RICHARDSON ELECTRONICS REPORTS 16.9% REVENUE GROWTH AND A 56.6% INCREASE IN OPERATING INCOME FOR FISCAL 2023; DECLARES QUARTERLY CASH DIVIDEND

Green Energy Solutions net sales increase 61.7% over Q4 FY22 and 110.5% over Fiscal 2022

Fiscal 2023 Highlights

  • For fiscal 2023, net sales increased 16.9% to $262.7 million.
  • Operating income was $25.0 million for fiscal 2023, compared to $16.0 million for fiscal 2022.
  • An income tax expense of $2.7 million and Non-GAAP income tax expense* of $5.0 million for fiscal 2023. The income tax expense was reduced by a one-time $1.8 million reversal of the foreign tax credit valuation allowance and total R&D Tax Credits of $0.9 million for fiscal years 2020 through 2023, which included a one-time total of $0.6 million related to fiscal years 2020 through 2022.
  • Earnings per common share (diluted) were $1.55 and Non-GAAP earnings per common share (diluted)* were $1.39 for fiscal 2023 compared to earnings per common share (diluted) of $1.31 and Non-GAAP earnings per common share (diluted) of $1.02 for fiscal 2022.
  • Cash and investments were $25.0 million as of May 27, 2023, versus $24.6 million on February 25, 2023 and $40.5 million on May 28, 2022. The use of cash in fiscal 2023 was primarily due to higher working capital to support the Company’s growth initiatives.

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Richardson Electronics Announces Date of Fourth Quarter Fiscal Year 2023 Conference Call

LAFOX, Ill., July 12, 2023 (GLOBE NEWSWIRE) — Richardson Electronics, Ltd. (NASDAQ: RELL) plans to release its financial results for its fourth quarter ended May 27, 2023 after the close of business on Wednesday, July 19, 2023. The release will be distributed by GlobeNewswire and will be available on the Company’s website at www.rell.com.

On Thursday, July 20, 2023, at 9:00 a.m. Central Time, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s fourth quarter and fiscal year 2023 results. A question-and-answer session will be included as part of the call’s agenda.

Participant Instructions

Participants may register for the call here.  While not required, it is recommended you join 10 minutes prior to the event start.  A replay of the call will be available beginning at 1:00 p.m. Central Time on July 20, 2023, for seven days. Registration instructions are also on our website at www.rell.com.

In addition, the webcast link is available here.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. Nearly 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Richardson Electronics, Ltd. to Present at the TD Cowen Sustainability Week Investor Conference

LaFox, IL | June 5, 2023 – Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for the green energy, power management, custom display and healthcare markets, announced today that it will be presenting at the TD Cowen Sustainability Week Investor Conference. Edward J. Richardson, Chairman and CEO of Richardson Electronics, will be hosting a fireside chat on Friday, June 9 at 1:10 p.m. ET / 12:10 p.m. CT.

TD Cowen’s Sustainability Week assembles over 150 leading companies, policy makers, ESG- and sustainability-focused investors, and stakeholders in companies focused on sustainable industries for a week of company presentations, fireside chats and panels, prominent keynote speakers, and topical bootcamps.

Richardson Electronics will provide an overview on its growth initiatives including its green energy products for wind and solar, as well as other power management solutions for electric locomotives and electric vehicles and magnetrons used in synthetic diamond and hydrogen manufacturing.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. All of our partners manufacture to our strict specifications and per our supplier code of conduct. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets.  The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities.  The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics, Ltd. common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Forward-Looking Statements

This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission.  Statements in this press release regarding the Company’s business that are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 1, 2022, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events or otherwise.

Richardson Electronics’ Patented ULTRA3000® Selected by GE Vernova as the Exclusive Pitch Energy Module Available on their Expanded Product Marketplace

LaFox, IL, May 24, 2023 – Richardson Electronics, Ltd. (Nasdaq: RELL) announced today that its ULTRA3000® Pitch Energy Module (PEM) has been selected by GE Vernova to be featured on their recently launched online marketplace for onshore wind parts and essentials. GE’s marketplace specializes in onshore wind turbine parts, including parts for other OEM wind turbines. Richardson Electronics has worked with GE to make this product available to the owner/operators of GE wind turbines in North America.

