Richardson Electronics Ltd (NASDAQ:RELL) shares are trading lower by around 10% after it reported Q4 FY23 earnings miss.
Net sales fell 4.5% Y/Y to $58.8 million, missing the consensus of $61.5 million.
Revenues declined across Power and Microwave Technologies (PMT) and Canvys business units, partly offset by higher revenues from Green Energy Solutions (GES) business.
Backlog stood at $160.4 million in Q4 vs. $175.1 million at the end of the Q3 FY23.
Gross margin contracted to 27.9% in the quarter from 32.7% a year ago due to an unfavorable product mix.
Operating income stood at $1.4 million, declining from $5.0 million in the prior year quarter.
Adjusted EPS of $0.11 missed the consensus of $0.19.
As of May 27, 2023, cash and investments stood at $25.0 million.
Dividend: The company declared a quarterly cash dividend per share of $0.06 to holders of common stock and $0.054 to holders of Class B common stock, payable on August 23, 2023, to stockholders of record as on August 4, 2023.
“As expected, our fourth quarter of fiscal 2023 was challenged by a 20.8% decrease in PMT sales, primarily due to weaker demand from semiconductor wafer fab customers and partially offset by strong GES sales. While we expect the semiconductor wafer fab market to remain challenging over the next several quarters, we remain excited by the significant long-term opportunities we are pursuing across our business units to develop new products and expand our global customer base. This includes power management systems for wind turbines, electric locomotives, hydrogen power, and synthetic diamonds. We believe continued growth from our GES business will help offset the expected fiscal 2024 sales decrease in the semi-conductor wafer fabrication equipment business,” said Edward J. Richardson, Chairman, CEO, and President.
Price Action: RELL shares are down by 9.39% at $14.09 premarket on the last check Thursday.
