Business
Richardson Electronics Reports Fourth Quarter and Fiscal Year 2024 Results; Declares Quarterly Cash Dividend
First year-over-year reduction in inventory since fiscal 2017, reflecting management’s efforts to improve working capital levels Fourth quarter gross margin
About this update from Richardson Electronics, Ltd.
[{"type":"text","content":"First year-over-year reduction in inventory since fiscal 2017, reflecting management’s efforts to improve working capital levels Fourth quarter gross margin improved 320 basis points year-over-year Generated $7.2 million in operating cash flow during the fourth quarter, helping the Company end the year with $24.3 million in cash and cash equivalents and no debt Management expects to return to year-over-year sales growth and higher profitability in fiscal 2025 LAFOX, Ill., July 24, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its fourth quarter and fiscal year ended June 1, 2024. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend. “Fiscal 2024 was a difficult year for Richardson Electronics, as a result of challenging conditions within our semiconductor wafer fab market and program delays across several of our emerging GES opportunities. While these trends impacted sales and profitability during the year, our teams focused on maintaining gross margins, reducing inventory levels, strengthening our strong balance sheet, and investing in our long-term strategic growth opportunities. In fact, the fourth quarter marked the second consecutive quarter we experienced a decline in inventory and the first year-over-year decline in inventory since fiscal 2017. In addition, the Company generated $7.2 million in operating cash flow during the fourth quarter and we ended the year with no debt and $24.3 million in cash and cash equivalents,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “As we look to fiscal 2025, we remain focused on pursuing significant long-term growth opportunities within our global GES markets. In addition, we are starting to see early indications of improving demand within our semiconductor wafer fab markets. As a result, we believe we will return to year-over-year sales growth and higher profitability in fiscal 2025,” concluded Mr. Richardson. Fourth Quarter Results Net sales for the fourth quarter of fiscal 2024 was $47.4 million, compared to net sales of $58.8 million in the prior year’s fourth quarter. The 19.5% year-over-year decline in net sales was due to lower sales in PMT, GES and Canvys. PMT sales decreased $1.0 million from last year’s fourth quarter primarily due to...