The earnings call reflects a strong performance in Green Energy Solutions and overall sales growth, with improved cash flow and operating metrics. However, challenges remain in healthcare and Canvys segments, resulting in a net loss for the quarter.

Company Guidance

During the second quarter of fiscal year 2025, Richardson Electronics reported significant progress in its multiyear growth strategy, with consolidated net sales increasing by 12.1% to $49.5 million, up from $44.1 million in the previous year. This growth was driven by a 129% increase in sales for the Green Energy Solutions business and a 9.9% increase in the Power & Microwave Technologies Group (PMT) sales, primarily due to higher sales to semiconductor wafer fab customers. However, this was partially offset by a 6.0% decrease in cannabis sales and a 22.8% decline in healthcare sales. The company's gross margin improved to 31% from 28.4%, with operating expenses as a percentage of net sales improving to 32.3% from 32.8%. The operating loss for the quarter was reduced to $0.7 million compared to $2.0 million in the prior year, while the net loss decreased to $0.8 million from $1.8 million. Additionally, EBITDA was approximately breakeven, compared to negative $1.2 million in the previous year. The company ended the quarter with cash and cash equivalents of $26.6 million, and free cash flow for the quarter was $4.9 million.

Significant Growth in Green Energy Solutions

Green Energy Solutions sales grew by 129% to $5.9 million, with strong bookings and increased backlog by over 16% in Q2.

Overall Sales Increase

Consolidated net sales for the second quarter of fiscal 2025 increased by 12.1% to $49.5 million compared to $44.1 million in the prior year second quarter.

Improvement in Gross Margin

Consolidated gross margin for the second quarter was 31% of net sales compared to 28.4% during the second quarter of fiscal 2024.

Positive Operating Cash Flow

Operating cash flow was $5.5 million compared to $0.8 million in the prior year second quarter, marking the third consecutive quarter of positive operating cash flow.

Strong Backlog in PMT and GES

Combined GES and PMT backlog increased to over $101 million in Q2.

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Richardson Electronics (RELL) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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RELL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 25, 2018	2018 (Q4)	- / 0.14	-0.01	1500.00% (+0.15)	―	―
Oct 10, 2018	2019 (Q1)	- / 0.03	-0.01	400.00% (+0.04)	―	―
Jan 09, 2019	2019 (Q2)	- / -0.02	0.01	-300.00% (-0.03)	―	―
Apr 09, 2019	2019 (Q3)	- / -0.08	0.04	-300.00% (-0.12)	―	―
Jul 24, 2019	2019 (Q4)	- / -0.50	0.14	-457.14% (-0.64)	―	―
Oct 09, 2019	2020 (Q1)	- / 0.01	0.03	-66.67% (-0.02)	―	―
Jan 08, 2020	2020 (Q2)	- / -0.05	-0.02	-150.00% (-0.03)	―	―
Apr 08, 2020	2020 (Q3)	- / -0.01	-0.08	87.50% (+0.07)	―	―
Jul 22, 2020	2020 (Q4)	- / -0.10	-0.5	80.00% (+0.40)	―	―
Oct 07, 2020	2021 (Q1)	- / -0.09	0.01	-1000.00% (-0.10)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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RELL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 07, 2025	$14.74	$12.86	-12.75%
Oct 09, 2024	$12.86	$12.53	-2.57%
Jul 24, 2024	$11.02	$11.29	+2.45%
Apr 10, 2024	$9.21	$10.60	+15.09%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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