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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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RICHARDSON ELECTRONICS, LTD. (Exact name of registrant as
specified in its charter)
Delaware
0-12906
36-2096643
(State or other
jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 40W267 Keslinger Road, P.O. Box 393,
LaFox, Illinois
60147-0393
(Address of principal executive
offices) (Zip Code) Registrant's telephone number,
including area code:
(630) 208-2200
(Former name or former address, if
changed since last report.) Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions
(see General Instruction A.2. below): [ ] Written communications pursuant to
Rule 425 under the Securities Act (17 CFR
230.425) [ ] Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR
240.14a-12) [ ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) [ ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) Download FORM 8-K in PDF format Richardson Reports Fiscal Third Quarter Sales of $141.7 Million, LaFox, IL, Wednesday March 23, 2005:
Richardson Electronics, Ltd. (NASDAQ: RELL) today reported results for the third quarter of fiscal 2005, which ended February 26, 2005. Sales in the quarter were $141.7 million, an increase of 11.3% from the third quarter of fiscal 2004. Net loss was $2.1 million, or $0.12 per share, in the quarter, which included restructuring, incremental tax provisions and other charges of $2.9 million after-tax ($4.2 million pre-tax). Net income in the third quarter of fiscal 2004 was $1.0 million, or $0.07 per share. The Company implemented restructuring actions at the end of the third quarter of fiscal 2005, which included changes in management and a reduction in workforce, to accelerate the alignment of operations with the Company's engineered solutions strategy and improve operating efficiency. Severance charges of $2.2 million and inventory write-down charges of $0.9 million were recorded in the quarter primarily related to the restructuring actions, which included de-emphasizing certain product lines. The Company also recorded charges of $0.8 million associated with previously capitalized freight, which will now be reported as a period expense, and an incremental bad debt provision of $0.3 million. The severance and bad debt charges were recorded to selling, general and administrative expense. Incremental tax provisions of $0.2 million were taken in the quarter related to foreign tax exposures and assessments. Product margin (sales less direct product cost) increased to 26.5% of sales in the third quarter of fiscal 2005 compared to 26.0% of sales in the third quarter of fiscal 2004. Gross margin declined to 23.8% of sales in the quarter from 24.8% in the prior year quarter primarily due to the restructuring which included write-downs of inventory and previously capitalized freight as stated above. Sales Highlights - Third Quarter Fiscal 2005 Compared to Third Quarter Fiscal 2004 The Company recorded its eleventh consecutive quarter of year over year sales growth as all four strategic business units and all four geographic areas increased sales over the prior year. RF/Wireless Communications sales grew 16.6% led by continued strength in infrastructure and network access demand, particularly in Asia. Sales in the Display Systems Group increased 16.0% with continued growth in custom display sales to the financial market. Industrial Power Group sales grew 7.8% led by increased demand in the United States for both power component and tube products. Sales in the Security Systems Division were up 1.4% on higher private label sales. “Demand for our products and engineered solutions continues to grow worldwide,” said Edward J. Richardson, Chairman of the Board and Chief Executive Officer. “The restructuring actions taken in the third quarter will accelerate our ability to better serve our customers and sustain earnings growth through engineered solutions.” On Thursday, March 24, 2005 at 9:00 a.m. CST, Mr. Edward J. Richardson, Chairman and Chief Executive Officer will host a conference call to discuss the release. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial 800-553-0329 approximately five minutes prior to the start of the call. A replay of the call will be available from 12:30 p.m. on March 24, 2005 through June 30, 2005. The telephone numbers for the replay are (USA) 800-475-6701 and (International) 320-365-3844; access code 774694. This release includes certain “forward-looking” statements as defined by the SEC. 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 “Risk Factors” in the Company’s annual report on form 10-K. 