(PR NEWSWIRE) Richardson Reports 31 Percent Increase in EPS in Second Quarter
Richardson Reports 31 Percent Increase in EPS in Second Quarter
-- Records Set for Quarterly Revenue and Earnings
-- All Business Units, Geographic Regions Post Revenue Gains
-- RF & Wireless Unit Sees 83 Percent Increase on Infrastructure Spending
LAFOX, Ill., Dec. 14 /PRNewswire/ -- Richardson Electronics, Ltd.
(Nasdaq: RELL) today reported results for the second quarter of fiscal 2001,
which ended November 30, 2000. Net earnings were a record $5.2 million, a
59 percent gain over the second quarter of fiscal 2000. Earnings per share
were $.34, a 31 percent increase over the $.26 for the same period last year.
Revenues also continued to set new quarterly records at $131.1 million, a 34
percent increase over the second quarter of 2000.
For the six-month period, net earnings were $9.9 million compared with
$6.0 million a year ago. For the first half, the Company reported
$.66 per share in the current period compared to $.47 in the prior year, a
40 percent gain. The Company recorded sales of $251.2 million in the first
half, up 30 percent over the prior year.
"Our business continues to fire on all cylinders, led by our RF & Wireless
Group," Edward J. Richardson, Chairman and Chief Executive Officer, said. "We
are focused on several attractive growth markets, particularly wireless
communications. Our strategy of providing engineered solutions to meet our
customers' specific needs continues to drive the Company's growth, while we
control costs to maximize profitability. "
Richardson's $131.1 million in revenues represented the seventh
consecutive quarter in which the Company has set a new sales record. All
strategic business units recorded sales growth, led by the RF & Wireless
Communications Group, up 83 percent to $63.9 million.
Commenting further, Mr. Richardson said, "Business in the RF & wireless
market is extremely strong. Our customer base is predominately involved in
developing the wireless infrastructure. Because this segment of the market
has lagged the growth in the subscriber market, we believe the prospects for
Richardson are excellent for the foreseeable future.
"Operating expenses as a percent of sales continue to trend down favorably
as we maintain our emphasis on cost control. In the quarter, expenses were
18.1 percent of sales compared to 20.5 percent a year ago."
Richardson provides customers with engineered solutions such as design-in
engineering and prototype assembly, as well as global logistics services, in
several key growth niches. The Company modifies over 50 percent of the
products it sells.
"The Richardson business model requires a close working relationship with
key vendors and customers, using sophisticated forecasting capabilities.
These factors help to insulate us from volatility in the industry related to
vendor product allocations and customer order cancellations," Mr. Richardson
said.
"With respect to the future, we remain comfortable with the range of
analysts' earnings estimates for the third quarter and full fiscal year 2001,"
Mr. Richardson concluded.
Tomorrow, Friday, December 15, 2000 at 9:00 a.m. CST, Mr. Richardson will
host a conference call to discuss this release. A question and answer session
will be included as part of the call's agenda. To listen to the call, please
dial 888-273-9885 approximately five minutes prior to the start of the call.
A replay of the call will be available from 12:30 p.m. on December 15 though
December 22. The telephone numbers for the replay are (USA) 800-475-6701 and
(International) 320-365-3844. The access code for the call and replay is
553892.
This release includes certain "forward looking" statements as defined by
the SEC. Such statements are not guarantees of future performance since the
Company's operations involve risks and uncertainties and actual results may
differ materially from predictions. Reference is made to the Company's Form
10-Q's and 10-K's for a summary of some of the risks that may effect the
Company's performance.
About Richardson Electronics
Richardson Electronics, Ltd. is a global provider of "engineered
solutions," serving the RF and wireless communications, industrial power
conversion, medical imaging, security and display systems markets. The
Company delivers engineered solutions for its customers' needs through product
manufacturing, systems integration, prototype design and manufacture, testing
and logistics. Press announcements and other information about Richardson are
available on the World Wide Web at rell.com .
Richardson Electronics, Ltd.
