10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from To

Commission File Number: 0-12906

RICHARDSON ELECTRONICS, LTD.

(Exact name of registrant as specified in its charter)

Delaware	36-2096643
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
40W267 Keslinger Road, P.O. Box 393 LaFox, Illinois 60147-0393
(Address of principal executive offices)

Registrant’s telephone number, including area code: (630) 208-2200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes     ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

As of January 6, 2014, there were outstanding 11,831,289 shares of Common Stock, $0.05 par value and 2,190,644 shares of Class B Common Stock, $0.05 par value, which are convertible into Common Stock of the registrant on a share for share basis.

TABLE OF CONTENTS

		Page
Part I.	Financial Information
Item 1.	Financial Statements	2
	Consolidated Balance Sheets	2
	Unaudited Consolidated Statements of Comprehensive Income	3
	Unaudited Consolidated Statements of Cash Flows	4
	Unaudited Consolidated Statement of Stockholders’ Equity	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
Part II.	Other Information
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 5.	Other Information	27
Item 6.	Exhibits	27
Signatures		28
Exhibit Index		29

1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Richardson Electronics, Ltd.

Consolidated Balance Sheets

(in thousands, except per share amounts)

	Unaudited		Audited
	November 30,   2013		June 1,   2013
Assets
Current assets:
Cash and cash equivalents	$	92,646	$	102,002
Accounts receivable, less allowance of $1,167 and $1,092	20,216		18,268
Inventories	35,296		33,975
Prepaid expenses and other assets	1,453		1,155
Deferred income taxes	1,983		1,856
Income tax receivable	3,321		6,429
Investments—current	39,508		38,971
Discontinued operations—assets	356		303
Total current assets	194,779		202,959
Non-current assets:
Property, plant and equipment, net	5,935		5,073
Goodwill	1,633		1,519
Other intangibles	881		908
Non-current deferred income taxes	1,477		1,398
Investments—non-current	1,991		5,461
Total non-current assets	11,917		14,359
Total assets	$	206,696	$	217,318
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	12,152	$	14,255
Accrued liabilities	7,472		9,566
Discontinued operations—liabilities	—		245
Total current liabilities	19,624		24,066
Non-current liabilities:
Long-term income tax liabilities	6,249		6,726
Other non-current liabilities	1,284		1,287
Total non-current liabilities	7,533		8,013
Total liabilities	27,157		32,079
Commitments and contingencies	—		—
Stockholders’ equity
Common stock, $0.05 par value; issued 11,828 shares at November 30, 2013, and 12,263 shares at June 1, 2013	591		613
Class B common stock, convertible, $0.05 par value; issued 2,191 shares at November 30, 2013 and 2,491 shares at June 1, 2013	110		125
Preferred stock, $1.00 par value, no shares issued	—		—
Additional paid-in capital	65,760		73,979
Common stock in treasury, at cost, 0 shares at November 30, 2013, and 9 shares at June 1, 2013	—		(105		)
Retained earnings	102,623		101,816
Accumulated other comprehensive income	10,455		8,811
Total stockholders’ equity	179,539		185,239
Total liabilities and stockholders’ equity	$	206,696	$	217,318

2

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Comprehensive Income

(in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1,   2012			November 30,   2013			December 1,   2012
Net Sales	$	35,436		$	36,603		$	69,693		$	72,253
Cost of Sales	24,429			25,861			48,494			50,865
Gross profit	11,007			10,742			21,199			21,388
Selling, general, and administrative expenses	10,473			10,228			20,542			20,377
Loss on disposal of assets	—			2			—			(2		)
Operating income	534			512			657			1,013
Other (income) expense:
Investment/interest income	(255		)	(352		)	(520		)	(735		)
Foreign exchange (gain) loss	(14		)	297			92			260
Proceeds from legal settlement	—			—			(2,115		)	—
Other, net	15			(42		)	(15		)	(65		)
Total other income	(254		)	(97		)	(2,558		)	(540		)
Income from continuing operations before income taxes	788			609			3,215			1,553
Income tax provision	157			28			605			238
Income from continuing operations	631			581			2,610			1,315
Loss from discontinued operations, net of tax	(107		)	(203		)	(118		)	(290		)
Net income	524			378			2,492			1,025
Foreign currency translation gain, net of tax	1,196			1,547			1,621			1,947
Fair value adjustments on investments	22			4			23			5
Comprehensive income	$	1,742		$	1,929		$	4,136		$	2,977
Net income per Common share - Basic:
Income from continuing operations	$	0.05		$	0.04		$	0.19		$	0.09
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Common share - Basic:	$	0.04		$	0.03		$	0.18		$	0.07
Net income per Class B common share - Basic:
Income from continuing operations	$	0.04		$	0.03		$	0.17		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Class B common share - Basic:	$	0.03		$	0.02		$	0.16		$	0.06
Net income per Common share - Diluted:
Income from continuing operations	$	0.04		$	0.04		$	0.18		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Common share - Diluted:	$	0.03		$	0.03		$	0.17		$	0.06
Net income per Class B common share - Diluted:
Income from continuing operations	$	0.04		$	0.03		$	0.17		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Class B common share - Diluted:	$	0.03		$	0.02		$	0.16		$	0.06
Weighted average number of shares:
Common shares - Basic	11,871			12,437			11,997			12,604
Class B common shares - Basic	2,191			2,812			2,309			2,863
Common shares - Diluted	14,185			15,345			14,433			15,567
Class B common shares - Diluted	2,191			2,812			2,309			2,863
Dividends per common share	$	0.060		$	0.060		$	0.120		$	0.120
Dividends per Class B common share	$	0.054		$	0.054		$	0.108		$	0.108

3

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended						Six Months Ended
	November 30,   2013			December 1,   2012			November 30,   2013			December 1,   2012
Operating activities:
Net income	$	524		$	378		$	2,492		$	1,025
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	273			266			521			565
Gain on sale of investments	(12		)	(1		)	(19		)	(21		)
(Gain) loss on disposal of assets	—			2			—			(2		)
Share-based compensation expense	270			208			384			332
Deferred income taxes	(108		)	(7		)	(167		)	(8		)
Change in assets and liabilities, net of effect of acquired businesses:
Accounts receivable	(508		)	(758		)	(1,726		)	(1,404		)
Income tax receivable	357			36			3,108			191
Inventories	310			2,265			(140		)	1,715
Prepaid expenses and other assets	(430		)	196			(274		)	(426		)
Accounts payable	317			2,664			(2,230		)	1,234
Accrued liabilities	(565		)	806			(2,455		)	(200		)
Long-term income tax liabilities	(235		)	4			(477		)	(317		)
Other	56			148			47			190
Net cash provided by (used in) operating activities	249			6,207			(936		)	2,874
Investing activities:
Cash consideration paid for acquired businesses	—			(2,557		)	(973		)	(2,557		)
Capital expenditures	(540		)	(478		)	(981		)	(557		)
Proceeds from sale of assets	—			—			—			4
Proceeds from maturity of investments	14,044			39,763			54,532			97,510
Purchases of investments	(11,458		)	(23,838		)	(51,552		)	(75,562		)
Proceeds from sales of available-for-sale securities	20			83			76			137
Purchases of available-for-sale securities	(20		)	(83		)	(76		)	(137		)
Other	22			—			91			—
Net cash provided by investing activities	2,068			12,890			1,117			18,838
Financing activities:
Repurchase of common stock	(2,025		)	(5,998		)	(8,725		)	(11,550		)
Proceeds from issuance of common stock	100			72			171			83
Cash dividends paid	(828		)	(1,799		)	(1,685		)	(1,799		)
Other	—			—			1			—
Net cash used in financing activities	(2,753		)	(7,725		)	(10,238		)	(13,266		)
Effect of exchange rate changes on cash and cash equivalents	552			908			701			1,179
Increase/ (decrease) in cash and cash equivalents	116			12,280			(9,356		)	9,625
Cash and cash equivalents at beginning of period	92,530			41,238			102,002			43,893
Cash and cash equivalents at end of period	$	92,646		$	53,518		$	92,646		$	53,518

4

Richardson Electronics, Ltd.

Unaudited Consolidated Statement of Stockholders’ Equity

(in thousands)

	Common		Class B Common		Par Value			Additional Paid-in Capital			Common Stock in Treasury			Retained Earnings			Accumulated Other Comprehensive Income		Total
Balance June 1, 2013:	12,263		2,491		$	738		$	73,979		$	(105	)	$	101,816		$	8,811	$	185,239
Comprehensive income
Net income	—		—		—			—			—			2,492			—		2,492
Foreign currency translation	—		—		—			—			—			—			1,621		1,621
Fair value adjustments on investments	—		—		—			—			—			—			23		23
Share-based compensation:
Non-vested restricted stock	—		—		—			18			—			—			—		18
Stock options	—		—		—			384			—			—			—		384
Common stock:
Employee stock option grant	—		—		—			—			—			—			—		—
Options Exercised	29		—		1			170			—			—			—		171
Canceled Shares	—		(300	)	—			—			—			—			—		—
Converted Class B to Common	300		—		—			—			—			—			—		—
Repurchase of common stock	—		—		—			—			(8,725		)	—			—		(8,725		)
Treasury stock	(764	)	—		(38		)	(8,791		)	8,829			—			—		—
Other	—		—		—			—			1			—			—		1
Dividends paid to:
Common ($0.06 per share)	—		—		—			—			—			(1,433		)	—		(1,433		)
Class B ($0.054 per share)	—		—		—			—			—			(252		)	—		(252		)
Balance November 30, 2013:	11,828		2,191		$	701		$	65,760		$	—		$	102,623		$	10,455	$	179,539

5

RICHARDSON ELECTRONICS, LTD.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. DESCRIPTION OF THE COMPANY

Richardson Electronics, Ltd. (“we”, “us”, “the Company”, and “our”) is incorporated in the state of Delaware. We are a leading global provider of engineered solutions, power grid and microwave tubes and related components, and customized display solutions, serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. Our strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair.

Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing, and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical, and communication applications.

On September 4, 2012, we acquired the assets of D and C Import-Export, Inc. ("D and C") for approximately $2.6 million. D and C, a Florida-based distributor of power grid tubes and associated RF components, services the broadcast, commercial, industrial, medical, military, and scientific markets. This acquisition provides us with access to additional product lines, vendors, and customers.

On July 5, 2013, we acquired the assets of WVS-Technology ("WVS") for approximately$1.0 million. WVS, located in Meerbusch, Germany, develops and sells RF and microwave products, power grid tubes, vacuum capacitors, as well as industrial microwave equipment. This acquisition provides us with engineering and sales expertise to help expand our presence in the vacuum capacitor market.

We have two operating segments, which we define as follows:

Electron Device Group (“EDG”) provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer (“OEM”) markets.

We currently have operations in the following major geographic regions:

• North America;

• Asia/Pacific;

• Europe; and

• Latin America.

2. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements.

Our fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The first six months of fiscal 2014 and 2013 contained 26 weeks, respectively.

6

In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of our operations for the three and six months endedNovember 30, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2014.

The financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 1, 2013, that we filed on July 26, 2013.

3. UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Inventories: Our worldwide inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories from continuing operations include approximately $32.5 million of finished goods and $2.7 million of raw materials and work-in-progress as of November 30, 2013, as compared to approximately $31.6 million of finished goods and $2.4 million of raw materials and work-in-progress as of June 1, 2013.

At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs.

Revenue Recognition:Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell.

In the limited cases where remaining performance obligations exist after delivery of the product, the obligation relative to the unit of accounting is inconsequential or perfunctory and is not essential to the functionality of the delivered product. This conclusion was reached based on the following facts: the timing of any remaining obligation is agreed upon with the customer, which in most cases, is performed immediately after the delivery of the product; the cost and time involved to complete the remaining obligation is insignificant in relation to the item sold, and the costs and time do not vary significantly; we have a demonstrated history of completing the remaining obligations timely; and finally, failure to complete the remaining obligation does not enable the customer to receive a full or partial refund of the product or service, and the timing of the payment for the product is not contingent upon completion of remaining performance obligations, if any.

Discontinued Operations: During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements - Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation. Refer to Note 4 “Discontinued Operations” of our notes to our unaudited consolidated financial statements for additional discussion on the sale of RFPD.

Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency.

7

Goodwill and Other Intangible Assets: Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment. We test goodwill for impairment annually and whenever events or circumstances indicates an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. As of November 30, 2013, our goodwill balance was $1.6 million and represents the premium we paid for Powerlink Specialist Electronics Support Limited ("Powerlink") of $1.4 million during our second quarter of fiscal 2012, adjusted for foreign currency translation; the premium we paid for D and C Import-Export, Inc. ("D and C") of $0.2 million during our second quarter of fiscal 2013; and the premium we paid for WVS of less than $0.1 million during our first quarter of fiscal 2014.

During the fourth quarter of each fiscal year, our goodwill balances are reviewed for impairment through the application of a fair value based test, using the third quarter as the measurement date. In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically, projected operating results and cash flows have not always been achieved. In accordance with ASC 350 “Intangibles - Goodwill and Other”, if indicators of impairment are deemed to be present, we would perform an interim impairment test and any resulting impairment loss would be charged to expense in the period identified.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

4. DISCONTINUED OPERATIONS

Financial Summary – Discontinued Operations

Summary financial results for the three and six months endedNovember 30, 2013, and December 1, 2012, are presented in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net sales	$	178		$	278		$	264		$	499
Gross profit (loss) (1)	(55		)	(128		)	(103		)	(221		)
Selling, general, and administrative expenses	117			201			149			266
Other expense	—			1			1			1
Income tax benefit	(65		)	(127		)	(135		)	(198		)
Loss from discontinued operations, net of tax	$	(107	)	$	(203	)	$	(118	)	$	(290	)

Notes:

(1) Gross profit (loss) for fiscal year 2014 and 2013 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ends March 1, 2014.

Net sales and gross profit (loss) for the three and six months endedNovember 30, 2013, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. Pursuant to the three-year agreement, we agreed to continue to manufacture certain RFPD products.

8

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 30, 2013, and June 1, 2013, include the following (in thousands):

	November 30, 2013		June 1, 2013
Inventories	$	356	$	303
Discontinued operations - Assets	$	356	$	303
Accrued liabilities - current	$	—	$	245
Discontinued operations - Liabilities	$	—	$	245

In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation. We did not have cash balances that were specific to RFPD and elected not to present separate cash flows from discontinued operations on our statement of cash flows.

