Richardson Electronics (RELL) Misses Q2 EPS by 7c, Revenues Miss

Richardson Electronics (NASDAQ: RELL) reported Q2 EPS of ($0.05), $0.07 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $39.6 million versus the consensus estimate of $41 million.

• Net sales of $39.6 million were down 4.1% from last year’s second quarter, primarily from economic softness in the PMT power grid tube business and a slow ramp up in sales in the semiconductor wafer fab equipment business. In addition, Healthcare sales were down overall due to soft equipment sales in Latin America.
• These declines were partially offset by significantly increased sales for our PMG products. Also, Canvys sales increased by 20.9% and Healthcare CT tube sales were up by 11.9%.
• Gross margin increased to 32.0% of net sales versus 31.4% of net sales for the prior year’s second quarter.
• Operating expenses decreased $0.2 million to $13.2 million compared to prior year.
• Operating loss was $0.5 million, same as last year’s second quarter.
• Cash and investments were $46.1 million at November 30, 2019 versus $46.5 million at the end of the first quarter of this fiscal year.

“We are pleased to see growth resulting from the investments we are making in our healthcare, power and microwave technologies, and display businesses,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “We will continue to closely manage operating expenses and cash flow in line with revenue trends to ensure we maximize efficiency,” he concluded.

For earnings history and earnings-related data on Richardson Electronics (RELL) click here.

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