The marketplace will feature key products for wind turbines from world-leading technology companies including Richardson Electronics’ ULTRA3000® and will be the go-to web site for GE wind turbine owner/operators. With more than 100,000 items available for purchase supporting both GE and other OEM onshore wind turbines, the store will enable wind farm owners to purchase all the spare parts and wind farm essentials they need in one simple transaction.

Richardson Electronics’ ULTRA3000® is a drop-in replacement for lead acid batteries used in electric pitch systems. With its true plug-and-play technology, owners can replace one battery at a time on an as needed basis or retrofit the entire pitch system. With over 37,000 PEMs installed, Richardson Electronics’ ULTRA3000® has become the GE owner/operators’ number one choice for ultracapacitor based pitch systems. With the increased reliability of ultracapacitors over lead acid batteries, owners can reduce nuisance battery faults and increase wind turbine availability.

“We are very excited about the new agreement with GE. We are enjoying huge success with the ULTRA3000® PEM and this agreement will nearly double our served available market in North America. We look forward to working with GE to bring this product and others to an expanded market. As we expand our portfolio of products designed to support wind turbine customers, we will work with GE as a partner,” said Greg Peloquin, Executive Vice President and General Manager Power Microwave and Green Energy Solutions Group.

GE Vernova announced at the CLEANPOWER Conference that it’s expanded Onshore Wind Online Shop also helps customers to improve cashflow, with flexible credit options, digital invoicing, and the ability to purchase from multiple suppliers all in one location with a single purchase order. To register and learn more, please visit: shop.gerenewableenergy.com.

The Richardson Electronics’ team will be exhibiting in booth (#813) at the CLEANPOWER Conference and Exhibition through May 25, at the Ernest N. Morial Convention Center in New Orleans, Louisiana. The Company’s patented ultracapacitor-based pitch energy module, the ULTRA3000®, will also be on display.

About Richardson Electronics – Green Energy Solutions

Richardson Electronics Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and electric vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing. For more information, visit our webpage.

About Richardson Electronics – Power & Microwave Technologies

For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world’s most innovative technology partners. Richardson Electronics’ Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at www.rellpower.com.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and adhere to our supplier terms and conditions.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Richardson Electronics Set To Join Russell 3000® Index

LaFox, IL, May 23, 2023:  Richardson Electronics, Ltd. (NASDAQ: RELL) is set to join the broad-market Russell 3000® Index at the conclusion of the 2023 Russell indexes 35th annual reconstitution, effective after the U.S. market opens on Monday, June 26, 2023, according to a preliminary list of additions posted May 19.

Ed Richardson, Chairman and Chief Executive Officer states, “Richardson Electronics’ inclusion in the 2023 Russell 3000® index reflects the success of our strategic plan and the commitment of our employees throughout the world.  Over the past 12 months, we have produced significant revenue and earnings growth as we capitalize on new market opportunities and execute against our key growth initiatives.  An important driver of our accomplishments is the progress we are making growing our Green Energy Solutions (“GES”) business to support an expanding list of alternative energy, electric vehicles, and green manufacturing customers.  The addition of Richardson Electronics into the Russell 3000® Index marks a significant milestone in our journey, and we remain committed to creating long-term value for our shareholders.”

Annual Russell indexes reconstitution captures the 4,000 largest U.S. stocks as of April 28, ranking them by total market capitalization. Membership in the U.S. all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000Ò Index or small-cap Russell 2000Ò Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $12.1 trillion in assets are benchmarked against Russell’s US indexes. Russell indexes are part of FTSE Russell, a leading global index provider.

For more information on the Russell 3000® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.