5. ACQUISITIONS

On September 4, 2012, we acquired the assets of D and C Import-Export, Inc. ("D and C") for approximately $2.6 million. D and C, a Florida-based distributor of power grid tubes and associated RF components, services the broadcast, commercial, industrial, medical, military, and scientific markets. This acquisition provides us with access to additional product lines, vendors, and customers.

The final purchase price was recorded during the fourth quarter of fiscal 2013, and allocated as follows: $0.2 million of trade receivables, $1.5 million of inventory, $0.7 million of specifically identified intangible assets, and $0.2 million of goodwill. Pro forma financial information is not presented due to immateriality.

On July 5, 2013, we acquired the assets of WVS for approximately $1.0 million. WVS, located in Meerbusch, Germany, develops and sells RF and microwave products, power grid tubes, vacuum capacitors, as well as industrial microwave equipment. This acquisition provides us with engineering and sales expertise to help expand our presence in the vacuum capacitor market.

The allocation of the preliminary purchase price recorded during the first quarter of fiscal 2014, included $0.7 million of inventory and $0.3 million of fixed assets. The purchase price is preliminary and subject to change based on the completion of a valuation of the respective assets. Pro forma financial information is not presented due to immateriality.

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying value of goodwill are as follows (in thousands):

	TOTAL
Balance at June 1, 2013	$	1,519
Premium Paid for WVS Acquisition	25
Foreign currency translation	89
Balance at November 30, 2013	$	1,633

The goodwill balance in its entirety relates to our EDG segment.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

9

Our intangible assets represent the fair value for trade name, customer relationships, and non-compete agreements acquired in connection with our acquisitions.

Intangible assets subject to amortization as well as amortization expense are as follows (in thousands):

	Intangible Assets Subject to
	Amortization as of
	November 30, 2013		June 1, 2013
Gross Amounts:
Trade Name	$	29	$	29
Customer Relationship	969		947
Non-compete Agreements	47		47
Total Gross Amounts	$	1,045	$	1,023
Accumulated Amortization:
Trade Name	$	13	$	8
Customer Relationship	141		101
Non-compete Agreements	10		6
Total Accumulated Amortization	$	164	$	115

The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands):

	Amortization
	Expense
Fiscal Year
Remaining 2014	$	44
2015	82
2016	68
2017	58
2018	56
Thereafter	573

The weighted average number of years of amortization expense remaining is 17.9.

7. INVESTMENTS

As of November 30, 2013, we had approximately $41.0 million invested in time deposits and certificates of deposit (“CD”). Of this, $39.5 million mature in less than twelve months and $1.5 million mature in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD.

As of June 1, 2013, we had approximately $44.0 million invested in time deposits and CD’s. Of this, $39.0 million mature in less than twelve months and $5.0 million mature in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD.

We also have investments in equity securities, all of which are classified as available-for-sale and are carried at their fair value based on quoted market prices. Our investments, which are included in non-current assets, had a carrying amount of $0.5 million as of November 30, 2013, and as of June 1, 2013. Proceeds from the sale of securities were $0.1 million during the second quarter of fiscal 2014 and fiscal 2013. We reinvested proceeds from the sale of securities, and the cost of the equity securities sold was based on a specific identification method. Gross realized gains and losses on those sales were less than $0.1 million during the second quarter of fiscal 2014 and fiscal 2013. Net unrealized holding losses of less than $0.1 million during the second quarter of fiscal 2014 and fiscal 2013 have been included in accumulated other comprehensive income.

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8. WARRANTIES

We offer warranties for the limited number of specific products we manufacture. We also provide extended warranties for some products we sell that lengthen the period of coverage specified in the manufacturer’s original warranty. Our warranty terms generally range from one to three years.

Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience, and other available evidence. Warranty reserves were approximately $0.2 million as of November 30, 2013, and June 1, 2013.

9. LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES

We lease certain warehouse and office facilities and office equipment under non-cancelable operating leases. Rent expense from continuing operations during the first six months of fiscal 2014 was $0.8 million compared to $0.7 million during the first six months of fiscal 2013. Under the terms of the Transaction, Arrow assumed many of our facility leases and we are sub-leasing space from Arrow. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years have been adjusted to reflect the Transaction as follows (in thousands):

Fiscal Year	Payments
Remaining 2014	$	679
2015	1,094
2016	686
2017	77
2018	31
Thereafter	—

10. INCOME TAXES

The effective income tax rate from continuing operations during the first six months of fiscal 2014 was 18.8%, as compared to 15.3% during the first six months of fiscal 2013. The increase in rate during the first six months of fiscal 2014, as compared to fiscal 2013, was due to an increase in the amount of foreign earnings not considered to be permanently reinvested and an increase in forecasted earnings available in foreign jurisdictions for distribution with respect to ASC 740-30, Income Taxes – Other Considerations or Special Areas ("ASC 740-30"). The 18.8% effective income tax rate is lower than the federal statutory rate of 34.0% as a result of our geographical distribution of income and apportionment of income to various states. Additionally, during the second quarter of fiscal 2014, we developed a strategy for the recently acquired German business to pursue increased market opportunities in Germany; therefore, we have changed our position with respect to earnings in Germany which are now considered to be permanently reinvested under ASC 740-30. This change in the Company's assertion further reduced the effective tax rate for the first six months of fiscal 2014 by 7.6%.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2006 are closed for examination under the statute of limitations for U.S. federal, state or local, or non-U.S. tax jurisdictions. During fiscal 2013, we completed federal audits in the U.S. for fiscal 2009, 2010, and 2011. Our primary foreign tax jurisdictions are the Netherlands and Germany. We have tax years open in the Netherlands and Germany beginning in fiscal 2008.

As of November 30, 2013, approximately $42.8 million of cumulative positive earnings of some of our foreign subsidiaries are still considered permanently reinvested pursuant to ASC 740-30. Due to various tax attributes that are continuously changing, it is not practical to determine what, if any, tax liability might exist if such earnings were to be repatriated.

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As of November 30, 2013, we did not have any worldwide liability for uncertain tax positions related to continuing operations as compared to $0.4 million as of December 1, 2012. We have no recorded penalties and interest relating to uncertain tax positions in the income tax expense line item within the unaudited consolidated statements of income and comprehensive income.

It is not expected that there will be a change in the unrecognized tax benefits within the next 12 months.

11. CALCULATION OF EARNINGS PER SHARE

We have authorized 30,000,000 shares of common stock, 10,000,000 shares of Class B common stock, and 5,000,000 shares of preferred stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

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The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income are based on the following amounts (in thousands, except per share amounts):

	For the Three Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	631		$	631		$	581		$	581
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Common stock undistributed losses	$	(169	)	$	(169	)	$	(253	)	$	(253	)
Class B common stock undistributed losses	(28		)	(28		)	(51		)	(51		)
Total undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Loss from discontinued operations	$	(107	)	$	(107	)	$	(203	)	$	(203	)
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Common stock undistributed losses	$	(802	)	$	(803	)	$	(904	)	$	(905	)
Class B common stock undistributed losses	(133		)	(132		)	(184		)	(183		)
Total undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Net income	$	524		$	524		$	378		$	378
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Common stock undistributed losses	$	(261	)	$	(261	)	$	(421	)	$	(422	)
Class B common stock undistributed losses	(43		)	(43		)	(86		)	(85		)
Total undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,871			11,871			12,437			12,437
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,191			2,191			2,812			2,812
Effect of dilutive stock options				123						96
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,185						15,345
Income from continuing operations per share:
Common stock	$	0.05		$	0.04		$	0.04		$	0.04
Class B common stock	$	0.04		$	0.04		$	0.03		$	0.03
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Net income per share:
Common stock	$	0.04		$	0.03		$	0.03		$	0.03
Class B common stock	$	0.03		$	0.03		$	0.02		$	0.02

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2014 and fiscal 2013 were 512,064 and 477,064, respectively.

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	Six Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	2,610		$	2,610		$	1,315		$	1,315
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Common stock undistributed earnings (losses)	$	788		$	790		$	(402	)	$	(402	)
Class B common stock undistributed earnings (losses)	137			135			(82		)	(82		)
Total undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Loss from discontinued operations	$	(118	)	$	(118	)	$	(290	)	$	(290	)
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Common stock undistributed losses	$	(1,537	)	$	(1,539	)	$	(1,734	)	$	(1,737	)
Class B common stock undistributed losses	(266		)	(264		)	(355		)	(352		)
Total undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Net income	$	2,492		$	2,492		$	1,025		$	1,025
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Common stock undistributed earnings (losses)	$	688		$	689		$	(643	)	$	(643	)
Class B common stock undistributed earnings (losses)	119			118			(131		)	(131		)
Total undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,997			11,997			12,604			12,604
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,309			2,309			2,863			2,863
Effect of dilutive securities Dilutive stock options				127						100
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,433						15,567
Income from continuing operations per share:
Common stock	$	0.19		$	0.18		$	0.09		$	0.08
Class B common stock	$	0.17		$	0.17		$	0.08		$	0.08
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Net income per share:
Common stock	$	0.18		$	0.17		$	0.07		$	0.06
Class B common stock	$	0.16		$	0.16		$	0.06		$	0.06

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2014 and fiscal 2013 were 487,064 and 267,564, respectively.

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12. SEGMENT REPORTING    

In accordance with ASC 280-10, Segment Reporting, we have identified two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvysprovides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and OEM markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended				Six Months Ended
	November 30,   2013		December 1,   2012		November 30, 2013		December 1, 2012
EDG
Net Sales	$	26,163	$	26,186	$	51,642	$	51,813
Gross Profit	8,507		7,930		16,366		15,930
Canvys
Net Sales	$	9,273	$	10,417	$	18,051	$	20,440
Gross Profit	2,500		2,812		4,833		5,458

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.    

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Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net Sales
North America	$	14,296		$	16,436		$	28,492		$	32,182
Asia/Pacific	6,248			5,437			12,553			11,784
Europe	12,175			12,305			23,665			23,042
Latin America	2,574			2,320			4,771			4,767
Other	143			105			212			478
Total	$	35,436		$	36,603		$	69,693		$	72,253
Gross Profit (loss)
North America	$	4,687		$	5,520		$	9,584		$	10,809
Asia/Pacific	2,144			1,860			4,089			4,054
Europe	4,111			3,806			7,706			7,030
Latin America	1,011			788			1,834			1,616
Other	(946		)	(1,232		)	(2,014		)	(2,121		)
Total	$	11,007		$	10,742		$	21,199		$	21,388

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.

13. LITIGATION

We are involved in several pending judicial proceedings concerning matters arising in the ordinary course of business. While the outcome of litigation is subject to uncertainties, based on information available at the time the financial statements were issued, we determined disclosure of contingencies relating to any of our pending judicial proceedings was not necessary because there was less than a reasonable possibility that a material loss had been incurred.

During the first quarter of fiscal 2014, we received a settlement in the amount of $2.1 million related to an anti-trust class action lawsuit settlement. The settlement was recorded as proceeds from legal settlement within the Other Income section of our Consolidated Statements of Comprehensive Income.

14. FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurementsand Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions.

As of November 30, 2013, we held investments that are required to be measured at fair value on a recurring basis. Our investments consist of time deposits and CDs, which face value is equal to fair value, and equity securities of publicly traded companies for which market prices are readily available.

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Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of November 30, 2013, and June 1, 2013, were as follows (in thousands):

	Level 1
November 30, 2013
Time deposits/CDs	$	41,008
Equity securities	491
Total	$	41,499
June 1, 2013
Time deposits/CDs	$	43,989
Equity securities	443
Total	$	44,432

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements in this report may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. The terms “may,” “should,” “could,” “anticipate,” “believe,” “continues,” “estimate,” “expect,” “intend,” “objective,” “plan,” “potential,” “project” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management’s current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the risk factors set forth in Item 1A, of our Annual Report on Form 10-K filed on July 26, 2013. We undertake no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements contained herein whether as a result of new information, future events or otherwise.

In addition, while we do, from time to time, communicate with securities analysts, it is against our policy to disclose to them any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts, or opinions, such reports are not our responsibility.

INTRODUCTION

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to assist the reader in better understanding our business, results of operations, financial condition, changes in financial condition, critical accounting policies and estimates, and significant developments. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes appearing elsewhere in this filing. This section is organized as follows:

• Business Overview

• Results of Continuing Operations – an analysis and comparison of our consolidated results of operations for the three and six months ended November 30, 2013, and December 1, 2012, as reflected in our consolidated statements of comprehensive income.

• Liquidity, Financial Position, and Capital Resources – a discussion of our primary sources and uses of cash for the three and six months ended November 30, 2013, and December 1, 2012, and a discussion of changes in our financial position.

Business Overview

Richardson Electronics, Ltd. (“we”, “us”, “the Company”, and “our”) is incorporated in the state of Delaware. We are a leading global provider of engineered solutions, power grid and microwave tubes and related components, and customized display solutions, serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. Our strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair.

Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing, and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical, and communication applications.

On September 4, 2012, we acquired the assets of D and C Import-Export, Inc. ("D and C") for approximately $2.6 million. D and C, a Florida-based distributor of power grid tubes and associated RF components, services the broadcast, commercial, industrial, medical, military, and scientific markets. This acquisition provides us with access to additional product lines, vendors, and customers.

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On July 5, 2013, we acquired the assets of WVS-Technology ("WVS") for approximately$1.0 million. WVS, located in Meerbusch, Germany, develops and sells RF and microwave products, power grid tubes, vacuum capacitors, as well as industrial microwave equipment. This acquisition provides us with engineering and sales expertise to help expand our presence in the vacuum capacitor market.

We have two operating segments, which we define as follows:

Electron Device Group (“EDG”) provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer (“OEM”) markets.

We currently have operations in the following major geographic regions:

• North America;

• Asia/Pacific;

• Europe; and

• Latin America.

RESULTS OF CONTINUING OPERATIONS

FINANCIAL SUMMARY – THREE MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the second quarter of fiscal 2014 were $35.4 million, down 3.2%, compared to net sales of $36.6 million during the second quarter of fiscal 2013.

