WEB NEWS Research
Richardson Electronics, Ltd. (NASDAQ:RELL) ($21.60, $305.4M market cap), a company that engages in the power and microwave technologies, announced Q3 2023 results:
Sales of $70.4 million vs. $55.3 million in the prior year vs. an estimate of 70.2 million
EPS of $0.44 vs $0.21 in the prior year vs. an estimate of $0.38
“We are extremely pleased with the strong financial performance resulting from capitalizing on new market opportunities and continued execution of our key growth initiatives. The third quarter of fiscal 2023 was the tenth consecutive quarter of year-over-year revenue growth and builds on our momentum for another strong financial performance in fiscal 2023. In addition, third quarter operating income increased 110% year-over-year, compared to sales growth of 27% as we benefit from significant operating leverage of fixed expenses,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “Beginning in fiscal 2023, we started reporting a new segment, Green Energy Solutions (“GES”). With the number of opportunities in our pipeline addressing alternative energy, electric vehicles and green manufacturing, we are well positioned for significant long-term growth in this segment.”
We will be on the conference call later this morning (10AM EST) to see if management offers any guidance for Q4 and/or the next fiscal year.
In late December, we removed RELL from all of our model portfolios due to the recession risk and the stock having already met our near-term targets. However, we stated we continue to believe the stock has the makings of a multibagger over the long run.
Research
Richardson Electronics, Ltd. (NASDAQ:RELL) ($20.63, $290.4M market cap), a company that engages in the power and microwave technologies, announced Q2 2023 results:
“We are extremely pleased with the strong financial performance we continue to achieve because of our success capitalizing on new market opportunities, and positive demand trends underway tied to our key growth initiatives. The second quarter of fiscal 2023 was the ninth consecutive quarter of quarter of year-over-year revenue growth and positions us for another strong year of operating and financial performance for fiscal 2023,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “In the first quarter of fiscal 2023, we began reporting a new segment, Green Energy Solutions (“GES”). With rapidly increasing sales from green energy products and customers and over $192 million in total Company backlog, we believe sales and profits will continue to significantly increase in fiscal 2023.”
In late December, we removed RELL from all our model portfolios due to the recession risk and the stock having already met our near term targets. However, we stated we continue to believe the stock has the makings of a multibagger over the long run. This was another strong quarter for the company despite financial results being down slightly sequentially.
Research
Richardson Electronics, Ltd. (NASDAQ:RELL) ($15.34, $212.7M market cap) , a company that engages in the power and microwave technologies, announced Q1 2023 results and increased backlog.
Q1 2023 sales of $67.6 million vs $53.7 million in the prior year and ahead of analyst estimates of $62.4 million
EPS of $0.45 vs $0.20 in the prior year and well ahead of analyst estimates of $0.24
“We are extremely pleased with the strong financial performance. The first quarter of fiscal 2023 was our ninth consecutive quarter of sequential revenue growth and is a great start to our new fiscal year. Investments in our growth initiatives continue to pay off as we focus on pursuing exciting market opportunities that we believe will drive long-term growth,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “Beginning with the first quarter of fiscal 2023, we are reporting a new segment, Green Energy Solutions (“GES”), reflecting the success of our growth strategies and our ability to provide engineered solutions for new markets. With increasing sales from green energy products and customers and over $199 million in total Company backlog, we believe sales and profits will continue to significantly increase in fiscal 2023.”
We will be on the conference call this morning at 10 AM EST to see if management offers any more details on guidance/outlook as we move through fiscal 2023. With trailing non-GAAP EPS of $1.27, the stock is trading at a meager P/E of 12.0 on trailing earrings.
