LAFOX, Ill., Oct. 11, 2017 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ:RELL) today reported financial results for its first quarter ended September 2, 2017. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

First Quarter Results

Net sales for the first quarter of fiscal 2018 were $37.0 million compared to net sales of $33.4 million in the prior year’s first quarter. There were 14 weeks in the first quarter of fiscal 2018 compared to 13 weeks last year. Sales increased $3.7 million for PMT and $1.1 million for Canvys, partially offset by a decrease of $1.2 million for Richardson Healthcare. PMT sales were higher in power conversion and RF and microwave components as well as specialty products sold into the semiconductor wafer fabrication capital equipment market. Sales increased for Canvys due to higher overall demand from key OEMs. Sales decreased for Richardson Healthcare due to the sale of the PACS Display business at the end of fiscal 2017, partially offset by higher equipment sales.

Gross margin increased to $12.1 million, or 32.8% of net sales during the first quarter of fiscal 2018, compared to $10.2 million, or 30.7% of net sales during the first quarter of fiscal 2017. Margin increased as a percent of net sales primarily due to a favorable product mix in PMT and Richardson Healthcare. These increases were partially offset by a lower Canvys gross margin that resulted from an unfavorable product mix.

Operating expenses were $12.3 million for the first quarter of fiscal 2018, which was the same compared to the first quarter of fiscal 2017. As a result, the company reported $15,000 of operating income for the first quarter of fiscal 2018, including a $0.2 million gain on the sale of a building in Florence, Italy, compared to an operating loss of $2.1 million in the prior year’s first quarter. Other expense for the first quarter of fiscal 2018, including foreign exchange loss and investment income, was $0.1 million, compared to $0.3 million for the first quarter of fiscal 2017.

The income tax provision of $0.1 million during the first quarter of fiscal 2018 reflected a provision for foreign income taxes based on the current quarter’s geographical distribution of income and no U.S. tax benefit due to the valuation allowance recorded against the net operating loss. The tax provision of $0.5 million in the first quarter of fiscal 2017 included a provision for foreign income taxes, additional tax due from an audit in France, adjustments from various tax returns filed in foreign tax jurisdictions and no U.S. tax benefit due to the valuation allowance recorded against the net operating loss.

Net loss for the first quarter of fiscal 2018 was $0.1 million, compared to a net loss of $2.9 million in the first quarter of 2017.

CASH DIVIDEND

The Company also announced today that its Board of Directors declared a $0.06 quarterly dividend per share to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock. The dividend will be payable on November 22, 2017, to common stockholders of record on November 7, 2017.

Cash and investments at the end of the first quarter of fiscal 2018 were $61.4 million compared to $64.2 million at the end of the fourth quarter of fiscal 2017 and $66.3 million at the end of the first quarter of fiscal 2017. During the first quarter of fiscal 2018, the Company did not repurchase any shares of its common stock under the existing share repurchase authorization. Since the sale of RFPD, the Company has spent $65.6 million on share repurchases, nearly $20.0 million on acquisitions, approximately $21.0 million on dividends and $7.8 million on purchases of Richardson Healthcare equipment. Currently, there are 10.7 million outstanding shares of common stock and 2.1 million outstanding shares of Class B common stock.
   
OUTLOOK

“I am pleased to report an operating profit for the first quarter of fiscal 2018 as compared to a $2.1 million operating loss in the first quarter of fiscal 2017,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “Our investment in RF and Microwave technologies is beginning to generate meaningful revenue growth and Canvys gained momentum during the quarter with increased backlog. Healthcare made significant progress in new CT tube development. We are off to a good start in fiscal 2018 and will continue to invest wisely and conservatively to ensure we capitalize on our existing infrastructure,” Mr. Richardson concluded.

CONFERENCE CALL INFORMATION

On Thursday, October 12, 2017, at 9:00 a.m. CDT, Edward J. Richardson, Chairman and Chief Executive Officer, and Robert J. Ben, Chief Financial Officer, will host a conference call to discuss the Company’s first quarter results for fiscal year 2018. A question and answer session will be included as part of the call’s agenda. To listen to the call, please dial (888) 419-5570 and enter passcode 51574534 approximately five minutes prior to the start of the call. A replay of the call will be available beginning at 12:00 a.m. CDT on October 13, 2017, for seven days. The telephone numbers for the replay are (USA) (888) 286-8010 and (International) (617) 801-6888; passcode 45382202.

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 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 31, 2017. 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; power conversion and RF and microwave components; flat panel detector solutions and replacement parts for diagnostic imaging equipment; and customized display solutions. 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.