Richardson Electronics, Ltd. (RELL) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, May 28, 2022

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) 208-2320

(630) 208-2203

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

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Net sales of $61.6 million were up 22.1% from last year’s fourth quarter with increases in all three business units.

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Backlog increased to $206.2 million in the fourth quarter versus $175.6 million at the end of the third quarter and $110.0 million at the end of the fourth quarter of last fiscal year.

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Gross margin was 32.7% of net sales for the fourth quarter of fiscal 2022 versus 32.4% of net sales in the prior year’s fourth quarter.

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Operating income was $5.0 million for the fourth quarter of fiscal 2022 compared to an operating income of $2.3 million in the fourth quarter of fiscal 2021.

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A non-cash income tax benefit of $3.5 million for the fourth quarter of fiscal 2022 resulted from the $4.0 million partial reversal of the tax valuation allowance due to evidence of profitability for realizing a portion of the deferred tax assets in the future.

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Earnings per common share (diluted) were $0.59 for the fourth quarter of fiscal 2022 compared to $0.14 per common share (diluted) in the fourth quarter of fiscal 2021. Excluding the $4.0 million tax valuation allowance adjustment, earnings per common share (diluted) were $0.31 for the fourth quarter of fiscal 2022.

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For fiscal 2022, net sales increased 26.9% to $224.6 million.

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Operating income was $16.0 million for fiscal 2022, compared to $2.9 million for fiscal 2021.

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An income tax benefit of $2.2 million for fiscal 2022 resulted from the $4.0 million partial reversal of the tax valuation allowance due to evidence of profitability for realizing a portion of the deferred tax assets in the future.

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Earnings per common share (diluted) were $1.31 for fiscal 2022, compared to $0.13 per common share (diluted) for fiscal 2021. Excluding the $4.0 million tax valuation allowance adjustment, earnings per common share (diluted) were $1.02 for fiscal 2022.

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Cash and investments were $40.5 million as of May 28, 2022 versus $39.1 million on February 26, 2022 and $43.3 million on May 29, 2021.