Richardson Electronics (RELL) 10-Q 10 Oct 24 2025 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Aug. 31, 2024	Oct. 08, 2024
Document Information [Line Items]
Entity Registrant Name	RICHARDSON ELECTRONICS, LTD.
Entity Central Index Key	0000355948
Document Type	10-Q
Trading Symbol	RELL
Document Period End Date	Aug. 31, 2024
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity's Reporting Status Current	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	true
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Entity File Number	0-12906
Entity Tax Identification Number	36-2096643
Entity Address, Address Line One	40W267 Keslinger Road
Entity Address, Address Line Two	P.O. Box 393
Entity Address, City or Town	LaFox
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60147-0393
City Area Code	630
Local Phone Number	208-2200
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, $0.05 Par Value
Security Exchange Name	NASDAQ
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12,331,320
Common Stock Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,049,238

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2024	Jun. 01, 2024
Current assets:
Cash and cash equivalents	$ 23,035	$ 24,263
Accounts receivable, less allowance for credit losses of $351 and $323, respectively	30,862	24,845
Inventories, net	110,994	110,149
Prepaid expenses and other assets	2,488	2,397
Total current assets	167,379	161,654
Non-current assets:
Property, plant and equipment, net	20,612	20,681
Intangible assets, net	1,582	1,641
Right of use lease assets	2,538	2,760
Deferred income tax assets	5,555	5,500
Other non-current assets	197	209
Total non-current assets	30,484	30,791
Total assets	197,863	192,445
Current liabilities:
Accounts payable	19,758	15,458
Accrued liabilities	15,403	15,404
Lease liabilities current	1,107	1,169
Total current liabilities	36,268	32,031
Non-current liabilities:
Deferred income tax liabilities	79	90
Lease liabilities non-current	1,431	1,591
Other non-current liabilities	1,021	781
Total non-current liabilities	2,531	2,462
Total liabilities	38,799	34,493
Stockholders’ Equity
Preferred stock, $1.00 par value, no shares issued
Additional paid-in-capital	73,315	72,744
Retained earnings	83,630	83,729
Accumulated other comprehensive income	1,400	764
Total stockholders' equity	159,064	157,952
Total liabilities and stockholders’ equity	197,863	192,445
Common Stock
Stockholders’ Equity
Common stock value	617	613
Common Stock Class B
Stockholders’ Equity
Common stock value	$ 102	$ 102

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Aug. 31, 2024	Jun. 01, 2024
Allowance for credit losses	$ 351	$ 323
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, issued (in shares)	0	0
Common Stock
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, issued (in shares)	12,331	12,254
Common stock, outstanding (in shares)	12,331	12,254
Common Stock Class B
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, issued (in shares)	2,049	2,049
Common stock, outstanding (in shares)	2,049	2,049

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Net sales	$ 53,725	$ 52,581
Cost of sales, exclusive of depreciation and amortization	37,299	35,317
Gross profit	16,426	17,264
Selling, general and administrative expenses, inclusive of depreciation and amortization	16,112	15,792
Gain on disposal of assets	(2)	0
Operating income	316	1,472
Other (income) expense:
Interest income	(58)	(71)
Foreign exchange gain	(277)	(97)
Other, net	3	32
Total other income	(332)	(136)
Income before income taxes	648	1,608
Income tax provision	58	381
Net income	590	1,227
Foreign currency translation gain (loss), net of tax	636	(41)
Comprehensive income	$ 1,226	$ 1,186
Weighted average number of shares:
Common shares - Diluted	12,431	12,539
Common Stock
Net income per share:
Common shares - Basic	$ 0.04	$ 0.09
Common shares - Diluted	$ 0.04	$ 0.09
Weighted average number of shares:
Common shares - Basic	12,200	12,171
Common shares - Diluted	12,431	12,539
Common Stock Class B
Net income per share:
Common shares - Basic	$ 0.04	$ 0.08
Common shares - Diluted	$ 0.04	$ 0.08
Weighted average number of shares:
Common shares - Basic	2,049	2,052
Common shares - Diluted	2,049	2,052

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Operating activities:
Net income	$ 590	$ 1,227
Adjustments to reconcile net income to cash provided by operating activities:
Unrealized foreign currency gain	(382)	(37)
Depreciation and amortization	1,044	998
Inventory provisions	139	85
Share-based compensation expense	593	483
Gain on disposal of assets	(2)	0
Deferred income taxes	(58)	(5)
Change in assets and liabilities:
Accounts receivable	(5,858)	4,462
Inventories	(124)	(3,151)
Prepaid expenses and other assets	(29)	409
Accounts payable	4,164	(2,365)
Accrued liabilities	(95)	(1,124)
Other	430	33
Net cash provided by operating activities	412	1,015
Investing activities:
Capital expenditures	(926)	(1,141)
Proceeds from sale of property, plant & equipment	7	0
Net cash used in investing activities	(919)	(1,141)
Financing activities:
Proceeds from issuance of common stock	144	327
Cash dividends paid on common and Class B common stock	(850)	(843)
Proceeds from revolving credit facility	1,000	0
Repayment of revolving credit facility	(1,000)	0
Other	(162)	(119)
Net cash used in financing activities	(868)	(635)
Effect of exchange rate changes on cash and cash equivalents	147	(96)
Decrease in cash and cash equivalents	(1,228)	(857)
Cash and cash equivalents at beginning of period	24,263	24,981
Cash and cash equivalents at end of period	$ 23,035	$ 24,124

