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LAFOX, Ill. - Richardson Electronics, Ltd. (NASDAQ:RELL), a small-cap technology company with a market capitalization of $144 million, reported a 9.5% increase in fourth-quarter net sales to $51.9 million compared to $47.4 million in the same period last year, marking the fourth consecutive quarter of year-over-year sales growth. According to InvestingPro analysis, the stock appears to be trading above its Fair Value after declining 27% over the past six months.
The company achieved non-GAAP operating income of $0.8 million for the quarter ended May 31, 2025, compared to an operating loss in the prior year period. Net income was $1.1 million, or $0.08 per diluted share. The company maintains strong financial health with a current ratio of 4.71, and InvestingPro data shows it holds more cash than debt on its balance sheet.
For fiscal year 2025, Richardson Electronics reported a 6.3% increase in net sales to $208.9 million, driven primarily by a 23.6% growth in its Green Energy Solutions (GES) segment. The Power and Microwave Technologies Group (PMT) segment saw sales increase by 7.0% for the year.
"Fiscal 2025 was a year of strategic transition and execution," said Edward J. Richardson, Chairman, CEO, and President. "Fourth quarter net sales increased despite selling the majority of Richardson Healthcare’s assets in January 2025."
The company maintained a stable backlog of $134.2 million at the end of the quarter and generated positive operating cash flow for the fifth consecutive quarter. Gross margin improved to 31.6% in the fourth quarter from 31.1% in the prior year period.
Richardson Electronics’ Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on August 27, 2025, to stockholders of record as of August 8, 2025.
The company ended the quarter with $35.9 million in cash and cash equivalents, reflecting a solid financial position according to the press release statement. Notably, Richardson Electronics has maintained dividend payments for 38 consecutive years, demonstrating strong commitment to shareholder returns. For deeper insights into RELL’s financial health and growth prospects, including 10+ additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Richardson Electronics announced the introduction of new monitoring relays aimed at the wind and renewable energy markets. These products, the TurbineGuard™ Temperature Signal Relay and the TurbineGuard™ Voltage Signal Relay, are designed to enhance the safety and performance of aging turbine systems. They are compatible with GE turbines, facilitating easy integration into existing systems. Additionally, Richardson Electronics revealed a global technology partnership with Pakal Technologies. This collaboration involves the distribution of Pakal’s 650V and 1200V silicon-based power switches. The agreement focuses on Pakal’s IGTO(t) structure, a new high-voltage silicon power semiconductor. These developments highlight Richardson Electronics’ ongoing efforts to innovate and expand its product offerings in the energy sector.
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