Richardson Electronics Reports Strong First Quarter Results; Declares Quarterly Cash Dividend
Backlog reached its highest level in more than three years, while the quarter generated $4.2 million in free cash flow.
Sentiment and the balance of points
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Rhea-AI Summary
Richardson Electronics (NASDAQ: RELL) reported fiscal 2027 first-quarter net sales of $64.9 million, up 18.9% year over year. For the quarter ended August 29, 2026, net income rose 112.6% to $4.1 million, with diluted common-share earnings of $0.27 versus $0.13. Sales increased across all three business units. Gross margin rose to 34.6% from 31.0%, partly reflecting a tariff refund, while operating expenses increased to $17.4 million from $16.0 million.
Backlog reached $184.4 million, up 36.9% year over year and 12.2% from fiscal year-end. Free cash flow was $4.2 million. Cash increased to $36.9 million from $31.8 million at May 30, 2026, with no outstanding debt on the PNC revolving credit line. The company expects another year of profitable growth. Quarterly dividends of $0.06 per common share and $0.054 per Class B share are payable November 25, 2026, to holders of record November 6.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointFiscal 2027 first-quarter net sales rose 18.9% year over year to $64.9 million.
- Moderate pointFirst-quarter net income increased 112.6% year over year to $4.1 million.
- Moderate pointFirst-quarter operating income increased to $5.115 million from $0.968 million a year earlier.
- Moderate pointFirst-quarter gross margin increased to 34.6% from 31.0% a year earlier, partly reflecting a tariff refund.
- Moderate pointBacklog reached $184.4 million at August 29, 2026, up 36.9% year over year and 12.2% from fiscal year-end. 65% of market cap
- Moderate pointFirst-quarter operating cash flow increased to $5.873 million from $1.367 million a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Richardson Electronics expects another year of profitable growth in fiscal 2027.
13 minor points
- Minor pointFirst-quarter diluted common-share earnings rose to $0.27 from $0.13 a year earlier.
- Minor pointPower and Microwave Technologies first-quarter sales increased 19.7% year over year to $46.765 million.
- Minor pointGreen Energy Solutions first-quarter sales increased 27.1% year over year to $9.231 million.
- Minor pointCanvys first-quarter sales increased 7.9% year over year to $8.927 million.
- Minor pointPower and Microwave Technologies first-quarter gross margin rose to 35.4% from 31.3% a year earlier.
- Minor pointGreen Energy Solutions first-quarter gross margin rose to 32.6% from 29.6% a year earlier.
- Minor pointCanvys first-quarter gross margin rose to 33.0% from 30.9% a year earlier.
- Minor pointGreen Energy Solutions backlog improved 10.2% from fiscal 2026 year-end.
- Minor pointFirst-quarter operating expenses as a share of sales improved to 26.8% from 29.2% a year earlier.
- Minor pointFirst-quarter EBITDA, earnings before interest, taxes, depreciation and amortization, rose to $5.954 million from $3.301 million.
- Minor pointFirst-quarter free cash flow totaled $4.2 million.
- Minor pointCash increased to $36.9 million at August 29, 2026 from $31.8 million at May 30, 2026.
- Minor pointCommon-stock issuance generated $2.115 million in proceeds during the first quarter.
Negative
- Moderate pointFirst-quarter operating expenses increased to $17.4 million from $16.0 million a year earlier.
- Minor pointFirst-quarter other expense totaled $68,000, versus other income of $1.362 million a year earlier.
- Minor pointFirst-quarter income tax provision increased to $988,000 from $421,000 a year earlier; effective rate was 19.6%.
- Minor pointFirst-quarter capital expenditures increased to $1.697 million from $1.025 million a year earlier.
- Minor pointCommon shares outstanding increased to 12.841 million at August 29, 2026 from 12.588 million at May 30, diluting holders.
- Minor pointFirst-quarter accounts receivable changes used $1.744 million of operating cash.
Details
Market Reaction – RELL
On Oct 7, the day this news came out, the latest delayed price for RELL is 3.05% above the previous close. Argus tracked a peak move of +9.2% during the session. Argus tracked a trough of -8.0% from its starting point during tracking. Our momentum scanner has recorded 37 alerts for this stock so far that day. The latest delayed price is $20.61. Relative volume is exceptionally heavy at 12.8x the average.
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AI-generated analysis. How Rhea-AI works. Not financial advice.
First quarter net sales increased
First quarter net income increased
Company generated free cash flow of
Backlog at August 29, 2026 was
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
“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
First Quarter Results
Net sales for the first quarter of fiscal 2027 were
PMT sales increased
Backlog grew
Gross margin for the first quarter was
Operating expenses were
Operating income was
Income tax provision was
Net income was
EBITDA was
The Company maintained its solid financial position with cash and cash equivalents of
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
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
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 | 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, | 642 | 629 | ||||||
| Class B common stock, convertible, | 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 |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Richardson Electronics' fiscal 2027 first-quarter earnings?
Richardson Electronics earned $4.1 million in the quarter ended August 29, 2026, up 112.6% year over year. Diluted earnings per common share increased to $0.27 from $0.13, while net sales rose 18.9% to $64.9 million.
When will Richardson Electronics pay its quarterly dividend?
The quarterly dividend is payable November 25, 2026, to stockholders of record November 6, 2026. The declared payment is $0.06 per common share and $0.054 per Class B common share.
What drove Richardson Electronics' fiscal 2027 first-quarter sales growth?
Sales growth reflected higher semiconductor wafer fabrication and RF and microwave product sales in Power and Microwave Technologies, higher wind and new-product sales in Green Energy Solutions, and higher North American sales in Canvys. Green Energy Solutions' new products included Battery Energy Storage Systems.
Why did Richardson Electronics' first-quarter operating expenses increase?
Operating expenses increased primarily because of higher employee compensation, including incentives driven by sales growth, and higher travel expenses. Expenses reached $17.4 million versus $16.0 million a year earlier, but declined as a share of sales to 26.8% from 29.2%.
What did Richardson Electronics spend its first-quarter capital expenditures on?
First-quarter capital expenditures primarily funded facilities improvements and IT systems. Spending totaled $1.697 million, compared with $1.025 million in the prior-year first quarter.