RELL · Richardson Electronics, Ltd.

Richardson Electronics delivered third quarter fiscal 2026 results with net sales of $55.5 million, a 3.1% increase from $53.8 million in the prior year quarter, primarily driven by robust performance in the Power & Microwave Technologies (PMT) segment. Excluding Healthcare, which was consolidated into PMT following its January 2025 asset sale, PMT net sales surged 14.5% year-over-year, fueled by strength in semiconductor wafer fab equipment and RF & Microwave products, alongside 9.7% overall PMT growth. Gross margin improved to 31.9% from 31.0%, with PMT margins expanding to 32.1% due to favorable product mix and lower manufacturing under-absorption, offsetting declines in GES (30.8%) and Canvys (32.2%) from mix and costs. Operating expenses rose to $16.2 million from $14.5 million, reflecting investments in staff, incentives, benefits, and travel to support growth strategy. This yielded GAAP operating income of $1.5 million versus a $2.7 million loss last year, and net income of $0.9 million or $0.07 diluted EPS. Backlog reached $151.2 million, up 11.4% sequentially from $135.7 million, the highest in nearly three years, driven by PMT demand in power management, energy transition, and semiconductors. CEO Edward J. Richardson highlighted seven straight quarters of YoY sales growth, disciplined margins, and confidence in future outlook from strengthened pipeline and balance sheet. For nine months, sales hit $162.4 million (+3.4% YoY), with net income $2.7 million. The board declared a $0.06 per share dividend, payable May 27, 2026, underscoring commitment to shareholders amid no debt and $29.5 million cash.