Exhibit 99.1

Press Release

For Immediate Release

 

For Details Contact:

 

40W267 Keslinger Road

Edward J. Richardson

Robert J. Ben

PO BOX 393

Chairman and CEO

EVP & CFO

LaFox, IL 60147-0393 USA

Phone: (630) 208-2205

(630) 208-2203

(630) 208-2200 | Fax: (630) 208-2550

 

RICHARDSON ELECTRONICS REPORTS FOURTH QUARTER AND FISCAL 2019 RESULTS AND DECLARES QUARTERLY CASH DIVIDEND

 

Fiscal Year 2019 Revenue Increases over Fiscal Year 2018; Growth across all three Business Units

LaFox, IL, July 24, 2019:

Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its fourth quarter and fiscal year ended June 1, 2019. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend. 

Fourth Quarter Results

 

Net sales for the fourth quarter of fiscal 2019 decreased 7.3% to $42.2 million compared to net sales of $45.5 million in the prior year’s fourth quarter based on the continued slowdown in the semiconductor wafer fabrication equipment market. PMT sales decreased $5.1 million; decreases were partially offset by higher sales in its PMG business including power conversion and RF and microwave components. The Company’s other businesses also performed well in the quarter. Canvys sales increased by $0.7 million or 10.8% due to higher demand in its North American market and new program wins. Richardson Healthcare sales increased $1.1 million or 68.7% as a result of higher sales of our ALTA750 TM Tube and replacement parts for diagnostic imaging equipment.

 

Gross margin decreased to $12.5 million, or 29.7% of net sales during the fourth quarter of fiscal 2019, compared to $15.5 million, or 34.1% of net sales during the fourth quarter of fiscal 2018. Margin decreased as a percent of net sales primarily due to a less favorable product mix, including a higher percentage of power conversion and RF and microwave components, as well as higher costs related to CT Tube production and Healthcare inventory write-downs. Gross margin in the fourth quarter of fiscal 2018 was also positively impacted by over absorption in LaFox manufacturing associated with higher demand from our customers in the semi-wafer fab equipment market.

 

Operating expenses were $12.5 million for the fourth quarter of fiscal 2019 compared to $13.7 million in the fourth quarter of fiscal 2018. The decrease in operating expenses resulted from lower incentive compensation expense as well as lower salary and other related expenses due to headcount reductions throughout fiscal 2019. Operating expenses as a percent of net sales decreased to 29.7% in the current quarter from 30.1% in last year’s fourth quarter.

 

In the fourth quarter of fiscal 2019, the Company recorded a $6.3 million non-cash Goodwill Impairment charge, which represented the full amount of Goodwill associated with the IMES reporting unit. The impairment resulted from fourth quarter events that decreased the forecasted future cash flows and the fair value of the IMES reporting unit below its book value as of the March 3, 2019 testing date.


The following information was filed by Richardson Electronics Ltdde (RELL) on Wednesday, July 24, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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