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 Richardson Electronics, Ltd. is a global provider of “engineered solutions,” serving the RF and wireless communications, industrial power conversion, security and display systems markets. The Company delivers engineered solutions for its customers’ needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics. Press announcements and other information about Richardson are available on the World Wide Web at http://www.rell.com/investor.asp. Three months ended Nine months ended February 26, February 28, February 26, February 28, Net sales $ 141,700 $ 127,267 $ 431,421 $ 374,523 Cost of products sold 108,033 95,802 327,271 283,102 Gross margin 33,667 31,465 104,150 91,421 Selling, general and administrative expenses 34,009 27,030 95,273 78,269 Operating (loss) income (342 ) 4,435 8,877 13,152 Other expenses, net 2,404 2,942 7,499 7,934 (Loss) income before income taxes (2,746 ) 1,493 1,378 5,218 Income tax provision (688 493 526 1,621 Net (loss) income $ (2,058 ) $ 1,000 $ 852 $ 3,597 Net (loss) income per share - basic: Net (loss) income per share $ (0.12 ) $ 0.07 $ 0.05 $ 0.26 Average shares outstanding 17,299 14,102 16,818 14,002 Net (loss) income per share - diluted: Net (loss) income per share $ (0.12 ) $ 0.07 $ 0.05 $ 0.25 Average shares outstanding 17,299 14,560 17,085 14,374 Dividends per common share 0.04 0.04 0.12 0.12 By Business Unit: SALES GROSS MARGIN FY 2005 FY 2004 % Change FY 2005 % of Sales FY 2004 % of Sales Third Quarter RFWC $ 65,268 $ 55,973 16.6 % $ 13,533 20.7 % $ 13,162 23.5 % IPG 29,657 27,514 7.8 % 8,891 30.0 % 8,383 30.5 % SSD 25,607 25,260 1.4 % 6,260 24.4 % 6,394 25.3 % DSG 19,498 16,813 16.0 % 4,097 21.0 % 4,146 24.7 % Other 1,670 1,707 886 (620 ) Total $ 141,700 $ 127,267 11.3 % $ 33,667 23.8 % $ 31,465 24.7 % Fiscal Year to Date RFWC $ 197,053 $ 163,493 20.5 % $ 43,864 22.3 % $ 37,190 22.7 % IPG 90,608 81,232 11.5 % 27,525 30.4 % 27,730 30.4 % SSD 78,728 76,541 2.9 % 20,062 25.5 % 19,419 25.4 % DSG 60,040 47,756 25.7 % 13,528 22.5 % 12,132 25.4 % Other 4,992 5,501 (829 ) (2,050 ) Total $ 431,421 $ 374,523 15.2 % $ 104,150 24.1 % $ 91,421 24.4 % By Geographic Area: SALES GROSS MARGIN FY 2005 FY 2004 % Change FY 2005 % of Sales FY 2004 % of Sales Third Quarter North America $ 73,443 $ 68,392 7.4 % $ 19,047 25.9 % $ 17,681 25.9 % Europe 31,118 29,124 6.8 % 9,425 30.3 % 8,480 29.1 % Asia/Pacific 30,652 23,630 29.7 % 7,104 23.2 % 5,640 23.9 % Latin America 5,544 5,428 2.1 % 1,458 26.3 % 1,243 22.9 % Corporate 943 693 (3,367 ) (1,579 ) Total $ 141,700 $ 127,267 11.3 % $ 33,667 23.8 % $ 31,465 24.7 % Fiscal Year to Date North America $ 227,548 $ 199,468 14.1 % $ 58,783 25.8 % $ 52,244 26.2 % Europe 94,284 86,025 9.6 % 27,047 28.7 % 24,825 28.9 % Asia/Pacific 91,217 71,120 28.3 % 21,560 23.6 % 16,227 22.8 % Latin America 15,392 15,102 1.9 % 4,184 27.2 % 3,541 23.4 % Corporate 2,980 2,808 (7,424 ) (5,416 ) Total $ 431,421 $ 374,523 15.2 % $ 104,150 24.1 % $ 91,421 24.4 % As of February 26, May 29, 2005 2004 (unaudited) ASSETS Current Assets Cash $ 22,737 $ 16,927 Account receivable, net 109,920 106,130 Inventories 107,116 92,297 Other 18,265 19,739 Total current assets 258,038 235,093 Property, plant and equipment, net 33,541 30,589 Goodwill and intangible assets 7,218 6,726 Other assets 10,628 6,806 Total assets $ 309,425 $ 279,214 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ 37,439 $ 33,473 Accrued liabilities 19,464 23,224 Current portion of long-term debt 12 4,027 Total current liabilities 56,915 60,724 Long-term debt, less current portion 134,042 133,813 Other non-current liabilities 1,117 241 Total liabilities 192,074 194,778 Stockholders’ Equity 117,351 84,436 Total liabilities and stockholders' equity $ 309,425 $ 279,214
FORM 8K
File:20050323-FY05Q3
FORM 8-K
For Immediate
Release
up 11% from the Prior Year
Geographically, the Company's sales in Asia/Pacific were up 29.7% with strong growth continuing in China for wireless and industrial power products. Sales in North America grew 7.4% led by increased demand for security systems in Canada and display systems in the United States. Sales in Europe were up 6.8% with continued growth in wireless sales, particularly in France, Israel and Spain. Sales in Latin America increased 2.1% with growth in wireless demand.
RICHARDSON ELECTRONICS, LTD
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE-MONTH AND NINE-MONTH PERIODS
ENDED FEBRUARY 26, 2005 AND FEBRUARY 28, 2004
(In thousands, except per share amounts, unaudited)
2005
2004
2005
2004
)
$
$
$
$
RICHARDSON ELECTRONICS, LTD
SALES AND GROSS MARGIN
FOR THIRD QUARTER FISCAL 2005 AND 2004
ENDED FEBRUARY 26, 2005 AND FEBRUARY 28, 2004
(In thousands, unaudited)
Note: Fiscal 2004 data has been reclassified to conform with the fiscal 2005 presentation. Direct Export and a portion
of Corporate have been reclassified to the identified geographic areas based on ship to location.
Europe includes sales and gross margins to Middle East and Africa.
Corporate consists of freight and other non-area specific sales and gross margins.
RICHARDSON ELECTRONICS, LTD
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
SIGNATURES |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. |
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RICHARDSON ELECTRONICS, LTD. |
Date: March 23, 2005 |
By: /s/ DARIO SACROMANI |
|
Name: Dario Sacromani
Title: Senior Vice
President and
Chief
Financial Officer
|
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