RELL

Thermo Fisher Scientific Inc. TMO delivered third-quarter 2026 adjusted earnings of $6.68 per share, up 15% year over year. The figure beat the Zacks Consensus Estimate by 4.4%. Revenues rose 9% to $12.14 billion and surpassed the consensus mark of $11.92 billion by 1.8%. Results were supported by 6% organic revenue growth and improved operating profitability, reflecting the strength of the company's growth strategy and PPI Business System. Following the earnings announcement, TMO stock fell 4.1% in pre-market trading today. Life Sciences Solutions revenues increased 5.1% year over year to $2.72 billion. Segment income rose to $1.02 billion from $968 million, while the segment income margin expanded 20 basis points (bps) to 37.6%. Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 15% to $6.86 billion. Segment income increased to $1.07 billion from $868 million, while margin improved to 15.5% from 14.5%. The segment accounted for 56.5% of consolidated revenues before eliminations. Analytical Instruments revenues advanced 5.8% year over year to $2 billion. Segment income jumped to $538 million from $429 million, driving margin expansion to 26.9% from 22.6%. The 430-bps improvement was the largest among the company's four segments. Specialty Diagnostics revenues declined 6.5% to $1.1 billion. However, segment income increased to $341 million from $321 million, while margin expanded to 31% from 27.4%. The improvement in profitability despite lower revenues highlights the segment's stronger operating efficiency. Adjusted operating income increased 15% year over year to $2.97 billion. The adjusted operating margin widened 120 bps to 24.5%, reflecting profitability improvements across all four business segments. On a GAAP basis, operating income rose 17% to $2.26 billion, while the operating margin improved to 18.6% from 17.4%. The cost of revenues totaled $6.95 billion, selling, general and administrative expenses were $1.86 billion, and research and development spending amounted to $348 million. GAAP earnings per share increased 9% to $4.64. Thermo Fisher ended the third quarter with cash and cash equivalents of $5.46 billion compared with $9.85 billion at the end of 2025. Total assets stood at $114.23 billion, while long-term obligations amounted to $39.11 billion. For the first nine months of 2026, net cash provided by operating activities increased to $5.87 billion from $4.36 billion a year earlier. Free cash flow rose to $4.62 billion from $3.32 billion. During this period, acquisitions net of cash acquired totaled $8.88 billion, share repurchases reached $4 billion, and dividends paid amounted to $511 million. Thermo Fisher partnered with Mayo Clinic to launch Precure, an initiative combining data from more than one million patient samples with its proteomics technologies. The collaboration aims to advance disease research, earlier detection and precision medicine. The company also opened its first AI-Automation Innovation Center in South Korea to help customers accelerate innovation and research productivity. Additionally, a highly automated distribution center in Kentucky expanded its North American supply capabilities. Thermo Fisher completed the previously announced divestiture of its microbiology business during the quarter. Management highlighted the effectiveness of its growth strategy and operational execution. Chairman and CEO Marc N. Casper expressed confidence in delivering strong results for 2026 and creating long-term stakeholder value. The company is scheduled to provide updated full-year financial guidance during its Oct. 21 earnings conference call. Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote Thermo Fisher ended the third quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company's proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising. During the quarter, Thermo Fisher launched the Orbitrap Isora mass spectrometer — its first Orbitrap system designed for isotope ratio analysis — enabling faster workflows and deeper insights into sample composition. Other launches included the EMPAD G2 electron detector for advanced materials characterization and the FDA-cleared EliA CTD 13 Screen for systemic connective tissue diseases. The company also introduced the Ion 560 Chip, offering nearly twice the sequencing capacity of its predecessor to support growing genomic profiling requirements. Thermo Fisher currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks from the broader Computer and Technology sector are Micron Technology MU, Richardson Electronics, Ltd. RELL and Ciena CIEN. Micron Technology, sporting a Zacks Rank #1 (Strong Buy) at present, reported a fourth-quarter fiscal 2026 EPS of $33.42, which beat the Zacks Consensus Estimate by 5.73%. Revenues of $54.23 billion surpassed the Zacks Consensus Estimate by 6.33%. You can see the complete list of today's Zacks #1 Rank stocks here. MU has an earnings yield of 18.7% compared with the industry's 4.5% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 21%. Richardson Electronics, currently sporting a Zacks Rank #1, posted a first-quarter fiscal 2027 EPS of 27 cents, topping the Zacks Consensus Estimate by 200%. Revenues of $64.92 million beat the Zacks Consensus Estimate by 10.07%. RELL has an estimated fiscal 2027 earnings growth rate of 62.5% compared with the industry's 46.2% growth. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 110%. Ciena, sporting a Zacks Rank #1 at present, reported third-quarter fiscal 2026 EPS of $2.11, which topped the Zacks Consensus Estimate by 21.26%. Revenues of $1.67 billion surpassed the consensus mark by 1.44%. CIEN has an estimated fiscal 2026 earnings growth rate of 171.2% compared with the industry's 35.3% growth. The company's earnings beat estimates in each of the trailing four quarters and matched on one occasion, the average surprise being 17.55%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Taiwan Semiconductor Manufacturing Company Ltd. TSM, or TSMC, reported third-quarter 2026 earnings of $4.60 per ADR unit, which increased 68.7% year over year. The bottom line surpassed the Zacks Consensus Estimate of 3.4%. Revenues rose 41.2% year over year to $46.72 billion and beat the Zacks Consensus Estimate by 2.4%. Results reflected strong revenue growth, with advanced process technologies accounting for 79% of total wafer revenues. TSMC's revenues increased 16.2% sequentially in U.S. dollar terms, reflecting stronger momentum compared with the preceding quarter. In Taiwan dollar terms, revenues jumped 17.6% quarter over quarter. The top-line performance exceeded management's previous guidance range of $44.6 billion-$45.8 billion. The results also surpassed the roughly 12% sequential growth implied by the midpoint of the earlier guidance. The 3-nanometer process accounted for 33% of total wafer revenues in the third quarter, increasing from 30% in the preceding quarter. Meanwhile, the 5-nanometer process contributed 28%, declining from 33% in the second quarter. Taiwan Semiconductor Manufacturing Company Ltd. price-consensus-eps-surprise-chart | Taiwan Semiconductor Manufacturing Company Ltd. Quote The 7-nanometer process represented 10% of wafer revenues compared with 11% in the previous quarter. These contributions demonstrate the evolving distribution of wafer revenues across Taiwan Semiconductor's established advanced manufacturing technologies. The 2-nanometer process accounted for 8% of total wafer revenues, up from 3% in the second quarter. This five-percentage-point sequential increase marked a significant shift in the contribution from the company's newest manufacturing technology. Advanced technologies, defined as processes of 7 nanometers and below, remained the dominant component of wafer revenues. The increasing contribution from 2-nanometer manufacturing reflects the ongoing transition toward newer semiconductor production processes. TSMC's gross margin was 66.4%, which expanded 690 basis points (bps) from the year-ago quarter but contracted 130 bps sequentially. The sequential decline coincided with the ongoing ramp-up of the company's 2-nanometer manufacturing technology. Operating margin of 58.7% expanded 810 bps year over year but contracted 160 bps sequentially. TSM's net profit margin was 51.1%, which expanded 540 bps year over year but declined 450 bps sequentially. As of Sept. 30, 2026, Taiwan Semiconductor's cash and marketable securities totaled NT$4 trillion or $126 billion in U.S. dollar terms. Its cash balance increased NT$488 billion sequentially to NT$3.6 trillion. The company generated approximately NT$920 billion in cash from operations and incurred capital expenditures of NT$443 billion or $13.8 billion. TSMC also distributed NT$156 billion in cash dividends during the third quarter. Management now expects full-year 2026 revenues to increase approximately 44% year over year in U.S. dollar terms. The outlook reflects continued robust demand for leading-edge technologies, supported by the company's strong technology differentiation and broad customer base. The Zacks Consensus Estimate is pegged at $168.19 billion. For the fourth quarter of 2026, revenues are expected in the range of $52.3-$54.3 billion. The midpoint implies sequential growth of roughly 14% and year-over-year growth of 58%, based on an exchange rate assumption of NT$31.8 per U.S. dollar. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $48.78 billion. Gross margin is projected between 65% and 67%, while operating margin is expected in the 56.5-58.5% range. TSMC delivered solid third-quarter results, with both earnings and revenues surpassing estimates. The performance was marked by robust year-over-year revenue growth and an increasing contribution from advanced process technologies. The 2-nanometer process gained traction, while 3-nanometer technology remained the largest contributor to wafer revenues, highlighting the company's evolving technology mix. However, sequential contractions in gross, operating and net profit margins warrant attention. Currently, TSMC carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader Computer and Technology sector are Micron Technology MU, Richardson Electronics, Ltd. RELL and Ciena CIEN. Micron Technology, sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter fiscal 2026 EPS of $33.42, which beat the Zacks Consensus Estimate by 5.73%. Revenues of $54.23 billion surpassed the Zacks Consensus Estimate by 6.33%. You can see the complete list of today's Zacks #1 Rank stocks here. MU has an earnings yield of 18.7% compared with the industry's 4.5% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 21%. Richardson Electronics, sporting a Zacks Rank #1, posted a first-quarter fiscal 2027 EPS of 27 cents, exceeding the Zacks Consensus Estimate by 200%. Revenues of $64.92 million beat the Zacks Consensus Estimate by 10.07%. RELL has an estimated fiscal 2027 earnings growth rate of 62.5% compared with the industry's 46.2% growth. The company's earnings outpaced estimates in each of the trailing four quarters, the average surprise being 110%. Ciena, sporting a Zacks Rank #1, reported third-quarter fiscal 2026 EPS of $2.11, which topped the Zacks Consensus Estimate by 21.26%. Revenues of $1.67 billion surpassed the consensus mark by 1.44%. CIEN has an estimated fiscal 2026 earnings growth rate of 171.2% compared with the industry's 