FORM 8K | File:20050323-FY05Q3 |
UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
CURRENT REPORT |
Pursuant to Section 13 OR 15(d) of |
The Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported) : March 23, 2005 |
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RICHARDSON ELECTRONICS, LTD. |
(Exact name of registrant as specified in its charter) |
Delaware | 0-12906 | 36-2096643 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) | ||
40W267 Keslinger Road, P.O. Box 393, LaFox, Illinois | 60147-0393 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant's telephone number, including area code: | (630) 208-2200 | |||
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(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 Regulation FD Disclosure | |
Download FORM 8-K in PDF format | |
For Immediate Release |
For Details, Please Contact: | |
Ed Richardson | Dario Sacomani |
Chairman and Chief Exective Officer Richardson Electronics, Ltd. | Senior Vice President and Chief Financial Officer Richardson Electronics, Ltd. |
Phone: (630)208-2340 E-mail: info@rell.com |
Richardson Reports Fiscal Third Quarter Sales of $141.7 Million, |
LaFox, IL, Wednesday March 23, 2005: Richardson Electronics, Ltd. (NASDAQ: RELL) today reported results for the third quarter of fiscal 2005, which ended February 26, 2005. Sales in the quarter were $141.7 million, an increase of 11.3% from the third quarter of fiscal 2004. Net loss was $2.1 million, or $0.12 per share, in the quarter, which included restructuring, incremental tax provisions and other charges of $2.9 million after-tax ($4.2 million pre-tax). Net income in the third quarter of fiscal 2004 was $1.0 million, or $0.07 per share. The Company implemented restructuring actions at the end of the third quarter of fiscal 2005, which included changes in management and a reduction in workforce, to accelerate the alignment of operations with the Company's engineered solutions strategy and improve operating efficiency. Severance charges of $2.2 million and inventory write-down charges of $0.9 million were recorded in the quarter primarily related to the restructuring actions, which included de-emphasizing certain product lines. The Company also recorded charges of $0.8 million associated with previously capitalized freight, which will now be reported as a period expense, and an incremental bad debt provision of $0.3 million. The severance and bad debt charges were recorded to selling, general and administrative expense. Incremental tax provisions of $0.2 million were taken in the quarter related to foreign tax exposures and assessments. Product margin (sales less direct product cost) increased to 26.5% of sales in the third quarter of fiscal 2005 compared to 26.0% of sales in the third quarter of fiscal 2004. Gross margin declined to 23.8% of sales in the quarter from 24.8% in the prior year quarter primarily due to the restructuring which included write-downs of inventory and previously capitalized freight as stated above. Sales Highlights - Third Quarter Fiscal 2005 Compared to Third Quarter Fiscal 2004 The Company recorded its eleventh consecutive quarter of year over year sales growth as all four strategic business units and all four geographic areas increased sales over the prior year. RF/Wireless Communications sales grew 16.6% led by continued strength in infrastructure and network access demand, particularly in Asia. Sales in the Display Systems Group increased 16.0% with continued growth in custom display sales to the financial market. Industrial Power Group sales grew 7.8% led by increased demand in the United States for both power component and tube products. Sales in the Security Systems Division were up 1.4% on higher private label sales. “Demand for our products and engineered solutions continues to grow worldwide,” said Edward J. Richardson, Chairman of the Board and Chief Executive Officer. “The restructuring actions taken in the third quarter will accelerate our ability to better serve our customers and sustain earnings growth through engineered solutions.” On Thursday, March 24, 2005 at 9:00 a.m. CST, Mr. Edward J. Richardson, Chairman and Chief Executive Officer will host a conference call to discuss the release. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial 800-553-0329 approximately five minutes prior to the start of the call. A replay of the call will be available from 12:30 p.m. on March 24, 2005 through June 30, 2005. The telephone numbers for the replay are (USA) 800-475-6701 and (International) 320-365-3844; access code 774694. This release includes certain “forward-looking” statements as defined by the SEC. Statements in this press release regarding the Company’s business which are not historical facts represent “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s annual report on form 10-K. The Company assumes no responsibility to update the forward-looking statements in this release as a result of new information, future events, or otherwise. About Richardson Electronics Richardson Electronics, Ltd. is a global provider of “engineered solutions,” serving the RF and wireless communications, industrial power conversion, security and display systems markets. The Company delivers engineered solutions for its customers’ needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics. Press announcements and other information about Richardson are available on the World Wide Web at http://www.rell.com/investor.asp. |
RICHARDSON ELECTRONICS, LTD
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE-MONTH AND NINE-MONTH PERIODS
ENDED FEBRUARY 26, 2005 AND FEBRUARY 28, 2004
(In thousands, except per share amounts, unaudited)
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Three months ended | Nine months ended | ||||||||||||||||||||
