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TheStreet Open House

Richardson Electronics Reports First Quarter Fiscal 2012 Results And Declares Cash Dividend

Stock quotes in this article: RELL

Richardson Electronics, Ltd. (NASDAQ: RELL) today reported sales and earnings for its first quarter ended September 3, 2011. The Company also announced that its Board of Directors declared a $0.05 quarterly cash dividend.

Q1 Sales Up 10.7%

Net sales for the first quarter of Fiscal 2012 were $41.5 million, up 10.7% from net sales of $37.5 million during the first quarter of last year. Gross profit for the first quarter of Fiscal 2012 was $12.7 million, compared to $11.4 million during the first quarter of Fiscal 2011. Operating expenses for the first quarter of Fiscal 2012 were $10.8 million, compared to $10.5 million during the first quarter of Fiscal 2011.

Operating income during the first quarter of fiscal 2012 was $2.0 million, or 4.8% of net sales, compared to operating income of $0.8 million, during the first quarter of last year.

Income from continuing operations for the first quarter of Fiscal 2012 was $1.0 million, or $.06 per diluted common share, compared to income from continuing operations of $0.5 million, or $.03 per diluted common share during the first quarter of last year.

“We have taken the appropriate actions to reduce our cost structure. We anticipate our sales volume will continue to grow throughout the balance of the year enabling us to better leverage our costs. Historically first quarter sales volume is the lowest quarter in our fiscal year and are pleased that we achieved a 4.8% operating margin. We expect our operating margin rate to improve as we progress through Fiscal 2012,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

FINANCIAL SUMMARY ─ FIRST QUARTER

  • Net sales for the first quarter of fiscal 2012 were $41.5 million, up 10.7%, compared to net sales of $37.5 million during the first quarter of last year.
  • Gross margin as a percentage of net sales increased to 30.6% during the first quarter of fiscal 2012 compared to 30.4% during the first quarter of last year.
  • SG&A expenses during the first quarter of fiscal 2012 were $10.8 million, 25.9% of sales, compared to $10.5 million, or 28.1% of net sales, during the first quarter of fiscal 2011.
  • Operating income during the first quarter of fiscal 2012 was $2.0 million, or 4.8% of net sales, compared to operating income of $0.8 million, during the first quarter of last year.
  • Income from continuing operations during the first quarter of fiscal 2012 was $1.0 million, compared to income from continuing operations of $0.5 million during the first quarter of last year.
  • Income from discontinued operations, net of tax, was $2.6 million, compared to $7.9 million during the first quarter of fiscal 2011.
  • Net income for the first quarter of fiscal 2012 was $3.6 million, or $0.21 per diluted common share, compared to net income of $8.4 million, or $0.47 per diluted common share, in the prior year’s first quarter.

CASH USED FOR SHARE REPURCHASES

“Total cash and investments at the end of the first quarter was $184.7 million, plus an additional $8.3 million in prepaid taxes. We used $7.7 million in cash to repurchase 577,297 shares during the first quarter of fiscal 2012, bringing our total number of shares repurchased to 1.4 million under our existing share repurchase authorization. With our strong balance sheet, we are committed to returning value to our shareholders through a combination of cash dividends, continued share repurchases and investments in our growth initiatives,” said Mr. Richardson.

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