• Gross margin increased to 31.1% during the second quarter of fiscal 2014 compared to 29.3% during the second quarter of fiscal 2013.

• Selling, general, and administrative expenses increased slightly to $10.5 million, or 29.6% of net sales, for the second quarter of fiscal 2014 compared to $10.2 million for the second quarter of fiscal 2013, or 27.9% of net sales, respectively.

• Operating income during the second quarter of fiscal 2014 and fiscal 2013 was $0.5 million, or 1.5% and 1.4% of net sales, respectively.

• Income from continuing operations during the second quarter of fiscal 2014 and fiscal 2013 was $0.6 million, or $0.04 per diluted common share.

• Loss from discontinued operations, net of tax, was $0.1 million during the second quarter of fiscal 2014 compared to $0.2 million during the second quarter of fiscal 2013.

• Net income during the second quarter of fiscal 2014 was $0.5 million, or $0.03 per diluted common share, compared to net income of $0.4 million, or $0.03 per diluted common share, during the second quarter of fiscal 2013.

FINANCIAL SUMMARY – SIX MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the first six months of fiscal 2014 were $69.7 million, down 3.5%, compared to net sales of $72.3 million during the first six months of fiscal 2013.

• Gross margin increased to 30.4% during the first six months of fiscal 2014, compared to 29.6% during the first six months of fiscal 2013.

• Selling, general, and administrative expenses increased slightly to $20.5 million, or 29.5% of net sales, for the first six months of fiscal 2014, compared to $20.4 million, or 28.2% of net sales, for the first six months of fiscal 2013.

• Operating income during the first six months of fiscal 2014 was $0.7 million, or 0.9% of net sales, compared to an operating income of $1.0 million, or 1.4% of net sales, during the first six months of fiscal 2013.

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• Income from continuing operations during the first six months of fiscal 2014 was $2.6 million, or $0.18 per diluted common share, versus $1.3 million, or $0.08 per diluted common share, during the first six months of fiscal 2013.

• Loss from discontinued operations, net of tax, was $0.1 million, during the first six months of fiscal 2014, compared to $0.3 million during the first six months of fiscal 2013.

• Net income during the first six months of fiscal 2014 was $2.5 million, or $0.17 per diluted common share, compared to net income of $1.0 million during the first six months of fiscal 2013, or $0.06 per diluted common share.

Net Sales and Gross Profit Analysis

Net sales by segment and percent change for the second quarter and first six months of fiscal 2014 and 2013 were as follows (in thousands):

Net Sales	QTD				FY14 vs. FY13
	November 30, 2013		December 1, 2012		% Change
EDG	$	26,163	$	26,186	(0.1)%
Canvys	9,273		10,417		(11.0)%
Total	$	35,436	$	36,603	(3.2)%
	YTD
	November 30, 2013		December 1, 2012		% Change
EDG	$	51,642	$	51,813	(0.3)%
Canvys	18,051		20,440		(11.7)%
Total	$	69,693	$	72,253	(3.5)%

During the second quarter of fiscal 2014 consolidated net sales decreased 3.2% compared to the second quarter of fiscal 2013. Sales for Canvys declined by 11.0% and sales for EDG declined 0.1%. During the first six months of fiscal 2014 consolidated net sales decreased 3.5% compared to the first six months of fiscal 2013. Sales for Canvys declined by 11.7% and sales for EDG declined 0.3%.

Gross profit by segment and percent of segment net sales for the second quarter and first six months of fiscal 2014 and 2013 were as follows (in thousands):

Gross Profit	QTD
	November 30, 2013		% of Net Sales	December 1, 2012		% of Net Sales
EDG	$	8,507	32.5%	$	7,930	30.3%
Canvys	2,500		27.0%	2,812		27.0%
Total	$	11,007	31.1%	$	10,742	29.3%
	YTD
	November 30, 2013		% of Net Sales	December 1, 2012		% of Net Sales
EDG	$	16,366	31.7%	$	15,930	30.7%
Canvys	4,833		26.8%	5,458		26.7%
Total	$	21,199	30.4%	$	21,388	29.6%

Gross profit reflects the distribution and manufacturing product margin less manufacturing variances, inventory obsolescence charges, customer returns, scrap and cycle count adjustments, engineering costs, unabsorbed manufacturing labor and overhead, and other provisions.

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Consolidated gross profit was $11.0 million during the second quarter of fiscal 2014, compared to $10.7 million during the second quarter of fiscal 2013. Consolidated gross margin as a percentage of net sales increased to 31.1% during the second quarter of fiscal 2014, from 29.3% during the second quarter of fiscal 2013. In addition, gross margin included $0.1 million related to unabsorbed manufacturing labor and overhead from continuing operations during the second quarter of fiscal 2014, compared to $0.3 million during the second quarter of fiscal 2013.

Consolidated gross profit was $21.2 million during the first six months of fiscal 2014, compared to $21.4 million during the first six months of fiscal 2013. Consolidated gross margin as a percentage of net sales increased to 30.4% during the first six months of fiscal 2014, from 29.6% during the first six months of fiscal 2013. In addition, gross margin included $0.3 million related to unabsorbed manufacturing labor and overhead from continuing operations during the first six months of fiscal 2014, compared to $0.5 million during the first six months of fiscal 2013.

Electron Device Group

Net sales for EDG remained flat at $26.2 million during the second quarter of fiscal 2014, compared to the second quarter of fiscal 2013.  Net sales of tubes grew in the industrial heating and laser markets but were offset by declines primarily in the broadcast and aviation markets. Gross margin as a percentage of net sales increased to 32.5% during the second quarter of fiscal 2014, as compared to 30.3% during the second quarter of fiscal 2013 primarily due to efficiency gains in manufacturing as well as shifts in product and geographic mix. 

Net sales for EDG were $51.6 million during the first six months of fiscal 2014, compared to $51.8 million during the first six months of fiscal 2013.  Net sales of tubes improved in the industrial heating, laser and marine markets, but declined primarily in the broadcast and aviation markets. Gross margin as a percentage of net sales increased to 31.7% during the first six months of fiscal 2014, as compared to 30.7% during the first six months of fiscal 2013 primarily due to shifts in product and geographic mix. 

Canvys        

Canvys net sales decreased 11.0% to $9.3 million during the second quarter of fiscal 2014, from $10.4 million during the second quarter of fiscal 2013.  Sales were down in our North America Healthcare market driven by the uncertainty surrounding health care reform and a difficult capital market for hospitals while sales in our North America OEM market were down due to rescheduled deliveries to key accounts partially offset by new programs and customers. Gross margin as a percentage of net sales stabilized at 27.0% during the second quarters of fiscal 2014 and 2013.

Canvys net sales decreased 11.7% to $18.1 million during the first six months of fiscal 2014, from $20.4 million during the first six months of fiscal 2013.  Sales were down in our North America Healthcare market driven by the uncertainty surrounding health care reform and a difficult capital market for hospitals. In addition, sales in our North America OEM market were down due to rescheduled deliveries to key accounts partially offset by sales to new customers. Gross margin as a percentage of net sales increased slightly to 26.8% during the first six months of fiscal 2014 as compared to 26.7% during the first six months of fiscal 2013 due to the higher margin business in Europe as well as currency fluctuations and a reduction in freight expense. 

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses (“SG&A”) slightly increased to $10.5 million during the second quarter of fiscal 2014 compared to $10.2 million during the second quarter of fiscal 2013. The increase includes a $0.6 million increase of total company support function costs offset by a $0.1 million reduction of SG&A for EDG and a $0.2 million reduction of SG&A for Canvys. SG&A as a percentage of sales from continuing operations increased to 29.6% during the second quarter of fiscal 2014 from 27.9% during the second quarter of fiscal 2013.

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Selling, general, and administrative expenses (“SG&A”) remained relatively flat at $20.5 million during the first six months of fiscal 2014 compared to $20.4 million during the first six months of fiscal 2013. The increase includes a $0.6 million increase of total company support function costs offset by a $0.1 million reduction of SG&A for EDG and a $0.4 million reduction of SG&A for Canvys. SG&A as a percentage of sales from continuing operations increased to 29.5% during the first six months of fiscal 2014 from 28.2% during the first six months of fiscal 2013.

Other Income/Expense

Other income/expense was income of $0.3 million during the second quarter of fiscal 2014, compared to income of $0.1 million during the second quarter of fiscal 2013. The $0.3 million in the second quarter of fiscal 2014 was primarily due to investment income. The $0.1 million in fiscal 2013 was comprised of investment income of $0.4 million offset by a foreign exchange loss of $0.3 million. Our foreign exchange gains and losses are primarily due to the translation of U.S. dollars held in non-U.S. entities. We currently do not utilize derivative instruments to manage our exposure to foreign currency.

Other income/expense was income of $2.6 million during the first six months of fiscal 2014, compared to income of $0.5 million during the first six months of fiscal 2013. Other income/expense during the first six months of fiscal 2014 included an anti-trust class action lawsuit settlement of $2.1 million and investment income of $0.5 million, partially offset by foreign exchange loss of less than $0.1 million. Our foreign exchange gains and losses are primarily due to the translation of U.S. dollars held in non-U.S. entities. We currently do not utilize derivative instruments to manage our exposure to foreign currency.

Income Tax Provision

The effective income tax rate from continuing operations during the first six months of fiscal 2014 was 18.8%, as compared to 15.3% during the first six months of fiscal 2013. The increase in rate during the first six months of fiscal 2014, as compared to fiscal 2013, was due to an increase in the amount of foreign earnings not considered to be permanently reinvested and an increase in forecasted earnings available in foreign jurisdictions for distribution with respect to ASC 740-30, Income Taxes – Other Considerations or Special Areas ("ASC 740-30"). The 18.8% effective income tax rate is lower than the federal statutory rate of 34.0% as a result of our geographical distribution of income and apportionment of income to various states. Additionally, during the second quarter of fiscal 2014, we developed a strategy for the recently acquired German business to pursue increased market opportunities in Germany; therefore, we have changed our position with respect to earnings in Germany which are now considered to be permanently reinvested under ASC 740-30. This change in the Company's assertion further reduced the effective tax rate for the first six months of fiscal 2014 by 7.6%.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2006 are closed for examination under the statute of limitation for U.S. federal, state or local, or non-U.S. tax jurisdictions. During fiscal 2013, we completed federal audits in the U.S. for fiscal 2009, 2010, and 2011. Our primary foreign tax jurisdictions are the Netherlands and Germany. We have tax years open in the Netherlands and Germany beginning in fiscal 2008.

As of November 30, 2013, approximately $42.8 million of cumulative positive earnings of some of our foreign subsidiaries are still considered permanently reinvested pursuant to ASC 740-30. Due to various tax attributes that are continuously changing, it is not practical to determine what, if any, tax liability might exist if such earnings were to be repatriated.

As of November 30, 2013, we did not have any worldwide liability for uncertain tax positions related to continuing operations as compared to $0.4 million as of December 1, 2012. Therefore, we have not recorded penalties and interest relating to uncertain tax positions in the income tax expense line item within the unaudited consolidated statements of income and comprehensive income.

It is not expected that there will be a change in the unrecognized tax benefits within the next 12 months.

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Discontinued Operations

Financial Summary – Discontinued Operations

Summary financial results for the three months ended November 30, 2013, and December 1, 2012, are presented in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net sales	$	178		$	278		$	264		$	499
Gross profit (loss) (1)	(55		)	(128		)	(103		)	(221		)
Selling, general, and administrative expenses	117			201			149			266
Other expense	—			1			1			1
Income tax benefit	(65		)	(127		)	(135		)	(198		)
Loss from discontinued operations, net of tax	$	(107	)	$	(203	)	$	(118	)	$	(290	)

Notes:

(1) Gross profit (loss) for fiscal year 2014 and 2013 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD.

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 30, 2013, and June 1, 2013, include the following (in thousands):

	November 30, 2013		June 1, 2013
Inventories	$	356	$	303
Discontinued operations - Assets	$	356	$	303
Accrued liabilities - current	$	—	$	245
Discontinued operations - Liabilities	$	—	$	245

In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation. We did not have cash balances that were specific to RFPD and elected not to present separate cash flows from discontinued operations on our statement of cash flows.

Net Income and Per share Data

Net income during the second quarter of fiscal 2014 was $0.5 million, or $0.03 per diluted common share and $0.03 per Class B diluted common share, as compared to net income of $0.4 million during the second quarter of fiscal 2013, or $0.03 per diluted common share and $0.02 per Class B diluted common share.

Net income during the first six months of fiscal 2014 was $2.5 million, or $0.17 per diluted common share and $0.16 per Class B diluted common share, as compared to net income of $1.0 million during the first six months of fiscal 2013, or $0.06 per diluted common share and $0.06 per Class B diluted common share.

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LIQUIDITY, FINANCIAL POSITION, AND CAPITAL RESOURCES

Our cash needs have been primarily financed through current and prior year earnings. Cash and cash equivalents for the first quarter ended November 30, 2013, were $92.6 million. In addition, CDs and time deposits classified as short-term investments were $39.5 million and long-term investments were $2.0 million, including equity securities of $0.5 million. Cash and investments at November 30, 2013, consisted of $72.4 million in North America, $20.1 million in Europe, $0.7 million in Latin America, and $40.9 million in Asia/Pacific. At June 1, 2013, cash and cash equivalents were $102.0 million. In addition, CDs and time deposits classified as short-term investments were $39.0 million and long-term investments were $5.4 million, including equity securities of $0.4 million. Cash and investments at June 1, 2013, consisted of $82.1 million in North America, $22.1 million in Europe, $1.2 million in Latin America, and $41.0 million in Asia/Pacific.

Cash Flows from Discontinued Operations

In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation.

We believe we will continue to have sufficient liquidity to fund our future growth strategies for our business in the foreseeable future.

Cash Flows from Operating Activities

The cash flow from operating activities primarily resulted from our net income, adjusted for non-cash items, and changes in our operating assets and liabilities.

