Richardson Electronics, Ltd. (NASDAQ: RELL) today reported sales and
earnings for its second quarter ended December 1, 2012. The Company also
announced that its Board of Directors declared a $0.06 per share
quarterly cash dividend.
Net sales for the second quarter of fiscal 2013 were $36.6 million, down
6.5% from net sales of $39.1 million during the second quarter of last
year reflecting the impact of the uncertainty within the global
marketplace. Gross profit for the second quarter of fiscal 2013 was
$10.7 million, or 29.3% of net sales, compared to $11.7 million, or
29.9% of net sales, during the second quarter of fiscal 2012. Gross
profit during the second quarter of fiscal 2013 was impacted by
unabsorbed manufacturing labor and overhead of $0.3 million, or 0.8% of
Selling, General, and Administrative ("SG&A") costs during the second
quarter of fiscal 2013 were $10.2 million, compared to $10.0 million
during last year's second quarter. SG&A expenses during the second
quarter of fiscal 2013 included severance costs, expenses related to a
preference claim, and product development costs totaling $0.4 million.
Operating income during the second quarter of fiscal 2013 was $0.5
million, or 1.4% of net sales, compared to operating income of $1.7
million, or 4.4% of net sales, during the second quarter of last year.
Income from continuing operations for the second quarter of fiscal 2013
was $0.6 million, or $0.04 per diluted common share, compared to income
from continuing operations of $1.6 million, or $0.09 per diluted common
share during the second quarter of last year.
"Sales in the first half of our fiscal year were impacted by slowing
growth in Asia combined with global financial instability and a decline
in demand for semiconductor wafer fabrication components. We have
adjusted resources to align our costs with current sales expectations.
With an outlook for improving global economic conditions, we anticipate
sales for the second half of our fiscal year to be up significantly over
the first half," said Edward J. Richardson, Chairman, Chief Executive
Officer and President.
"We continue to focus on converting sales from OEM customers to end
users through our expanded service capabilities for laser and industrial
tubes. We are in an excellent position to help customers replace tubes
and service their equipment. Our ability to create opportunities to
extend our business model into new industries is also crucial to the
long-term success of the company," concluded Mr. Richardson.
FINANCIAL SUMMARY - THREE MONTHS ENDED DECEMBER 1,
FINANCIAL SUMMARY - SIX MONTHS ENDED DECEMBER 1,
CASH USED FOR SHARE REPURCHASES
"Cash and investments at the end of our second quarter were $147.3
million. We used $6.0 million to repurchase 0.5 million shares during
the second quarter of fiscal 2013. As of today, we have repurchased a
total of 3.5 million shares for $44.2 million under our share repurchase
authorization and currently have $30.8 million remaining. With our
strong balance sheet, we are committed to returning value to our
shareholders through a combination of cash dividends, share repurchases,
and strategic acquisitions," said Mr. Richardson.
Share repurchases may be made on the open market or in privately
negotiated transactions, subject to market conditions and trading
restrictions. This authorization has no expiration and may be cancelled
at any time.
The Company also announced today that its Board of Directors declared a
$0.06 dividend per share to all holders of common stock and a $0.054
cash dividend per share to all holders of Class B common stock. The
dividend will be payable on February 22, 2013, to all common
stockholders of record on February 8, 2013. The Company currently has
12.3 million outstanding shares of common stock and 2.7 outstanding
shares of Class B common stock.
CONFERENCE CALL INFORMATION
On Thursday, January 10, 2013, at 9:00 a.m. CT, Edward J. Richardson,
Chairman and Chief Executive Officer, and Kathleen S. Dvorak, Chief
Financial Officer, will host a conference call to discuss the Company's
second quarter results for fiscal 2013. A question and answer session
will be included as part of the call's agenda. To listen to the call,
please dial (877) 465-4511 and enter passcode 75280206 approximately
five minutes prior to the start of the call. A replay of the call will
be available beginning at 11:00 a.m. CT on January 10, 2013, for seven
days. The telephone numbers for the replay are (USA) (888) 286-8010 and
(International) (617) 801-6888; access code 51931348.
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 which 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 July 27, 2012, and in the Company's
Proxy Statement on Schedule 14A filed on August 30, 2012. 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 provider of engineered
solutions, power grid and microwave tubes and related consumables, and
customized display solutions serving customers in the alternative
energy, 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. More
information is available online at www.rell.com.
Richardson Electronics common stock trades on the NASDAQ Global Select
Market under the ticker symbol RELL.
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