ABOUT RICHARDSON ELECTRONICS, LTD.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. All of our partners manufacture to our strict specifications and per our supplier code of conduct. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets.  The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities.  The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics, Ltd. common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

ABOUT FTSE RUSSELL

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $20.1 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com.

FORWARD-LOOKING STATEMENTS

This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission.  Statements in this press release regarding the Company’s business that are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 1, 2022, and other reports we file with the Securities and Exchange Commission.  The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events or otherwise.

Richardson Electronics, Ltd. Introduces New Patent Pending Hybrid Ultracapacitor UPS System for Wind Turbines and Other Power Management Systems

LaFox, IL | May 15, 2023 Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for renewable energy, is pleased to announce the new patent pending ULTRAUPS3000™ Hybrid Ultracapacitor Uninterrupted Power Supply (UPS) for wind turbine control systems and other industrial applications where reliable low voltage ride through and safe shut down are safety critical. This is the latest patent pending product adding to the Company’s growing portfolio of engineered solutions.

The ULTRAUPS3000™ reflects the ingenuity and evolution of its market-leading solutions. The ULTRAUPS3000™ is designed for operation in harsh environments unlike other energy storage solutions such as lead acid or lithium-based UPS systems. With the wider operating temperature of Richardson Electronics hybrid ultracapacitor solution, the product will help solve issues related to the short life of other technologies.

Greg Peloquin, Executive Vice President, and General Manager of Power Microwave and Green Energy Solutions Group stated, “This is another major achievement from our team in our ever-increasing portfolio of power management products.  The potential of the ULTRAUPS3000™   meeting the needs of our customers in the wind turbine industry and many other industries is exponential. This patent reinforces our commitment to innovation and engineered solutions.”

The new ULTRAUPS3000™ will be on display in the Richardson Electronics’ booth (#813) at the CLEANPOWER Conference and Exhibition on May 22 – 25, at the Ernest N. Morial Convention Center in New Orleans, Louisiana. The Company’s patented ultracapacitor-based pitch energy module, the ULTRA3000®, will also be on display.

About Richardson Electronics – Green Energy Solutions

Richardson Electronics Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and electric vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing. For more information, visit our webpage.

About Richardson Electronics – Power & Microwave Technologies

For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world’s most innovative technology partners. Richardson Electronics’ Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at www.rellpower.com.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Richardson Electronics, Ltd. Announces New ULTRAPEM™ Series of Pitch Energy Modules for Wind Turbines

LaFox, IL, May 3, 2023– Richardson Electronics, Ltd. (NASDAQ: RELL) announces its new ULTRAPEM™ line, a series of ultracapacitor-based modules that replace lead acid batteries within various OEM wind turbine platforms utilizing electric pitch systems. These new products add to the Company’s portfolio of patented energy storage solutions and capitalize on growth opportunities within the Green Energy Solutions business segment.

The new ultracapacitor-based energy storage series consists of pitch energy modules that operate at greater voltage than 100 VDC. These plug-and-play modules are easy to install, increase uptime of wind turbines, and reduce labor costs. Features of the ULTRAPEM series include:

  • Estimated lifetime of 15+ Years
  • Drop-in replacement for batteries for pitch systems up to 500 VDC
  • Wide operating temperature from -40°C to 65°C
  • No hazardous chemicals

“The introduction of the ULTRAPEM series expands our wind turbine product range and customer base. It’s exciting to see our team continue to listen to our customers and deliver engineered solutions that have a major impact on applications within the power management and green energy solutions markets, ” said Greg Peloquin, Executive Vice President of Richardson Electronics’ Power & Microwave Technologies, and Green Energy Solutions group.

The new ULTRAPEM series will be on display in the Richardson Electronics’ booth (#813) at the CLEANPOWER Conference and Exhibition on May 22 – 25, at the Ernest N. Morial Convention Center in New Orleans, Louisiana. The company’s patented ultracapacitor-based pitch energy module, the ULTRA3000®, will also be on display.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

About Richardson Electronics – Green Energy Solutions

Richardson Electronics Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and electric vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing. For more information, visit our Green Energy Solutions page.