Operating activities, which include our discontinued operations, used $0.9 million of cash during the first six months of fiscal 2014. We had net income of $2.5 million during the first six months of fiscal 2014, which included non-cash stock-based compensation expense of $0.4 million associated with the issuance of stock option awards and depreciation and amortization expense of $0.5 million associated with our property and equipment as well as amortization of our intangible assets. Changes in our operating assets and liabilities, net of effects of acquired businesses, used $4.2 million of cash during the first six months of fiscal 2014, due primarily to the increase in our inventory of $0.1 million, a decrease in our accounts payable of $2.2 million, and an increase in our accounts receivable of $1.7 million, partially offset by a decrease in our long-term tax liabilities of $0.5 million. The increase in our inventory was due to an increase in purchases related to specific projects within our Canvys business. The decrease in our accounts payable relates primarily to the timing of payments to some of our major suppliers. The increase in our accounts receivables of $1.7 million was due primarily to a slight increase in our day sales outstanding caused primarily by a shift in customer mix by geography.

Operating activities, which include our discontinued operations, provided $2.9 million of cash during the first six months of fiscal 2013.  We had net income of $1.0 million in the first six months of fiscal 2013, which included non-cash stock-based compensation expense of $0.3 million associated with the issuance of stock option awards and depreciation and amortization expense of $0.6 million associated with our investments in property and equipment as well as amortization of our intangible assets.  Changes in our operating assets and liabilities, net of effects of acquired businesses, provided $1.0 million of cash during the first six months of fiscal 2013, due primarily to the decrease in our inventory of $1.7 million, increase in our accounts payable of $1.2 million, partially offset by an increase in our accounts receivable of $1.4 million, and an increase to our prepaid expense of $0.4 million. The decrease in our inventory was the result of reduced inventory purchases during the first six months due to the decline in net sales. The increase in accounts payable of $1.2 million was due primarily to an increase in accrued vouchers of $0.6 million and $0.6 million related to re-classes of customer credit balances in accounts receivable to accounts payable. The increase in our accounts receivable of $1.4 million was due primarily to the timing of customer payments and a $0.6 million reclass of customer credit balances to accounts payable. The increase in prepaid expenses of $0.4 million was due primarily to the renewal of our liability insurance coverage.

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Cash Flows from Investing Activities

The cash flow from investing activities has consisted primarily of purchases and maturities of investments and capital expenditures.    

Cash provided by investing activities of $1.1 million during the first six months of fiscal 2014 included proceeds from the maturities of investments of $54.5 million, offset by the purchase of investments of $51.6 million, $1.0 million for the acquisition of WVS, and $1.0 million in capital expenditures.    

Cash provided by investing activities of $18.8 million during the first six months of fiscal 2013, included proceeds from maturities of investments of $97.5 million, offset by the purchase of investments of $75.6 million, $2.6 million for the acquisition of D and C, and $0.6 million in capital expenditures.

Our purchases and proceeds from investments consist of time deposits and CDs. Purchasing of future investments may vary from period to period due to interest and foreign currency exchange rates.

Cash Flows from Financing Activities    

The cash flow from financing activities primarily consists of repurchases of common stock and cash dividends paid.

Cash used in financing activities of $10.2 million during the first six months of fiscal 2014 resulted from $8.7 million of cash used to repurchase common stock under our share repurchase authorization and $1.7 million of cash used to pay dividends, offset by $0.2 million of proceeds from the issuance of common stock.

Cash used in financing activities of $13.3 million during the first six months of fiscal 2013, resulted from $11.6 million of cash used to repurchase common stock and $1.8 million in dividends paid, offset by $0.1 million of proceeds from the issuance of common stock. The repurchase of common stock relates to our share repurchase authorizations.

All payments of dividends are at the discretion of the Board of Directors. Dividend payments will depend on earnings, capital requirements, operating conditions, and other factors that the Board may deem relevant.

We believe that the existing sources of liquidity, including current cash, will provide sufficient resources to meet known capital requirements and working capital needs for the fiscal year ending May 31, 2014.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Risk Management and Market Sensitive Financial Instruments

We are exposed to many different market risks with the various industries we serve. The primary financial risk we are exposed to is foreign currency exchange, as certain operations, assets, and liabilities of ours are denominated in foreign currencies. We manage these risks through normal operating and financing activities.

The interpretation and analysis of these disclosures should not be considered in isolation since such variances in exchange rates would likely influence other economic factors. Such factors, which are not readily quantifiable, would likely also affect our operations. Additional disclosure regarding various market risks are set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended June 1, 2013, filed July 26, 2013.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Management of the Company, with the participation of the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of November 30, 2013.

Disclosure controls and procedures are intended to provide reasonable assurance that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the first six months of fiscal 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time we or our subsidiaries are involved in legal actions that arise in the ordinary course of our business. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any current claims, including the above mentioned legal matters, will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended June 1, 2013, filed July 26, 2013.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Period Ended	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Dollar Amount of Shares Purchased Under the Plans or Programs		Amounts Remaining Under the Share Repurchase Authorization
June 1, 2013							$	27,308,893
June 29, 2013	95,441	$	11.81	95,441	$	1,127,610	$	26,181,283
July 27, 2013	56,429	$	11.86	56,429	$	669,439	$	25,511,844
August 31, 2013	426,195	$	11.50	426,195	$	4,902,732	$	20,609,112
September 28, 2013	91,499	$	11.36	91,499	$	1,039,257	$	19,569,855
October 26, 2013	81,494	$	11.45	81,494	$	933,276	$	18,636,579
November 30, 2013	4,518	$	11.58	4,518	$	52,316	$	18,584,263
TOTAL	755,576	$	11.55	755,576	$	8,724,630

ITEM 5. OTHER INFORMATION

Results of Operation and Financial Condition and Declaration of Dividend

On January 9, 2014, we issued a press release reporting results for our second quarter and first six months ended November 30, 2013, and the declaration of a cash dividend. A copy of the press release is furnished as Exhibit 99.1 to this Form 10-Q and incorporated by reference herein.

ITEM 6. EXHIBITS

See exhibit index which is incorporated by reference herein.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

RICHARDSON ELECTRONICS, LTD.

Date:  January 9, 2014	By:
		Kathleen S. Dvorak     Chief Financial Officer     (on behalf of the Registrant and     as Principal Financial Officer)

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Exhibit Index 

(c)        EXHIBITS
Exhibit Number	Description
3.1	Restated Certificate of Incorporation of the Company, incorporated by reference to Appendix B to the Proxy Statement / Prospectus dated November 13, 1986, incorporated by reference to the Company’s Registration Statement on Form S-4.
3.2	Amended and Restated By-Laws of the Company, incorporated by reference to Exhibit 3.2 on the Company’s Report on Form 10-Q for the quarterly period ended December 3, 2011.
31.1	Certification of Edward J. Richardson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed pursuant to Part I).
31.2	Certification of Kathleen S. Dvorak pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed pursuant to Part I).
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed pursuant to Part I).
99.1	Press release dated January 8, 2014.
101	The following financial information from our Quarterly Report on Form 10-Q for the second quarter and first six months of fiscal 2014, filed with the SEC on January 9, 2014, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets as of November 30, 2013, and June 1, 2013, (ii) the Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended November 30, 2013, and December 1, 2012, (iii) the Unaudited Consolidated Statements of Cash Flows for the three and six months ended November 30, 2013, and December 1, 2012, (iv) the Unaudited Consolidated Statement of Stockholder’s Equity as of November 30, 2013, and (v) Notes to Unaudited Consolidated Financial Statements.

29

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Edward J. Richardson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Richardson Electronics, Ltd. for the period ended November 30, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 9, 2014

Signature: /s/ Edward J. Richardson     

Edward J. Richardson

Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Kathleen S. Dvorak, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Richardson Electronics, Ltd. for the period ended November 30, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 9, 2014

Signature:/s/ Kathleen S. Dvorak         

Kathleen S. Dvorak

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Richardson Electronics, Ltd. (the “Company”) on Form 10-Q for the period ended November 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Edward J. Richardson, Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Edward J. Richardson

Edward J. Richardson

Chairman of the Board and Chief Executive Officer

January 9, 2014

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Richardson Electronics, Ltd. (the “Company”) on Form 10-Q for the period ended November 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kathleen S. Dvorak, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Kathleen S. Dvorak

Kathleen S. Dvorak

Chief Financial Officer

January 9, 2014

EX-99.1

Press Release

For Immediate Release

For Details Contact: 40W267 Keslinger Road

Edward J. RichardsonKathleen S. Dvorak            PO BOX 393

Chairman and CEOEVP & CFO                LaFox, IL 60147-0393 USA

Phone: (630) 208-2340(630) 208-2208                (630) 208-2200 | Fax: (630) 208-2550

RICHARDSON ELECTRONICS REPORTS SECOND QUARTER FISCAL 2014 RESULTS AND DECLARES QUARTERLY CASH DIVIDEND

LaFox, IL, January 8, 2014: Richardson Electronics, Ltd. (NASDAQ: RELL), today reported sales and earnings for its second quarter ended November 30, 2013. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

Net sales for the second quarter of fiscal 2014 were $35.4 million, a 3.2% decrease compared to net sales of $36.6 million in the prior year. Sales for the company's EDG business were flat while sales for Canvys were down 10.9%, compared to the prior year's quarter. Gross margin increased to $11.0 million, or 31.1% of net sales during the second quarter of fiscal 2014, compared to $10.7 million, or 29.3% of net sales during fiscal 2013. Operating expenses were $10.5 million for the second quarter of fiscal 2014, compared to $10.2 million for the second quarter of fiscal 2013. Operating income for the second quarters of fiscal 2014 and 2013 remained flat at $0.5 million.

Income from continuing operations for the second quarters of fiscal 2014 and 2013 was $0.6 million, or $0.04 per diluted common share.

“We remain committed to our strategy of building a strong platform for growth that allows us to leverage our global distribution network to drive profit improvement. While we see some economic improvements in China and Europe, we expect challenging conditions to continue so we will closely manage our expenses and working capital investment. Our balance sheet is strong which provides financial flexibility to invest in our growth initiatives, return capital to shareholders, and acquire businesses to diversify our portfolio,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

“We believe our third quarter sales should be in the range of $34 to $36 million. Our goal is to build our business to achieve sustainable growth over the long term,” said Mr. Richardson.

FINANCIAL SUMMARY ─ THREE MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the second quarter of fiscal 2014 were $35.4 million, down 3.2%, compared to net sales of $36.6 million during the second quarter of fiscal 2013.

• Gross margin increased to 31.1% during the second quarter of fiscal 2014 compared to 29.3% during last year's second quarter.

• Selling, general, and administrative expenses increased slightly to $10.5 million, or 29.6% of net sales for the second quarter of fiscal 2014 compared to $10.2 million for the second quarter of fiscal 2013, or 27.9% of net sales.

• Operating income during the second quarter of fiscal 2014 and 2013 was $0.5 million, or 1.5% and 1.4% of net sales, respectively.

• Income from continuing operations for during the second quarter of fiscal 2014 and fiscal 2013 was $0.6 million, or $0.04 per diluted common share.

• Loss from discontinued operations, net of tax, was $0.1 million during the second quarter of fiscal 2014 compared to $0.2 million during the second quarter of fiscal 2013.

• Net income during the second quarter of fiscal 2014 was $0.5 million, or $0.03 per diluted common share, compared to net income of $0.4 million, or $0.03 per diluted common share, during the second quarter of fiscal 2013, .

FINANCIAL SUMMARY – SIX MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the first six months of fiscal 2014 were $69.7 million, down 3.5%, compared to net sales of $72.3 million during the first six months of fiscal 2013.

• Gross margin increased to 30.4% during the first six months of fiscal 2014 compared to 29.6% during the first six months of fiscal 2013.

• Selling, general, and administrative expenses slightly increased to $20.5 million, or 29.5% of net sales, for the first six months of fiscal 2014 compared to $20.4 million, or 28.2% of net sales, for the first six months of fiscal 2013.

• Operating income during the first six months of fiscal 2014 was $0.7 million, or 0.9% of net sales, compared to an operating income of $1.0 million, or 1.4% of net sales, during the first six months of fiscal 2013.

• Income from continuing operations during the first six months of fiscal 2014 was $2.6 million, or $0.18 per diluted common share, versus $1.3 million, or $0.08 per diluted common share, during the first six months of fiscal 2013.

• Loss from discontinued operations, net of tax, was $0.1 million, during the first six months of fiscal 2014, compared to $0.3 million during the first six months of fiscal 2013.

• Net income during the first six months of fiscal 2014 was $2.5 million, or $0.17 per diluted common share, compared to net income of $1.0 million, or $0.06 per diluted common share, during the first six months of fiscal 2013.

CASH DIVIDEND AND SHARE REPURCHASES

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 February 21, 2014, to common stockholders of record on February 7, 2014.

“Cash and investments at the end of our second quarter were $134.1 million. We used $2.0 million to repurchase 0.2 million shares during the second quarter. As of today, the Company currently has 11.8 million outstanding shares of common stock and 2.2 million outstanding shares of Class B common stock. With our strong balance sheet, we are committed to returning value to our shareholders,” said Mr. Richardson.

CONFERENCE CALL INFORMATION

On Thursday, January 9, 2014, at 9:00 a.m. CT, Edward J. Richardson, Chairman and Chief Executive Officer, and Kathleen S. Dvorak, Chief Financial Officer, will host a conference call to discuss the Company's second quarter results for fiscal 2014. 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 24209746 approximately five minutes prior to the start of the call. A replay of the call will be available beginning at 11:00 a.m. CT on January 9, 2014, for seven days. The telephone numbers for the replay are (USA) (888) 286-8010 and (International) (617) 801-6888; passcode 34766989.

FORWARD-LOOKING STATEMENTS

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 26, 2013. 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, and customized display solutions serving customers in the alternative energy, 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. More information is available online atwww.rell.com.

Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.

Richardson Electronics, Ltd.