35.3% growth. The company's earnings beat estimates in each of the trailing four quarters and matched on one occasion, the average surprise being 17.55%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Richardson Electronics delivered results ahead of Wall Street expectations in Q3, with management crediting robust demand for its engineered power and energy storage solutions as key drivers. CEO Ed Richardson highlighted strong adoption in semiconductor wafer fabrication, RF and microwave components, and green energy systems, as well as continued expansion into global markets. The company's focus on broadening its customer base and enhancing engineering capabilities contributed to operating margin gains and improved cash generation. Management also noted that favorable product mix and a one-time tariff refund supported gross margin improvement this quarter. Is now the time to buy RELL? Find out in our full research report (it's free). - Revenue: $64.92 million vs analyst estimates of $58.99 million (18.9% year-on-year growth, 10.1% beat) - Adjusted EPS: $0.27 vs analyst estimates of $0.09 (significant beat) - Operating Margin: 7.9%, up from 1.8% in the same quarter last year - Backlog: $184.4 million at quarter end, up 36.9% year on year - Market Capitalization: $297.1 million While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - Keaton Schuelke (Northland Capital Markets) asked about backlog conversion to revenue; COO Wendy Diddell stated most backlog is expected to convert within the year, though some long-term contracts may extend further. - Keaton Schuelke (Northland Capital Markets) questioned the sustainability of tariff refunds; CFO Bob Ben responded that refunds are sporadic and unlikely to match Q1's benefit going forward. - Keaton Schuelke (Northland Capital Markets) inquired about the revenue mix in Green Energy Solutions; GM Greg Peloquin clarified that wind-related ultracapacitors were the primary contributor this quarter. - Anja Soderstrom (Sidoti) asked about the visibility for semiconductor wafer fabrication revenue; Peloquin indicated customer feedback remains "very positive," supporting continued strength through next year. - Ross Taylor (ARS Investment Partners) pressed on the repeatability of business and pipeline opportunities; Diddell and Peloquin explained that recurring business is growing in some segments, while niche project-based opportunities continue to be pursued for long-term growth. Looking ahead, our analysts will be watching (1) the pace at which Richardson Electronics converts its growing backlog into realized revenue, (2) the scale and profitability of new battery energy storage system deployments across industrial and microgrid applications, and (3) the impact of AI-driven process improvements on efficiency and margins. The evolution of international partnerships and further product launches will also serve as important milestones for the company's execution. Richardson Electronics currently trades at $19.70, down from $20.05 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Operating income increased 5x year-over-year, driven by higher-than-expected sales growth and expanded gross margins across all business segments. - Performance in the Power and Microwave Technologies (PMT) group was propelled by robust demand in semiconductor wafer fabrication equipment and defense communications. - The Green Energy Solutions (GES) segment achieved 27.1% growth, fueled by the adoption of Pitch Energy Modules across global wind turbine platforms and new Battery Energy Storage Systems (BESS). - Management attributed margin expansion to a favorable product mix and a non-recurring IEEPA Tariff Refund, which contributed 170 basis points to the consolidated gross margin. - The 'Made in America' initiative is increasingly resonating with customers seeking to mitigate supply chain risks, tariffs, and geopolitical uncertainty through localized U.S. manufacturing. - Strategic focus remains on high-value engineered solutions rather than commodity products, allowing the company to maintain a debt-free balance sheet while investing in organic growth. - Management expects double-digit growth for the GES segment in fiscal 2027, supported by a growing backlog and the transition of multiple programs from beta testing to pre-production. - Semiconductor wafer fab customers have provided visibility indicating that the current growth trend is expected to persist well into calendar year 2027. - The company is shifting its AI strategy from initial readiness assessments to implementing practical use cases aimed at reducing cycle times and improving supply chain visibility. - Future growth in the BESS market is targeted at niche microgrid applications between 200 kilohertz and 5 megawatts, where custom engineering provides a competitive advantage over off-the-shelf solutions. - Backlog conversion is expected to remain high, with approximately 75% of the current PMT and GES backlog scheduled to ship within the current fiscal year. - A non-recurring IEEPA Tariff Refund provided a significant one-time boost to gross margins in Q1, though management does not expect similar magnitudes in future quarters. - Inventory levels remained flat at $103.3 million as the company balances the need to support semiconductor and wind programs with disciplined working capital management. - Operating expenses increased due to higher employee incentive compensation tied to strong sales growth and increased travel for business development. - Macroeconomic uncertainty regarding trade policies and global economic conditions remains a primary headwind, though underlying demand in core markets like AI infrastructure and defense remains resilient. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Approximately 75% of the current PMT and GES backlog is scheduled to ship within the fiscal year. - Management anticipates continued backlog growth in Q2 and beyond due to a high volume of new product quotes and customer acquisitions. - The company achieved $1.5 million in Q1 shipments for Suzlon lead-acid battery replacements. - Richardson has been confirmed as the OEM standard equipment provider for Suzlon's new S9X turbine platform, moving beyond just the aftermarket MRO business. - The BESS pipeline has grown to nearly 50 active opportunities, specifically targeting niche commercial and industrial microgrids. - Management noted a $10 million opportunity over the next two years with a large California energy company to support microgrid infrastructure. - While Richardson has no debt, management noted that high rates and reduced government subsidies are actually driving 'repowering' demand in the wind sector. - Customers are choosing to rebuild existing turbines to last another 10-15 years using Richardson's ultracapacitors rather than financing new turbine construction.

- Interested in Richardson Electronics, Ltd.? Here are five stocks we like better. - Strong first-quarter performance: Fiscal 2027 sales rose 18.9% to $64.9 million, while gross margin expanded to 34.6% and operating income more than quintupled to $5.1 million. Net income increased to $4.1 million, or $0.27 per diluted share. - Growth across key segments: PMT sales benefited from semiconductor wafer-fabrication and RF demand, while GES grew 27.1% on wind products and emerging battery energy-storage programs; Canvys also posted higher sales. Backlog reached $184.4 million, up $20 million from fiscal year-end. - Energy-storage pipeline is expanding: Richardson booked a $2 million battery-storage program, has nearly 50 active BESS opportunities and began shipments on a multimillion-dollar Alaska project. Management expects GES to deliver double-digit growth in fiscal 2027 and sees continued momentum in PMT and GES. - Micro-Cap Richardson Electronics Pulls Back Into A Buy Richardson Electronics (NASDAQ:RELL) reported higher sales, expanded margins and a more than fivefold increase in operating income for the first quarter of fiscal 2027, citing strength in semiconductor wafer fabrication equipment, RF and microwave products, wind-related offerings and emerging battery energy storage programs. Chairman and CEO Ed Richardson said the company began the fiscal year with "a strong first quarter," supported by sales growth and gross-margin expansion. Operating income rose to $5.1 million, or 7.9% of sales, from $1.0 million a year earlier. The company also generated $5.9 million in operating cash flow, compared with $1.4 million in the prior-year quarter, while consolidated backlog increased by $20 million from fiscal year-end to $184.4 million. → Lamb Weston's Turnaround Is Starting to Look Real - Richardson Electronics Ups The Voltage On Growth Chief Financial Officer Bob Ben said consolidated net sales increased 18.9% to $64.9 million from $54.6 million in the first quarter of fiscal 2026. The result marked Richardson's ninth consecutive quarter of year-over-year sales growth. - Power & Microwave Technologies, or PMT, sales rose 19.7%, led by semiconductor wafer-fab equipment and RF and microwave products. - Green Energy Solutions, or GES, sales increased $2.0 million, or 27.1%, driven by wind products and newer offerings including battery energy storage systems. - Canvys sales increased 7.9%, reflecting higher revenue in North America. Consolidated gross margin was 34.6%, up from 31.0% a year earlier. Ben said the quarter's gross margin benefited by 170 basis points from an IEEPA tariff refund. PMT gross margin increased to 35.4% from 31.3%, while GES margin rose to 32.6% from 29.6%, aided by product mix. Canvys gross margin increased to 33.0% from 30.9%, primarily due to the tariff refund, according to the company. → Why onsemi's Synaptics Pivot Could Be a Game Changer - Small-Cap Richardson Electronics Electrifies The Market Operating expenses increased to $17.4 million from $16.0 million, principally due to employee compensation, incentives tied to sales growth and higher travel expenses. However, operating expenses declined as a share of sales, falling to 26.8% from 29.2%. Net income reached $4.1 million, or $0.27 per diluted share, compared with $1.9 million, or $0.13 per diluted share, in the year-earlier period. EBITDA, a non-GAAP measure, was $6.0 million, compared with $3.3 million a year ago. → Constellation Energy's Google Deal Shows Why Nuclear Uprates Matter for AI Cash and cash equivalents totaled $36.9 million at the end of the first quarter, compared with $31.8 million at the end of fiscal 2026. The company reported free cash flow of $4.2 million after $1.7 million in capital expenditures, largely related to facility improvements and information technology systems. Richardson paid $0.9 million in cash dividends during the quarter. Its board declared a quarterly cash dividend of $0.06 per common share, to be paid during the second quarter of fiscal 2027. The company had no outstanding borrowings on its revolving credit line with PNC Bank at quarter-end. During the question-and-answer session, PMT and GES General Manager Greg Peloquin said approximately 75% of PMT and GES backlog was scheduled to ship during fiscal 2027. He said GES backlog totaled $43.2 million and PMT backlog was $99.4 million. Canvys General Manager Jens Ruppert said its backlog was $41.8 million, with a book-to-bill ratio of 1.1, though some frame-contract orders extend two