Richardson Electronics, Ltd. reported a net loss of $0.8 million, or $0.05 per diluted share, for the second quarter of fiscal 2025, an improvement from a net loss of $1.8 million, or $0.13 per diluted share, in the same period last year. The company's net sales increased by 12.1% to $49.5 million compared to $44.1 million in the prior year, driven by strong performance in its Power and Microwave Technologies (PMT) and Green Energy Solutions (GES) segments. For the first six months of fiscal 2025, net sales reached $103.2 million, a 6.7% increase from $96.7 million in the first half of fiscal 2024.
The company's gross profit for the second quarter was $15.3 million, resulting in a gross margin of 31.0%, up from 28.4% in the same quarter last year. This increase was attributed to a favorable product mix and improved manufacturing absorption, particularly in the PMT and GES segments. However, selling, general, and administrative expenses rose to $16.0 million, or 32.3% of net sales, compared to $14.5 million, or 32.8% of net sales, in the prior year, reflecting higher incentives due to sales growth.
Significant changes in segment performance were noted, with PMT sales increasing by 9.9% to $34.4 million and GES sales surging by 129.0% to $6.0 million in the second quarter. Conversely, Canvys and Healthcare segments experienced declines, with Canvys sales decreasing by 6.0% and Healthcare sales dropping by 22.8%. The overall increase in sales was primarily driven by heightened demand for RF and Microwave components and engineered solutions for semiconductor applications, as well as power management products in the green energy sector.
Operationally, Richardson Electronics reported a total of 12,359,370 outstanding shares of common stock as of January 6, 2025. The company continues to maintain a strong liquidity position, with cash and cash equivalents totaling $26.6 million at the end of the reporting period. The company has also established a revolving credit facility of up to $30 million, which remains untapped as of the end of the second quarter. Looking ahead, Richardson Electronics anticipates continued growth in its core segments, supported by strategic investments in product development and market expansion, despite potential challenges from economic conditions and geopolitical factors.
About RICHARDSON ELECTRONICS, LTD.
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