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

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

Net sales for the second quarter of Fiscal 2012 were $39.1 million, down 4.5% from net sales of $41.0 million during the second quarter of last year. Gross profit for the second quarter of Fiscal 2012 was $11.7 million, or 29.9% of net sales, compared to $11.8 million, or 28.8% of net sales, during the second quarter of Fiscal 2011. SG&A expenses for the second quarter of Fiscal 2012 were $10.0 million, or 25.5% of net sales, compared to $11.2 million, or 27.3% of net sales, during the second quarter of Fiscal 2011.

Operating income during the second quarter of fiscal 2012 was $1.7 million, or 4.4% of net sales, compared to operating income of $0.6 million, or 1.5% of net sales, during the second quarter of last year.

Income from continuing operations for the second quarter of Fiscal 2012 was $1.6 million, or $0.09 per diluted common share, compared to income from continuing operations of $0.2 million, or $0.01 per diluted common share during the second quarter of last year.

“While our second quarter sales volume fell short of our expectations, we were pleased that we were able to achieve a 4.4% operating margin. With higher sales expected in the second half of our fiscal year, combined with our fixed cost structure, we anticipate that our operating margin percentage will improve accordingly,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

FINANCIAL SUMMARY ─ THREE MONTHS ENDED DECEMBER 3, 2011

  • Net sales for the second quarter of fiscal 2012 were $39.1 million, down 4.5%, compared to net sales of $41.0 million during the second quarter of last year.
  • Gross margin as a percentage of net sales increased to 29.9% during the second quarter of fiscal 2012 compared to 28.8% during the second quarter of last year.
  • SG&A expenses during the second quarter of fiscal 2012 were $10.0 million, or 25.5% of net sales, compared to $11.2 million, or 27.3% of net sales, during the second quarter of last year.
  • Operating income during the second quarter of fiscal 2012 was $1.7 million, or 4.4% of net sales, compared to operating income of $0.6 million, or 1.5% of net sales, during the second quarter of last year.
  • Income from continuing operations during the second quarter of fiscal 2012 was $1.6 million, compared to income from continuing operations of $0.2 million during the second quarter of last year.
  • Loss from discontinued operations, net of tax, was $0.8 million during the second quarter of fiscal 2012 compared to income from discontinued operations, net of tax, of $7.3 million during the second quarter of last year.
  • Net income during the second quarter of fiscal 2012 was $0.8 million, or $0.04 per diluted common share, compared to net income of $7.5 million, or $0.41 per diluted common share, during the second quarter of last year.

FINANCIAL SUMMARY ─ SIX MONTHS ENDED DECEMBER 3, 2011

  • Net sales for the first six months of fiscal 2012 were $80.6 million, up 2.8%, compared to net sales of $78.5 million during the first six months of last year.
  • Gross margin as a percentage of net sales increased to 30.2% during the first six months of fiscal 2012, compared to 29.5% during the first six months of last year.
  • SG&A expenses during the first six months of fiscal 2012 were $20.7 million, or 25.7% of net sales, compared to $21.7 million, or 27.7% of net sales, during the first six months of last year.
  • Operating income during the first six months of fiscal 2012 was $3.7 million, or 4.6% of net sales, compared to operating income of $1.4 million, or 1.8% of net sales, during the first six months of last year.
  • Income from continuing operations during the first six months of fiscal 2012 was $2.7 million, compared to income from continuing operations of $0.6 million during the first six months of last year.
  • Income from discontinued operations, net of tax, was $1.8 million, during the first six months of fiscal 2012, compared to $15.2 million during the first six months of last year.
  • Net income during the first six months of fiscal 2012 was $4.5 million, or $0.25 per diluted common share, compared to net income of $15.8 million, or $0.87 per diluted common share, during the first six months of last year.

CASH USED FOR SHARE REPURCHASES

“Total cash and investments at the end of the second quarter was $176.7 million. We used $4.2 million in cash to repurchase 311,786 shares during the second quarter of fiscal 2012, bringing our total number of shares repurchased to 1.5 million using $20.6 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. Our Board will continue to evaluate the alternatives and appropriate timing in light of the current economic environment,” said Mr. Richardson.

Stock quotes in this article: RELL 

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