years or longer. Peloquin said GES growth was principally driven by wind and related products. Richardson serves dozens of wind-turbine owners and operators and has expanded its pitch energy module program internationally, receiving orders from customers in Brazil, Australia, India, France and Italy. The company also booked a $2 million battery energy storage system, or BESS, program during the quarter. Peloquin said Richardson's BESS pipeline included nearly 50 active opportunities and that the company expected multiple opportunities to close during fiscal 2027. Chief Operating Officer Wendy Diddell said Richardson began shipments on its first Alaska order, a multimillion-dollar project involving 18 customized battery energy storage systems serving seven remote communities. The company also began building an energy-storage demonstration center at its LaFox, Illinois, headquarters. Diddell said Richardson expanded its RESS energy-storage product family with the introduction of the RESS211 and RESS422 systems, joining the RESS760 and REST1505 platforms. The company is also advancing its partnership with lithium-ion battery and energy-storage manufacturer Gotion. In wind power, Diddell said Richardson has shipped more than 90,000 units since launching its first product. During the call, Peloquin said the company recorded approximately $1.5 million of Suzlon-related shipments in the quarter for replacement lead-acid batteries. He added that Richardson's product has been confirmed for installation as original equipment on Suzlon's new SX-9 turbine platform, while the company pursues maintenance, repair and overhaul business on existing Suzlon turbines worldwide. Excluding legacy healthcare operations, PMT sales were $46.6 million, up 23.1% from the prior-year first quarter. Peloquin said semiconductor wafer-fab customers have provided positive feedback and indicated continued activity through calendar 2027. Richardson is adding shifts to support higher semiconductor demand, Diddell said. Canvys reported first-quarter revenue of $8.9 million, up from $8.3 million a year earlier. Ruppert said lower European revenue was offset by North American growth. The display-solutions business continues to pursue medical-device applications including robotic-assisted surgery, navigation, endoscopy and human-machine interfaces, as well as industrial uses such as passenger information systems and equipment controls. Management also highlighted interest in its U.S.-based engineering, manufacturing, testing and quality capabilities under its "Made in America" strategy. Diddell said the company is seeing activity across aerospace, defense, industrial, semiconductor and power-management applications as customers consider localization, supply-chain continuity, tariffs and speed to market. Looking ahead, Richardson said it remains focused on growing higher-value engineered solutions, improving profitability and converting backlog and strategic programs into revenue and cash. Management said it expects GES to deliver double-digit growth in fiscal 2027 and believes PMT and GES are positioned for continued sales and profit growth. Richardson Electronics, Ltd. (NASDAQ: RELL) is a global provider of engineered solutions, replacement parts and specialized components for industrial, healthcare and energy markets. Founded in 1947 and headquartered in LaFox, Illinois, the company serves original equipment manufacturers, distributors and end users through a network that spans North America, Europe and Asia. The company operates through three primary business areas. Its Power and Microwave Technologies segment supplies power semiconductors, electronic components, vacuum tubes, radio-frequency and microwave products, and related engineering services for applications including telecommunications, industrial equipment, broadcasting and defense. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Richardson Electronics Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Thu, Oct. 8, 2026 - Chairman of the Board and CEO - Edward Richardson - Chief Financial Officer - Robert Ben - Chief Operating Officer - Wendy Diddell - General Manager of Power and Microwave Technologies and Green Energy Solutions Groups - Gregory Peloquin - General Manager of Canvys - Jens Ruppert Operator: Good day, and thank you for standing by. Welcome to the Richardson Electronics earnings call for the first quarter of fiscal year 2027. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ed Richardson, Chairman of the Board and CEO. Please go ahead. Edward Richardson: Good morning, and thank you for joining Richardson Electronics' fiscal 2027 first quarter conference call. We appreciate your continued support and interest in our company. Joining me today are Bob Ben, Chief Financial Officer; Wendy Diddell, Chief Operating Officer; Greg Peloquin, General Manager of our Power and Microwave Technologies and Green Energy Solutions Groups; and Jens Ruppert, General Manager of Canvys. As a reminder, this call is being recorded and will be available for playback. Before we begin, I would like to remind everyone that we will be making forward-looking statements. These statements are based on current expectations and involve risks and uncertainties. Actual results may differ materially from those discussed today. Please refer to our press release and SEC filings for discussion of risk factors. I am pleased to report that we started fiscal 2027 with a strong first quarter. Higher than expected sales growth and expanded gross margin drove a 5x year-over-year improvement in operating income to $5.1 million, or 7.9% of sales. Improved profitability and proactive working capital management generated $5.9 million of cash from operating activities compared with $1.4 million in the prior year first quarter. Backlog grew to $184.4 million, up $20 million from fiscal year 2026 year-end. While Bob will review the financial results in detail, the broader takeaways are strong execution across our global teams, growing adoption of key product lines, and positive momentum in our strategic growth priorities. Our performance was led by continuous strength in our Power and Microwave Technologies, particularly in semiconductor wafer fabrication equipment, RF and microwave components, and engineered solutions. Demand remains healthy across key end markets, including semiconductor manufacturing, defense, communications infrastructure, and industrial applications. This growth reflects favorable market conditions and our multi-year efforts to broaden our customer base, expand technology partnerships, and strengthen our engineering capabilities. We also continue to make progress in Green Energy Solutions. Interest in power management, energy resiliency, and energy storage has strengthened as industrial, commercial, and infrastructure customers seek greater reliability, lower operating costs, and solutions for growing power requirements. We believe these long-term trends support our strategy and create attractive opportunities for Richardson Electronics. At Canvys, customer engagement remains active across medical and industrial markets. Although project timing can create quarterly variability, customer activity, requests for quote volume, and opportunities for new design wins remain encouraging. We continue to support customers with highly engineered display solutions differentiated by customization quality and long-term support. Strategically, we are seeing increased customer interest in our U.S.-based engineering and manufacturing capabilities. Our Made in America initiative, engineering expertise, global infrastructure, manufacturing footprint, and strong balance sheet are creating opportunities in aerospace, defense, power management, and industrial applications. We expect this trend to remain favorable as customers evaluate supply chain continuity, localization, and tariff exposure in sourcing decisions. The macro environment remains uncertain with trade policies, tariffs, geopolitical developments, energy markets, and global economic conditions creating challenges across industries. However, the underlying demand drivers supporting our business remain strong, and we continue to focus on what we can control. Expansion of AI-related infrastructure, semiconductor investment, power systems modernization, defense spending, and demand for energy support markets where Richardson Electronics has recognized capability and customer relationships. We remain disciplined in managing inventory, pricing, operating expenses, and capital allocation. A strong balance sheet and debt-free position provide flexibility to invest in strategic growth while remaining the financial discipline that has been a hallmark of the company for 80 years. Overall, we believe the company is well positioned as we move through fiscal 2027. We remain focused on growing higher value engineered solutions, improving profitability, supporting customers, and creating long-term shareholder value. With that, I will turn the call over to Bob Ben for a detailed review of the quarter's financial results. Robert Ben: Thank you, Ed, and good morning. I will review our financial results for our first quarter of fiscal 2027, followed by a review of our cash position. Consolidated net sales increased 18.9% to $64.9 million compared to net sales of $54.6 million in the prior year's first quarter. This was our ninth consecutive quarterly year-over-year increase in sales. The first quarter was led by a 19.7% increase in PMT sales, driven by strong growth in semiconductor wafer fab and RF and microwave products. GES sales increased $2.0 million, or 27.1%, as a result of higher sales of wind products and new products, including Battery Energy Storage Systems. Canvys sales increased 7.9%, reflecting higher sales in North America. Consolidated gross margin for the quarter was 34.6% of net sales compared to 31.0% during the first quarter of fiscal 2026. In the first quarter of fiscal 2027, gross margin benefited by 170 basis points due to an IEEPA Tariff Refund. PMT gross margin increased to 35.4% compared to 31.3% as a result of product mix and the IEEPA Tariff Refund. GES gross margin increased to 32.6% from 29.6% due to product mix that included new products. Canvys gross margin increased to 33.0% from 30.9%, primarily due to the IEEPA Tariff Refund. Operating expenses were $17.4 million compared to $16.0 million in the first quarter of fiscal 2026. The increase in operating expenses resulted primarily from higher employee compensation expenses, including incentives driven by the strong sales growth, and higher travel expenses. As a percentage of net sales, operating expenses improved to 26.8% in the first quarter of fiscal 2027 versus 29.2% in the prior year's first quarter. Operating income increased over 400% to $5.1 million compared to an operating income of $1.0 million in the prior year's first quarter. Net income was $4.1 million for the first quarter of fiscal 2027 compared to net income of $1.9 million for the first quarter of fiscal 2026. Earnings per common share diluted were $0.27 in the first quarter of fiscal 2027 compared to earnings per common share diluted of $0.13 in the first quarter of fiscal 2026. EBITDA was $6.0 million for the first quarter of fiscal 2027 versus $3.3 million in the first quarter of fiscal 2026. Please note that EBITDA