About Richardson Electronics – Power & Microwave Technologies

For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. With the launch of the Power & Microwave Technologies group, we continue this legacy and complement it with new products from the world’s most innovative technology partners. Richardson Electronics’ Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at www.rellpower.com.

Richardson Electronics Reports 10th Consecutive Quarter Of Year-Over-Year Revenue Growth For The Third Quarter Fiscal 2023; Declares Quarterly Cash Dividend

Green Energy Solutions sales increase 103% over Q3 FY22; total net sales increase 27.2%

Third Quarter Highlights

  • Net sales of $70.4 million were up 27.2% from last year’s third quarter driven by increases in Power and Microwave Technologies (“PMT”), Green Energy Solutions (“GES”) and Canvys business units.
  • Backlog totaled $175.1 million in the third quarter versus $175.6 million at the end of the third quarter of last fiscal year.
  • Gross margin was 31.8% of net sales for the third quarter of fiscal 2023, the same as in the prior year’s third quarter.
  • Operating income was $7.6 million in the third quarter of fiscal 2023 compared to $3.6 million for the third quarter of fiscal 2022.
  • Income tax expense was $1.7 million for the third quarter of fiscal 2023, or 20.7% versus $0.6 million in the prior year’s third quarter due to the use of federal NOLs in fiscal 2022.
  • Earnings per common share (diluted) were $0.44 for the third quarter of fiscal 2023 compared to $0.21 per common share (diluted) in the third quarter of fiscal 2022.
  • Cash and investments were $24.6 million as of February 25, 2023, compared to $40.5 million as of May 28, 2022. The use of cash was related to higher working capital to support sales growth.

LaFox, IL, APRIL 5, 2023:  Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its third quarter ended February 25, 2023.  The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

“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.”

Third Quarter Results

Net sales for the third quarter of fiscal 2023 increased 27.2% to $70.4 million compared to net sales of $55.3 million in the prior year’s third quarter due to higher net sales in PMT, GES and Canvys, partially offset by lower sales for Healthcare. PMT sales increased $8.5 million or 22% from last year’s third quarter. Sales of manufactured products for our semiconductor wafer fabrication equipment customers and distributed products for RF and Microwave applications increased from the third quarter of fiscal 2022. Net sales for GES increased $5.8 million or 103% from last year’s third quarter. GES combines our key technology partners and engineered solutions capabilities, to design and manufacture products for the fast-growing green energy market and power management applications. Canvys sales increased by $1.5 million or 19% primarily due to strong customer demand in North America. Richardson Healthcare sales decreased $0.7 million or 23.9% due to a decrease in parts sales as well as CT tubes sold in China, partially offset by an increase in equipment sales.

Gross margin was 31.8% of net sales during the third quarter of fiscal 2023, the same as during the third quarter of fiscal 2022. PMT margin increased to 32.9% from 31.8% primarily due to product mix.  Healthcare gross margin increased to 39.8% in the third quarter of fiscal 2023 compared to 25.1% in the prior year’s third quarter due to improved manufacturing absorption and decreased component scrap expense. GES margin decreased to 25.7% from 34.6% primarily due to product mix. Canvys margin as a percent of net sales decreased slightly to 32.0% from 32.2% because of product mix and foreign exchange effects.

Operating expenses were $14.8 million compared to $13.9 million in the third quarter of fiscal 2022. The increase in operating expenses resulted from higher employee compensation expenses, including incentive expense from significantly higher operating income, and higher travel expenses. Operating expenses as a percentage of net sales decreased to 21.0% during the third quarter of fiscal 2023 compared to 25.2% during the third quarter of fiscal 2022 as the Company benefited from higher sales and controlled operating expenses.

The Company reported operating income of $7.6 million for the third quarter of fiscal 2023 compared to operating income of $3.6 million in the prior year’s third quarter. Other income for the third quarter of fiscal 2023, including interest income and foreign exchange, was $0.4 million, compared to other expense of $0.1 million in the third quarter of fiscal 2022.