Unaudited Consolidated Statem_3

Unaudited Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Common Stock Class B	Common Stock	Common Stock Common Stock	Common Stock Common Stock Class B	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning Balance at May. 27, 2023	$ 159,320			$ 710			$ 70,951	$ 87,044	$ 615
Beginning Balance (in shares) at May. 27, 2023					12,140	2,052
Comprehensive income:
Net income	1,227							1,227
Foreign currency translation, net of tax	(41)								(41)
Share-based compensation:
Restricted stock	169						169
Stock options	314						314
Options exercised	327			2			325
Options exercised (in shares)					48
Restricted stock issuance	(119)			2			(121)
Restricted stock issuance (in shares)					37
Dividends paid to:
Common	(732)							(732)
Class B	(111)							(111)
Ending Balance at Sep. 02, 2023	160,354			714			71,638	87,428	574
Ending Balance (in shares) at Sep. 02, 2023					12,225	2,052
Beginning Balance at Jun. 01, 2024	157,952			715			72,744	83,729	764
Beginning Balance (in shares) at Jun. 01, 2024		12,254	2,049		12,254	2,049
Comprehensive income:
Net income	590							590
Foreign currency translation, net of tax	797							161	636
Share-based compensation:
Restricted stock	424						424
Stock options	169						169
Options exercised	141			1			140
Options exercised (in shares)					17
Restricted stock issuance	(159)			3			(162)
Restricted stock issuance (in shares)					60
Dividends paid to:
Common	(739)							(739)
Class B	(111)							(111)
Ending Balance at Aug. 31, 2024	$ 159,064			$ 719			$ 73,315	$ 83,630	$ 1,400
Ending Balance (in shares) at Aug. 31, 2024		12,331	2,049		12,331	2,049

Unaudited Consolidated Statem_4

Unaudited Consolidated Statement of Stockholders' Equity (Parenthetical) - Common Stock - $ / shares	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Common
Dividends per common share	$ 0.06	$ 0.06
Common Stock Class B
Dividends per common share	$ 0.054	$ 0.054

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 590	$ 1,227

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Aug. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Description of the Company

Description of the Company	3 Months Ended
	Aug. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Company	1. DESCRIPTION OF THE COMPANY Richardson Electronics, Ltd. (the "Company," "we," "our") is a leading global manufacturer of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. Nearly 50 % of our products are manufactured at our facilities located in LaFox, Illinois, Marlborough, Massachusetts and Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. We serve customers in the alternative energy, healthcare, 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 through its global infrastructure. 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. The Company reports its financial performance for the following business segments: Power and Microwave Technologies ("PMT"), Green Energy Solutions ("GES"), Canvys and Healthcare. A description of the Company's business segments is provided in Note 10, Segment and Geographic Information. We currently operate within the following major geographic regions: North America, Asia/Pacific, Europe and Latin America.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Aug. 31, 2024
Basis Of Presentation [Abstract]
Basis of Presentation	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 quarter of fiscal 2025 contained 13 weeks and the first quarter of fiscal 2024 contained 14 weeks. 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 applicable rules and regulations. The results of our operations for three months ended August 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2025. As described in Note 1, Description of the Company the Company reports its financial performance based on four operating and reportable segments. 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, 2024, which was filed with the SEC on August 5, 2024.

Reclassifications

Reclassifications	3 Months Ended
	Aug. 31, 2024
Reclassifications [Abstract}
Reclassifications	3. RECLASSIFICATIONS Certain prior period amounts have been reclassified to conform to the current period reporting classifications. The reclassification was related to the unrealized foreign exchange gain on the Statement of Cash Flows.

New Accounting Pronouncements -

New Accounting Pronouncements - Not Yet Adopted	3 Months Ended
	Aug. 31, 2024
Accounting Changes and Error Corrections [Abstract]
New accounting pronouncements - not yet adopted	4. NEW ACCOUNTING PRONOUNCEMENTS - NOT YET ADOPTED In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required in an entity's income tax rate reconciliation table and requires disclosure of income taxes paid in both U.S. and foreign jurisdictions. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendment requires disclosures of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit of loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's profit or loss and assets. The new guidance also requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, this guidance should be applied retrospectively to all prior periods presented. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the Securities and Exchange Commission's ("SEC") Disclosure Update and Simplification Initiative. The amendments in this update require modification of certain disclosure and presentation requirements for a variety of ASU topics in response to the SEC's Release No. 33-10532. The effective date for each amended topic in the ASC is the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendment will be removed from the Codification and not become effective. Early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.