February 26, | February 28, | February 26, | February 28, | ||||||||||||||||||
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Net sales |
| $ | 141,700 |
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| $ | 127,267 |
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| $ | 431,421 |
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| $ | 374,523 |
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Cost of products sold |
| 108,033 |
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| 95,802 |
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| 327,271 |
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| 283,102 |
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Gross margin |
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| 33,667 |
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| 31,465 |
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| 104,150 |
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| 91,421 |
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Selling, general and administrative expenses |
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| 34,009 |
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| 27,030 |
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| 95,273 |
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| 78,269 |
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Operating (loss) income |
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| (342 | ) |
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| 4,435 |
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| 8,877 |
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| 13,152 |
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Other expenses, net |
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| 2,404 |
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| 2,942 |
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| 7,499 |
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| 7,934 |
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(Loss) income before income taxes |
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| (2,746 | ) |
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| 1,493 |
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| 1,378 |
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| 5,218 |
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Income tax provision |
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| (688 | ) |
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| 493 |
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| 526 |
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| 1,621 |
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Net (loss) income |
| $ | (2,058 | ) |
| $ | 1,000 |
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| $ | 852 |
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| $ | 3,597 |
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Net (loss) income per share - basic: |
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Net (loss) income per share |
| $ | (0.12 | ) |
| $ | 0.07 |
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| $ | 0.05 |
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| $ | 0.26 |
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Average shares outstanding |
| 17,299 |
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| 14,102 |
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| 16,818 |
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| 14,002 |
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Net (loss) income per share - diluted: |
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Net (loss) income per share |
| $ | (0.12 | ) |
| $ | 0.07 |
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| $ | 0.05 |
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| $ | 0.25 |
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Average shares outstanding |
| 17,299 |
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| 14,560 |
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| 17,085 |
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| 14,374 |
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Dividends per common share |
| $ | 0.04 |
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| $ | 0.04 |
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| $ | 0.12 |
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| $ | 0.12 |
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RICHARDSON ELECTRONICS, LTD
SALES AND GROSS MARGIN
FOR THIRD QUARTER FISCAL 2005 AND 2004
ENDED FEBRUARY 26, 2005 AND FEBRUARY 28, 2004
(In thousands, unaudited)
By Business Unit: | ||||||||||||||||||||||||||||
SALES | GROSS MARGIN | |||||||||||||||||||||||||||
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FY 2005 | FY 2004 | % Change | FY 2005 | % of Sales | FY 2004 | % of Sales | ||||||||||||||||||||||
Third Quarter | ||||||||||||||||||||||||||||
RFWC | $ | 65,268 | $ | 55,973 | 16.6 | % | $ | 13,533 | 20.7 | % | $ | 13,162 | 23.5 | % | ||||||||||||||
IPG | 29,657 | 27,514 | 7.8 | % | 8,891 | 30.0 | % | 8,383 | 30.5 | % | ||||||||||||||||||
SSD | 25,607 | 25,260 | 1.4 | % | 6,260 | 24.4 | % | 6,394 | 25.3 | % | ||||||||||||||||||
DSG | 19,498 | 16,813 | 16.0 | % | 4,097 | 21.0 | % | 4,146 | 24.7 | % | ||||||||||||||||||
Other | 1,670 | 1,707 | 886 | (620 | ) | |||||||||||||||||||||||
Total | $ | 141,700 | $ | 127,267 | 11.3 | % | $ | 33,667 | 23.8 | % | $ | 31,465 | 24.7 | % | ||||||||||||||
Fiscal Year to Date | ||||||||||||||||||||||||||||
RFWC | $ | 197,053 | $ | 163,493 | 20.5 | % | $ | 43,864 | 22.3 | % | $ | 37,190 | 22.7 | % | ||||||||||||||
IPG | 90,608 | 81,232 | 11.5 | % | 27,525 | 30.4 | % | 27,730 | 30.4 | % | ||||||||||||||||||
SSD | 78,728 | 76,541 | 2.9 | % | 20,062 | 25.5 | % | 19,419 | 25.4 | % | ||||||||||||||||||
