NASDAQ$RELL

Richardson Electronics Ltd · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Richardson Electronics' Q2 2024 results reflected challenging economic conditions and a decline in sales to semiconductor wafer fab customers, as well as project delays across the Company’s GES business.

Richardson Electronics reported a 33.0% decrease in net sales to $44.1 million for the second quarter of fiscal 2024, compared to $65.9 million in the prior year's second quarter. The company experienced an operating loss of $2.0 million, compared to an operating income of $7.2 million in the prior year's second quarter. Net loss for the quarter was $1.8 million, compared to a net income of $5.5 million in the same quarter last year.

  • Net sales decreased by 33.0% to $44.1 million compared to the prior year's second quarter.
  • Operating loss was $2.0 million, a significant downturn from the previous year's operating income of $7.2 million.
  • Net loss amounted to $1.8 million, contrasting with a net income of $5.5 million in the prior year's second quarter.
  • Backlog increased 2% over the past three months, indicating stabilizing demand.

Headline financials

Total Revenue

$44.1M

Previous: $65.9M-33.0%
EPS

-$0.13

Previous: $0.39-133.3%
Capital Expenditures

-$1.52M

No prior period
Free Cash Flow

-$1.8M

Previous: $5.55M-132.4%
Net Income

-$1.8M

Previous: $5.55M-132.4%
Operating Income

-$2.02M

Previous: $7.2M-128.0%
Gross Profit

$12.5M

Previous: $21.9M-42.6%

Revenue & EPS history

Richardson Electronics · Revenue · Quarterly

$44.1M

Q2 2024-33%vs Q2 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

Richardson Electronics anticipates improving sales trends within its GES business in the second half of fiscal 2024 to offset continued weakness in the semiconductor wafer fab market. The company is focused on controlling operating expenses, improving operating cash flow, and prudently managing working capital requirements amidst difficult economic conditions.

Tailwinds

  • Stabilization in backlog indicates stabilizing demand.
  • Improving sales trends are expected within the GES business in the second half of fiscal 2024.
  • Expansion of product roadmap for green energy solutions is adding new customers and programs.
  • Focus on controlling operating expenses.
  • Focus on improving operating cash flow.

Headwinds

  • Challenging economic conditions are expected to remain over the near term.
  • Second quarter results fell short of expectations.
  • Decline in sales to semiconductor wafer fab customers.
  • Project delays across the Company’s GES business.
  • Continued weakness is being experienced in the semiconductor wafer fab market.

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 Q2 2024

Historical avgQ2 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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