Consolidated Balance Sheets

(in thousands, except per share amounts)

	Unaudited		Audited
	November 30,   2013		June 1,   2013
Assets
Current assets:
Cash and cash equivalents	$	92,646	$	102,002
Accounts receivable, less allowance of $1,167 and $1,092	20,216		18,268
Inventories	35,296		33,975
Prepaid expenses and other assets	1,453		1,155
Deferred income taxes	1,983		1,856
Income tax receivable	3,321		6,429
Investments—current	39,508		38,971
Discontinued operations—assets	356		303
Total current assets	194,779		202,959
Non-current assets:
Property, plant and equipment, net	5,935		5,073
Goodwill	1,633		1,519
Other intangibles	881		908
Non-current deferred income taxes	1,477		1,398
Investments—non-current	1,991		5,461
Total non-current assets	11,917		14,359
Total assets	$	206,696	$	217,318
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	12,152	$	14,255
Accrued liabilities	7,472		9,566
Discontinued operations—liabilities	—		245
Total current liabilities	19,624		24,066
Non-current liabilities:
Long-term income tax liabilities	6,249		6,726
Other non-current liabilities	1,284		1,287
Total non-current liabilities	7,533		8,013
Total liabilities	27,157		32,079
Commitments and contingencies	—		—
Stockholders’ equity
Common stock, $0.05 par value; issued 11,828 shares at November 30, 2013, and 12,263 shares at June 1, 2013	591		613
Class B common stock, convertible, $0.05 par value; issued 2,191 shares at November 30, 2013 and 2,491 shares at June 1, 2013	110		125
Preferred stock, $1.00 par value, no shares issued	—		—
Additional paid-in-capital	65,760		73,979
Common stock in treasury, at cost, 0 shares at November 30, 2013, and 9 shares at June 1, 2013	—		(105		)
Retained earnings	102,623		101,816
Accumulated other comprehensive income	10,455		8,811
Total stockholders’ equity	179,539		185,239
Total liabilities and stockholders’ equity	$	206,696	$	217,318

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Comprehensive Income

(in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	November 30,   2013			December 1,   2012			November 30,   2013			December 1,   2012
Net Sales	$	35,436		$	36,603		$	69,693		$	72,253
Cost of Sales	24,429			25,861			48,494			50,865
Gross profit	11,007			10,742			21,199			21,388
Selling, general, and administrative expenses	10,473			10,228			20,542			20,377
(Gain) loss on disposal of assets	—			2			—			(2		)
Operating income	534			512			657			1,013
Other (income) expense:
Investment/interest income	(255		)	(352		)	(520		)	(735		)
Foreign exchange (gain) loss	(14		)	297			92			260
Proceeds from legal settlement	—			—			(2,115		)	—
Other, net	15			(42		)	(15		)	(65		)
Total other income	(254		)	(97		)	(2,558		)	(540		)
Income from continuing operations before income taxes	788			609			3,215			1,553
Income tax provision	157			28			605			238
Income from continuing operations	631			581			2,610			1,315
Loss from discontinued operations, net of tax	(107		)	(203		)	(118		)	(290		)
Net income	524			378			2,492			1,025
Foreign currency translation gain, net of tax	1,196			1,547			1,621			1,947
Fair value adjustments on investments	22			4			23			5
Comprehensive income	$	1,742		$	1,929		$	4,136		$	2,977
Net income per Common share - Basic:
Income from continuing operations	$	0.05		$	0.04		$	0.19		$	0.09
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Common share - Basic:	$	0.04		$	0.03		$	0.18		$	0.07
Net income per Class B common share - Basic:
Income from continuing operations	$	0.04		$	0.03		$	0.17		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Class B common share - Basic:	$	0.03		$	0.02		$	0.16		$	0.06
Net income per Common share - Diluted:
Income from continuing operations	$	0.04		$	0.04		$	0.18		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Common share - Diluted:	$	0.03		$	0.03		$	0.17		$	0.06
Net income per Class B common share - Diluted:
Income from continuing operations	$	0.04		$	0.03		$	0.17		$	0.08
Loss from discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
Total net income per Class B common share - Diluted:	$	0.03		$	0.02		$	0.16		$	0.06
Weighted average number of shares:
Common shares - Basic	11,871			12,437			11,997			12,604
Class B common shares - Basic	2,191			2,812			2,309			2,863
Common shares - Diluted	14,185			15,345			14,433			15,567
Class B common shares - Diluted	2,191			2,812			2,309			2,863
Dividends per common share	$	0.060		$	0.060		$	0.120		$	0.120
Dividends per Class B common share	$	0.054		$	0.054		$	0.108		$	0.108

Richardson Electronics, Ltd.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended						Six Months Ended
	November 30,   2013			December 1,   2012			November 30,   2013			December 1,   2012
Operating activities:
Net income	524			378			2,492			1,025
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	273			266			521			565
Gain on sale of investments	(12		)	(1		)	(19		)	(21		)
(Gain) loss on disposal of assets	—			2			—			(2		)
Share-based compensation expense	270			208			384			332
Deferred income taxes	(108		)	(7		)	(167		)	(8		)
Change in assets and liabilities, net of effect of acquired businesses:
Accounts receivable	(508		)	(758		)	(1,726		)	(1,404		)
Income tax receivable	357			36			3,108			191
Inventories	310			2,265			(140		)	1,715
Prepaid expenses and other assets	(430		)	196			(274		)	(426		)
Accounts payable	317			2,664			(2,230		)	1,234
Accrued liabilities	(565		)	806			(2,455		)	(200		)
Long-term income tax liabilities	(235		)	4			(477		)	(317		)
Other	56			148			47			190
Net cash provided by (used in) operating activities	249			6,207			(936		)	2,874
Investing activities:
Cash consideration paid for acquired businesses	—			(2,557		)	(973		)	(2,557		)
Capital expenditures	(540		)	(478		)	(981		)	(557		)
Proceeds from sale of assets	—			—			—			4
Proceeds from maturity of investments	14,044			39,763			54,532			97,510
Purchases of investments	(11,458		)	(23,838		)	(51,552		)	(75,562		)
Proceeds from sales of available-for-sale securities	20			83			76			137
Purchases of available-for-sale securities	(20		)	(83		)	(76		)	(137		)
Other	22			—			91			—
Net cash provided by investing activities	2,068			12,890			1,117			18,838
Financing activities:
Repurchase of common stock	(2,025		)	(5,998		)	(8,725		)	(11,550		)
Proceeds from issuance of common stock	100			72			171			83
Cash dividends paid	(828		)	(1,799		)	(1,685		)	(1,799		)
Other	—			—			1			—
Net cash used in financing activities	(2,753		)	(7,725		)	(10,238		)	(13,266		)
Effect of exchange rate changes on cash and cash equivalents	552			908			701			1,179
Increase/ (decrease) in cash and cash equivalents	116			12,280			(9,356		)	9,625
Cash and cash equivalents at beginning of period	92,530			41,238			102,002			43,893
Cash and cash equivalents at end of period	$	92,646		$	53,518		$	92,646		$	53,518

Richardson Electronics, Ltd.

Net Sales and Gross Profit

For the Second Quarter and First Six Months of Fiscal 2014 and Fiscal 2013

(in thousands)

By Strategic Business Unit:

Net Sales	QTD			QTD
	FY 2014			FY 2013		% Change
EDG	$	26,163		$	26,186	(0.1)%
Canvys	9,273			10,417		(11.0)%
Total	$	35,436		$	36,603	(3.2)%
	YTD			YTD
	FY 2014			FY 2013		% Change
EDG	$	51,642		$	51,813	(0.3)%
Canvys	18,051			20,440		(11.7)%
Total	$	69,693		$	72,253	(3.5)%
Gross Profit	QTD			QTD
	FY 2014		% of Net Sales	FY 2013		% of Net Sales
EDG	$	8,507	32.5%	$	7,930	30.3%
Canvys	2,500		27.0%	2,812		27.0%
Total	$	11,007	31.1%	$	10,742	29.3%
	YTD			YTD
	FY 2014		% of Net Sales	FY 2013		% of Net Sales
EDG	$	16,366	31.7%	$	15,930	30.7%
Canvys	4,833		26.8%	5,458		26.7%
Total	$	21,199	30.4%	$	21,388	29.6%

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INCOME TAXES

6 Months Ended

Nov. 30, 2013

INCOME TAXES

INCOME TAXES

The effective income tax rate from continuing operations during the first six months of fiscal 2014 was 18.8%, as compared to 15.3% during the first six months of fiscal 2013. The increase in rate during the first six months of fiscal 2014, as compared to fiscal 2013, was due to an increase in the amount of foreign earnings not considered to be permanently reinvested and an increase in forecasted earnings available in foreign jurisdictions for distribution with respect to ASC 740-30, Income Taxes – Other Considerations or Special Areas ("ASC 740-30"). The 18.8% effective income tax rate is lower than the federal statutory rate of 34.0% as a result of our geographical distribution of income and apportionment of income to various states. Additionally, during the second quarter of fiscal 2014, we developed a strategy for the recently acquired German business to pursue increased market opportunities in Germany; therefore, we have changed our position with respect to earnings in Germany which are now considered to be permanently reinvested under ASC 740-30. This change in the Company's assertion further reduced the effective tax rate for the first six months of fiscal 2014 by 7.6%.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2006 are closed for examination under the statute of limitations for U.S. federal, state or local, or non-U.S. tax jurisdictions. During fiscal 2013, we completed federal audits in the U.S. for fiscal 2009, 2010, and 2011. Our primary foreign tax jurisdictions are the Netherlands and Germany. We have tax years open in the Netherlands and Germany beginning in fiscal 2008.

As of November 30, 2013, approximately $42.8 million of cumulative positive earnings of some of our foreign subsidiaries are still considered permanently reinvested pursuant to ASC 740-30. Due to various tax attributes that are continuously changing, it is not practical to determine what, if any, tax liability might exist if such earnings were to be repatriated.

As of November 30, 2013, we did not have any worldwide liability for uncertain tax positions related to continuing operations as compared to $0.4 million as of December 1, 2012. We have no recorded penalties and interest relating to uncertain tax positions in the income tax expense line item within the unaudited consolidated statements of income and comprehensive income.

It is not expected that there will be a change in the unrecognized tax benefits within the next 12 months.

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Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013 Common Stock	Dec. 01, 2012 Common Stock	Nov. 30, 2013 Common Stock	Dec. 01, 2012 Common Stock	Nov. 30, 2013 Class B Common Stock	Dec. 01, 2012 Class B Common Stock	Nov. 30, 2013 Class B Common Stock	Dec. 01, 2012 Class B Common Stock
Net Sales	$ 35,436,000	$ 36,603,000	$ 69,693,000	$ 72,253,000
Cost of Sales	24,429,000	25,861,000	48,494,000	50,865,000
Gross profit	11,007,000	10,742,000	21,199,000	21,388,000
Selling, general, and administrative expenses	10,473,000	10,228,000	20,542,000	20,377,000
Loss on disposal of assets	0	2,000	0	(2,000)
Operating income	534,000	512,000	657,000	1,013,000
Other (income) expense:
Investment/interest income	(255,000)	(352,000)	(520,000)	(735,000)
Foreign exchange (gain) loss	(14,000)	297,000	92,000	260,000
Other, net	15,000	(42,000)	(15,000)	(65,000)
Total other income	(254,000)	(97,000)	(2,558,000)	(540,000)
Income from continuing operations before income taxes	788,000	609,000	3,215,000	1,553,000
Income tax provision	157,000	28,000	605,000	238,000
Income from continuing operations	631,000	581,000	2,610,000	1,315,000
Loss from discontinued operations, net of tax	(107,000)	(203,000)	(118,000)	(290,000)
Net income	524,000	378,000	2,492,000	1,025,000
Foreign currency translation gain, net of tax	1,196,000	1,547,000	1,621,000	1,947,000
Fair value adjustments on investments	22,000	4,000	23,000	5,000
Comprehensive income	$ 1,742,000	$ 1,929,000	$ 4,136,000	$ 2,977,000
Net income per common share-Basic:
Income from continuing operations					$ 0.05	$ 0.04	$ 0.19	$ 0.09	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Income (loss) from discontinued operations					$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Total net income per common share-Basic:					$ 0.04	$ 0.03	$ 0.18	$ 0.07	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Net income per Common share - Diluted:
Income from continuing operations					$ 0.04	$ 0.04	$ 0.18	$ 0.08	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Income (loss) from discontinued operations					$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Total net income per Common share - Diluted:					$ 0.03	$ 0.03	$ 0.17	$ 0.06	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Weighted average number of shares:
Common shares - Basic					11,871,000	12,437,000	11,997,000	12,604,000	2,191,000	2,812,000	2,309,000	2,863,000
Common shares - Diluted					14,185,000	15,345,000	14,433,000	15,567,000	2,191,000	2,812,000	2,309,000	2,863,000
Dividends per common share					$ 0.060	$ 0.060	$ 0.120	$ 0.120	$ 0.054	$ 0.054	$ 0.108	$ 0.108

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UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES

6 Months Ended

Nov. 30, 2013

UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES

UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Inventories: Our worldwide inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories from continuing operations include approximately $32.5 million of finished goods and $2.7 million of raw materials and work-in-progress as of November 30, 2013, as compared to approximately $31.6 million of finished goods and $2.4 million of raw materials and work-in-progress as of June 1, 2013.

At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs.

Revenue Recognition:Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell.

In the limited cases where remaining performance obligations exist after delivery of the product, the obligation relative to the unit of accounting is inconsequential or perfunctory and is not essential to the functionality of the delivered product. This conclusion was reached based on the following facts: the timing of any remaining obligation is agreed upon with the customer, which in most cases, is performed immediately after the delivery of the product; the cost and time involved to complete the remaining obligation is insignificant in relation to the item sold, and the costs and time do not vary significantly; we have a demonstrated history of completing the remaining obligations timely; and finally, failure to complete the remaining obligation does not enable the customer to receive a full or partial refund of the product or service, and the timing of the payment for the product is not contingent upon completion of remaining performance obligations, if any.

Discontinued Operations: During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements - Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation. Refer to Note 4 “Discontinued Operations” of our notes to our unaudited consolidated financial statements for additional discussion on the sale of RFPD.

Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency.

Goodwill and Other Intangible Assets: Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment. We test goodwill for impairment annually and whenever events or circumstances indicates an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. As of November 30, 2013, our goodwill balance was $1.6 million and represents the premium we paid for Powerlink Specialist Electronics Support Limited ("Powerlink") of $1.4 million during our second quarter of fiscal 2012, adjusted for foreign currency translation; the premium we paid for D and C Import-Export, Inc. ("D and C") of $0.2 million during our second quarter of fiscal 2013; and the premium we paid for WVS of less than $0.1 million during our first quarter of fiscal 2014.

