Q3 2024 Richardson Electronics Ltd Earnings Call Transcript
Key Points
- Richardson Electronics Ltd (RELL) returned to profitability in the third quarter with sales increasing 18.7% sequentially.
- Strong demand for ULTRA3000 from new and existing wind customers drove higher Green Energy Solutions (GES) sales.
- The company experienced a $4 million sequential decrease in inventory, reflecting improved working capital levels.
- Richardson Healthcare sales increased by $0.7 million compared to the third quarter of fiscal 2023 due to higher CT tube and parts demand.
- The company has a strong balance sheet with nearly $19 million in cash and no debt.
- Net sales for the third quarter of fiscal 2024 were down compared to the prior year's third quarter ($52.4 million compared to $70.4 million).
- Sales to semiconductor wafer fab customers declined $11.5 million during the quarter.
- Consolidated gross margin for the third quarter decreased to 29.5% of net sales compared to 31.8% in last year's third quarter.
- Operating income for the third quarter of fiscal 2024 was significantly lower than the third quarter of the previous year ($1.0 million versus $7.6 million).
- Canvys sales decreased by $3.1 million, primarily due to short-term customer pushouts in North America.
Good day, and thank you for standing by. Welcome to Richardson Electronics' Earnings Call for the Third Quarter of Fiscal Year 2024. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Ed Richardson, Chief Executive Officer. Please go ahead.
Good morning, and welcome to Richardson Electronics' conference call for the third quarter of fiscal year 2024. Joining me today are Robert Ben, Chief Financial Officer; Wendy Diddell, Chief Operating Officer and General Manager for Richardson Healthcare; Greg Peloquin, General Manager of our Power & Microwave Technologies Group, which includes the Green Energy Solutions; and Jens Ruppert, General Manager of Canvys. As a reminder, this call is being recorded and will be available for playback.
I would also like to remind you that we'll be making forward-looking statements
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