Critical Accounting Policies an

Critical Accounting Policies and Estimates	3 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
Critical Accounting Policies and Estimates	5. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Inventories, net: Our consolidated inventories were stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $ 95.0 million of finished goods, $ 11.7 million of raw materials and $ 4.3 million of work-in-progress as of August 31, 2024, as compared to approximately $ 93.9 million of finished goods, $ 12.2 million of raw materials and $ 4.0 million of work-in-progress as of June 1, 2024. Provisions for obsolete or slow-moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. Inventory reserves were approximately $ 6.1 million as of August 31, 2024 and $ 6.0 million as of June 1, 2024. Revenue Recognition: Our customers are generally not resellers, but rather businesses that incorporate our products into their processes, from which they generate an economic benefit. The goods are also distinct in that each item sold to the customer is clearly identified on both the purchase order and resulting invoice. Each product we sell benefits the customer independently of the other products. Each item on each purchase order from the customer can be used by the customer unrelated to any other products we provide to the customer. Revenue is recognized when control transfers since it is not always based on delivery of the goods. The Company’s revenue includes the following streams: • Manufacturing/assembly • Distribution • Services revenue Manufacturing/assembly typically includes the products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product. Our contracts for customized products generally include termination provisions if a customer cancels its order. However, we recognize revenue at a point in time because the termination provisions normally do not require, upon cancellation, the customer to pay fees that are commensurate with the work performed. Each purchase order explicitly states the goods or services that we promise to transfer to the customer. The promises to the customer are limited only to those goods or services. The performance obligation is our promise to deliver both goods that were produced by the Company and resale of goods that we purchase from our suppliers. Our shipping and handling activities for destination shipments are performed prior to the customer obtaining control. As such, they are not a separate promised service. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. The goods we provide to our customers are distinct in that our customers benefit from the goods we sell them through use in their own processes. Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of and obtain substantially all the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. Generally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. Repair, installation or training activities generate services revenue. The services we provide are relatively short in duration and are typically completed in one or two weeks. Therefore, at each reporting date, the amount of unbilled work is insignificant. The services revenue has consistently accounted for less than 5 % of the Company’s total revenues and is expected to continue at that level. Contracts with customers: A revenue contract exists once a customer purchase order is received, reviewed and accepted. Each accepted purchase order identifies a distinct good or service as the Company's performance obligation. The goods include standard products purchased from a supplier and stocked on our shelves, customized products purchased from a supplier, products that are customized or have value added to them in house prior to shipping to the customer and manufactured products. Prior to accepting a customer purchase order, we review the credit worthiness of the customer. Purchase orders are deemed to meet the collectability criterion once the customer’s credit is approved. The Company receives advance payments or deposits from our customers before revenue is recognized resulting in contract liabilities. Contract liabilities are included in accrued liabilities in the unaudited consolidated balance sheets. Contract Balances: Contract balances were as follows ( in thousands ): August 31, 2024 June 1, 2024 May 27, 2023 Accounts receivable $ 30,862 $ 24,845 $ 30,067 Contract liabilities 4,527 4,520 3,283 During the three months ended August 31, 2024 and September 2, 2023, the Company recognized $ 0.9 million and $ 1.5 million, respectively, of revenue upon satisfaction of performance obligations related to amounts that were included in the contract liabilities balance as of June 1, 2024 and May 27, 2023, respectively. See Note 10, Segment & Geographic Information for a disaggregation of revenue by reportable segment and geographic region, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the Company. 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. Intangible Assets: Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or by recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for customer relationships agreements acquired in connection with prior acquisitions. Technology represents the fair value acquired in connection with acquisitions and an exclusive license, manufacturing and distribution agreement. Intangible assets subject to amortization were as follows (in thousands) : August 31, 2024 June 1, 2024 Gross Amounts: Customer Relationships (1) $ 3,405 $ 3,396 Technology 380 380 Total Gross Amounts $ 3,785 $ 3,776 Accumulated Amortization: Customer Relationships $ 1,943 $ 1,886 Technology 260 249 Total Accumulated Amortization $ 2,203 $ 2,135 Net Intangible Assets $ 1,582 $ 1,641 (1) Change from prior period reflects impact of foreign currency translation. The amortization expense associated with intangible assets subject to amortization for the next five years is presented in the following table (in thousands) : Fiscal Year Amortization Remaining 2025 $ 181 2026 207 2027 193 2028 185 2029 174 Thereafter 642 Total amortization $ 1,582 The weighted average number of years of amortization expense remaining is 10.0 years. Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards. Accrued Liabilities: Accrued liabilities consisted of the following (in thousands): August 31, 2024 June 1, 2024 Compensation and payroll taxes $ 4,153 $ 3,495 Accrued severance 506 506 Professional fees 614 487 Deferred revenue 4,527 4,520 Other accrued expenses 5,603 6,396 Accrued Liabilities $ 15,403 $ 15,404 Warranties: We offer assurance type warranties for the limited number of specific products we manufacture. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive income. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products and warranty experience. 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 unaudited consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Warranty reserves were approximately $ 0.7 million as of August 31, 2024 and June 1, 2024.

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	Aug. 31, 2024
Debt Disclosure [Abstract]
Revolving Credit Facility	6. REVOLVING CREDIT FACILITY The Company entered into a Credit Agreement (the "Credit Agreement") for a three-year Revolving Credit Facility with PNC Bank N.A. on March 20, 2023 (the "Revolving Credit Facility"). The Revolving Credit Facility will mature on March 20, 2026 . Borrowings under the Revolving Credit Facility, including the swingline loan and letter of credit sub-facility extended to the Company thereunder, are secured by (i) a continuing first priority lien on and security interest in and to substantially all of the assets of the Company and its domestic subsidiaries and (ii) a continuing first priority pledge of the Pledged Collateral of the Company and the Guarantors identified in the Security Agreement and the Pledge Agreement executed in connection with the Revolving Credit Facility. The combined maximum borrowings under the Revolving Credit Facility are $ 30 million. Proceeds of borrowings may be used for working capital and general corporate purposes. The Company utilized $ 1.0 million of the credit line to address short-term working capital needs and repaid that $ 1.0 million during the first quarter of fiscal 2025. There was no amount outstanding under the Revolving Credit Facility as of August 31, 2024 . The Credit Agreement provides that the Company must maintain compliance with a maximum consolidated leverage ratio covenant and a minimum consolidated fixed charge coverage ratio, each as determined in accordance with the Credit Agreement. The Credit Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type. The Company was in compliance with financial covenants under the Credit Agreement as of August 31, 2024. Borrowings under the Revolving Credit Facility will bear interest at a rate per annum selected by the Company from the following options: (a) Term SOFR Rate (for the applicable Interest Period) plus the SOFR Adjustment (for the applicable Interest Period) plus 1.25 %; (b) Base Rate plus 0.25 % or (c) Daily Simple RFR (for Euros) plus the RFR Adjustment plus 1.25 %. Letters of credit issued under the letter of credit sub-facility will have a letter of credit fee equal to 1.25 % per annum. The fee for the unused portion of the credit line is 0.10 %.