During the fourth quarter of each fiscal year, our goodwill balances are reviewed for impairment through the application of a fair value based test, using the third quarter as the measurement date. In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically, projected operating results and cash flows have not always been achieved. In accordance with ASC 350 “Intangibles - Goodwill and Other”, if indicators of impairment are deemed to be present, we would perform an interim impairment test and any resulting impairment loss would be charged to expense in the period identified.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Nov. 30, 2013

Changes in Carrying Value of Goodwill

Changes in the carrying value of goodwill are as follows (in thousands):

	TOTAL
Balance at June 1, 2013	$	1,519
Premium Paid for WVS Acquisition	25
Foreign currency translation	89
Balance at November 30, 2013	$	1,633

Intangible assets subject to amortization

Intangible assets subject to amortization as well as amortization expense are as follows (in thousands):

	Intangible Assets Subject to
	Amortization as of
	November 30, 2013		June 1, 2013
Gross Amounts:
Trade Name	$	29	$	29
Customer Relationship	969		947
Non-compete Agreements	47		47
Total Gross Amounts	$	1,045	$	1,023
Accumulated Amortization:
Trade Name	$	13	$	8
Customer Relationship	141		101
Non-compete Agreements	10		6
Total Accumulated Amortization	$	164	$	115

Intangible Assets Amortization expense

The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands):

	Amortization
	Expense
Fiscal Year
Remaining 2014	$	44
2015	82
2016	68
2017	58
2018	56
Thereafter	573

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CALCULATION OF EARNINGS PER SHARE

6 Months Ended

Nov. 30, 2013

CALCULATION OF EARNINGS PER SHARE

CALCULATION OF EARNINGS PER SHARE

We have authorized 30,000,000 shares of common stock, 10,000,000 shares of Class B common stock, and 5,000,000 shares of preferred stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income are based on the following amounts (in thousands, except per share amounts):

	For the Three Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	631		$	631		$	581		$	581
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Common stock undistributed losses	$	(169	)	$	(169	)	$	(253	)	$	(253	)
Class B common stock undistributed losses	(28		)	(28		)	(51		)	(51		)
Total undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Loss from discontinued operations	$	(107	)	$	(107	)	$	(203	)	$	(203	)
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Common stock undistributed losses	$	(802	)	$	(803	)	$	(904	)	$	(905	)
Class B common stock undistributed losses	(133		)	(132		)	(184		)	(183		)
Total undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Net income	$	524		$	524		$	378		$	378
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Common stock undistributed losses	$	(261	)	$	(261	)	$	(421	)	$	(422	)
Class B common stock undistributed losses	(43		)	(43		)	(86		)	(85		)
Total undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,871			11,871			12,437			12,437
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,191			2,191			2,812			2,812
Effect of dilutive stock options				123						96
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,185						15,345
Income from continuing operations per share:
Common stock	$	0.05		$	0.04		$	0.04		$	0.04
Class B common stock	$	0.04		$	0.04		$	0.03		$	0.03
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Net income per share:
Common stock	$	0.04		$	0.03		$	0.03		$	0.03
Class B common stock	$	0.03		$	0.03		$	0.02		$	0.02

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2014 and fiscal 2013 were 512,064 and 477,064, respectively.

	Six Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	2,610		$	2,610		$	1,315		$	1,315
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Common stock undistributed earnings (losses)	$	788		$	790		$	(402	)	$	(402	)
Class B common stock undistributed earnings (losses)	137			135			(82		)	(82		)
Total undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Loss from discontinued operations	$	(118	)	$	(118	)	$	(290	)	$	(290	)
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Common stock undistributed losses	$	(1,537	)	$	(1,539	)	$	(1,734	)	$	(1,737	)
Class B common stock undistributed losses	(266		)	(264		)	(355		)	(352		)
Total undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Net income	$	2,492		$	2,492		$	1,025		$	1,025
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Common stock undistributed earnings (losses)	$	688		$	689		$	(643	)	$	(643	)
Class B common stock undistributed earnings (losses)	119			118			(131		)	(131		)
Total undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,997			11,997			12,604			12,604
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,309			2,309			2,863			2,863
Effect of dilutive securities Dilutive stock options				127						100
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,433						15,567
Income from continuing operations per share:
Common stock	$	0.19		$	0.18		$	0.09		$	0.08
Class B common stock	$	0.17		$	0.17		$	0.08		$	0.08
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Net income per share:
Common stock	$	0.18		$	0.17		$	0.07		$	0.06
Class B common stock	$	0.16		$	0.16		$	0.06		$	0.06

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2014 and fiscal 2013 were 487,064 and 267,564, respectively.

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LITIGATION Litigation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013 Anti-trust class action lawsuit settlement [Domain]	Aug. 31, 2013 Anti-trust class action lawsuit settlement [Domain]	Nov. 30, 2013 Anti-trust class action lawsuit settlement [Domain]
Litigation [Abstract]
Other Nonoperating Income (Expense)	$ 15	$ (42)	$ (15)	$ (65)	$ 0	$ (2,100)	$ (2,115)

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Investments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Jun. 01, 2013
Investment [Line Items]
Investment in time deposits and certificate of deposits	$ 41.0		$ 44.0
Investment in time deposits and certificate of deposits, less than twelve months	39.5		39.0
Investment in time deposits and certificate of deposits, greater than twelve months	1.5		5.0
Investments, which are included in non-current assets	$ 0.5		$ 0.5
Proceeds from the sale of securities description	0.1	0.1
Gross realized gains and losses on sale, description	less than $0.1 million	less than $0.1 million
Net unrealized holding gains, description	less than $0.1 million	less than $0.1 million

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SEGMENT REPORTING (Tables)

6 Months Ended

Nov. 30, 2013

Summarized operating results by segment

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended				Six Months Ended
	November 30,   2013		December 1,   2012		November 30, 2013		December 1, 2012
EDG
Net Sales	$	26,163	$	26,186	$	51,642	$	51,813
Gross Profit	8,507		7,930		16,366		15,930
Canvys
Net Sales	$	9,273	$	10,417	$	18,051	$	20,440
Gross Profit	2,500		2,812		4,833		5,458

Net Sales and Gross Profit by Geographic Region

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net Sales
North America	$	14,296		$	16,436		$	28,492		$	32,182
Asia/Pacific	6,248			5,437			12,553			11,784
Europe	12,175			12,305			23,665			23,042
Latin America	2,574			2,320			4,771			4,767
Other	143			105			212			478
Total	$	35,436		$	36,603		$	69,693		$	72,253
Gross Profit (loss)
North America	$	4,687		$	5,520		$	9,584		$	10,809
Asia/Pacific	2,144			1,860			4,089			4,054
Europe	4,111			3,806			7,706			7,030
Latin America	1,011			788			1,834			1,616
Other	(946		)	(1,232		)	(2,014		)	(2,121		)
Total	$	11,007		$	10,742		$	21,199		$	21,388

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CALCULATION OF EARNINGS PER SHARE (Tables)

3 Months Ended

6 Months Ended

Nov. 30, 2013

Nov. 30, 2013

Earnings per share

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income are based on the following amounts (in thousands, except per share amounts):

	For the Three Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	631		$	631		$	581		$	581
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Common stock undistributed losses	$	(169	)	$	(169	)	$	(253	)	$	(253	)
Class B common stock undistributed losses	(28		)	(28		)	(51		)	(51		)
Total undistributed losses	$	(197	)	$	(197	)	$	(304	)	$	(304	)
Loss from discontinued operations	$	(107	)	$	(107	)	$	(203	)	$	(203	)
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Common stock undistributed losses	$	(802	)	$	(803	)	$	(904	)	$	(905	)
Class B common stock undistributed losses	(133		)	(132		)	(184		)	(183		)
Total undistributed losses	$	(935	)	$	(935	)	$	(1,088	)	$	(1,088	)
Net income	$	524		$	524		$	378		$	378
Less dividends:
Common stock	710			710			737			737
Class B common stock	118			118			148			148
Undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Common stock undistributed losses	$	(261	)	$	(261	)	$	(421	)	$	(422	)
Class B common stock undistributed losses	(43		)	(43		)	(86		)	(85		)
Total undistributed losses	$	(304	)	$	(304	)	$	(507	)	$	(507	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,871			11,871			12,437			12,437
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,191			2,191			2,812			2,812
Effect of dilutive stock options				123						96
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,185						15,345
Income from continuing operations per share:
Common stock	$	0.05		$	0.04		$	0.04		$	0.04
Class B common stock	$	0.04		$	0.04		$	0.03		$	0.03
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Net income per share:
Common stock	$	0.04		$	0.03		$	0.03		$	0.03
Class B common stock	$	0.03		$	0.03		$	0.02		$	0.02

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2014 and fiscal 2013 were 512,064 and 477,064, respectively.

	Six Months Ended
	November 30, 2013						December 1, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	2,610		$	2,610		$	1,315		$	1,315
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Common stock undistributed earnings (losses)	$	788		$	790		$	(402	)	$	(402	)
Class B common stock undistributed earnings (losses)	137			135			(82		)	(82		)
Total undistributed earnings (losses)	$	925		$	925		$	(484	)	$	(484	)
Loss from discontinued operations	$	(118	)	$	(118	)	$	(290	)	$	(290	)
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Common stock undistributed losses	$	(1,537	)	$	(1,539	)	$	(1,734	)	$	(1,737	)
Class B common stock undistributed losses	(266		)	(264		)	(355		)	(352		)
Total undistributed losses	$	(1,803	)	$	(1,803	)	$	(2,089	)	$	(2,089	)
Net income	$	2,492		$	2,492		$	1,025		$	1,025
Less dividends:
Common stock	1,433			1,433			1,495			1,495
Class B common stock	252			252			304			304
Undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Common stock undistributed earnings (losses)	$	688		$	689		$	(643	)	$	(643	)
Class B common stock undistributed earnings (losses)	119			118			(131		)	(131		)
Total undistributed earnings (losses)	$	807		$	807		$	(774	)	$	(774	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,997			11,997			12,604			12,604
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,309			2,309			2,863			2,863
Effect of dilutive securities Dilutive stock options				127						100
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,433						15,567
Income from continuing operations per share:
Common stock	$	0.19		$	0.18		$	0.09		$	0.08
Class B common stock	$	0.17		$	0.17		$	0.08		$	0.08
Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Net income per share:
Common stock	$	0.18		$	0.17		$	0.07		$	0.06
Class B common stock	$	0.16		$	0.16		$	0.06		$	0.06

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2014 and fiscal 2013 were 487,064 and 267,564, respectively.

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Net Sales and Gross Profit by Geographic Region (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Segment Reporting Information [Line Items]
Net Sales	$ 35,436	$ 36,603	$ 69,693	$ 72,253
Total, Gross Profit	11,007	10,742	21,199	21,388
North America
Segment Reporting Information [Line Items]
Net Sales	14,296	16,436	28,492	32,182
Total, Gross Profit	4,687	5,520	9,584	10,809
Asia Pacific
Segment Reporting Information [Line Items]
Net Sales	6,248	5,437	12,553	11,784
Total, Gross Profit	2,144	1,860	4,089	4,054
Europe
Segment Reporting Information [Line Items]
Net Sales	12,175	12,305	23,665	23,042
Total, Gross Profit	4,111	3,806	7,706	7,030
Latin America
Segment Reporting Information [Line Items]
Net Sales	2,574	2,320	4,771	4,767
Total, Gross Profit	1,011	788	1,834	1,616
Other
Segment Reporting Information [Line Items]
Net Sales	143	105	212	478
Total, Gross Profit	$ (946)	$ (1,232)	$ (2,014)	$ (2,121)

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Goodwill and Other Intangible Assets - Additional Information (Detail)	6 Months Ended
	Nov. 30, 2013
Goodwill and Intangible Assets Disclosure [Line Items]
Weighted average number of years of amortization expense	17 years 10 months 18 days

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Lease Obligations Other Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012
Commitments and Contingencies Disclosure [Line Items]
Rent expense from continuing operations during the first six months of fiscal 2013	$ 0.8	$ 0.7

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Investments Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Level 1, USD $) In Thousands, unless otherwise specified	Nov. 30, 2013	Jun. 01, 2013
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Time deposits/CDs	$ 41,008	$ 43,989
Equity securities	491	443
Fair value, Total	$ 41,499	$ 44,432

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Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Discontinued Operations [Line Items]
Document Period End Date			Nov. 30, 2013
Net sales	$ 178	$ 278	$ 264	$ 499
Gross profit (loss)	(55)	(128)	(103)	(221)
Selling, general, and administrative expenses	117	201	149	266
Additional gain on sale	0	1	1	1
Income tax provision (benefit)	(65)	(127)	(135)	(198)
Income (loss) from discontinued operations, net of tax	$ (107)	$ (203)	$ (118)	$ (290)

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Calculation of Earnings Per Share - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Computation Of Earnings Per Share Line Items
Preferred stock shares, authorized	5,000,000		5,000,000
Common stock options anti-dilutive	512,064	477,064	487,064	267,564
Common Stock
Computation Of Earnings Per Share Line Items
Common stock shares, authorized	30,000,000		30,000,000
Class B Common Stock
Computation Of Earnings Per Share Line Items
Common stock shares, authorized	10,000,000		10,000,000
Number of votes for Class B common stock			10
Cash dividends Class A common stock			90.00%

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LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES (Tables)

6 Months Ended

Nov. 30, 2013

Future lease commitments charges

Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years have been adjusted to reflect the Transaction as follows (in thousands):

Fiscal Year	Payments
Remaining 2014	$	679
2015	1,094
2016	686
2017	77
2018	31
Thereafter	—

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Consolidated Statement of Stockholders' Equity (USD $) Share data in Thousands, unless otherwise specified	Total	Common Stock	Class B Common Stock	Common Stock	Class B Common Stock	Par Value	Additional Paid-in Capital	Common Stock in Treasury	Retained Earnings	Retained Earnings Common Stock	Retained Earnings Class B Common Stock	Accumulated Other Comprehensive Income (loss)
Beginning Balance at Jun. 01, 2013	$ 185,239,000					$ 738,000	$ 73,979,000	$ (105,000)	$ 101,816,000			$ 8,811,000
Beginning Balance (in shares) at Jun. 01, 2013				12,263	2,491
Net income	2,492,000								2,492,000
Foreign currency translation	1,621,000											1,621,000
Fair value adjustments on investments	23,000											23,000
Share-based compensation:
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	18,000						18,000
Stock options	384,000						384,000
Common stock:
Options Exercised	171,000			29,000		1,000	170,000
Canceled Shares					(300)
Stock Issued During Period, Shares, Conversion of Convertible Securities				300
Repurchase of common stock	(8,725,000)							(8,725,000)
Treasury stock				(764,000)	0	(38,000)	(8,791,000)	8,829,000
Other	1,000			0				(1,000)
Dividends paid
Dividends declared to common stock		(1,433,000)	(252,000)							1,433,000	252,000
Ending Balance at Nov. 30, 2013	$ 179,539,000					$ 701,000	$ 65,760,000	$ 0	$ 102,623,000			$ 10,455,000
Ending Balance (in shares) at Nov. 30, 2013				11,828	2,191

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DESCRIPTION OF THE COMPANY

6 Months Ended

Nov. 30, 2013

DESCRIPTION OF THE COMPANY

DESCRIPTION OF THE COMPANY

Richardson Electronics, Ltd. (“we”, “us”, “the Company”, and “our”) is incorporated in the state of Delaware. We are a leading global provider of engineered solutions, power grid and microwave tubes and related components, and customized display solutions, serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. Our strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair.

Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing, and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical, and communication applications.

On September 4, 2012, we acquired the assets of D and C Import-Export, Inc. ("D and C") for approximately $2.6 million. D and C, a Florida-based distributor of power grid tubes and associated RF components, services the broadcast, commercial, industrial, medical, military, and scientific markets. This acquisition provides us with access to additional product lines, vendors, and customers.

On July 5, 2013, we acquired the assets of WVS-Technology ("WVS") for approximately$1.0 million. WVS, located in Meerbusch, Germany, develops and sells RF and microwave products, power grid tubes, vacuum capacitors, as well as industrial microwave equipment. This acquisition provides us with engineering and sales expertise to help expand our presence in the vacuum capacitor market.

We have two operating segments, which we define as follows:

Electron Device Group (“EDG”) provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer (“OEM”) markets.

We currently have operations in the following major geographic regions:

• North America;

• Asia/Pacific;

• Europe; and

• Latin America.

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DISCONTINUED OPERATIONS

6 Months Ended

Nov. 30, 2013

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Financial Summary – Discontinued Operations

Summary financial results for the three and six months endedNovember 30, 2013, and December 1, 2012, are presented in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net sales	$	178		$	278		$	264		$	499
Gross profit (loss) (1)	(55		)	(128		)	(103		)	(221		)
Selling, general, and administrative expenses	117			201			149			266
Other expense	—			1			1			1
Income tax benefit	(65		)	(127		)	(135		)	(198		)
Loss from discontinued operations, net of tax	$	(107	)	$	(203	)	$	(118	)	$	(290	)

Notes:

(1) Gross profit (loss) for fiscal year 2014 and 2013 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ends March 1, 2014.

Net sales and gross profit (loss) for the three and six months endedNovember 30, 2013, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. Pursuant to the three-year agreement, we agreed to continue to manufacture certain RFPD products.

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 30, 2013, and June 1, 2013, include the following (in thousands):

	November 30, 2013		June 1, 2013
Inventories	$	356	$	303
Discontinued operations - Assets	$	356	$	303
Accrued liabilities - current	$	—	$	245
Discontinued operations - Liabilities	$	—	$	245

In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation. We did not have cash balances that were specific to RFPD and elected not to present separate cash flows from discontinued operations on our statement of cash flows.

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BASIS OF PRESENTATION

6 Months Ended

Nov. 30, 2013

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements.

Our fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The first six months of fiscal 2014 and 2013 contained 26 weeks, respectively.

In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of our operations for the three and six months endedNovember 30, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2014.

The financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 1, 2013, that we filed on July 26, 2013.

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Future Minimum Lease Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 30, 2013
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items]
Remaining 2014	$ 679
2015	1,094
2016	686
2017	77
2018	31
Thereafter	$ 0

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Nov. 30, 2013

Investments measured at fair value on a recurring basis

Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of November 30, 2013, and June 1, 2013, were as follows (in thousands):

	Level 1
November 30, 2013
Time deposits/CDs	$	41,008
Equity securities	491
Total	$	41,499
June 1, 2013
Time deposits/CDs	$	43,989
Equity securities	443
Total	$	44,432

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Assets and Liabilities Classified as Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Nov. 30, 2013	Jun. 01, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Document Period End Date	Nov. 30, 2013
Inventories	$ 356	$ 303
Discontinued operations-Assets	356	303
Accrued liabilities-current	0	245
Discontinued operations-Liabilities	$ 0	$ 245

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Intangible Assets Amortization expense (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 30, 2013
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 44
2015	82
2016	68
2017	58
2018	56
Thereafter	$ 573

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Operating Results by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Segment Reporting Information [Line Items]
Net Sales	$ 35,436	$ 36,603	$ 69,693	$ 72,253
Gross Profit	11,007	10,742	21,199	21,388
EDG
Segment Reporting Information [Line Items]
Net Sales	26,163	26,186	51,642	51,813
Gross Profit	8,507	7,930	16,366	15,930
Canvys
Segment Reporting Information [Line Items]
Net Sales	9,273	10,417	18,051	20,440
Gross Profit	$ 2,500	$ 2,812	$ 4,833	$ 5,458

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Nov. 30, 2013	Jun. 01, 2013
Accounts receivable, allowance	$ 1,167	$ 1,092
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares issued	0	0
Common stock in treasury	0	9
Common Stock
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares issued	11,828	12,263
Class B Common Stock
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares issued	2,191	2,491

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INVESTMENTS

6 Months Ended

Nov. 30, 2013

INVESTMENTS

INVESTMENTS

As of November 30, 2013, we had approximately $41.0 million invested in time deposits and certificates of deposit (“CD”). Of this, $39.5 million mature in less than twelve months and $1.5 million mature in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD.

As of June 1, 2013, we had approximately $44.0 million invested in time deposits and CD’s. Of this, $39.0 million mature in less than twelve months and $5.0 million mature in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD.

We also have investments in equity securities, all of which are classified as available-for-sale and are carried at their fair value based on quoted market prices. Our investments, which are included in non-current assets, had a carrying amount of $0.5 million as of November 30, 2013, and as of June 1, 2013. Proceeds from the sale of securities were $0.1 million during the second quarter of fiscal 2014 and fiscal 2013. We reinvested proceeds from the sale of securities, and the cost of the equity securities sold was based on a specific identification method. Gross realized gains and losses on those sales were less than $0.1 million during the second quarter of fiscal 2014 and fiscal 2013. Net unrealized holding losses of less than $0.1 million during the second quarter of fiscal 2014 and fiscal 2013 have been included in accumulated other comprehensive income.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Operating activities:
Net income	$ 524	$ 378	$ 2,492	$ 1,025
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	273	266	521	565
Gain on sale of investments	(12)	(1)	(19)	(21)
(Gain) loss on disposal of assets	0	2	0	(2)
Share-based compensation expense	270	208	384	332
Deferred income taxes	(108)	(7)	(167)	(8)
Change in assets and liabilities, net of effect of acquired businesses:
Accounts receivable	(508)	(758)	(1,726)	(1,404)
Income tax receivable	357	36	3,108	191
Inventories	310	2,265	(140)	1,715
Prepaid expenses and other assets	(430)	196	(274)	(426)
Accounts payable	317	2,664	(2,230)	1,234
Accrued liabilities	(565)	806	(2,455)	(200)
Long-term income tax liabilities	(235)	4	(477)	(317)
Other	56	148	47	190
Net cash provided by (used in) operating activities	249	6,207	(936)	2,874
Investing activities:
Cash consideration paid for acquired businesses	0	(2,557)	(973)	(2,557)
Capital expenditures	(540)	(478)	(981)	(557)
Proceeds from sale of assets	0	0	0	4
Proceeds from maturity of investments	14,044	39,763	54,532	97,510
Purchases of investments	(11,458)	(23,838)	(51,552)	(75,562)
Proceeds from sales of available-for-sale securities	20	83	76	137
Purchases of available-for-sale securities	(20)	(83)	(76)	(137)
Other	22	0	91	0
Net cash provided by investing activities	2,068	12,890	1,117	18,838
Financing activities:
Repurchase of common stock	(2,025)	(5,998)	(8,725)	(11,550)
Proceeds from issuance of common stock	100	72	171	83
Cash dividends paid	(828)	(1,799)	(1,685)	(1,799)
Other	0	0	1	0
Net cash used in financing activities	(2,753)	(7,725)	(10,238)	(13,266)
Effect of exchange rate changes on cash and cash equivalents	552	908	701	1,179
Increase/ (decrease) in cash and cash equivalents	116	12,280	(9,356)	9,625
Cash and cash equivalents at beginning of period	92,530	41,238	102,002	43,893
Cash and cash equivalents at end of period	$ 92,646	$ 53,518	$ 92,646	$ 53,518

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Nov. 30, 2013	Jun. 01, 2013
Current assets:
Cash and cash equivalents	$ 92,646	$ 102,002
Accounts receivable, less allowance of $1,167 and $1,092	20,216	18,268
Inventories	35,296	33,975
Prepaid expenses and other assets	1,453	1,155
Deferred income taxes	1,983	1,856
Income tax receivable	3,321	6,429
Investments—current	39,508	38,971
Discontinued operations—assets	356	303
Total current assets	194,779	202,959
Non-current assets:
Property, plant and equipment, net	5,935	5,073
Goodwill	1,633	1,519
Other intangibles	881	908
Non-current deferred income taxes	1,477	1,398
Investments—non-current	1,991	5,461
Total non-current assets	11,917	14,359
Total assets	206,696	217,318
Current liabilities:
Accounts payable	12,152	14,255
Accrued liabilities	7,472	9,566
Discontinued operations—liabilities	0	245
Total current liabilities	19,624	24,066
Non-current liabilities:
Long-term income tax liabilities	6,249	6,726
Other non-current liabilities	1,284	1,287
Total non-current liabilities	7,533	8,013
Total liabilities	27,157	32,079
Commitments and contingencies
Stockholders’ equity
Preferred stock, $1.00 par value, no shares issued
Additional paid-in capital	65,760	73,979
Common stock in treasury, at cost, 0 shares at November 30, 2013, and 9 shares at June 1, 2013	0	(105)
Retained earnings	102,623	101,816
Accumulated other comprehensive income	10,455	8,811
Total stockholders’ equity	179,539	185,239
Total liabilities and stockholders’ equity	206,696	217,318
Common Stock
Stockholders’ equity
Common stock	591	613
Class B Common Stock
Stockholders’ equity
Common stock	$ 110	$ 125

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Description of Company - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 04, 2012 D and C Import-Export Inc.	Jul. 05, 2013 WVS-Technology
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Business Acquisition, Transaction Costs	$ 2.6	$ 1.0

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DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Nov. 30, 2013

Summary financial results

Summary financial results for the three and six months endedNovember 30, 2013, and December 1, 2012, are presented in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net sales	$	178		$	278		$	264		$	499
Gross profit (loss) (1)	(55		)	(128		)	(103		)	(221		)
Selling, general, and administrative expenses	117			201			149			266
Other expense	—			1			1			1
Income tax benefit	(65		)	(127		)	(135		)	(198		)
Loss from discontinued operations, net of tax	$	(107	)	$	(203	)	$	(118	)	$	(290	)

Notes:

(1) Gross profit (loss) for fiscal year 2014 and 2013 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ends March 1, 2014.

Assets and liabilities classified as discontinued operations

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 30, 2013, and June 1, 2013, include the following (in thousands):

	November 30, 2013		June 1, 2013
Inventories	$	356	$	303
Discontinued operations - Assets	$	356	$	303
Accrued liabilities - current	$	—	$	245
Discontinued operations - Liabilities	$	—	$	245

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Earnings Per Share (Detail) (USD $)	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012	Nov. 30, 2013	Dec. 01, 2012
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Income from continuing operations	$ 631,000	$ 581,000	$ 2,610,000	$ 1,315,000
Loss from discontinued operations, net of tax	(107,000)	(203,000)	(118,000)	(290,000)
Net income	524,000	378,000	2,492,000	1,025,000
Earnings Per Share, Basic and Diluted [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	512,064	477,064	487,064	267,564
Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Net income
Denominator for Basic and Diluted Earnings Per Share [Abstract]
Weighted average shares, basic (in shares)	11,871,000	12,437,000	11,997,000	12,604,000
Weighted average shares, diluted (in shares)	14,185,000	15,345,000	14,433,000	15,567,000
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares)	$ 0.05	$ 0.04	$ 0.19	$ 0.09
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares)	$ 0.04	$ 0.04	$ 0.18	$ 0.08
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.04	$ 0.03	$ 0.18	$ 0.07
Net income per share, diluted (in dollars per share)	$ 0.03	$ 0.03	$ 0.17	$ 0.06
Class B Common Stock
Denominator for Basic and Diluted Earnings Per Share [Abstract]
Weighted average shares, basic (in shares)	2,191,000	2,812,000	2,309,000	2,863,000
Weighted average shares, diluted (in shares)	2,191,000	2,812,000	2,309,000	2,863,000
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares)	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares)	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Net income per share, diluted (in dollars per share)	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Basic
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Undistributed basic earnings (losses)	(304)	(507)	807	(774)
Net income	524	378	2,492	1,025
Basic | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed basic earnings (losses)	(261)	(421)	688	(643)
Denominator for Basic and Diluted Earnings Per Share [Abstract]
Weighted average shares, basic (in shares)	11,871	12,437	11,997	12,604
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.04	$ 0.03	$ 0.18	$ 0.07
Basic | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed basic earnings (losses)	(43)	(86)	119	(131)
Denominator for Basic and Diluted Earnings Per Share [Abstract]
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares)	$ 2,191	$ 2,812	$ 2,309	$ 2,863
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Basic | Continuing Operations
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Income from continuing operations	631	581	2,610	1,315
Undistributed basic earnings (losses)	(197)	(304)	925	(484)
Basic | Continuing Operations | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed basic earnings (losses)	(169)	(253)	788	(402)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.05	$ 0.04	$ 0.19	$ 0.09
Basic | Continuing Operations | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed basic earnings (losses)	(28)	(51)	137	(82)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Basic | Discontinued Operations
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Undistributed basic earnings (losses)	(935)	(1,088)	(1,803)	(2,089)
Loss from discontinued operations, net of tax	(107)	(203)	(118)	(290)
Basic | Discontinued Operations | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed basic earnings (losses)	(802)	(904)	(1,537)	(1,734)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Basic | Discontinued Operations | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed basic earnings (losses)	(133)	(184)	(266)	(355)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, basic (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Diluted
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Undistributed diluted earnings (losses)	(304)	(507)	807	(774)
Net income	524	378	2,492	1,025
Denominator for Basic and Diluted Earnings Per Share [Abstract]
Weighted average shares, diluted (in shares)	11,871	12,437	11,997	12,604
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares)	$ 2,191	$ 2,812	$ 2,309	$ 2,863
Effect of dilutive securities dilutive stock options (in shares)	123	96	127	100
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions (in shares)	14,185	15,345	14,433	15,567
Diluted | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed diluted earnings (losses)	(261)	(422)	689	(643)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ 0.03	$ 0.03	$ 0.17	$ 0.06
Diluted | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed diluted earnings (losses)	(43)	(85)	118	(131)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ 0.03	$ 0.02	$ 0.16	$ 0.06
Diluted | Continuing Operations
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Income from continuing operations	631	581	2,610	1,315
Undistributed diluted earnings (losses)	(197)	(304)	925	(484)
Diluted | Continuing Operations | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed diluted earnings (losses)	(169)	(253)	790	(402)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ 0.04	$ 0.04	$ 0.18	$ 0.08
Diluted | Continuing Operations | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed diluted earnings (losses)	(28)	(51)	135	(82)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ 0.04	$ 0.03	$ 0.17	$ 0.08
Diluted | Discontinued Operations
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Undistributed diluted earnings (losses)	(935)	(1,088)	(1,803)	(2,089)
Loss from discontinued operations, net of tax	(107)	(203)	(118)	(290)
Diluted | Discontinued Operations | Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	710	737	1,433	1,495
Undistributed diluted earnings (losses)	(803)	(905)	(1,539)	(1,737)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Diluted | Discontinued Operations | Class B Common Stock
Numerator for Basic and Diluted Earnings Per Share [Abstract]
Dividends	118	148	252	304
Undistributed diluted earnings (losses)	$ (132)	$ (183)	$ (264)	$ (352)
Earnings Per Share, Basic and Diluted [Abstract]
Net income per share, diluted (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)

