Richardson Electronics Reports Fourth Quarter Results; Declares Quarterly Cash Dividend

Q4 FY25 net sales increased YoY for the 4th consecutive quarter; non-GAAP operating income* at $0.8 million

FY25 annual net sales grew 6.3% YoY, led by a 23.6% increase in Green Energy Solutions

Ended Q4 FY25 with positive operating cash flow for the 5th consecutive quarter

LAFOX, Ill., July 23, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL) today reported financial results for its fourth quarter and fiscal year ended May 31, 2025. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

"Fiscal 2025 was a year of strategic transition and execution," said Edward J. Richardson, Chairman, CEO, and President. "We ended the year with a stronger and more focused platform. Fourth quarter net sales increased 9.5% despite selling the majority of Richardson Healthcare's assets in January 2025. Gross margin expanded year-over-year and sequentially, and we generated positive operating cash flow for the fifth consecutive quarter. We also ended the year with a stable backlog, giving us confidence as we look at the new fiscal year. Our performance throughout fiscal 2025 is a testament to the hard work and commitment of our team."

"While macroeconomic conditions remain dynamic, our focus remains on driving growth by expanding our value-added engineered solutions, scaling our GES business, and identifying opportunities that expand sales and profitability. With a strong balance sheet, deepening and expanding customer and partner relationships, and a highly capable team, we are well positioned to drive sustainable growth," concluded Mr. Richardson.

Fourth Quarter Results

Net sales for the fourth quarter of fiscal 2025 were $51.9 million, a 9.5% increase from $47.4 million in the prior year's fourth quarter.

 Year-over-year net sales growth was due to higher sales in the Company's three continuing business segments. Sales for the Power and Microwave Technologies Group (PMT) increased $5.4 million, or 17.8% from the fourth quarter of fiscal 2024 as a result of higher demand from the Company's semiconductor wafer fab customers and distributed products for RF and Microwave applications. GES sales increased $0.7 million, or 14.1%, driven by higher sales of wind turbine battery modules. Canvys sales increased $0.8 million, or 9.1%, reflecting improved market conditions in Europe. The Company sold the majority of its Healthcare assets in January 2025, which reduced fourth quarter sales by $2.4 million compared to the prior year's fourth quarter.

 Backlog totaled $134.2 million at the end of the fourth quarter of fiscal 2025 versus $134.1 million at the end of the third quarter of fiscal 2025. GES backlog increased, partially offset by lower backlog at Canvys and the impact of the January 2025 Healthcare asset sale. The Company's sales pipeline remains solid; however, the timing of new orders can vary.

 Gross margin for the fourth quarter was 31.6% of net sales compared to 31.1% during the fourth quarter of fiscal 2024. PMT posted an increase in gross margin to 32.5%, compared to 31.1%, as a result of a favorable product mix. GES gross margin increased to 31.6% from 25.5% also due to product mix. Canvys gross margin decreased to 32.1% from 33.5% primarily due to product mix and higher freight costs. Richardson Healthcare's gross margin declined to -3.4% from 32.5%, as a result of product mix.

Operating expenses were $15.6 million, compared to $14.8 million in the fourth quarter of fiscal 2024. The increase in operating expenses resulted from higher employee compensation expenses, partially offset by lower R&D expenses.

Loss on disposal of assets of $0.2 million resulted from a closing adjustment from the sale of the majority of Healthcare assets to DirectMed Imaging on January 24, 2025.

Operating income was $0.6 million and non-GAAP operating income* was $0.8 million for the fourth quarter of fiscal 2025, compared to an operating loss of $0.1 million in the prior year's fourth quarter. Other income for the fourth quarter of fiscal 2025, including interest income and foreign exchange, was $1.3 million, compared to other expense of less than $0.1 million in the fourth quarter of fiscal 2024.

Income tax provision was $0.9 million and non-GAAP income tax provision* was $0.3 million for the fourth quarter of fiscal 2025, versus an income tax benefit of less than $0.1 million and non-GAAP income tax benefit* of $0.4 million in the prior year's fourth quarter.

Net income was $1.1 million and non-GAAP net income* was $1.8 million for the fourth quarter of fiscal 2025, compared to a net loss of $0.1 million and non-GAAP net income* of $0.3 million in the fourth quarter of fiscal 2024. Earnings per common share (diluted) were $0.08 and non-GAAP earnings per common share (diluted)* were $0.12 in the fourth quarter of fiscal 2025, compared to loss per common share (diluted) of $0.01 and non-GAAP earnings per common share (diluted)* of $0.02 in the fourth quarter of fiscal 2024.