Lease Obligations

Lease Obligations	3 Months Ended
	Aug. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Lease Obligations	7. LEASE OBLIGATIONS The Company leases real and personal property in the normal course of business under various operating leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities upon a remeasurement event. The net assets and liabilities related to operating leases were as follows (in thousands) : Lease Type August 31, 2024 June 1, 2024 Right of use lease assets $ 2,538 $ 2,760 Lease liabilities current 1,107 1,169 Lease liabilities non-current 1,431 1,591 The components of lease costs were as follows (in thousands) : Three Months Ended August 31, 2024 September 2, 2023 Consolidated operating lease expense Operating expenses $ 435 $ 454 The approximate future minimum lease payments under operating leases at August 31, 2024 were as follows (in thousands) : Fiscal Year Operating Leases Remaining 2025 $ 981 2026 923 2027 425 2028 222 2029 146 Total lease payments 2,697 Less imputed interest 159 Net minimum lease payments $ 2,538 The weighted average remaining lease terms and interest rates of leases held by the Company as of August 31, 2024 and September 2, 2023 were as follows: Operating Lease as of: Weighted Average Remaining Weighted Average Interest Rate August 31, 2024 2.7 4.6 % September 2, 2023 2.5 4.1 % The cash activities associated with our leases for the three month periods ended August 31, 2024 and September 2, 2023, were as follows (in thousands) : Three Months Ended Cash Flow Source Classification August 31, 2024 September 2, 2023 Operating cash flows from operating leases Operating activities $ 353 $ 111

