Business
Richardson Electronics Reports Second Quarter Fiscal 2020 Results and Declares Quarterly Cash Dividend
Display, PMG and CT Tube Businesses Grow Quarter over Quarter Q2 FY20 Highlights Net sales of $39.6 million were down 4.1% from last year’s second quarter,
About this update from Richardson Electronics, Ltd.
[{"type":"text","content":"Display, PMG and CT Tube Businesses Grow Quarter over Quarter\nQ2 FY20 Highlights\n Net sales of $39.6 million were down 4.1% from last year’s second quarter, primarily from economic softness in the PMT power grid tube business and a slow ramp up in sales in the semiconductor wafer fab equipment business. In addition, Healthcare sales were down overall due to soft equipment sales in Latin America.These declines were partially offset by significantly increased sales for our PMG products. Also, Canvys sales increased by 20.9% and Healthcare CT tube sales were up by 11.9%.Gross margin increased to 32.0% of net sales versus 31.4% of net sales for the prior year’s second quarter.Operating expenses decreased $0.2 million to $13.2 million compared to prior year.Operating loss was $0.5 million, same as last year’s second quarter.Cash and investments were $46.1 million at November 30, 2019 versus $46.5 million at the end of the first quarter of this fiscal year. LAFOX, Ill., Jan. 08, 2020 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its second quarter ended November 30, 2019. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend. Second Quarter Results Net sales for the second quarter of fiscal 2020 decreased 4.1% to $39.6 million compared to net sales of $41.3 million in the prior year’s second quarter. Canvys sales increased by $1.4 million or 20.9% due to higher demand in both its North American and European markets. Although PMT sales benefited from much higher sales of power conversion and RF and microwave components, overall sales for PMT decreased $2.7 million or 8.4%. This was primarily due to a soft market for power grid tubes with OEM customers and the quarter over quarter decline in sales to the semiconductor wafer fabrication equipment market. Sales in the semiconductor wafer fab market are starting to improve but were held in check due to our suppliers’ inability to deliver critical parts. Richardson Healthcare sales decreased $0.3 million or 12.6% as a result of lower sales of equipment in Latin America, partially offset by higher sales of our ALTA750 TM CT tube. Gross margin decreased to $12.7 million, or 32.0% of net sales during the second quarter of fiscal 2020, compared to $13.0 million, or 31.4% of net sales dur...