Income tax expense was $1.7 million for the third quarter of fiscal 2023 or 20.7% versus $0.6 million in the prior year’s third quarter due to the use of federal NOLs in fiscal 2022.

Net income for the third quarter of fiscal 2023 was $6.3 million compared to net income of $2.9 million in the third quarter of fiscal 2022. Earnings per common share (diluted) were $0.44 in the third quarter of fiscal 2023 compared to $0.21 per common share (diluted) in the third quarter of fiscal 2022.

Cash and investments at the end of the third quarter of fiscal 2023 were $24.6 million compared to $40.5 million at the end of fiscal 2022. The Company continues to use cash to support the working capital requirements associated with the significant sales growth over the past ten quarters. The Company invested $2.2 million during the quarter on capital expenditures primarily related to its manufacturing business, facilities, and Healthcare business, versus $0.6 million during the third quarter of fiscal 2022. Subsequent to the end of the third quarter of fiscal 2023, the Company entered into a three-year, $30 million revolving line of credit with PNC Bank for additional liquidity as necessary.

FINANCIAL SUMMARY – NINE MONTHS ENDED FEBRUARY 25, 2023

  • Net sales for the first nine months of fiscal 2023 were $203.8 million, an increase of 25.1%, compared to net sales of $163.0 million during the first nine months of fiscal 2022. Sales increased by $17.1 million or 14.8% for PMT, $19.1 million or 145.7% for GES, $4.5 million or 17.3% for Canvys and $0.1 million or 1.6% for Richardson Healthcare.
  • Gross profit increased to $67.3 million during the first nine months of fiscal 2023, compared to $51.5 million during the first nine months of fiscal 2022. As a percentage of net sales, gross margin increased to 33.0% of net sales during the first nine months of fiscal 2023, compared to 31.6% of net sales during the first nine months of fiscal 2022, primarily because of a favorable product mix in PMT and decreased component scrap expense and improved manufacturing absorption in Healthcare. These increases were partially offset by an unfavorable product mix and foreign currency effects in Canvys and unfavorable product mix for GES.
  • Operating expenses increased to $43.7 million for the first nine months of fiscal 2023, compared to $40.6 million for the first nine months of fiscal 2022. The increase in operating expenses resulted from higher employee compensation and travel expenses.
  • Operating income during the first nine months of fiscal 2023 was $23.6 million, compared to an operating income of $11.0 million during the first nine months of fiscal 2022.
  • Other expense for the first nine months of fiscal 2023, including interest income and foreign exchange, was $0.1 million, as compared to other expense of less than $0.1 million in the first nine months of fiscal 2022.
  • The income tax provision was $5.3 million during the first nine months of fiscal 2023 or 22.5% versus $1.3 million in the prior year’s first nine months due to the use of federal NOLs in fiscal 2022.
  • Net income for the first nine months of fiscal 2023 was $18.2 million, versus $9.6 million during the first nine months of fiscal 2022. Earnings per common share (diluted) were $1.27 for the first nine months of fiscal 2023 compared to $0.71 per common share (diluted) for the first nine months of fiscal 2022.

CASH DIVIDEND DECLARED

The Board of Directors of Richardson Electronics declared a $0.06 quarterly cash dividend per share to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock. The dividend will be payable on May 24, 2023, to common stockholders of record as of May 5, 2023.

CONFERENCE CALL INFORMATION

On Thursday, April 6, 2023, at 9:00 a.m. Central Time, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s third quarter fiscal 2023 results.  A question-and-answer session will be included as part of the call’s agenda.

Participant Instructions

Participants may register for the call here.  While not required, it is recommended you join 10 minutes prior to the event start.  A replay of the call will be available beginning at 1:00 p.m. Central Time on April 6, 2023, for seven days. Registration instructions are also on our website at www.rell.com.

In addition, the webcast link is available here.

FORWARD-LOOKING STATEMENTS

This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission.  Statements in this press release regarding the Company’s business that are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 1, 2022, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events or otherwise.

