NASDAQ$RELL

Richardson Electronics Ltd · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Richardson Electronics' first quarter results were impacted by weaker demand from semiconductor wafer fab customers and lower sales of power modules for existing wind turbines.

Richardson Electronics reported a decrease in net sales by 22.2% to $52.6 million compared to the previous year's first quarter, primarily due to reduced sales in the PMT, GES, Canvys, and Healthcare sectors. The company's operating income also decreased to $1.5 million from $8.8 million in the same quarter last year. Earnings per share (diluted) were $0.09, down from $0.45 in the first quarter of fiscal year 2023.

  • Net sales decreased by 22.2% year-over-year, totaling $52.6 million, due to lower sales in PMT, GES, Canvys and Healthcare.
  • Backlog totaled $148.1 million, down from $160.4 million at the end of the previous quarter.
  • Gross margin was 32.8%, a decrease from 34.1% in the prior year’s first quarter, driven primarily by a less profitable mix of sales.
  • Operating income decreased to $1.5 million, compared to $8.8 million for the first quarter of fiscal year 2023.

Headline financials

Total Revenue

$52.6M

Previous: $67.6M-22.2%
EPS (adj)

$0.09

Previous: $0.45-80.0%
Gross Margin

32.8%

No prior period
Free Cash Flow

$1.23M

Previous: $6.32M-80.6%
Net Income

$1.23M

Previous: $6.32M-80.6%
Operating Income

$1.47M

Previous: $8.78M-83.2%
Gross Profit

$17.3M

Previous: $23M-25.0%
Cash & Equivalents

$24.1M

Previous: $30.6M-21.2%
Total Assets

$196M

No prior period

Revenue & EPS history

Richardson Electronics · Revenue · Quarterly

$52.6M

Q1 2024-22.2%vs Q1 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Richardson Electronics · $50M total across 3 segments · Q1 2024

  • Power & Microwave Tech
    $35.7M-21.2%
  • Canvys
    $9.89M-5.0%
  • Green Energy Solutions
    $4.39M

Forward guidance

The company expects the semiconductor wafer fab market to remain difficult until the third quarter of calendar 2024 but anticipates improving sales trends within its GES business in the coming quarters. Focus is on controlling costs, operating expenses, improving operating cash flow through prudent working capital management, and investing in large, multi-year sales opportunities within the GES business.

Tailwinds

  • Expect improving sales trends within GES business in the coming quarters.
  • Confidence in GES business is reflected in the current pipeline of existing projects and new sales opportunities globally.
  • Opportunities include expected sales in the second half of this fiscal year for power management systems for wind turbines and electric locomotives applications.
  • Focused on controlling costs and operating expenses.
  • Improving operating cash flow through prudent working capital management.

Headwinds

  • Semiconductor wafer fab market expected to remain difficult until the third quarter of calendar 2024.
  • First quarter results were challenged primarily by weaker demand from semiconductor wafer fab customers.
  • Lower sales of power modules for existing wind turbines.
  • Near-term macro-economic environment remains uncertain.
  • Certain global markets need to improve and several large sales opportunities need to close.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.2%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+25.2%

Q1 2023

Best reaction

-19.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+21.6%+15.3%+30.8%
Q2 2026-11.8%+4.1%+10.2%
Q1 2026+11.0%+10.3%-1.9%
Q3 2025-17.1%-16.4%-9.2%
Q2 2025-13.5%-12.4%-11.9%
Q1 2025+0.7%+5.2%+17.3%
Q4 2024-0.9%+4.9%+4.8%
Q3 2024+15.1%+5.9%+11.1%
Q2 2024-19.9%-17.7%-22.4%
Q1 2024-5.8%-3.9%-2.0%
Q4 2023-14.2%-15.1%-26.3%
Q3 2023-15.9%-10.8%-27.7%
Q2 2023-15.0%+5.1%+14.1%
Q1 2023+25.2%+27.0%+53.1%
Q4 2022-6.2%+0.1%+6.2%
Q3 2022-5.1%-8.4%-2.2%
Q2 2022+9.5%+15.7%-7.9%
Q1 2022+17.4%+10.6%+18.4%
Q4 2021+4.2%-1.3%+0.4%
Q3 2021+6.7%+8.0%+6.9%
Q2 2021+20.9%+24.5%+29.1%
Q1 2021+7.3%+4.2%+2.8%
Q4 2020-2.6%-0.5%+5.9%
Q3 2020+12.5%+8.6%+12.7%
Q2 2020-4.7%-5.4%-15.5%
Q1 2020-0.5%+1.7%-2.9%
Q4 2019+0.0%-0.2%+0.2%
Q3 2019-5.6%-10.7%-13.1%
Q2 2019-7.7%-8.0%-11.2%
Q1 2019-7.2%-7.3%-14.8%
Q4 2018+1.2%+3.6%-4.3%
Q3 2018+3.7%+8.2%+15.4%
Q2 2018+14.2%+17.2%+11.1%
Q1 2018+13.6%+10.4%+6.4%
Q4 2017-2.2%-3.0%-5.5%
Q3 2017+4.1%+3.6%+6.8%
Q2 2017-1.3%-0.8%-3.0%
Q1 2017-6.6%-8.1%-11.7%
Q4 2016+4.7%+4.7%+16.1%
Q3 2016+1.9%
Q2 2016-2.3%
Q1 2016+3.5%
Q4 2015-8.4%
Q3 2015+1.1%
Q2 2015-0.9%
Q1 2015-1.1%
Q4 2014+2.0%
Q3 2014-5.4%
Q2 2014+0.3%
Q1 2014+3.0%
Q4 2013-1.3%
Q3 2013-0.9%
Q2 2013+0.3%
Q1 2013-2.1%
Q4 2012+0.2%
Q3 2012+1.9%
Q2 2012+0.7%
Q1 2012-2.7%
Q4 2011+0.2%
Q3 2011+1.6%
Q2 2010+0.1%
Q1 2010+1.5%
Q4 2010+5.0%
Q3 2009-0.3%

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