Consolidated Condensed Statements of Income
Second Quarter Fiscal 2001, Ended November 30, 2000
(in thousands, except per share amounts) (unaudited)
Second Quarter First Six Months
FY 2001 FY 2000 FY 2001 FY 2000
Net sales $131,079 $97,578 $251,185 $193,142
Cost of products sold 96,918 71,017 185,391 140,913
Gross margin 34,161 26,561 65,794 52,229
Selling, general and
administrative
expenses 23,730 20,042 46,024 39,629
Operating income 10,431 6,519 19,770 12,600
Other expenses, net 2,579 1,860 5,038 4,090
Income before
income taxes 7,852 4,659 14,732 8,510
Income taxes 2,660 1,390 4,860 2,540
Net income $5,192 $3,269 $9,872 $5,970
Net income per share
- basic:
Net income per share $0.39 $0.26 $0.74 $0.47
Average shares
outstanding 13,364 12,647 13,282 12,635
Net income per share
- diluted:
Net income per share $0.34 $0.26 $0.66 $0.47
Average shares
outstanding 17,631 12,759 17,580 12,722
Dividends per
common share $0.04 $0.04 $0.08 $0.08
Calculation of net income per share - diluted: Assumes conversion of the
Company's outstanding convertible debentures for the fiscal 2001 second
quarter and first six months. Assumed conversion results in 3,680 additional
common shares and the elimination of interest expense, net of tax, of $865 for
the quarter and $1,730 for the first six months. Bond conversion was not
considered in the fiscal 2000 calculations.
Richardson Electronics, Ltd.
Sales and Gross Margin
Second Quarter Fiscal 2001, Ended November 30, 2000
(In thousands, unaudited)
By Business Unit:
Sales
FY 2001 FY 2000 % Change
Second Quarter
Wireless $63,899 $34,984 82.7%
Industrial 23,296 21,296 9.4%
Medical 10,361 10,328 0.3%
Security 21,979 21,193 3.7%
Display 11,544 9,777 18.1%
Corporate - -
Total $131,079 $97,578 34.3%
Six Months
Wireless $121,005 $66,365 82.3%
Industrial 45,827 42,410 8.1%
Medical 20,257 20,744 -2.3%
Security 42,644 41,799 2.0%
Display 21,452 21,824 -1.7%
Corporate - -
Total $251,185 $193,142 30.1%
By Area:
Sales
FY 2001 FY 2000 % Change
Second Quarter
North America $82,674 $63,713 29.8%
Europe 24,092 18,950 27.1%
Asia / Pacific 13,642 8,206 66.2%
Latin America 6,845 4,635 47.7%
Other 3,826 2,074 84.5%
Corporate - -
Total $131,079 $97,578 34.3%
Six Months
North America $160,621 $126,307 27.2%
Europe 45,222 37,400 20.9%
Asia / Pacific 25,352 15,581 62.7%
Latin America 12,959 9,600 35.0%
Other 7,031 4,254 65.3%
Corporate - -
Total $251,185 $193,142 30.1%
By Business Unit:
Gross Margin
FY 2001 GM% of Sales FY 2000 GM% of Sales
Second Quarter
Wireless $ 16,950 26.5% $9,594 27.4%
Industrial 8,184 35.1% 7,557 35.5%
Medical 2,289 22.1% 2,062 20.0%
Security 5,102 23.2% 5,026 23.7%
Display 2,725 23.6% 2,590 26.5%
Corporate (1,089) (268)
Total $ 34,161 26.1% $ 26,561 27.2%
Six Months
Wireless $ 32,002 26.4% $ 18,047 27.2%
Industrial 16,178 35.3% 15,139 35.7%
Medical 4,496 22.2% 4,020 19.4%
Security 9,909 23.2% 9,907 23.7%
Display 5,069 23.6% 5,867 26.9%
Corporate (1,860) (751)
Total $ 65,794 26.2% $ 52,229 27.0%
By Area:
Gross Margin
FY 2001 GM% of Sales FY 2000 GM% of Sales
Second Quarter
North America $ 20,858 25.2% $ 16,351 25.7%
Europe 7,248 30.1% 5,802 30.6%
Asia / Pacific 4,285 31.4% 2,871 35.0%
Latin America 1,838 26.9% 1,282 27.7%
Other 1,021 26.7% 523 25.2%
Corporate (1,089) (268)
Total $ 34,161 26.1% $ 26,561 27.2%
Six Months
North America $ 41,298 25.7% $ 32,610 25.8%
Europe 13,206 29.2% 11,369 30.4%
Asia / Pacific 7,736 30.5% 5,181 33.3%
Latin America 3,557 27.4% 2,733 28.5%
Other 1,857 26.4% 1,087 25.6%
Corporate (1,860) (751)
Total $ 65,794 26.2% $ 52,229 27.0%
Fiscal 2000 historical data has been restated to conform to the fiscal
2001 reporting classifications.
SOURCE Richardson Electronics, Ltd.
-0- 12/14/2000
/CONTACT: Edward J. Richardson of Richardson Electronics, Ltd.,
630-208-2340, email info@rell.com/
/Web site: rell.com /
(RELL)
CO: Richardson Electronics, Ltd.
ST: Illinois
IN: CPR
SU: ERN
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