is a non-GAAP financial measure, and a reconciliation of the non-GAAP item to the comparable GAAP measure is available in our first quarter fiscal 2027 press release that was issued yesterday after the market closed. Turning to a review of our cash position. Cash and cash equivalents at the end of the first quarter of fiscal 2027 were $36.9 million compared to $31.8 million at the end of fiscal 2026. The increase in cash and cash equivalents related to net income adjusted for non-cash items and higher accounts payable, partially offset by higher accounts receivable. Capital expenditures of $1.7 million in the first quarter of fiscal 2027 were primarily related to facilities improvements and IT systems versus $1.0 million in the first quarter of fiscal 2026. Free cash flow was $4.2 million for the first quarter of fiscal 2027. We paid $0.9 million during the quarter for cash dividends. In addition, based on our current financial position, our Board of Directors declared a quarterly cash dividend of $0.06 per common share, which will be paid in the second quarter of fiscal 2027. As of the end of the first quarter of fiscal 2027, the company had no outstanding debt on its revolving line of credit with PNC Bank. Now I will turn the call over to Greg, who will provide more details for our PMT and GES business groups. Gregory Peloquin: Thank you, Bob, and good morning, everyone. We are excited by the continued progress we are making in both bookings and billings as a result of our multi-year growth strategies underway for GES and PMT. Coming into FY '27, key strategic imperatives include developing a stronger backlog, launching new products, expanding our customer base, and advancing multiple development programs from beta testing to pre-production. I am pleased to report that we are making excellent progress towards our goals in Q1 FY '27. Starting with GES, our year-over-year sales growth and bookings trends are encouraging as we continue to grow the pipeline of opportunities through both current and new technology partners, as well as engineered solutions developed by our field engineers and design team. GES sales in the quarter grew 27.1% year-over-year, as more customers adopted our key products across a broader set of applications. Within GES, we saw continued progress across key growth opportunities. First, we experienced growth adoption of our Pitch Energy Modules across multiple wind turbine platforms. We served dozens of wind turbine owners and operators, including exclusive partnerships with the top 4 owner-operators of GE wind turbines, such as RWE, Invenergy, Enel, and NextEra. We also saw growth from our multi-brand PEM turbine platforms. We continue to grow this program internationally, expanding into Europe, Asia, with new products for other turbine platforms including Suzlon, Senvion, Nordex, and SSB. We have now received orders outside of North America from customers in Brazil, Australia, India, France, and Italy, adding to our strong rollout in North America. Second, we booked a $2 million BESS program in Q1. This milestone highlights the accelerating momentum of our BESS strategy, supported by a growing pipeline of nearly 50 active opportunities as of today. We expect new partnerships under development will expand our depth of product offering and customer reach in the future. We believe our competitive advantage in BESS is rooted in our ability to deliver highly engineered custom solutions for unique applications. That capability is supported by years of engineering and manufacturing expertise in niche power management products and markets, differentiating ourselves and technology partners, a U.S.-based operating footprint, and a nearly 80-year corporate history and a strong balance sheet. Together, these strengths allow us to work closely with customers to design Battery Energy Storage Systems tailored to their specific performance, operating, and application requirements. We believe our approach and platform differentiate us from emerging and more standardized off-the-shelf solutions. Today, our pipeline includes niche commercial and industrial applications throughout North America, and we believe there are many opportunities to increase our pipeline throughout FY '27 and beyond. We are also focused on converting this growing pipeline into sales, with multiple opportunities expected to close in FY '27. Our overall GES growth strategy remains centered on power management. We have rapidly designed multiple products, secured patents, and built a strong global customer base and technology partners. Our success is evident in our growing sales pipeline as we capitalize on numerous growth opportunities tied to an evolving power management requirements and significant energy transformation initiatives. With these programs, testing and deployment continue to progress well with our key customers. We expect continued sales growth coupled with our growing backlog to produce double-digit growth for GES in FY '27. Turning to the PMT, excluding the legacy healthcare business, sales were $46.6 million in the quarter, a 23.1% increase over the prior year's first quarter. This reflects strong growth for both our semiconductor wafer fab customers as well as our RF and wireless component product line, specifically in SATCOM, radar, and defense communication markets. This continued growth trend in Q1 allowed us to expand sales at a double-digit rate with strong growth in backlog. We are excited about the positive feedback from our semi-fab customers who are expressing ongoing optimism and continued growth well into calendar year 2027. We continue to invest in our infrastructure, including our LaFox-based BESS demo center, while also expanding our design and field engineering teams and enhancing our manufacturing capabilities to support growing demand and innovation. Our field engineering team continues to identify new customers and opportunities across our global end markets. We continue to gain market share by developing new products and solutions that are accepted by our customers. In summary, we are encouraged by the success so far of our strategic initiatives underway across PMT and GES, including our new BESS program, global expansion of our key engineered solutions products, and new technology partnerships. Our global capabilities and global go-to-market strategy continue to separate us from our competition in power management, RF and microwave, and green energy markets. By combining legacy products and new technology partners and engineered solutions, we believe we are well positioned to deliver continued sales growth. We believe positive momentum has continued as we enter Q2 and the second half of FY '27. With the expanding backlog, compelling new products, growing market share, and strong cost controls, we believe FY '27 will be another strong year for growth in sales and profits for both GES and PMT. And with that, I will turn it over to Jens to discuss Canvys. Jens Ruppert: Thanks, Greg, and good morning, everyone. Canvys designs, engineers, manufacturers, and sells custom display solutions to Original Equipment Manufacturers across global medical and industrial markets. Our mission is to deliver high-quality application-specific display solutions that meet demanding customer requirements and support long product life cycles. Canvys reported first quarter fiscal 2027 revenue of $8.9 million, an increase of 7.9% compared with $8.3 million in the first quarter of fiscal 2026. Our business remains project-based and can vary from quarter to quarter based on timing of customer programs and shipments. Gross margin was 33.0% of net sales in the first quarter, compared with 30.9% in the same quarter last year. The year-over-year improvement reflected a more favorable overall product mix and disciplined execution, despite continued variability in freight, duties, tariffs, and other supply chain costs. Regional performance was mixed with lower year-over-year revenue in Europe, offset by growth in North America. This highlights the value of our diversified customer base while reflecting regional differences in customer demand and program timing. The quarter unfolded in a resilient but uneven global economy. Tariffs, trade policy changes, logistics conditions, and customer scheduling continue to create uncertainty. We remain focused on disciplined execution, customer collaboration, and supply chain flexibility to support customers' requirements and protect program continuity. During the quarter, Canvys continued to pursue opportunities with both repeat and new medical OEM customers across robotic-assisted surgery, navigation, endoscopy and human-machine interface applications for medical devices. Our solutions also continue to support commercial and industrial applications, including passenger information systems for trains and buses, and HMI technologies used in printing, vending, milling, and packaging equipment. Our commercial initiatives remain centered on increasing Canvys' visibility and market leadership, developing new opportunities, deepening strategic customer relationships, and converting our pipeline into additional design wins and production programs. We are also continuing to strengthen supply chain flexibility and operational execution, so that we can respond effectively as customers demand patterns and trade conditions evolve. At the end of the first quarter, backlog was $41.8 million, with a book-to-bill ratio of 1.1. These measures provide important visibility into future demand, although the timing of individual programs can cause quarterly fluctuations. Looking ahead, we expect customer investment decisions and production schedules to continue varying by market and program. We remain encouraged by customer engagement, request for quote activity, and our opportunity pipeline. With our improved first quarter profitability, disciplined execution, and continued focus on design wins, we believe Canvys is well positioned to support sustainable growth and create long-term shareholder value. I will now turn the call over to Wendy. Wendy Diddell: Thanks, Jens, and good morning, everyone. As we have discussed previously, our corporate strategy remains centered on 2 key priorities: accelerating profitable growth, and improving efficiency. The first quarter's results show strong progress on both fronts. Customer activity and backlog continue to support our growth priorities. At the end of the quarter, PMT and GES backlog increased meaningfully from fiscal year-end, reflecting continued demand across semiconductor, power management, wind, and other engineered solution markets. We continue to view backlog as an indicator of demand and future visibility, while recognizing that shipment timing depends on product mix, customer schedules, supply, and program milestones. We also continue to focus on efficiency and cash generation. Inventory was approximately $103.3 million, essentially flat to FY '26 year-end, as we balanced inventory discipline with the need to support semiconductor, wind, and other customer programs. Our focus remains on converting inventory and backlog into revenue and cash, improving manufacturing absorption, and directing resources toward the programs that best position us for growth and improved profitability. We also continue to manage sourcing, pricing, operating expenses, and capital commitments carefully. During the fourth quarter, we completed our initial AI readiness and opportunity assessment. In the first quarter, our emphasis shifted from identifying areas to implementing practical use cases and establishing a process for measuring results. We are focused on business outcomes, including reduced manual work, shorter cycle times, better consistency, and improved visibility in business processes. Our use cases includes sales, supply chain, manufacturing and engineering, finance, and administrative workflows, with governance and security controls built into the process. We also continue to advance our Made in America strategy, where our U.S.