Income Taxes

Income Taxes	3 Months Ended
	Aug. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES We recorded an income tax provision of $ 0.1 million and $ 0.4 million for the first three months of fiscal 2025 and the first three months of fiscal 2024, respectively. The effective income tax rate during the first three months of fiscal 2025 was a tax provision of 9.0 % as compared to a tax provision of 23.7 % during the first three months of fiscal 2024. The difference in rate during the first three months of fiscal 2025 as compared to the first three months of fiscal 2024 reflects changes in our geographical distribution of income (loss), which is primarily driven by a decrease in U.S. earnings for fiscal 2025 and the state income tax provision, as well as an increase in the utilization of U.S. research and development credits. The 9.0 % effective income tax rate differs from the federal statutory rate of 21 % as a result of our geographical distribution of income (loss), as well as the utilization of U.S. research and development credits. In the normal course of business, we are subject to examination by taxing authorities throughout the world. Years prior to fiscal 2015 are closed for examination under the statute of limitation for U.S. federal and U.S. state. In the Netherlands, years prior to fiscal 2019 are closed for examination. We are under examination in Germany for fiscal years 2019 to 2022. We have no current open audits in the U.S. We have historically determined that undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. The deferred tax liabilities on the outside basis difference is now primarily withholding tax on future dividend distributions. The deferred tax liabilities related to undistributed earnings of our foreign subsidiaries was less than $ 0.1 million as of August 31, 2024 and June 1, 2024. The Company recorded a $ 0.3 million liability for uncertain tax positions as of August 31, 2024. The uncertain tax positions totaled $ 0.1 million as of June 1, 2024. We record interest related to uncertain tax positions in the income tax expense line item within the Consolidated Statements of Comprehensive Income. Accrued interest was included within the related tax liability line in the Consolidated Balance Sheets. We have recorded a liability of less than $ 0.1 million for interest and penalties as it relates to the reserve of the research and development credit as of June 1, 2024 and August 31, 2024, respectively. The Company maintains a valuation allowance representing the portion of the deferred tax asset that management does not believe is more likely than not to be realized. The valuation allowance was $ 2.2 million as of August 31, 2024 and was $ 1.4 million as of September 2, 2023. The current valuation allowance is recorded on deferred tax assets in foreign jurisdictions where historical taxable losses have been incurred ($ 1.1 million) and state NOLs ($ 1.1 million). The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Aug. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	9. EARNINGS PER SHARE We have authorized 17,000,000 shares of common stock and 3,000,000 shares of Class B common 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 common stock cash dividends. 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 (loss) 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. 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 common stock cash dividends. The allocation of undistributed (loss) earnings between common stock and Class B common stock is based on the relationship of the weighted shares outstanding for the respective stock class (common or Class B) to the total of the weighted shares outstanding for common stock and 90% of the weighted shares outstanding for Class B common stock. The adjustment to the number of outstanding Class B common stock shares reflects the limitation of Class B common stock dividends to 90% of common stock dividends. The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income was based on the following amounts ( in thousands, except per share amounts ): Three Months Ended August 31, 2024 September 2, 2023 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net income $ 590 $ 590 $ 1,227 $ 1,227 Less dividends: Common stock 739 739 732 732 Class B common stock 111 111 111 111 Undistributed (loss) earnings $ ( 260 ) $ ( 260 ) $ 384 $ 384 Common stock undistributed (loss) earnings $ ( 226 ) $ ( 226 ) $ 333 $ 335 Class B common stock undistributed (loss) earnings ( 34 ) ( 34 ) 51 49 Total undistributed (loss) earnings $ ( 260 ) $ ( 260 ) $ 384 $ 384 Denominator for Basic and Diluted EPS: Common stock weighted average shares 12,200 12,200 12,171 12,171 Effect of dilutive securities Dilutive stock options 231 368 Denominator for diluted EPS adjusted for weighted average shares and assumed conversion 12,431 12,539 Class B common stock weighted average shares and shares under if-converted method for diluted EPS 2,049 2,049 2,052 2,052 Net income per share: Common stock $ 0.04 $ 0.04 $ 0.09 $ 0.09 Class B common stock $ 0.04 $ 0.04 $ 0.08 $ 0.08 Note: There were no common stock options that were antidilutive in the first quarter of fiscal 2025 and fiscal 2024.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Aug. 31, 2024
Segment Reporting [Abstract]
Segment and Geographic Information	10. SEGMENT AND GEOGRAPHIC INFORMATION As described in Note 1, Description of the Company , the Company reports its financial performance based on the operating and reportable segments which are defined as follows: Power and Microwave Technologies ("PMT") combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair - all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT 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. PMT also offers its customers technical services for both microwave and industrial equipment. Green Energy Solutions ("GES") combines our key technology partners and engineered solutions capabilities to design and manufacture innovative products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair - all through our existing global infrastructure. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and electric vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long-term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms. Healthcare manufactures, repairs, refurbishes and distributes high value replacement parts and equipment for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency while lowering the cost of healthcare delivery. The CEO, who is the chief operating decision maker, evaluates performance and allocates Company 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 August 31, 2024 September 2, 2023 PMT Net Sales $ 34,202 $ 35,744 Gross Profit 10,202 11,511 GES Net Sales 8,086 4,394 Gross Profit 2,374 1,580 Canvys Net Sales 7,638 9,889 Gross Profit 2,621 3,365 Healthcare Net Sales 3,799 2,554 Gross Profit 1,229 808 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 August 31, 2024 September 2, 2023 Net Sales North America $ 23,007 $ 19,630 Asia/Pacific 10,655 12,812 Europe 17,262 15,752 Latin America 2,826 2,802 Other (1) ( 25 ) 1,585 Total $ 53,725 $ 52,581 Gross Profit North America $ 8,976 $ 7,463 Asia/Pacific 3,336 4,143 Europe 4,869 4,859 Latin America 989 1,092 Other (1) ( 1,744 ) ( 293 ) Total $ 16,426 $ 17,264 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses. We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Payment 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.

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Aug. 31, 2024
Risks and Uncertainties [Abstract]
Risks and Uncertainties	11. RISKS AND UNCERTAINTIES Our business and the companies with which we do business are subject to risks and uncertainties caused by factors beyond our control. Such factors include economic pressures related to inflation, rising interest rates, economic weakness or recession, as well as geopolitical and public health, tightening labor markets, and pandemics. These and other similar conditions and events have in the past and could in the future disrupt our operations and could have a material adverse effect on our business, results of operations, cash flows and financial condition.