Research
Richardson Electronics, Ltd. (NASDAQ:RELL) ($12.64, $181.8M market cap.) , a company that engages in the power and microwave technologies, customized display solutions, and healthcare businesses, announced Q2 0222 results:
Sales of $54.0 million vs $42.4 million in the prior year
EPS of $0.30 vs $0.05 in the prior year
“Our strong second quarter financial and operating performance is encouraging, as we produced our sixth consecutive quarter of increased revenues and our highest quarterly operating profit in 11 years,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “Our second quarter results reflect the success of our multiple growth strategies as well as strong performance of new products, including our new ULTRA3000. In addition, we are experiencing favorable demand trends across many of our global markets. I am also pleased by the significant improvement in profitability, which we believe demonstrates the power of our compelling financial model. With continued growth in our backlog, we remain confident that fiscal year 2022 will be a strong year of sales growth and improved profitability.”
Recall the company issued preliminary Q2 2022 revenues in early December 2021, but did not provide the strong EPS it just reported. We will be on the conference call this morning at 10AM Eastern to see if management conveys anything that would translate to information arbitrage opportunities.
RELL was the first selection in our new “FundiTrading” model portfolio in mid-October. Maj briefly discusses FundiTrading in our October open forum (51:24).
He also discussed the concept of the Portfolio in this PodClip .and why RELL was the first stock to be included in it.
Research
Richardson Electronics, Ltd. (NASDAQ:RELL) ($11.17; $148.9 M market cap) , a company that engages in the power and microwave technologies, customized display solutions, and healthcare businesses, announced preliminary Q2 2022 revenue guidance of $54 million, representing a 27% increase over the prior year. Backlog also increased from $126.5 million at the end of Q1 to $146.9 million in Q2.
“The strong start to fiscal 2022 is encouraging. In fact, we have experienced six consecutive quarters of sequential revenue growth demonstrating strengthening demand trends across most of our global markets, and the benefits of our growth initiatives,” said Edward J. Richardson, Richardson Electronics’ Chief Executive Officer. “During the second quarter, we began shipping our patented ULTRA3000® Pitch Energy Module (PEM), an ultracapacitor-based plug and play replacement for batteries within GE wind turbine pitch systems. Sales to our semiconductor wafer fabrication equipment customers and demand for our power grid and microwave tubes were also strong. In addition, Canvys had record quarterly sales during the fiscal 2022 second quarter and Richardson Healthcare sold more ALTA750 tubes than any prior quarter. We look forward to sharing our full financial results and providing an update on our outlook when we release second quarter results on January 5, 2022.”
RELL was the first selection in our new “FundiTrading” model portfolio in mid-October. Maj briefly discusses FundiTrading in our October open forum (51:24).
Comments & Business Outlook
FINANCIAL SUMMARY
Net sales for the first quarter of fiscal 2011 were $137.1 million , up 25.3% , compared to net sales of $109.5 million during the first quarter of last year.
Gross margin as a percentage of net sales decreased to 23.8% during the first quarter of fiscal 2011 compared to 24.2% during the first quarter of last year.
SG&A expenses during the first quarter of Fiscal 2011 were $23.3 million , or 17.0% of net sales , compared to $22.9 million , or 21.0% of net sales , during the first quarter of last year.
Operating income during the first quarter of fiscal 2011 was $9.3 million , or 6.8% of net sales , compared to $3.5 million , or 3.2% of net sales , for the first quarter last year.
Net income during the first quarter of fiscal 2011 was $8.4 million , or $0.47 per diluted common share, compared to net income of $1.9 million , or $0.11 per diluted common share , during the first quarter of last year.
OUTLOOK
On October 1, 2010, the Company announced the signing of a definitive agreement to sell its RF, Wireless and Power Division (“RFPD”) and certain other assets to Arrow Electronics, Inc. (NYSE: ARW) for $210 million in cash , subject to post-closing adjustments.
The transaction is subject to the approval of shareholders of Richardson Electronics, Ltd. as well as customary closing conditions and regulatory approvals. The companies expect the transaction to close in early January 2011.
“We continue to see growing demand in our business despite concern over the sustainability of the recovery. During the second quarter, RFPD will be reflected as a discontinued operation. As a result, we expect that sales for EDG and Canvys for the second quarter to be in the range of $35 to $40 million , representing more than 10 percent growth over prior year,” said Mr. Richardson.
