Richardson Electronics reports 18.9% first-quarter sales growth to $64.9 million

Richardson Electronics, Ltd. (NASDAQ: RELL) reported first-quarter fiscal 2027 net sales of $64.9 million, an 18.9% increase from $54.6 million in the prior year period. The LaFox, Illinois-based company announced the results on October 7, 2026, marking its ninth consecutive quarter of year-over-year sales growth across all three business units.

Backlog stood at $184.4 million as of August 29, 2026, representing a 36.9% increase over the previous year and the highest level in more than three years. Chief Executive Officer Edward J. Richardson attributed the backlog growth primarily to demand in the Power and Microwave Technologies (PMT) segment, specifically for engineered solutions serving the semiconductor wafer fabrication equipment market and distributed RF and microwave products.

Net income for the quarter reached $4.1 million, or $0.27 per diluted common share, up from $1.9 million, or $0.13 per share, in the first quarter of fiscal 2026. This represents a 112.6% increase in net income. The company generated free cash flow of $4.2 million during the period.

Gross margin improved to 34.6% of net sales from 31.0% in the prior year quarter. Richardson Electronics noted that gross margin was impacted by a 1.7% benefit from an IEEPA Tariff Refund. PMT gross margin rose to 35.4% from 31.3%, while Green Energy Solutions (GES) gross margin increased to 32.6% from 29.6%. Canvys gross margin climbed to 33.0% from 30.9%, primarily due to the tariff refund.

PMT sales increased by $7.7 million, or 19.7%, driven by strong growth in semiconductor wafer fab and RF and microwave products. GES sales rose by $2.0 million, or 27.1%, due to higher sales of wind products and new products including Battery Energy Storage Systems (BESS). Canvys sales grew by $0.6 million, or 7.9%, reflecting higher sales in North America.

Operating expenses totaled $17.4 million, compared to $16.0 million in the prior year quarter, with the increase driven by higher employee compensation and travel expenses. However, operating expenses as a percentage of net sales improved to 26.8% from 29.2%. Operating income was $5.1 million for the first quarter of fiscal 2027, compared to $1.0 million in the prior year period.

The company ended the quarter with cash and cash equivalents of $36.9 million, up from $31.8 million as of May 30, 2026. Richardson Electronics invested $1.7 million in capital expenditures during the quarter, primarily for facilities improvements and IT systems, compared to $1.0 million in the prior year period. The company reported no outstanding debt on its revolving line of credit with PNC Bank.

The Board of Directors declared a $0.06 quarterly cash dividend per share for common stockholders and a $0.054 cash dividend per share for Class B common stockholders. The dividend is payable on November 25, 2026, to holders of record as of November 6, 2026.