Richardson Electronics Reports Third Quarter Fiscal 2018 Profit and Declares Quarterly Cash Dividend
LAFOX, Ill., April 11, 2018 (GLOBE NEWSWIRE) — Richardson Electronics, Ltd. (NASDAQ:RELL) today reported financial results for its third quarter ended March 3, 2018. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.
Net sales for the third quarter of fiscal 2018 increased 28.9% to $41.6 million compared to net sales of $32.3 million in the prior year’s third quarter. Sales increased $7.1 million for PMT and $2.7 million for Canvys. PMT sales were higher in power conversion and RF and microwave components, industrial power grid tubes and specialty products sold into the semiconductor wafer fabrication capital equipment market. Sales increased for Canvys due to new program wins and higher overall demand across both the U.S. and Europe. Sales decreased for Richardson Healthcare by $0.5 million due to the sale of the PACS Display business at the end of fiscal 2017, partially offset by higher equipment and certified pre-owned CT Tube sales.
Gross margin increased to $14.1 million, or 33.8% of net sales during the third quarter of fiscal 2018, compared to $10.7 million, or 33.1% of net sales during the third quarter of fiscal 2017. Margin increased as a percent of net sales primarily due to an improved product mix in both PMT and Canvys.
Operating expenses were $13.1 million for the third quarter of fiscal 2018 compared to $12.0 million in the third quarter of fiscal 2017. Operating expenses increased due to additional compensation and other expenses primarily related to the increase in net sales as well as higher research and development and other expenses for Richardson Healthcare. Operating expenses as a percent of net sales decreased to 31.4% in the current quarter from 37.1% last year.
Net income for the third quarter of fiscal 2018 was $0.5 million compared to a net loss of $1.4 million in the third quarter of fiscal 2017.
As a result, the company reported $1.0 million of operating income for the third quarter of fiscal 2018 compared to an operating loss of $1.3 million in the prior year’s third quarter. Other income for the third quarter of fiscal 2018, primarily interest income, was less than $0.1 million, compared to other expense of $0.1 million, primarily a foreign exchange loss, for the third quarter of fiscal 2017.