DSG | 60,040 | 47,756 | 25.7 | % | 13,528 | 22.5 | % | 12,132 | 25.4 | % | ||||||||||||||||||
Other | 4,992 | 5,501 | (829 | ) | (2,050 | ) | ||||||||||||||||||||||
Total | $ | 431,421 | $ | 374,523 | 15.2 | % | $ | 104,150 | 24.1 | % | $ | 91,421 | 24.4 | % | ||||||||||||||
By Geographic Area: | |||||||||||||||||||||||||||||
SALES | GROSS MARGIN | ||||||||||||||||||||||||||||
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FY 2005 | FY 2004 | % Change | FY 2005 | % of Sales | FY 2004 | % of Sales | |||||||||||||||||||||||
Third Quarter | |||||||||||||||||||||||||||||
North America | $ | 73,443 | $ | 68,392 | 7.4 | % | $ | 19,047 | 25.9 | % | $ | 17,681 | 25.9 | % | |||||||||||||||
Europe | 31,118 | 29,124 | 6.8 | % | 9,425 | 30.3 | % | 8,480 | 29.1 | % | |||||||||||||||||||
Asia/Pacific | 30,652 | 23,630 | 29.7 | % | 7,104 | 23.2 | % | 5,640 | 23.9 | % | |||||||||||||||||||
Latin America | 5,544 | 5,428 | 2.1 | % | 1,458 | 26.3 | % | 1,243 | 22.9 | % | |||||||||||||||||||
Corporate | 943 | 693 | (3,367 | ) | (1,579 | ) | |||||||||||||||||||||||
Total | $ | 141,700 | $ | 127,267 | 11.3 | % | $ | 33,667 | 23.8 | % | $ | 31,465 | 24.7 | % | |||||||||||||||
Fiscal Year to Date | |||||||||||||||||||||||||||||
North America | $ | 227,548 | $ | 199,468 | 14.1 | % | $ | 58,783 | 25.8 | % | $ | 52,244 | 26.2 | % | |||||||||||||||
Europe | 94,284 | 86,025 | 9.6 | % | 27,047 | 28.7 | % | 24,825 | 28.9 | % | |||||||||||||||||||
Asia/Pacific | 91,217 | 71,120 | 28.3 | % | 21,560 | 23.6 | % | 16,227 | 22.8 | % | |||||||||||||||||||
Latin America | 15,392 | 15,102 | 1.9 | % | 4,184 | 27.2 | % | 3,541 | 23.4 | % | |||||||||||||||||||
Corporate | 2,980 | 2,808 | (7,424 | ) | (5,416 | ) | |||||||||||||||||||||||
Total | $ | 431,421 | $ | 374,523 | 15.2 | % | $ | 104,150 | 24.1 | % | $ | 91,421 | 24.4 | % | |||||||||||||||
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RICHARDSON ELECTRONICS, LTD
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
As of | ||||||||||
February 26, | May 29, | |||||||||
2005 | 2004 | |||||||||
| (unaudited) | |||||||||
ASSETS | ||||||||||
Current Assets |
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| Cash |
| $ | 22,737 |
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| $ | 16,927 |
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| Account receivable, net |
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| 109,920 |
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| 106,130 |
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| Inventories |
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| 107,116 |
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| 92,297 |
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| Other |
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| 18,265 |
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| 19,739 |
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| Total current assets |
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| 258,038 |
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| 235,093 |
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Property, plant and equipment, net | 33,541 | 30,589 | ||||||||
Goodwill and intangible assets |
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| 7,218 |
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| 6,726 |
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Other assets |
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| 10,628 |
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| 6,806 |
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Total assets |
| $ | 309,425 |
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| $ | 279,214 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current Liabilities |
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| Accounts payable |
| $ | 37,439 |
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| $ | 33,473 |
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| Accrued liabilities |
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| 19,464 |
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| 23,224 |
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| Current portion of long-term debt |
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| 12 |
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| 4,027 |
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| Total current liabilities |
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| 56,915 |
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| 60,724 |
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Long-term debt, less current portion |
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| 134,042 |
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| 133,813 |
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Other non-current liabilities |
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| 1,117 |
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| 241 |
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| Total liabilities |
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| 192,074 |
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| 194,778 |
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Stockholders’ Equity |
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| 117,351 |
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| 84,436 |
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Total liabilities and stockholders' equity |
| $ | 309,425 |
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| $ | 279,214 |
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SIGNATURES | |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |
| |
| RICHARDSON ELECTRONICS, LTD. |
Date: March 23, 2005 | By: /s/ DARIO SACROMANI |
| Name: Dario Sacromani Title: Senior Vice President and Chief Financial Officer |