EBITDA* for the fourth quarter of fiscal 2025 was $2.9 million. EBITDA* after excluding the additional loss on the sale of the majority of Healthcare assets (Adjusted EBITDA*) was $3.1 million, versus $1.0 million in the prior year's fourth quarter.

The Company maintained its solid financial position and had cash and cash equivalents of $35.9 million as of May 31, 2025, versus $36.7 million as of March 1, 2025. Cash used during the fourth quarter of fiscal 2025 primarily related to the payment of dividends. The Company invested $0.8 million during the quarter in capital expenditures primarily related to its manufacturing business, facilities improvements, and IT systems, versus $1.0 million during last year's fourth quarter.

Fiscal Year Ended May 31, 2025

Net sales for fiscal 2025 were $208.9 million, an increase of 6.3%, compared to net sales of $196.5 million during fiscal 2024. Sales increased by $9.1 million, or 7.0% for PMT, $5.5 million, or 23.6% for GES, and $0.7 million or 2.2% for Canvys, partially offset by a decrease of $2.8 million, or 23.1% for Healthcare.

Gross profit increased to $64.8 million during fiscal 2025, compared to $60.0 million during fiscal 2024. As a percentage of net sales, gross margin was 31.0% of net sales during 2025, compared to 30.5% during fiscal 2024 primarily due to product mix.

Operating expenses increased to $62.2 million for fiscal 2025, compared to $59.5 million for fiscal 2024. The increase in operating expenses resulted from higher employee compensation expenses, partially offset by lower R&D expenses.

Loss on disposal of assets of $5.1 million resulted from the sale of the majority of Healthcare assets to DirectMed Imaging on January 24, 2025.

Operating loss was $2.5 million and non-GAAP operating income* was $2.6 million during fiscal 2025, compared to operating income of $0.3 million during fiscal 2024.

Other income for fiscal 2025, including interest income and foreign exchange, was $0.9 million, compared to other expense of $0.2 million in fiscal 2024.

The income tax benefit was $0.4 million and the non-GAAP income tax provision* was $0.3 million for fiscal 2025 compared to an income tax provision of $0.1 million and a non-GAAP income tax benefit* of $0.3 million during fiscal 2024.

Net loss was $1.1 million and non-GAAP net income* was $3.2 million for fiscal 2025, versus a net income of $0.1 million and a non-GAAP net income* of $0.5 million during fiscal 2024. Net loss per common share (diluted) was $0.08 and non-GAAP earnings per common share (diluted)* was $0.22 for fiscal 2025 compared to $0.00 earnings per common share (diluted) and non-GAAP earnings per common share (diluted)* of $0.03 for fiscal 2024.

EBITDA* for fiscal 2025 was $2.5 million. EBITDA* after adjusting to exclude the loss on the sale of Healthcare assets (Adjusted EBITDA*) was $7.5 million, versus $4.5 million in the prior fiscal year.

* Please refer to Unaudited Reconciliation between GAAP and non-GAAP Financial Measures below for a reconciliation of non-GAAP items to the comparable GAAP measures.

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 August 27, 2025, to common stockholders of record as of August 8, 2025.

NON-GAAP FINANCIAL MEASURES

In addition to financial measures ("GAAP financial measures") prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we have included financial measures in this press release that are not defined by or calculated in accordance with GAAP (collectively, "non-GAAP financial measures").  For each of the non-GAAP financial measures referenced in this release, we are providing below a reconciliation of differences between the non-GAAP financial measure and the most directly comparable GAAP financial measure. We also provide an explanation of why the Company believes these non-GAAP financial measures provide useful information to investors, and any additional material purposes for which our management or Board of Directors use these non-GAAP financial measures.

