvys, despite an increase in Richardson Healthcare sales. The company experienced an operating loss of $0.1 million, compared to an operating income of $1.4 million in the prior year's fourth quarter. However, the gross margin improved by 320 basis points year-over-year, and the company generated $7.2 million in operating cash flow, ending the year with $24.3 million in cash and cash equivalents and no debt.

Net sales for the fourth quarter of fiscal 2024 were $47.4 million, a 19.5% decrease compared to the prior year's fourth quarter.

Gross margin improved to 31.1% from 27.9% in the prior year's fourth quarter.

The company reported an operating loss of $0.1 million for the fourth quarter of fiscal 2024, compared to operating income of $1.4 million in the prior year’s fourth quarter.

Cash and investments were $24.3 million as of June 1, 2024.

Total Revenue
$47.4M
Previous year: $58.8M
-19.5%
EPS
$0.02
Previous year: $0.11
-81.8%
Gross Profit
$14.7M
Previous year: $16.4M
-10.3%
Cash and Equivalents
$24.3M
Previous year: $25M
-2.9%
Free Cash Flow
$6.26M
Total Assets
$192M
Previous year: $198M
-2.8%

Richardson Electronics

Richardson Electronics

Richardson Electronics Revenue by Segment

Forward Guidance

Management expects to return to year-over-year sales growth and higher profitability in fiscal 2025, seeing early indications of improving demand within semiconductor wafer fab markets and remaining focused on pursuing long-term growth opportunities within global GES markets.

Positive Outlook

  • Return to year-over-year sales growth expected in fiscal 2025.
  • Higher profitability anticipated in fiscal 2025.
  • Early indications of improving demand in semiconductor wafer fab markets.
  • Focus on significant long-term growth opportunities within global GES markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income