Critical Accounting Policies _2

Critical Accounting Policies and Estimates (Policies)	3 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
Inventories, net	Inventories, net: Our consolidated inventories were stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $ 95.0 million of finished goods, $ 11.7 million of raw materials and $ 4.3 million of work-in-progress as of August 31, 2024, as compared to approximately $ 93.9 million of finished goods, $ 12.2 million of raw materials and $ 4.0 million of work-in-progress as of June 1, 2024. Provisions for obsolete or slow-moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. Inventory reserves were approximately $ 6.1 million as of August 31, 2024 and $ 6.0 million as of June 1, 2024. Revenue Recognition: Our customers are generally not resellers, but rather businesses that incorporate our products into their processes, from which they generate an economic benefit. The goods are also distinct in that each item sold to the customer is clearly identified on both the purchase order and resulting invoice. Each product we sell benefits the customer independently of the other products. Each item on each purchase order from the customer can be used by the customer unrelated to any other products we provide to the customer. Revenue is recognized when control transfers since it is not always based on delivery of the goods. The Company’s revenue includes the following streams: • Manufacturing/assembly • Distribution • Services revenue Manufacturing/assembly typically includes the products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product. Our contracts for customized products generally include termination provisions if a customer cancels its order. However, we recognize revenue at a point in time because the termination provisions normally do not require, upon cancellation, the customer to pay fees that are commensurate with the work performed. Each purchase order explicitly states the goods or services that we promise to transfer to the customer. The promises to the customer are limited only to those goods or services. The performance obligation is our promise to deliver both goods that were produced by the Company and resale of goods that we purchase from our suppliers. Our shipping and handling activities for destination shipments are performed prior to the customer obtaining control. As such, they are not a separate promised service. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. The goods we provide to our customers are distinct in that our customers benefit from the goods we sell them through use in their own processes. Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of and obtain substantially all the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. Generally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. Repair, installation or training activities generate services revenue. The services we provide are relatively short in duration and are typically completed in one or two weeks. Therefore, at each reporting date, the amount of unbilled work is insignificant. The services revenue has consistently accounted for less than 5 % of the Company’s total revenues and is expected to continue at that level. Contracts with customers: A revenue contract exists once a customer purchase order is received, reviewed and accepted. Each accepted purchase order identifies a distinct good or service as the Company's performance obligation. The goods include standard products purchased from a supplier and stocked on our shelves, customized products purchased from a supplier, products that are customized or have value added to them in house prior to shipping to the customer and manufactured products. Prior to accepting a customer purchase order, we review the credit worthiness of the customer. Purchase orders are deemed to meet the collectability criterion once the customer’s credit is approved. The Company receives advance payments or deposits from our customers before revenue is recognized resulting in contract liabilities. Contract liabilities are included in accrued liabilities in the unaudited consolidated balance sheets.
Revenue Recognition	Contract Balances: Contract balances were as follows ( in thousands ): August 31, 2024 June 1, 2024 May 27, 2023 Accounts receivable $ 30,862 $ 24,845 $ 30,067 Contract liabilities 4,527 4,520 3,283 During the three months ended August 31, 2024 and September 2, 2023, the Company recognized $ 0.9 million and $ 1.5 million, respectively, of revenue upon satisfaction of performance obligations related to amounts that were included in the contract liabilities balance as of June 1, 2024 and May 27, 2023, respectively. See Note 10, Segment & Geographic Information for a disaggregation of revenue by reportable segment and geographic region, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the Company.
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.
Intangible Assets	Intangible Assets: Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or by recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for customer relationships agreements acquired in connection with prior acquisitions. Technology represents the fair value acquired in connection with acquisitions and an exclusive license, manufacturing and distribution agreement. Intangible assets subject to amortization were as follows (in thousands) : August 31, 2024 June 1, 2024 Gross Amounts: Customer Relationships (1) $ 3,405 $ 3,396 Technology 380 380 Total Gross Amounts $ 3,785 $ 3,776 Accumulated Amortization: Customer Relationships $ 1,943 $ 1,886 Technology 260 249 Total Accumulated Amortization $ 2,203 $ 2,135 Net Intangible Assets $ 1,582 $ 1,641 (1) Change from prior period reflects impact of foreign currency translation. The amortization expense associated with intangible assets subject to amortization for the next five years is presented in the following table (in thousands) : Fiscal Year Amortization Remaining 2025 $ 181 2026 207 2027 193 2028 185 2029 174 Thereafter 642 Total amortization $ 1,582 The weighted average number of years of amortization expense remaining is 10.0 years.
Income Taxes	Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards.
Accrued Liabilities	Accrued Liabilities: Accrued liabilities consisted of the following (in thousands): August 31, 2024 June 1, 2024 Compensation and payroll taxes $ 4,153 $ 3,495 Accrued severance 506 506 Professional fees 614 487 Deferred revenue 4,527 4,520 Other accrued expenses 5,603 6,396 Accrued Liabilities $ 15,403 $ 15,404
Warranties	Warranties: We offer assurance type warranties for the limited number of specific products we manufacture. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive income. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products and warranty experience. 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 unaudited consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Warranty reserves were approximately $ 0.7 million as of August 31, 2024 and June 1, 2024.

Critical Accounting Policies _3

Critical Accounting Policies and Estimates (Tables)	3 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
Schedule of Contract Balances	Contract Balances: Contract balances were as follows ( in thousands ): August 31, 2024 June 1, 2024 May 27, 2023 Accounts receivable $ 30,862 $ 24,845 $ 30,067 Contract liabilities 4,527 4,520 3,283
Schedule of Intangible Assets Subject to Amortization	Intangible assets subject to amortization were as follows (in thousands) : August 31, 2024 June 1, 2024 Gross Amounts: Customer Relationships (1) $ 3,405 $ 3,396 Technology 380 380 Total Gross Amounts $ 3,785 $ 3,776 Accumulated Amortization: Customer Relationships $ 1,943 $ 1,886 Technology 260 249 Total Accumulated Amortization $ 2,203 $ 2,135 Net Intangible Assets $ 1,582 $ 1,641 (1) Change from prior period reflects impact of foreign currency translation.
Schedule of the Amortization Expense for the Next Five Years	The amortization expense associated with intangible assets subject to amortization for the next five years is presented in the following table (in thousands) : Fiscal Year Amortization Remaining 2025 $ 181 2026 207 2027 193 2028 185 2029 174 Thereafter 642 Total amortization $ 1,582
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): August 31, 2024 June 1, 2024 Compensation and payroll taxes $ 4,153 $ 3,495 Accrued severance 506 506 Professional fees 614 487 Deferred revenue 4,527 4,520 Other accrued expenses 5,603 6,396 Accrued Liabilities $ 15,403 $ 15,404

Lease Obligations (Tables)