Non-GAAP Operating Income: Non-GAAP operating income is GAAP operating income (loss), adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business. The following table represents the Company's calculation of non-GAAP Operating Income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

 

Operating income (loss) reconciliation

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

631

 

$

(114

)

 

 

$

(2,463

)

 

$

348

 

Loss on disposal of healthcare assets and other charges

 

 

158

 

 

—

 

 

 

 

5,074

 

 

 

—

 

Non-GAAP operating income (loss)

 

$

789

 

$

(114

)

 

 

$

2,611

 

 

$

348

 

Non-GAAP Income Before Taxes: Non-GAAP Income Before Taxes is income before taxes, adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business. The following table represents the Company's calculation of non-GAAP Income Before Taxes for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

 

Income (loss) before income taxes reconciliation

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

1,964

 

$

(139

)

 

 

$

(1,531

)

 

$

157

 

Loss on disposal of healthcare assets and other charges

 

 

158

 

 

—

 

 

 

 

5,074

 

 

 

—

 

Non-GAAP income (loss) before taxes

 

$

2,122

 

$

(139

)

 

 

$

3,543

 

 

$

157

 

Non-GAAP Income Tax Benefit or Expense: Non-GAAP Income Tax Benefit or Expense is income tax (benefit) provision, adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business and to exclude a state tax valuation allowance adjustment. The following table represents the Company's calculation of non-GAAP Income Tax (Benefit) Expense for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

(Unaudited ($ in thousands)Twelve Months Ended

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

Income tax provision (benefit) reconciliation

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

$

889

 

 

$

(20

)

 

 

$

(388

)

 

$

96

 

Loss on sale of healthcare assets and other charges

 

 

41

 

 

 

—

 

 

 

 

1,319

 

 

 

—

 

Prior years' R&D credit

 

 

—

 

 

 

462

 

 

 

 

—

 

 

 

462

 

Valuation allowance adjustment

 

 

(617

)

 

 

(861

)

 

 

 

(617

)

 

 

(861

)

Non-GAAP income tax provision (benefit)

 

$

313

 

 

$

(419

)

 

 

$

314

 

 

$

(303

)

NON-GAAP FINANCIAL MEASURES(continued)        Non-GAAP Net Income: Non-GAAP Net Income is net (loss) income, adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business and to exclude a state tax valuation allowance adjustment. The following table represents the Company's calculation of non-GAAP Net Income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

Net income (loss) reconciliation

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,075

 

$

(119

)

 

 

$

(1,143

)

 

$

61

 

Loss on sale of healthcare assets and other charges

 

 

117

 

 

—

 

 

 

 

3,755

 

 

 

—

 

Prior years' R&D credit

 

 

—

 

 

(462

)

 

 

 

—

 

 

 

(462

)

Valuation allowance adjustment

 

 

617

 

 

861

 

 

 

 

617

 

 

 

861

 

Non-GAAP net income

 

$

1,809

 

$

280

 

 

 

$

3,229

 

 

$

460

 

Non-GAAP Earnings Per Common Share (Diluted): Non-GAAP Earnings Per Common Share (Diluted) is net (loss) income per share (diluted), adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business and to exclude a state tax valuation allowance adjustment. The following table represents the Company's calculation of non-GAAP Earnings Per Common Share (diluted) for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

 

Net income (loss) per share (diluted) reconciliation

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share (diluted)

 

$

0.08

 

$

(0.01

)

 

 

$

(0.08

)

 

$

—

 

Loss on sale of healthcare assets and other charges

 

 

—

 

 

—

 

 

 

 

0.26

 

 

 

—

 

VA adjustment and prior years' R&D credit

 

 

0.04

 

 

0.03

 

 

 

 

0.04

 

 

 

0.03

 

Non-GAAP net income per share (diluted)

 

$

0.12

 

$

0.02

 

 

 

$

0.22

 

 

$

0.03

 

EBITDA: EBITDA is net (loss) income, plus income tax expense (benefit) and depreciation and amortization expense. The following table represents the Company's calculation of EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

May 31, 2025

 

June 1, 2024

 

 

May 31, 2025

 

June 1, 2024

Net income (loss)

 

$

1,075

 

$

(119

)

 

 

$

(1,143

)

 

$

61

 

Income tax provision (benefit)

 

 

889

 

 

(20

)

 

 

 

(388

)

 

 

96

 

Depreciation & amortization

 

 

965

 

 

1,089

 

 

 

 

4,002

 

 

 

4,307

 

EBITDA

 

$

2,929

 

$

950

 

 

 

$

2,471

 

 

$

4,464

 

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP FINANCIAL MEASURES(continued)

Adjusted EBITDA: Adjusted EBITDA is EBITDA (a non-GAAP financial measure defined and calculated in accordance with the above), adjusted to exclude a one-time loss on the sale of assets of the Company's Healthcare business.  The following table represents the Company's calculation of Adjusted EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:

 

 

Unaudited ($ in thousands)Three Months Ended

 

 

Unaudited ($ in thousands)Twelve Months Ended

 

 

May 31, 2025

 

June 1, 2024