-based engineering, manufacturing, testing, and quality capabilities can help customers address localization, tariffs, supply chain continuity, and speed to market. During the quarter, sales activity continued across aerospace, defense, industrial, semiconductor, and power management applications. Our LaFox operation continues to provide us with the ability to support customers from design and sample builds through production and tests. We are seeing increased interest in programs that require the combination of technical support and domestic manufacturing capabilities. Our solid relationships with rail and wind customers are a strong testament to our Made in America strategy, as is our growing relationships with companies like C-Motive, KEBA, and Gotion. We are also working on a new program involving ultracapacitor racks. Our ultracapacitor-based energy storage platform delivers a fully integrated solution designed specifically for the demanding requirements of data centers. By combining power conversion and energy storage into a single cohesive system, we eliminate the complexity of multi-vendor architectures and deliver a streamlined high-performance backup solution. We started with contract manufacturing quotes and then continued conversations with our own products. Our previous engineering work on other programs offered a fundamental building block. We are now looking to make these racks a standard offering to support smaller battery energy storage installs. Our capital allocation priorities remain focused on organic growth. Battery energy storage is becoming an increasingly important part of our growth strategy. During the quarter, our pipeline continued to grow across commercial, industrial, utility, and data center applications where customers need resiliency, energy management flexibility, and engineered solutions. We began shipments for our first Alaska order, a multi-million dollar project that includes 18 customized Battery Energy Storage Systems serving 7 remote communities. This project is an important early reference point as we continue to pursue additional opportunities where reliability, customization, and technical expertise are critical. We have also started the build-out of our energy storage demonstration center at our LaFox headquarters. In addition, we continue to advance our partnership with Gotion, a leading manufacturer of lithium-ion batteries and Battery Energy Storage Systems. We have expanded our RESS product family during the quarter with the introduction of the RESS 211 and RESS 422 systems. Together with the RESS 760 and the RESS 1505 platforms, these additions broaden our ability to serve a wider range of commercial and industrial energy storage applications. Taken together, these activities demonstrate the progress we are making as our emerging battery energy storage strategy moves from development into commercial adoption and scale. In wind and power management, demand remains supported by the global install base of wind turbines, the need for reliability and life extension solutions, and our expanding portfolio of related products. We have shipped more than 90,000 units since we launched the first product. As Greg mentioned, we also continue to make progress with geographic expansion, including the ongoing Suzlon rollout and continuing new customer testing in Europe. Margins on these products is accretive to the company's overall margin, further supporting our profitable growth strategies. Semiconductor demand also remained an important growth driver during the quarter. Key customers have indicated continuing activity into calendar 2027. We are expanding capacity via additional shifts to support higher levels of demand. Overall, the first quarter represented a strong start to our fiscal 2027. We delivered strong sales growth, improved operating performance, increased cash, and continued to advance the strategic initiatives that support our long-term plan. With that, I will turn it back to Ed. Edward Richardson: Thanks, Wendy. In closing, our first quarter performance reinforces our progress against multi-year strategy. The comments from Bob, Greg, Jens, and Wendy reflect solid execution across the organization and continued momentum in our chosen markets and programs. I am very proud of the Richardson team. Our priorities remain clear: execute for customers, improve profitability, manage capital with discipline, and convert our strategic initiatives into sustainable growth and long-term value for shareholders, customers, and employees. We will now open the call for questions. Operator: [Operator Instructions] Our first question comes from Bobby Brooks with Northland Capital Markets. Keaton Schuelke: This is Keaton Schuelke on for Bobby. Congrats on the quarter. And my first question is on backlog. We saw it grow another 12% sequentially. And I was curious if we could get a sense of visibility for backlog converting to revenues over the next 12 months. And then as you look at your pipeline for new orders, what are your expectations for backlog growth through year-end? Gregory Peloquin: I will speak to PMT and GES. Our current backlog, I did that analysis and probably about 75% of the backlog is scheduled to ship in the quarter, I am sorry, the fiscal year. That is continued backlog growth in Q2. And based on the number of new products, number of quotes, number of new customers, we feel that we are going to have strong top-line growth and continued growth in backlog for the foreseeable future in our fiscal year 2027. Wendy Diddell: Jens, do you want to take Canvys? Jens Ruppert: Sure, sure. I am happy to address Canvys. Yes. So our backlog, we have a lot of orders. They go out like 2 years, 3 years, but we are expecting orders coming in like every quarter. So it is really hard to say. The majority of the backlog will ship also within the fiscal year. But again, you know, some of the orders we have like frame contracts, they carry out for 2 years or even longer. Keaton Schuelke: Okay. And then on the IEEPA Tariff Refunds, what are your expectations for refunds going forward? Have those most of them worked through? Should we expect the benefit to continue in the next quarter? Robert Ben: Hi, this is Bob Ben. Unfortunately, it is really hard to answer that question. We are getting these refunds sporadically and they do not even really tell us what exactly, time periods they relate to. So I wish I could give you more specific information, but unfortunately, I do not have that to give. Wendy Diddell: Keaton, I don't think we expect the same amount that we received in Q1. I don't think we expect to receive that much. Keaton Schuelke: Okay, okay, that is helpful. And then can you help me understand the revenue mix within GES? How much of that growth was specifically from the wind ultracapacitors versus the BESS and other new products? Gregory Peloquin: Yes, the majority of it was in the wind and associated products. As you have seen over the last 4 calls, we currently have seen or continue to have over 23 customers that are using our product, and we have over 10 different products that we are selling into the wind turbine platforms today that, where they are obviously, we started the group, so that is the majority of it on the wind side. Operator: [Operator Instructions] Our next question comes from Anja Soderstrom with Sidoti. Anja Soderstrom: Congratulations on the great quarter. I am Just curious, with a backlog, how much of that is GES? Gregory Peloquin: $43.2 million for GES, $99.4 million for PMT. Anja Soderstrom: Okay, and then within PMT, how much of that revenue is from the semiconductor wafer fab, and what do you see in terms of that growing sequentially? What is your visibility for the second quarter there? Gregory Peloquin: I do not know if we could say what that is for backlog, but the forecast, the input from the customer base. We have numerous customers in the semi-wafer fab space. They look at this type of growth that we are seeing in Q1 to continue well into definitely the rest of our fiscal year 2027, but even into further for calendar year 2027. Very positive feedback from the customers. Anja Soderstrom: Okay, thank you. And then within the Suzlon opportunity, that is really in its early innings, what kind of opportunities do you see there? How big can that be? Gregory Peloquin: The Suzlon platform, is that what you said? Yes. So we had very strong shipments in Q1 for Suzlon, for the replacement business of their lead acid batteries. It was, I think, about $1.5 million. But the good news there is we are working on their new platform for their new turbines called the [ S9X ], and we have been confirmed our product will be installed on an OEM point of view versus the MRO. So we will have both the MRO business worldwide on all Suzlon turbines, but then we will also be standard equipment, if you will, on their new platforms as they introduce new turbines. So it has been a very good relationship. It has been a long one, a lot of work, but like Richardson's DNA, we have done every sort of unique need that they had for that product to work in their turbine over what is going on in about 2 years. So a very good example of Richardson's capabilities there, for sure. Anja Soderstrom: Okay, thank you. And just one last one for me. How do you anticipate the high interest rates to affect? Robert Ben: Well, first of all, we do not have any debt, as you know. There really is not any impact there. Were you thinking something more specific? Anja Soderstrom: Yes, I know. I do not expect it to affect you directly, but it might affect your customers' demand, I would assume, given they are so capital-intense. Robert Ben: Yes. Maybe Greg can speak to the wind customers as well. Gregory Peloquin: Yes, the interest rates obviously will affect anyone borrowing money. But what we have seen is in a positive and negative, in that this administration has greatly reduced the subsidies and grants that they get for putting in new wind turbines or even new solar, which falls well for us because what people are doing, and we did see a huge increase with one of our largest, I call them the four sisters, and we mentioned them in our presentation notes, they repower. So they take apart the turbine and just rebuild it with all new products to make it last for another 10 to 15 years. And our ultracapacitor or Pitch Energy Modules work perfect for that. Because once they do the repower, that would be the last time they have to put a battery in the turbine. So in a way, the benefit to us is the reduction in grants and subsidies in terms of interest rates and, people borrowing money. I do not know if it has a direct effect on our business, but