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Warranties - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Nov. 30, 2013	Jun. 01, 2013
Warranties [Line Items]
Warranty term, minimum	1 year
Warranty term, maximum	3 years
Warranty reserves	$ 0.2	$ 0.2

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Changes in Carrying Value of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Nov. 30, 2013
Goodwill [Line Items]
Goodwill, Beginning balance	$ 1,519
Goodwill acquired	25
Foreign currency translation	89
Goodwill, Ending balance	$ 1,633

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Intangible Assets Subject to Amortization and Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 30, 2013	Jun. 01, 2013
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Gross	$ 1,045	$ 1,023
Finite Lived Intangible Assets Accumulated Amortization	164	115
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Gross	29	29
Finite Lived Intangible Assets Accumulated Amortization	13	8
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Gross	969	947
Finite Lived Intangible Assets Accumulated Amortization	141	101
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Gross	47	47
Finite Lived Intangible Assets Accumulated Amortization	$ 10	$ 6

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Nov. 30, 2013

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying value of goodwill are as follows (in thousands):

	TOTAL
Balance at June 1, 2013	$	1,519
Premium Paid for WVS Acquisition	25
Foreign currency translation	89
Balance at November 30, 2013	$	1,633

The goodwill balance in its entirety relates to our EDG segment.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

Our intangible assets represent the fair value for trade name, customer relationships, and non-compete agreements acquired in connection with our acquisitions.

Intangible assets subject to amortization as well as amortization expense are as follows (in thousands):

	Intangible Assets Subject to
	Amortization as of
	November 30, 2013		June 1, 2013
Gross Amounts:
Trade Name	$	29	$	29
Customer Relationship	969		947
Non-compete Agreements	47		47
Total Gross Amounts	$	1,045	$	1,023
Accumulated Amortization:
Trade Name	$	13	$	8
Customer Relationship	141		101
Non-compete Agreements	10		6
Total Accumulated Amortization	$	164	$	115

The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands):

	Amortization
	Expense
Fiscal Year
Remaining 2014	$	44
2015	82
2016	68
2017	58
2018	56
Thereafter	573

The weighted average number of years of amortization expense remaining is 17.9.

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Updates to Critical Accounting Policies and Estimates - Additional Information (Detail) (USD $)	0 Months Ended	6 Months Ended
	Mar. 01, 2011	Nov. 30, 2013	Jun. 01, 2013
Update Of Summary Of Significant Accounting Policies [Line Items]
Proceeds from Divestiture of Businesses	$ 238,800,000
Finished Goods Included in inventories		32,500,000	31,600,000
Raw material and Work in progress included in inventories		2,700,000	2,400,000
Document Period End Date		Nov. 30, 2013
Goodwill		1,633,000	1,519,000
Powerlink Specialist Electronics Support Limited
Update Of Summary Of Significant Accounting Policies [Line Items]
Goodwill		1,400,000
D and C Import-Export Inc.
Update Of Summary Of Significant Accounting Policies [Line Items]
Goodwill		200,000
Maximum [Member] | WVS-Technology
Update Of Summary Of Significant Accounting Policies [Line Items]
Goodwill		$ 100,000

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Nov. 30, 2013	Dec. 01, 2012
Income Tax [Line Items]
Effective income tax rate from continuing operation	18.80%	15.30%
Document Fiscal Year Focus	2014
Federal statutory rate	34.00%
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	7.60%
Description of tax years open for examination in foreign tax jurisdictions	Our primary foreign tax jurisdictions are the Netherlands and Germany. We have tax years open in the Netherlands and Germany beginning in fiscal 2008.
Cumulative positive earnings of foreign subsidiaries	$ 42.8
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties		$ 0.4

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LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES

6 Months Ended

Nov. 30, 2013

LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES

LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES

We lease certain warehouse and office facilities and office equipment under non-cancelable operating leases. Rent expense from continuing operations during the first six months of fiscal 2014 was $0.8 million compared to $0.7 million during the first six months of fiscal 2013. Under the terms of the Transaction, Arrow assumed many of our facility leases and we are sub-leasing space from Arrow. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years have been adjusted to reflect the Transaction as follows (in thousands):

Fiscal Year	Payments
Remaining 2014	$	679
2015	1,094
2016	686
2017	77
2018	31
Thereafter	—

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ACQUISITIONS

6 Months Ended

Nov. 30, 2013

ACQUISITIONS

ACQUISITIONS

On September 4, 2012, we acquired the assets of D and C Import-Export, Inc. ("D and C") for approximately $2.6 million. D and C, a Florida-based distributor of power grid tubes and associated RF components, services the broadcast, commercial, industrial, medical, military, and scientific markets. This acquisition provides us with access to additional product lines, vendors, and customers.

The final purchase price was recorded during the fourth quarter of fiscal 2013, and allocated as follows: $0.2 million of trade receivables, $1.5 million of inventory, $0.7 million of specifically identified intangible assets, and $0.2 million of goodwill. Pro forma financial information is not presented due to immateriality.

On July 5, 2013, we acquired the assets of WVS for approximately $1.0 million. WVS, located in Meerbusch, Germany, develops and sells RF and microwave products, power grid tubes, vacuum capacitors, as well as industrial microwave equipment. This acquisition provides us with engineering and sales expertise to help expand our presence in the vacuum capacitor market.

The allocation of the preliminary purchase price recorded during the first quarter of fiscal 2014, included $0.7 million of inventory and $0.3 million of fixed assets. The purchase price is preliminary and subject to change based on the completion of a valuation of the respective assets. Pro forma financial information is not presented due to immateriality.

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Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $)	6 Months Ended
	Nov. 30, 2013
Common Stock
Dividends per common share	$ 0.06
Class B Common Stock
Dividends per common share	$ 0.054

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Segment Reporting - Additional Information (Detail)	3 Months Ended
	Nov. 30, 2013
Segment Reporting Information [Line Items]
Credit payment period	30 days

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Acquisitions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Nov. 30, 2013 WVS-Technology	Jul. 05, 2013 WVS-Technology	Jun. 01, 2013 D and C Import-Export Inc.	Sep. 04, 2012 D and C Import-Export Inc.
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs		$ 1.0		$ 2.6
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables			0.2
Working capital adjustment included in assets	0.3
Inventory included in purchase price	0.7		1.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			0.7
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 0.2

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SEGMENT REPORTING

6 Months Ended

Nov. 30, 2013

SEGMENT REPORTING

SEGMENT REPORTING    

In accordance with ASC 280-10, Segment Reporting, we have identified two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvysprovides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and OEM markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended				Six Months Ended
	November 30,   2013		December 1,   2012		November 30, 2013		December 1, 2012
EDG
Net Sales	$	26,163	$	26,186	$	51,642	$	51,813
Gross Profit	8,507		7,930		16,366		15,930
Canvys
Net Sales	$	9,273	$	10,417	$	18,051	$	20,440
Gross Profit	2,500		2,812		4,833		5,458

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.    

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net Sales
North America	$	14,296		$	16,436		$	28,492		$	32,182
Asia/Pacific	6,248			5,437			12,553			11,784
Europe	12,175			12,305			23,665			23,042
Latin America	2,574			2,320			4,771			4,767
Other	143			105			212			478
Total	$	35,436		$	36,603		$	69,693		$	72,253
Gross Profit (loss)
North America	$	4,687		$	5,520		$	9,584		$	10,809
Asia/Pacific	2,144			1,860			4,089			4,054
Europe	4,111			3,806			7,706			7,030
Latin America	1,011			788			1,834			1,616
Other	(946		)	(1,232		)	(2,014		)	(2,121		)
Total	$	11,007		$	10,742		$	21,199		$	21,388

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.

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WARRANTIES

6 Months Ended

Nov. 30, 2013

WARRANTIES

WARRANTIES

We offer warranties for the limited number of specific products we manufacture. We also provide extended warranties for some products we sell that lengthen the period of coverage specified in the manufacturer’s original warranty. Our warranty terms generally range from one to three years.

Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience, and other available evidence. Warranty reserves were approximately $0.2 million as of November 30, 2013, and June 1, 2013.

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UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES (Policies)

6 Months Ended

Nov. 30, 2013

Inventories

Inventories: Our worldwide inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories from continuing operations include approximately $32.5 million of finished goods and $2.7 million of raw materials and work-in-progress as of November 30, 2013, as compared to approximately $31.6 million of finished goods and $2.4 million of raw materials and work-in-progress as of June 1, 2013.

At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs.

Revenue Recognition

Revenue Recognition:Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell.

In the limited cases where remaining performance obligations exist after delivery of the product, the obligation relative to the unit of accounting is inconsequential or perfunctory and is not essential to the functionality of the delivered product. This conclusion was reached based on the following facts: the timing of any remaining obligation is agreed upon with the customer, which in most cases, is performed immediately after the delivery of the product; the cost and time involved to complete the remaining obligation is insignificant in relation to the item sold, and the costs and time do not vary significantly; we have a demonstrated history of completing the remaining obligations timely; and finally, failure to complete the remaining obligation does not enable the customer to receive a full or partial refund of the product or service, and the timing of the payment for the product is not contingent upon completion of remaining performance obligations, if any.

Discontinued Operations

Discontinued Operations: During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements - Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation. Refer to Note 4 “Discontinued Operations” of our notes to our unaudited consolidated financial statements for additional discussion on the sale of RFPD.

Loss Contingencies

Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets: Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment. We test goodwill for impairment annually and whenever events or circumstances indicates an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. As of November 30, 2013, our goodwill balance was $1.6 million and represents the premium we paid for Powerlink Specialist Electronics Support Limited ("Powerlink") of $1.4 million during our second quarter of fiscal 2012, adjusted for foreign currency translation; the premium we paid for D and C Import-Export, Inc. ("D and C") of $0.2 million during our second quarter of fiscal 2013; and the premium we paid for WVS of less than $0.1 million during our first quarter of fiscal 2014.

During the fourth quarter of each fiscal year, our goodwill balances are reviewed for impairment through the application of a fair value based test, using the third quarter as the measurement date. In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically, projected operating results and cash flows have not always been achieved. In accordance with ASC 350 “Intangibles - Goodwill and Other”, if indicators of impairment are deemed to be present, we would perform an interim impairment test and any resulting impairment loss would be charged to expense in the period identified.

Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives.

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LITIGATION

6 Months Ended

Nov. 30, 2013

LITIGATION

LITIGATION

We are involved in several pending judicial proceedings concerning matters arising in the ordinary course of business. While the outcome of litigation is subject to uncertainties, based on information available at the time the financial statements were issued, we determined disclosure of contingencies relating to any of our pending judicial proceedings was not necessary because there was less than a reasonable possibility that a material loss had been incurred.

During the first quarter of fiscal 2014, we received a settlement in the amount of $2.1 million related to an anti-trust class action lawsuit settlement. The settlement was recorded as proceeds from legal settlement within the Other Income section of our Consolidated Statements of Comprehensive Income.

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Document and Entity Information	6 Months Ended
	Nov. 30, 2013	Jan. 06, 2014 Common Stock	Jan. 06, 2014 Class B Common Stock
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2013
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	RELL
Entity Registrant Name	RICHARDSON ELECTRONICS LTD/DE
Entity Central Index Key	0000355948
Current Fiscal Year End Date	--05-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,831,289	2,190,644

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FAIR VALUE MEASUREMENTS

6 Months Ended

Nov. 30, 2013

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurementsand Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions.

As of November 30, 2013, we held investments that are required to be measured at fair value on a recurring basis. Our investments consist of time deposits and CDs, which face value is equal to fair value, and equity securities of publicly traded companies for which market prices are readily available.

Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of November 30, 2013, and June 1, 2013, were as follows (in thousands):

	Level 1
November 30, 2013
Time deposits/CDs	$	41,008
Equity securities	491
Total	$	41,499
June 1, 2013
Time deposits/CDs	$	43,989
Equity securities	443
Total	$	44,432