From GlobeNewswire: 2025-04-09 16:15:00

Richardson Electronics reported a YoY net sales increase for the third consecutive quarter in Q3 FY25, ending the quarter with no debt and $36.7 million in cash. Operating cash flow was positive for the fourth consecutive quarter, boosted by a strategic asset sale of Richardson Healthcare, simplifying the business model.

Despite a one-time $4.9 million healthcare charge, Richardson Electronics achieved non-GAAP operating income of $2.2 million in Q3 FY25, up from $1.0 million last year. The sale of healthcare assets marked the start of a strategic shift towards high-growth markets like Green Energy Solutions, enhancing long-term competitiveness.

Net sales for Q3 FY25 reached $53.8 million, a 2.7% increase YoY, driven by growth in Power and Microwave Technologies and Canvys segments. However, Healthcare sales declined by 32.3% after the asset sale, while GES sales dropped 19.4%. Gross margin improved to 31.0% from 29.5% in Q3 FY24.

The Company’s backlog totaled $134.1 million at the end of Q3 FY25, with solid sales pipelines in place. Gross margin improvements were seen in GES and PMT segments, offset by a decline in Canvys due to product mix. Operating expenses were $14.5 million, slightly up from Q3 FY24.

A loss of $4.9 million was incurred due to the asset sale to DirectMed Imaging in Q3 FY25. Operating loss was $2.7 million, with non-GAAP operating income at $2.2 million. Other expenses, including interest income and foreign exchange, were $0.3 million. Net loss was $2.1 million, with non-GAAP net income at $1.6 million.

Richardson Electronics declared a $0.06 quarterly cash dividend per share and $0.054 per Class B common stock. The dividend will be paid on May 28, 2025. The Company will host a conference call on April 10, 2025, to discuss its Q3 FY25 results. Management believes non-GAAP financial measures provide useful insights into the Company’s financial performance.

For more information, visit Richardson Electronics’ website at www.rell.com. The Company’s common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL. Financial details and reconciliations between GAAP and non-GAAP measures are available in the full report.



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