anyone that has to borrow money to do that, it would. Operator: Our next question comes from Ross Taylor with ARS Investment Partners. Ross Taylor: Congratulations. Good quarter. I wanted to ask you guys more of a philosophical question. We have often, Wendy, had discussions about, the desire to build kind of repeat business and, a lot of what Richardson is expert at is things that are limited runs, smaller runs. Are you guys making or do you see progress and opportunity to have business that really becomes more repeat so we can basically, effectively build a core business that covers the operating costs and makes a reasonable return, over the next few years? Wendy Diddell: Certainly that is true. I will jump in first and other people can add to it. Certainly that is true of our tube business. The tube business is, you know, EDG is MRO and that is very much repeat business, long-term repeat business, very steady. Gregory Peloquin: Yes, and so you have that base business that is very consistent, very measurable. And then, we have to pick opportunities that we can win at. And we have found so far that these opportunities are very niche, very unique. And so they are not really what I will call consumer goods at all. And there is so much project-based. So, we have seen over time that the Pitch Energy Module business somewhat getting more and more consistent each quarter. We will get a large order, every other quarter that is starting to get consistent, but it is project-based. Most of these other programs that we are working on. And so we are going to see, large bookings and then booking slowed down a little bit as we build and ship the product to these 1-year contracts for backlog. So, really, we do not look for, we look at opportunities where we can win at. And over time, for a good example, the Pitch Energy Modules were project-based, but we have now added, you know, almost a dozen new products in that so we can kind of get a more steady stream of revenue, with the customers we have today as opposed to just the repower, which is a 3-month program or a 6-month program. Wendy Diddell: Plus, in those markets that we serve that Greg just mentioned, our market share is still fairly low. We have a lot of runway left to, expand our penetration when you look at, for example, the GE wind turbines in the United States, we are not even at that 20% level. So we have a long way to go, Ross, where we'll continue to sell these units. Ross Taylor: Okay, so basically with that what I am hearing you say is on those areas you can, you will basically be able to get both market share growth and then over time, you will that will basically become a recycling business where perhaps every 10 years or so customers might need to replace the module and you will be able to pick up that as a cash flow business? Can you answer, I am going to slide 2 questions into 1, which is talk about the opportunities in both battery storage and also we saw, a competitive or competitor in the electric locomotive space makes them deliver some engines, I think, down into L.A. or further, I think, the Union Pacific Yard. Can you talk about where you guys stand, how you see the electric opportunity, locomotive opportunity? Gregory Peloquin: Yes, so right now we are still very active in electric locomotives and diesel locomotives. As you know, we have large programs for starter modules, working on an IGBT module for locomotive management. So, we are still hearing from our customers, and we have finished the large order for Burlington Northern Santa Fe that they expect that they will be building and getting more contracts for electric locomotives. So we are just waiting on them. We do not have a lot of input on that for the electric locomotives part. What was the other question? Ross Taylor: The other part was the battery -- and I have you on the electric motor -- the electric locomotives. Can you talk about the economics in the starter modules as well and compare those to the electric locomotives themselves? What do we look at on a unit basis? Gregory Peloquin: You mean, in terms of cost and resale? Ross Taylor: Yes. What you sell it for and does it carry kind of corporate average margins, better or worse? Gregory Peloquin: Yes, I mean, we make strong margins, corporate average margins on the starter modules. It is obviously a much smaller number within the diesel locomotive itself, but it is good margin, we have a niche, and we can expand that technology and other products that we are working on. But, it does not offset the, electric locomotive modules that we make and have installed today. Ross Taylor: What is the cost of a starter module for a diesel? Gregory Peloquin: Yes, I am not going to share that. I have got too many customers and competitors listening. I give them the family discount. They know that. All right. Ross Taylor: Okay, and then the battery storage space? Gregory Peloquin: Yes, we really, and it has been confirmed by customers, by integrators, by industry people, this microgrid growth. That is what the current order is with [ BESS ] in Alaska. There are small microgrids in 7 different towns on a federal property. The next one that we will be coming up with is for a large energy company in California, due to NDA, I cannot give you the name, but I am sure you can figure it out, Ross. And we will be receiving an order to support them with the battery, hence the container. Somebody else will be putting in the whole infrastructure and the build-out of these microgrids. But about 10 to 20 different projects that we will be supporting this company on over the next 2 years. It will be about $10 million. The products we work on, because there are too many people involved and companies involved and margins lower on these huge data centers. These microgrids really fit a niche that we are doing. Our product seems to fit that. Our engineering and value-added capabilities allow us to take a product and design it to that really specific site of anything between 200 kilohertz and 5 megawatts. And we are just seeing so many opportunities for that. And with our relationship with our technology partners, our own internal engineering capabilities, to be honest with you, we are winning more than I thought. It has really defined our strategy. We thought it would work and so far it has. Obviously, you can see with the bookings and shipments in a very short amount of time, and the funnel continues to grow. Operator: [Operator Instructions] I am showing no further questions at this time. I would now like to turn it back to Ed Richardson for closing remarks. Edward Richardson: Thanks again for joining us today and for your questions during the Q&A portion of the call. We appreciate your continued interest in Richardson Electronics and we look forward to speaking with you again in the next quarter. Until then, please feel free to call us at any time. We are happy to answer your questions. Operator: This concludes today's conference. Thank you for participating. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Richardson Electronics (RELL) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Net Sales: $64.9 million, up 18.9% year-over-year; ninth consecutive quarterly year-over-year increase. - PMT Sales: Up 19.7% year-over-year; excluding legacy healthcare business, sales were $46.6 million, up 23.1%. - GES Sales: Up $2.0 million, or 27.1%, on higher wind product and new product sales, including battery energy storage systems. - Canvys Sales: $8.9 million, up 7.9% year-over-year, driven by North America growth. - Consolidated Gross Margin: 34.6% of net sales, up from 31.0%; benefited by 170 basis points from an IEEPA tariff refund. - PMT Gross Margin: 35.4%, up from 31.3%, on product mix and IEEPA tariff refund. - GES Gross Margin: 32.6%, up from 29.6%, on favorable product mix including new products. - Canvys Gross Margin: 33.0%, up from 30.9%, primarily due to IEEPA tariff refund. - Operating Expenses: $17.4 million, up from $16.0 million; 26.8% of net sales versus 29.2% prior year. - Operating Income: $5.1 million, or 7.9% of sales, up over 400% from $1.0 million. - Net Income: $4.1 million, up from $1.9 million. - Earnings Per Share (Diluted): $0.27, up from $0.13. - EBITDA: $6.0 million, up from $3.3 million (non-GAAP). - Cash from Operating Activities: $5.9 million, up from $1.4 million. - Free Cash Flow: $4.2 million. - Cash and Cash Equivalents: $36.9 million, up from $31.8 million at fiscal 2026 year-end. - Capital Expenditures: $1.7 million, versus $1.0 million prior year. - Dividends: $0.9 million paid in the quarter; quarterly cash dividend of $0.06 per common share declared for Q2 fiscal 2027. - Debt: No outstanding debt on revolving line of credit with PNC Bank. - Backlog: $184.4 million, up $20 million from fiscal 2026 year-end; Canvys backlog $41.8 million with book-to-bill of 1.1. - Inventory: Approximately $103.3 million, essentially flat to fiscal 2026 year-end. - BESS Program: $2 million program booked in Q1; pipeline of nearly 50 active opportunities. - Wind Products: More than 90,000 units shipped since launch; margins accretive to overall company margin. - Warning! GuruFocus has detected 9 Warning Signs with RELL. - Is RELL fairly valued? Test your thesis with our free DCF calculator. Release Date: October 08, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Consolidated net sales increased 18.9% year-over-year to $64.9 million, marking the ninth consecutive quarterly year-over-year increase. - Operating income surged over 400% to $5.1 million, or 7.9% of sales, compared to $1.0 million in the prior year quarter. - Backlog grew to $184.4 million, up $20 million from fiscal year 2026 year-end, providing strong visibility for future revenue. - Gross margin expanded to 34.6% from 31.0%, driven by favorable product mix and an IEEPA tariff refund. - Generated $5.9 million in cash from operating activities, compared to $1.4 million in the prior year quarter, and remains debt-free with $36.9 million in cash. - Operating expenses increased to $17.4 million from $16.0 million, due to higher employee compensation and travel expenses. - The IEEPA tariff refund benefited gross margin by 170 basis points, but future refunds are uncertain and not expected to continue at the same level. - Canvys revenue growth was only 7.9% and remains project-based with quarterly variability, and European revenue declined year-over-year. - GES growth was primarily driven by wind products, while BESS and other new products contributed less, indicating concentration risk. - Macroeconomic uncertainties, including trade policies, tariffs, geopolitical developments, and high interest rates, could impact customer demand and supply chain costs. Q: Can you provide visibility on backlog conversion over the next 12 months and expectations for backlog growth through year-end? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, stated that approximately 75% of the current backlog is scheduled to ship within the fiscal year. He expects continued backlog growth in Q2 and strong top-line growth for the foreseeable future in fiscal year 2027, driven by new products, quotes, and new customers. Jens Ruppert, EVP and GM of Canvys, added that while the majority of Canvys' backlog will ship within the fiscal year, some frame contracts extend for two to three years. Q: What are your expectations for IEEPA tariff refunds going forward? Should we expect the benefit to continue in the next quarter? A: Robert Ben, CFO, explained that it is difficult to predict future refunds as they are received sporadically without clear time period attribution. Wendy Diddell, COO, added that the company does not expect to receive the same amount in Q2 as it did in Q1. Q: Can you help me understand the revenue mix within GES? How much of that growth was specifically from the wind ultracapacitors versus the BESS and the other new products? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, stated that the majority of GES growth was in wind and associated products. He noted the company now has over 23 customers using their products and over 10 different products selling into wind turbine platforms. Q: Within PMT, how much of that revenue is from the semiconductor wafer fab? What do you see in terms of that growing sequentially? What's your visibility for the second quarter there? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, did not provide specific backlog figures but noted that numerous semiconductor wafer fab customers forecast the type of growth seen in Q1 to continue well into the rest of fiscal year 2027 and into calendar year 2027. He described the customer feedback as "very positive." Q: Within the Suzlon opportunity, that's really in its early innings. What kind of opportunity do you see there? How big can that be? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, reported strong Q1 shipments of about $1.5 million for Suzlon's replacement business. He highlighted that Richardson's product will be installed on Suzlon's new SX-9 turbine platform as standard OEM equipment, in addition to the worldwide MRO business on all Suzlon turbines, calling it a very good example of Richardson's capabilities. Q: How do you anticipate the high interest rates to affect you? A: Robert Ben, CFO, noted that since the company has no debt, there is no direct impact. Gregory Peloquin, EVP of Power and Microwave Technologies Group, added that while interest rates affect customers who borrow money, the reduction in grants and subsidies for new wind turbines has actually benefited Richardson. Customers are increasingly repowering existing turbines with new products, including Richardson's ultracapacitor pitch energy modules, which last the life of the turbine. Q: Are you making progress toward building more repeat business that covers operating costs and provides reasonable returns over the next few years? A: Wendy Diddell, COO, confirmed that the tube business (EDG/MRO) is very much repeat, long-term, and steady. Gregory Peloquin, EVP of Power and Microwave Technologies Group, added that the pitch energy module business is becoming more consistent each quarter, and the company has added nearly a dozen new products to create a steadier revenue stream. Wendy Diddell also noted that market share in these markets remains low, with significant runway for expansion, citing less than 20% penetration in U.S. GE wind turbines. Q: Can you talk about the opportunities in battery storage and where you stand on the electric locomotive opportunity? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, stated the company remains active in electric and diesel locomotives, with large starter module programs and an IGBT module for locomotive management. They have completed large orders for Burlington Northern Santa Fe and are awaiting further contracts for electric locomotives. On battery storage, he highlighted the Alaska microgrid project serving seven towns, a forthcoming order from a large California energy company for about 10-20 projects worth approximately $10 million over two years, and a pipeline of nearly 50 active opportunities. He noted Richardson's competitive advantage in custom-engineered solutions for microgrids ranging from 200 kW to 5 MW. Q: What is the cost of a starter module for a diesel locomotive, and does it carry corporate average margins? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, declined to share specific pricing due to competitive sensitivity but confirmed that starter modules carry strong margins at or above corporate average. He noted it is a much smaller number within the diesel locomotive itself but represents a good niche with potential to expand the technology into other products. Q: How much of the backlog is GES? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, reported that GES backlog was $43.2 million and PMT backlog was $99.4 million. Q: Can you provide more detail on the BESS pipeline and the Alaska project? A: Wendy Diddell, COO, noted that the company began shipments for its first Alaska order, a multimillion-dollar project including 18 customized battery energy storage systems serving seven remote communities. Gregory Peloquin, EVP of Power and Microwave Technologies Group, added that the pipeline includes nearly 50 active opportunities, with multiple expected to close in fiscal year 2027. The company is also building an energy storage demonstration center at its LaFox headquarters and expanding its RESS product family with the RESS211 and RESS422 systems. Q: What is the outlook for GES growth in fiscal year 2027? A: Gregory Peloquin, EVP of Power and Microwave Technologies Group, stated that with continued sales growth and a growing backlog, the company expects double-digit growth for GES in fiscal year 2027. He highlighted the $2 million BESS program booked in Q1, the growing pipeline of nearly 50 active opportunities, and the expansion of For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First quarter net sales increased 18.9% year over year, with growth across all three business units First quarter net income increased 112.6% to $4.1 million, or $0.27 per common share (diluted) Company generated free cash flow of $4.2 million for first quarter Backlog at August 29, 2026 was $184.4 million, up 36.9% year-over-year LAFOX, Ill., Oct. 07, 2026 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its first quarter ended August 29, 2026. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend. "Fiscal 2027 is off to an excellent start, as Richardson Electronics delivered its ninth consecutive quarter of year-over-year sales growth, expanded levels of profitability, and generated strong free cash flow. First-quarter performance continued to reflect strong demand in Power and Microwave Technologies (PMT), particularly for engineered solutions serving the semiconductor wafer fabrication equipment market, as well as distributed RF and microwave products. We also experienced significant growth in Green Energy Solutions (GES) and Canvys. Overall, our team delivered another strong operating performance," said Edward J. Richardson, Chairman, Chief Executive Officer, and President. "Our backlog ended the first quarter at $184.4 million, which increased year-over-year by nearly $50 million, or 36.9%, and the highest level in more than three years. While the broader economic environment remains fluid, we remain focused on driving the adoption of our engineered solutions, increasing efficiency, and executing against our long-term strategic growth priorities. We believe fiscal 2027 will be another year of profitable growth supported by the highest level of backlog in more than three years, and continued customer demand across semiconductor manufacturing, power management, energy storage, defense and specialized display solutions," Mr. Richardson concluded. First Quarter Results Net sales for the first quarter of fiscal 2027 were $64.9 million, an 18.9% increase from $54.6 million in the prior year's first quarter. All business units experienced strong year-over-year sales growth. PMT sales increased $7.7 million, or 19.7% due to strong growth in semiconductor wafer fab and RF and Microwave products. GES sales increased $2.0 million, or 27.1% as a result of higher sales of wind products and new products, including Battery Energy Storage Systems (BESS). Canvys' sales increased $0.6 million, or 7.9%, reflecting higher sales in North America. Backlog grew 12.2% to $184.4 million at the end of the first quarter of fiscal 2027 versus $164.4 million at the end of fiscal 2026, primarily driven by an increase in PMT. GES backlog improved by 10.2%. Gross margin for the first quarter was 34.6% of net sales, compared to 31.0% during the first quarter of fiscal 2026. In the first quarter of fiscal 2027, gross margin was impacted 1.7% due to an IEEPA Tariff Refund. PMT gross margin increased to 35.4%, compared to 31.3%, as a result of product mix and the IEEPA Tariff Refund. GES gross margin increased to 32.6%, from 29.6% due to product mix that included new products. Canvys gross margin increased to 33.0%, from 30.9% primarily due to the IEEPA Tariff Refund. Operating expenses were $17.4 million, compared to $16.0 million in the first quarter of fiscal 2026. The increase in operating expenses resulted primarily from higher employee compensation expenses, including incentives driven by the strong sales growth, and higher travel expenses. As a percentage of net sales, operating expenses improved to 26.8% in the first quarter of fiscal 2027, versus 29.2% in the prior year's first quarter. Operating income was $5.1 million for the first quarter of fiscal 2027, compared to an operating income of $1.0 million in the prior year's first quarter. Other expense for the first quarter of fiscal 2027, including interest income, foreign exchange and other, net, were $0.1 million, compared to other income of $1.4 million in the first quarter of fiscal 2026. Income tax provision was $1.0 million for the first quarter of fiscal 2027, versus an income tax provision of $0.4 million in the prior year's first quarter. The effective tax rate for the first quarter of fiscal 2027 was 19.6%. Net income was $4.1 million for the first quarter of fiscal 2027, compared to net income of $1.9 million for the first quarter of fiscal 2026. Earnings per common share (diluted) were $0.27 in the first quarter of fiscal 2027, compared to earnings per common share (diluted) of $0.13 in the first quarter of fiscal 2026. EBITDA was $6.0 million in the first quarter of fiscal 2027, compared to $3.3 million for the first quarter of fiscal 2026. The Company maintained its solid financial position with cash and cash equivalents of $36.9 million as of August 29, 2026, versus $31.8 million as of May 30, 2026. Cash generated during the first quarter of fiscal 2027 primarily related to net income adjusted for non-cash items and higher accounts payable, partially offset by higher accounts receivable. The Company also invested $1.7 million during the quarter in capital expenditures, primarily related to facilities improvements and IT systems, versus $1.0 million during last year's first quarter. As of the end of the first quarter of fiscal 2027, the Company had no outstanding debt on its revolving line of credit with PNC Bank. CASH DIVIDEND DECLARED The Board of Directors of Richardson Electronics declared a $0.06 quarterly cash dividend per share to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock. The dividend will be payable on November 25, 2026, to common stockholders of record as of November 6, 2026. NON-GAAP FINANCIAL MEASURE In addition to the results reported in accordance with generally accepted accounting principles