Lease Obligations (Tables)	3 Months Ended
	Aug. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Net Assets and Liabilities Related to Operating Leases	The net assets and liabilities related to operating leases were as follows (in thousands) : Lease Type August 31, 2024 June 1, 2024 Right of use lease assets $ 2,538 $ 2,760 Lease liabilities current 1,107 1,169 Lease liabilities non-current 1,431 1,591
Components of Lease Costs	The components of lease costs were as follows (in thousands) : Three Months Ended August 31, 2024 September 2, 2023 Consolidated operating lease expense Operating expenses $ 435 $ 454
Schedule of Future Minimum Lease Payments under Operating Leases	The approximate future minimum lease payments under operating leases at August 31, 2024 were as follows (in thousands) : Fiscal Year Operating Leases Remaining 2025 $ 981 2026 923 2027 425 2028 222 2029 146 Total lease payments 2,697 Less imputed interest 159 Net minimum lease payments $ 2,538
Schedule of Weighted Average Remaining Lease Terms and Interest Rates of Leases	The weighted average remaining lease terms and interest rates of leases held by the Company as of August 31, 2024 and September 2, 2023 were as follows: Operating Lease as of: Weighted Average Remaining Weighted Average Interest Rate August 31, 2024 2.7 4.6 % September 2, 2023 2.5 4.1 %
Schedule of Cash Activities Associated with our Leases	The cash activities associated with our leases for the three month periods ended August 31, 2024 and September 2, 2023, were as follows (in thousands) : Three Months Ended Cash Flow Source Classification August 31, 2024 September 2, 2023 Operating cash flows from operating leases Operating activities $ 353 $ 111

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Aug. 31, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income was based on the following amounts ( in thousands, except per share amounts ): Three Months Ended August 31, 2024 September 2, 2023 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net income $ 590 $ 590 $ 1,227 $ 1,227 Less dividends: Common stock 739 739 732 732 Class B common stock 111 111 111 111 Undistributed (loss) earnings $ ( 260 ) $ ( 260 ) $ 384 $ 384 Common stock undistributed (loss) earnings $ ( 226 ) $ ( 226 ) $ 333 $ 335 Class B common stock undistributed (loss) earnings ( 34 ) ( 34 ) 51 49 Total undistributed (loss) earnings $ ( 260 ) $ ( 260 ) $ 384 $ 384 Denominator for Basic and Diluted EPS: Common stock weighted average shares 12,200 12,200 12,171 12,171 Effect of dilutive securities Dilutive stock options 231 368 Denominator for diluted EPS adjusted for weighted average shares and assumed conversion 12,431 12,539 Class B common stock weighted average shares and shares under if-converted method for diluted EPS 2,049 2,049 2,052 2,052 Net income per share: Common stock $ 0.04 $ 0.04 $ 0.09 $ 0.09 Class B common stock $ 0.04 $ 0.04 $ 0.08 $ 0.08 Note: There were no common stock options that were antidilutive in the first quarter of fiscal 2025 and fiscal 2024.

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Aug. 31, 2024
Segment Reporting [Abstract]
Schedule of Operating Results by Segment	Three Months Ended August 31, 2024 September 2, 2023 PMT Net Sales $ 34,202 $ 35,744 Gross Profit 10,202 11,511 GES Net Sales 8,086 4,394 Gross Profit 2,374 1,580 Canvys Net Sales 7,638 9,889 Gross Profit 2,621 3,365 Healthcare Net Sales 3,799 2,554 Gross Profit 1,229 808
Schedule of 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 August 31, 2024 September 2, 2023 Net Sales North America $ 23,007 $ 19,630 Asia/Pacific 10,655 12,812 Europe 17,262 15,752 Latin America 2,826 2,802 Other (1) ( 25 ) 1,585 Total $ 53,725 $ 52,581 Gross Profit North America $ 8,976 $ 7,463 Asia/Pacific 3,336 4,143 Europe 4,869 4,859 Latin America 989 1,092 Other (1) ( 1,744 ) ( 293 ) Total $ 16,426 $ 17,264 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses.

Description of the Company - Ad

Description of the Company - Additional Information (Details)	3 Months Ended
	Aug. 31, 2024
Maximum | Product Concentration | Sales
Concentration Risk [Line Items]
Percentage of products manufactured	50%

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	3 Months Ended
	Aug. 31, 2024 Segment
Basis Of Presentation [Abstract]
Number of operating segments	4
Number of reportable segments	4

Critical Accounting Policies _4

Critical Accounting Policies and Estimates - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023	Jun. 01, 2024
Critical Accounting Policies And Estimates [Line Items]
Finished goods	$ 95		$ 93.9
Raw material	11.7		12.2
Work in progress	4.3		4
Inventory valuation reserves	6.1		6
Revenue recognized upon satisfaction of performace obligations	$ 0.9	$ 1.5
Weighted average number of years of amortization expense	10 years
Warranty reserves	$ 0.7		$ 0.7
Maximum
Critical Accounting Policies And Estimates [Line Items]
Services revenue recognized as percentage of aggregate revenue	5%

Critical Accounting Policies _5

Critical Accounting Policies and Estimates - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Aug. 31, 2024	Jun. 01, 2024	May 27, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 30,862	$ 24,845	$ 30,067
Contract liabilities	$ 4,527	$ 4,520	$ 3,283

Critical Accounting Policies _6

Critical Accounting Policies and Estimates - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands		Aug. 31, 2024	Jun. 01, 2024
Finite-Lived Intangible Assets [Line Items]
Total Gross Amounts		$ 3,785	$ 3,776
Total Accumulated Amortization		2,203	2,135
Net Intangible Assets		1,582	1,641
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Total Gross Amounts	[1]	3,405	3,396
Total Accumulated Amortization		1,943	1,886
Technology
Finite-Lived Intangible Assets [Line Items]
Total Gross Amounts		380	380
Total Accumulated Amortization		$ 260	$ 249
[1] Change from prior period reflects impact of foreign currency translation.

