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Richardson Electronics Reports First Quarter Fiscal 2013 Results And Declares Cash Dividend

Richardson Electronics, Ltd. (NASDAQ: RELL) today reported sales and earnings for its first quarter ended September 1, 2012. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

Net sales for the first quarter of fiscal 2013 were $35.7 million, down 14.1% from net sales of $41.5 million during the first quarter of last year. Gross profit for the first quarter of fiscal 2013 was $10.6 million, or 29.9% of net sales, compared to $12.7 million, or 30.6% of net sales, during the first quarter of fiscal 2012. Operating income during the first quarter of fiscal 2013 was $0.5 million, or 1.4% of net sales, compared to operating income of $2.0 million, or 4.8% of net sales, during the first quarter of last year. Income from continuing operations for the first quarter of fiscal 2013 was $0.7 million, or $0.05 per diluted common share, compared to income from continuing operations of $1.0 million, or $0.06 per diluted common share during the first quarter of last year.

“Global economic conditions continued to weaken as we progressed through the first quarter contributing to the decline in our overall sales volume. However, backlog is improving within both our EDG and Canvys businesses. EDG continues to strengthen its service capabilities which will drive incremental end user sales of both laser and industrial tubes. In addition, we remain optimistic that healthcare reform and our continued focus on custom solutions for OEMs will provide new display opportunities for Canvys,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

“We believe our second quarter sales should be in the range of $36 to $38 million. We remain focused on building our business to achieve sustainable growth over the long term,” said Mr. Richardson.

FINANCIAL SUMMARY ─ THREE MONTHS ENDED SEPTEMBER 1, 2012

  • Net sales for the first quarter of fiscal 2013 were $35.7 million, down 14.1%, compared to net sales of $41.5 million during the first quarter of last year.
  • Gross margin as a percentage of net sales decreased to 29.9% during the first quarter of fiscal 2013 compared to 30.6% during the first quarter of last year.
  • SG&A expenses during the first quarter of fiscal 2013 were $10.1 million, or 28.5% of net sales, compared to $10.8 million, or 25.9% of net sales, during the first quarter of last year.
  • Operating income during the first quarter of fiscal 2013 was $0.5 million, or 1.4% of net sales, compared to operating income of $2.0 million, or 4.8% of net sales, during the first quarter of last year.
  • Income from continuing operations during the first quarter of fiscal 2013 was $0.7 million, or $0.05 per diluted common share, compared to income from continuing operations of $1.0 million, or $0.06 per diluted common share, during the first quarter of last year.
  • Loss from discontinued operations, net of tax, was $0.1 million, during the first quarter of fiscal 2013 compared to income from discontinued operations, net of tax, of $2.6 million, or $0.15 per diluted common share, during the first quarter of last year.
  • Net income during the first quarter of fiscal 2013 was $0.6 million, or $0.04 per diluted common share, compared to net income of $3.6 million, or $0.21 per diluted common share, during the first quarter of last year.

CASH USED FOR SHARE REPURCHASES

“Cash and investments at the end of our first quarter were $150.9 million. We used $5.6 million to repurchase 0.5 million shares during the first quarter. As of today, we have repurchased a total of 3.2 million shares for $40.1 million under our share repurchase authorization and currently have $34.9 million remaining. With our strong balance sheet, we are committed to returning value to our shareholders through a combination of cash dividends, share repurchases, and strategic acquisitions,” said Mr. Richardson.

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