LAFOX, Ill. — (BUSINESS WIRE) — October 7, 2015 — Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its first quarter ended August 29, 2015. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.
Net sales for the first quarter of fiscal 2016 were $37.1 million, a 6.8% increase, compared to net sales of $34.7 million in the prior year. The sales increase primarily reflects growth in the Canvys business of 11.9% and Healthcare business of 147.1%, which included the net sales for International Medical Equipment Systems (“IMES”), acquired in June of this year. Gross margin increased to $11.3 million, or 30.4% of net sales during the first quarter of fiscal 2016, compared to $10.7 million, or 30.7% of net sales during fiscal 2015.
Operating expenses increased to $12.3 million for the first quarter of fiscal 2016, compared to $11.2 million for the first quarter of fiscal 2015. The $1.1 million increase in expenses is due to including the expenses of IMES and investments in the Richardson Healthcare and PMT business units in support of its growth objectives.
As a result, operating loss for the first quarter of fiscal 2016 was $1.0 million, compared to an operating loss for the first quarter of fiscal 2015 of $0.5 million.
Other expense for the first quarter of fiscal 2016 was less than $0.1 million, compared to income of $0.3 million for the first quarter of fiscal 2015.
Net loss for the first quarter of fiscal 2016 was $1.4 million, compared to net loss of $0.1 million during the first quarter of last year.
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 20, 2015, to common stockholders of record on November 6, 2015.
Cash and investments at the end of our first quarter of fiscal 2016 were $85.3 million. During the first quarter of fiscal 2016, the Company repurchased 567,000 shares of its common stock. As of today, the Company has 10.7 million outstanding shares of common stock and 2.1 million outstanding shares of Class B common stock.
“We are pleased with the IMES transaction that closed during the first quarter. The integration of IMES is going well, and our expanded management team is aggressively pursuing new business opportunities,” said Edward J. Richardson, Chairman, Chief Executive Officer, and President. “Our multi-pronged growth strategy will enable us to increase our product offering, enhance our service capabilities, and expand our customer base while taking advantage of our existing global infrastructure. We will continue to evaluate acquisition targets and make prudent investments in our growth initiatives. We look forward to improving our operating performance, delivering enhanced customer service and returning value to our shareholders,” Mr. Richardson concluded.
CONFERENCE CALL INFORMATION
On Thursday, October 8, 2015, at 9:00 a.m. CT, 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 2016. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial (888) 339-2688 and enter passcode 20539434 approximately five minutes prior to the start of the call. A replay of the call will be available beginning at 12:00 a.m. CT on October 9, 2015, for seven days. The telephone numbers for the replay are (USA) (888) 286-8010 and (International) (617) 801-6888; passcode 60014595.
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 28, 2015. 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; high value displays, 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