- The stock price of Richardson Electronics, Ltd. (NASDAQ: RELL) increased by 13.61% in the most recent trading session. This is why it happened.
The stock price of Richardson Electronics, Ltd. (NASDAQ: RELL) increased by 13.61% in the most recent trading session. Investors responded positively to Richardson Electronics’ financial results for the second quarter ended November 27, 2021. And the company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.
— Net sales of $54.0 million were up 27.3% from last year’s second quarter.
— Sales increased for PMG, Canvys, Healthcare and Semiconductor Wafer Fabrication Equipment products in the second quarter of fiscal 2022 versus the second quarter of fiscal 2021.
— Backlog increased to $146.9 million in the second quarter versus $126.5 million at the end of the first quarter.
— Gross margin was 32.7% of net sales for the second quarter of fiscal 2022 versus 33.8% of net sales in the prior year’s second quarter primarily due to product mix and higher global freight costs.
— Operating expenses decreased $0.4 million to $13.1 million compared to the prior year’s second quarter. This decrease was due to lower legal fees, partially offset by increased employee compensation expense, including higher incentive expense due to the substantially improved performance.
— Operating income was $4.5 million for the second quarter of fiscal 2022 compared to an operating income of $0.9 million in the second quarter of fiscal 2021.
— Earnings per common share (diluted) were $0.30 for the second quarter of fiscal 2022 compared to $0.05 per common share (diluted) in the second quarter of fiscal 2021.
— Cash and investments increased to $39.7 million as of November 27, 2021 versus $36.4 million on August 28, 2021.
“Our strong second quarter financial and operating performance is encouraging, as we produced our sixth consecutive quarter of increased revenues and our highest quarterly operating profit in 11 years. Our second quarter results reflect the success of our multiple growth strategies as well as strong performance of new products, including our new ULTRA3000. In addition, we are experiencing favorable demand trends across many of our global markets. I am also pleased by the significant improvement in profitability, which we believe demonstrates the power of our compelling financial model. With continued growth in our backlog, we remain confident that fiscal year 2022 will be a strong year of sales growth and improved profitability.”
— Edward J. Richardson, Chairman, Chief Executive Officer, and President
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