in the United States (GAAP) included throughout this press release, the Company has provided information regarding "EBITDA" (a "non-GAAP financial measure"). This non-GAAP financial measure reflects earnings before interest, income tax, depreciation and amortization expenses. Detailed reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release. Management believes that the disclosure of this non-GAAP financial measure provides useful information to investors in assessing the Company's financial performance excluding items that are not considered by the Company to be indicative of the Company's ongoing results. Our management uses this non-GAAP financial measure along with the most directly comparable GAAP financial measure in evaluating our financial performance and when planning, forecasting and analyzing future periods. The non-GAAP financial measure presented herein, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. The non-GAAP financial measure incorporated herein is not intended to be used as a substitute for the related GAAP measurements. The non-GAAP financial measure should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. CONFERENCE CALL INFORMATION The Company will host a conference call and question-and-answer session on Thursday, October 8, 2026, at 9:00 a.m. Central Time, to discuss its first quarter fiscal 2027 results. Participants may register for the call here. While not required, it is recommended you join 10 minutes prior to the event start. A replay of the call will be available beginning at 1:00 p.m. Central Time on October 8, 2026, for seven days. Registration instructions are also on our website at www.rell.com. In addition, the webcast link is available here. FORWARD-LOOKING STATEMENTS This release includes certain "forward-looking" statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company's business that are not historical facts represent "forward-looking" statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K filed on August 3, 2026, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the "forward-looking" statements in this release as a result of new information, future events or otherwise. ABOUT RICHARDSON ELECTRONICS, LTD. Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; tubes for diagnostic imaging equipment; and customized display solutions. More than 55% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. All our partners manufacture to our strict specifications and per our Supplier Code of Conduct. We serve customers in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company's strategy is to provide specialized technical expertise and "engineered solutions" based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com. Richardson Electronics' common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL. Richardson Electronics, Ltd. Consolidated Balance Sheets (in thousands, except per share amounts) | | | | | | | | Unaudited | | | Audited | | | August 29, 2026 | | | May 30, 2026 | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents | | $ | 36,915 | | | $ | 31,779 | Accounts receivable, less allowance for credit losses of $274 and $350, respectively | | | 34,939 | | | | 33,162 | Inventories, net | | | 103,280 | | | | 103,020 | Prepaid expenses and other assets | | | 4,441 | | | | 4,770 | Total current assets | | | 179,575 | | | | 172,731 | Non-current assets: | | | | | | Property, plant and equipment, net | | | 19,806 | | | | 19,003 | Intangible assets, net | | | 270 | | | | 285 | Right of use lease assets, net | | | 3,520 | | | | 1,389 | Deferred income tax assets, net | | | 8,300 | | | | 8,346 | Other non-current assets | | | 223 | | | | 263 | Total non-current assets | | | 32,119 | | | | 29,286 | Total assets | | $ | 211,694 | | | $ | 202,017 | Liabilities and Stockholders' Equity | | | | | | Current liabilities: | | | | | | Accounts payable | | $ | 22,648 | | | $ | 19,593 | Accrued liabilities | | | 14,938 | | | | 15,989 | Lease liabilities current | | | 1,049 | | | | 787 | Total current liabilities | | | 38,635 | | | | 36,369 | Non-current liabilities: | | | | | | Deferred income tax liabilities | | | 176 | | | | 177 | Lease liabilities non-current | | | 2,471 | | | | 602 | Other non-current liabilities | | | 1,187 | | | | 1,168 | Total non-current liabilities | | | 3,834 | | | | 1,947 | Total liabilities | | | 42,469 | | | | 38,316 | Commitments and contingencies | | | | | | Stockholders' Equity | | | | | | Common stock, $0.05 par value; 12,841 and 12,588 shares issued and outstanding on August 29, 2026 and May 30, 2026, respectively | | | 642 | | | | 629 | Class B common stock, convertible, $0.05 par value; 2,036 and 2,036 shares issued and outstanding on August 29, 2026 and May 30, 2026, respectively | | | 102 | | | | 102 | Additional paid-in-capital | | | 79,555 | | | | 76,950 | Retained earnings | | | 85,463 | | | | 82,284 | Accumulated other comprehensive income | | | 3,463 | | | | 3,736 | Total stockholders' equity | | | 169,225 | | | | 163,701 | Total liabilities and stockholders' equity | | $ | 211,694 | | | $ | 202,017 | | | | | | | | | Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive Income (in thousands, except per share amounts) | | | | | Three Months Ended | | | August 29, 2026 | | | August 30, 2025 | Net sales | | $ | 64,923 | | | $ | 54,607 | Cost of sales | | | 42,431 | | | | 37,678 | Gross profit | | | 22,492 | | | | 16,929 | Selling, general and administrative expenses | | | 17,377 | | | | 15,961 | Operating income | | | 5,115 | | | | 968 | Other (expense) income: | | | | | | Interest income | | | 121 | | | | 169 | Foreign exchange (loss) gain | | | (188 | ) | | | 289 | Other, net | | | (1 | ) | | | 904 | Total other (expense) income | | | (68 | ) | | | 1,362 | Income before income taxes | | | 5,047 | | | | 2,330 | Income tax provision | | | 988 | | | | 421 | Net income | | | 4,059 | | | | 1,909 | Foreign currency translation (loss) gain, net of tax | | | (273 | ) | | | 1,054 | Comprehensive income | | $ | 3,786 | | | $ | 2,963 | | | | | | | Net income per share: | | | | | | Common stock - Basic | | $ | 0.28 | | | $ | 0.13 | Class B common stock - Basic | | | 0.25 | | | | 0.12 | Common stock - Diluted | | | 0.27 | | | | 0.13 | Class B common stock - Diluted | | | 0.25 | | | | 0.12 | | | | | | | Weighted average number of shares: | | | | | | Common stock – Basic | | | 12,666 | | | | 12,393 | Class B common stock – Basic | | | 2,036 | | | | 2,049 | Common stock – Diluted | | | 13,024 | | | | 12,544 | Class B common stock – Diluted | | | 2,036 | | | | 2,049 | | | | | | | Richardson Electronics, Ltd. Unaudited Consolidated Statements of Cash Flows (in thousands) | | | | | Three Months Ended | | | August 29, 2026 | | | August 30, 2025 | Operating activities: | | | | | | Net income | | $ | 4,059 | | | $ | 1,909 | Adjustments to reconcile net income to cash provided by operating activities: | | | | | | Unrealized foreign currency gain | | | (88 | ) | | | (511 | ) Depreciation and amortization | | | 907 | | | | 971 | Inventory provisions | | | 94 | | | | 102 | Share-based compensation expense | | | 695 | | | | 641 | Deferred income taxes | | | 46 | | | | 49 | Change in assets and liabilities: | | | | | | Accounts receivable | | | (1,744 | ) | | | (2,654 | ) Inventories | | | (647 | ) | | | (578 | ) Prepaid expenses and other assets | | | 373 | | | | 60 | Accounts payable | | | 3,062 | | | | 1,626 | Accrued liabilities | | | (1,039 | ) | | | (150 | ) Other | | | 155 | | | | (98 | ) Net cash provided by operating activities | | | 5,873 | | | | 1,367 | Investing activities: | | | | | | Capital expenditures | | | (1,697 | ) | | | (1,025 | ) Net cash used in investing activities | | | (1,697 | ) | | | (1,025 | ) Financing activities: | | | | | | Proceeds from issuance of common stock | | | 2,115 | | | | 61 | Cash dividends paid on common and Class B common stock | | | (880 | ) | | | (857 | ) Other | | | (192 | ) | | | (99 | ) Net cash provided by (used in) financing activities | | | 1,043 | | | | (895 | ) Effect of exchange rate changes on cash and cash equivalents | | | (83 | ) | | | 306 | Increase (decrease) in cash and cash equivalents | | | 5,136 | | | | (247 | ) Cash and cash equivalents at beginning of period | | | 31,779 | | | | 35,901 | Cash and cash equivalents at end of period | | $ | 36,915 | | | $ | 35,654 | | | | | | | | | Richardson Electronics, Ltd. Unaudited Net Sales and Gross Profit For the First Quarter of Fiscal 2027 and 2026 ($ in thousands) By Strategic Business Unit Net Sales | | | | | | | | Three Months Ended | | | FY27 vs. FY26 | | | August 29, 2026 | | | August 30, 2025 | | | % Change | PMT | | $ | 46,765 | | | $ | 39,069 | | | | 19.7 | % GES | | | 9,231 | | | | 7,263 | | | | 27.1 | % Canvys | | | 8,927 | | | | 8,275 | | | | 7.9 | % Total | | $ | 64,923 | | | $ | 54,607 | | | | 18.9 | % Gross Profit | | | | | Three Months Ended | | | August 29, 2026 | | | % of Net Sales | | | August 30, 2025 | | | % of Net Sales | PMT | | $ | 16,538 | | | | 35.4 | % | | $ | 12,226 | | | | 31.3 | % GES | | | 3,010 | | | | 32.6 | % | | | 2,150 | | | | 29.6 | % Canvys | | | 2,944 | | | | 33.0 | % | | | 2,553 | | | | 30.9 | % Total | | $ | 22,492 | | | | 34.6 | % | | $ | 16,929 | | | | 31.0 | % | | | | | | | | | | | | | | | | Richardson Electronics, Ltd. Unaudited Reconciliation Between GAAP and Non-GAAP Financial Measures For the First Quarter of Fiscal 2027 and 2026 ($ in thousands) EBITDA | | | | | Unaudited | | | ($ in thousands) | | | Three Months Ended | | | August 29, 2026 | | | August 30, 2025 | Net income | | $ | 4,059 | | | $ | 1,909 | Income tax provision | | | 988 | | | | 421 | Depreciation & amortization | | | 907 | | | | 971 | EBITDA | | $ | 5,954 | | | $ | 3,301 | | | | | | | | | 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

Richardson Electronics (RELL) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this electronic components and communication products company would post earnings of $0.07 per share when it actually produced earnings of $0.21, delivering a surprise of +200%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Richardson Electronics, which belongs to the Zacks Electronics - Parts Distribution industry, posted revenues of $64.92 million for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 10.07%. This compares to year-ago revenues of $54.61 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Richardson Electronics shares have added about 75.1% since the beginning of the year versus the S&P 500's gain of 14.2%. While Richardson Electronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Richardson Electronics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $59.04 million in revenues for the coming quarter and $0.51 on $245.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Parts Distribution is currently in the top 2% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Avnet (AVT), has yet to report results for the quarter ended September 2026. This distributor of electronic components is expected to post quarterly earnings of $2.86 per share in its upcoming report, which represents a year-over-year change of +240.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Avnet's revenues are expected to be $9.15 billion, up 55.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report Avnet, Inc. (AVT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research