ABOUT RICHARDSON ELECTRONICS, LTD.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

VINATech Joins Richardson Electronics, Ltd. Portfolio of Technology Partners

Adding Increased Capabilities to their Power Management and Green Energy Solutions Portfolio of Products

LaFox, IL – March 30, 2023 – Richardson Electronics, Ltd. (NASDAQ: RELL) announced today a technology partnership agreement with VINATech. VINATech products enhance the Company’s current technology offerings and expand the product range, driving growth opportunities within the Power Management and Green Energy Solutions business segments.

Established in 1999, VINATech designs and manufactures energy storage ultracapacitors as well as hybrid lithium capacitors. These ultracapacitors are excellent for numerous applications including smart-grids, solar power, automatic meter reading (AMR), automotive, UPS, solid state drives, medical, automated guidance vehicles, and lighting. VINATech is UL, IATF 16949: 2016, and ISO-14001 certified.

VINATech has four types of ultracapacitors:

  • Hy-Cap Neo Ultracapacitors Available in 2.7V and 3.0V, these capacitors are designed for extreme environments and are ideal for automotive vehicles, communication equipment, IoT, and industrial equipment.
  • Hy-Cap Ultracapacitor Modules Highly customizable modules that can be optimized including capacitance, voltage, current, size, enclosure protection level, terminal type, and balancing circuits. Available as a PCB assembly.
  • Hy-Cap Ultracapacitor 2 Series Modules Come in two rated voltages, 6.0V and 5.4V, and are ideal for smart meters or black box products.
  • Hybrid Capacitors Available in a higher voltage and lower self-discharge. These capacitors are 3.8V with an ultra-low leakage current.

VINATech’s ultracapacitor products are a welcome addition to our Power Management and Green Energy Solutions portfolio,” said Greg Peloquin, Executive Vice President of Richardson Electronics’ Power & Microwave Technologies and Green Energy Solutions groups. “As a world leader in capacitor design, VINATech’s devices have low ESR and high current capabilities and are available in medium cell and radial cell types. We look to VINATech to be a key technology partner for our engineered solutions and component designs.”

“We are beyond thrilled for this partnership between VINATech and Richardson Electronics. Pairing our ultracapacitor and lithium capacitor technologies with their top tier sales and marketing capabilities will provide greater support to our customers worldwide,” said Do Kyung Sung, President & CEO of VINATech.

About Richardson Electronics – Green Energy Solutions

Richardson Electronics Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and electric vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing. For more information, visit us at: www.rell.com/green-energy-solutions

About Richardson Electronics – Power & Microwave Technologies

For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world’s most innovative technology partners. Richardson Electronics’ Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at www.rellpower.com.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

About VINATech

VINATech established in 1999 has developed and produced Ultracapacitor and Fuel Cell Membrane Electrode Assembly and is equipped with smart factory-based production facilities with the highest level of automation in order to ensure the highest quality level.

Richardson Electronics Announces Date of Third Quarter Fiscal Year 2023 Conference Call

LAFOX, Ill., March 29, 2023 (GLOBE NEWSWIRE) — Richardson Electronics, Ltd. (NASDAQ: RELL) plans to release its financial results for its third quarter ended February 25, 2023 after the close of business on Wednesday, April 5, 2023. The release will be distributed by GlobeNewswire and will be available on the Company’s website at www.rell.com.

On Thursday, April 6, 2023, at 9:00 a.m. Central Time, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s third quarter fiscal year 2023 results. A question-and-answer session will be included as part of the call’s agenda.

Participant Instructions

Participants may register for the call here.  While not required, it is recommended you join 10 minutes prior to the event start.  A replay of the call will be available beginning at 1:00 p.m. Central Time on April 6, 2023, for seven days. Registration instructions are also on our website at www.rell.com.

In addition, the webcast link is available here.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world.  All our partners manufacture to our strict specifications and per our supplier code of conduct.  We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.