Richardson Electronics, Ltd. Announces Two Multi-Million Dollar Contracts for its Patented Ultracapacitor Pitch Energy Modules

Rhea-AI Summary

Richardson Electronics (NASDAQ: RELL) has secured two multi-million dollar production contracts with major North American wind farm operators for its patented ultracapacitor pitch energy modules (PEMs). The orders, expected to ship during calendar year 2025, include the company's patented ULTRA3000® units, which are drop-in replacements for lead-acid batteries in wind turbine electric pitch systems.

The ULTRA3000® technology offers improved lifespan, reduced maintenance requirements, and lower environmental impact compared to traditional lead-acid batteries. These PEMs are important for storing and managing energy needed to adjust wind turbine blade angles for effective operation.

Positive

• Secured multiple multi-million dollar contracts for ULTRA3000® units
• Contracts with two of North America's largest wind farm operators
• Product offers improved lifespan and reduced maintenance compared to existing solutions
• Manufacturing capability across three countries (US, Germany, Massachusetts)

Negative

• Revenue impact deferred to calendar year 2025
• Specific contract values not disclosed

New orders are from two of the world's largest owners and operators of wind farms in North America

LAFOX, Ill., Dec. 17, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for renewable energy and other power management applications, announced today two multi-million dollar production contracts with two of the world's largest owners and operators of wind farms in North America for Richardson’s patented ultracapacitor pitch energy modules (PEMs) and other related products. Richardson expects these orders to be shipped during the calendar year 2025.

These agreements align with Richardson Electronics' ongoing strategy to provide innovative solutions and exceptional value to global wind turbine customers. Under the terms of the agreements, Richardson Electronics will provide its patented ULTRA3000^® units to numerous wind farms throughout North America.

Richardson Electronics' patented ULTRA3000^® is a drop-in replacement for lead-acid batteries used in electric pitch systems within wind turbines. Pitch Energy Modules (PEMs) store and manage the energy required to adjust the blade angles to ensure the effective operation of the wind turbine. The improved life span of the patented ULTRA3000^® reduces maintenance requirements and significantly reduces the environmental impact associated with lead-acid batteries.

"We are excited to secure these contracts," said Greg Peloquin, Executive Vice President and General Manager of Power & Microwave Technologies and Green Energy Solutions groups. "These partnerships further reinforce our commitment to delivering best-in-class solutions and solidify our global position as the industry leader."

These contracts reflect the Company's continued dedication to innovation, operational excellence, and customer satisfaction.

About Richardson Electronics, Ltd.

Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components, including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% 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 adhere to our supplier terms and conditions. We serve customers in the 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.

About Richardson Electronics – Green Energy Solutions

Richardson Electronics Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner, and authorized distributor, GES's strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. GES focuses on products for numerous green energy applications such as wind, solar, hydrogen, and electric vehicles and other power management applications that support green solutions such as synthetic diamond manufacturing. For more information, visit us at https://www.rell.com/greenenergysolutions/.

About Richardson Electronics – Power & Microwave Technologies

For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world's most innovative technology partners. Richardson Electronics' Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at rellpower.com | relltubes.com | rellaser.com.

For Details Contact:
Greg Peloquin
Executive Vice President & GM
Power & Microwave Technologies and Green Energy Solutions
Phone: (630) 659-8900
peloquin@rell.com

40W267 Keslinger Road
LaFox, IL 60147-0393 USA
(630) 208-2200 | Fax: (630) 208-2550

FAQ

What are the new contracts Richardson Electronics (RELL) announced in December 2024?

Richardson Electronics announced two multi-million dollar contracts with major North American wind farm operators for its ULTRA3000® ultracapacitor pitch energy modules, with deliveries expected in 2025.

What are the advantages of RELL's ULTRA3000® over traditional lead-acid batteries?

ULTRA3000® offers improved lifespan, reduced maintenance requirements, and significantly lower environmental impact compared to traditional lead-acid batteries in wind turbine systems.

When will RELL deliver the new ULTRA3000® orders?

Richardson Electronics expects to ship these orders during calendar year 2025.

What is the function of RELL's ULTRA3000® in wind turbines?

ULTRA3000® stores and manages energy required to adjust wind turbine blade angles, ensuring effective turbine operation as a drop-in replacement for lead-acid batteries in electric pitch systems.

Where does Richardson Electronics (RELL) manufacture its products?

Over 60% of RELL's products are manufactured in LaFox, Illinois; Marlborough, Massachusetts; Donaueschingen, Germany; or by manufacturing partners worldwide.