Critical Accounting Policies _7

Critical Accounting Policies and Estimates - Schedule of the Amortization Expense for the Next Five Years (Details) - USD ($) $ in Thousands	Aug. 31, 2024	Jun. 01, 2024
Fiscal Year
Remaining 2025	$ 181
2026	207
2027	193
2028	185
2029	174
Thereafter	642
Net Intangible Assets	$ 1,582	$ 1,641

Critical Accounting Policies _8

Critical Accounting Policies and Estimates - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2024	Jun. 01, 2024
Accrued Liabilities:
Compensation and payroll taxes	$ 4,153	$ 3,495
Accrued severance	506	506
Professional fees	614	487
Deferred revenue	4,527	4,520
Other accrued expenses	5,603	6,396
Accrued Liabilities	$ 15,403	$ 15,404

Revolving Credit Facility - Add

Revolving Credit Facility - Additional Information (Details) - Revolving Credit Facility - USD ($)		3 Months Ended
	Mar. 20, 2023	Aug. 31, 2024
Debt Instrument [Line Items]
Credit facility agreement term	3 years
Credit facility expiration date	Mar. 20, 2026
Aggregate principal amount	$ 30,000,000
Proceeds from Lines of Credit		$ 1,000,000
Line of Credit Repaid		$ 1,000,000
Letter of credit issue fee percentage		1.25%
Percentage of unused line fee		0.10%
Outstanding under the Revolving Credit Facility		$ 0
Base rate
Debt Instrument [Line Items]
Interest rate of credit facility		0.25%
Euro RFR
Debt Instrument [Line Items]
Interest rate of credit facility		1.25%
SOFR Rate
Debt Instrument [Line Items]
Interest rate of credit facility		1.25%

Lease Obligations - Schedule of

Lease Obligations - Schedule of Net Assets and Liabilities Related to Operating Leases (Details) - USD ($) $ in Thousands	Aug. 31, 2024	Jun. 01, 2024
Lease Type
Right of use lease assets	$ 2,538	$ 2,760
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Assets, Noncurrent	Assets, Noncurrent
Lease liabilities current	$ 1,107	$ 1,169
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Liabilities, Current	Liabilities, Current
Lease liabilities non-current	$ 1,431	$ 1,591
Operating Lease Liability Noncurrent Statement Of Financial Position [Extensible List]	Liabilities, Noncurrent	Liabilities, Noncurrent

Lease Obligations - Components

Lease Obligations - Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Lease, Cost [Abstract]
Consolidated operating lease expense	$ 435	$ 454

Lease Obligations - Schedule _2

Lease Obligations - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands	Aug. 31, 2024 USD ($)
Operating Leases
Remaining 2025	$ 981
2026	923
2027	425
2028	222
2029	146
Total lease payments	2,697
Less imputed interest	159
Net minimum lease payments	$ 2,538

Lease Obligations - Schedule _3

Lease Obligations - Schedule of Weighted Average Lease Terms and Interest Rates of Leases (Details)	Aug. 31, 2024	Sep. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Weighted average remaining lease term in years, operating leases	2 years 8 months 12 days	2 years 6 months
Weighted average interest rate, operating leases	4.60%	4.10%

Lease Obligations - Schedule _4

Lease Obligations - Schedule of Cash Activities Associated with our Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 353	$ 111

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023	Jun. 01, 2024
Operating Loss Carryforwards [Line Items]
Income tax provision	$ 58	$ 381
Effective income tax provision rate	9%	23.70%
Federal statutory rate	21%
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties	$ 300		$ 100
Deferred tax valuation allowance	2,200	$ 1,400
Maximum
Operating Loss Carryforwards [Line Items]
Deferred tax liabilities, undistributed earnings of foreign subsidiaries	100		100
Liability for interest and penalties	100		$ 100
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Valuation allowance pertaining to deferred tax assets	1,100
Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Valuation allowance pertaining to deferred tax assets	$ 1,100

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details)	3 Months Ended
	Aug. 31, 2024 Vote shares	Sep. 02, 2023 shares
Schedule Of Earning Per Share [Line Items]
Limit of cash dividends Class B common stock (percent)	90%
Common stock options anti-dilutive	0	0
Common Stock
Schedule Of Earning Per Share [Line Items]
Common stock shares, authorized	17,000,000
Common Stock Class B
Schedule Of Earning Per Share [Line Items]
Common stock shares, authorized	3,000,000
Number of votes per share | Vote	10

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Numerator for Basic and Diluted Earnings Per Share:
Net income	$ 590	$ 1,227
Undistributed (loss) earnings	(260)	384
Undistributed (loss) earnings	$ (260)	$ 384
Denominator for Basic and Diluted Earnings Per Share:
Effect of dilutive securities dilutive stock options	231	368
Weighted Average Number of Shares Outstanding, Diluted	12,431	12,539
Basic
Numerator for Basic and Diluted Earnings Per Share:
Net income	$ 590	$ 1,227
Diluted
Numerator for Basic and Diluted Earnings Per Share:
Net income	590	1,227
Common Stock
Numerator for Basic and Diluted Earnings Per Share:
Undistributed (loss) earnings	(226)	333
Undistributed (loss) earnings	$ (226)	$ 335
Denominator for Basic and Diluted Earnings Per Share:
Weighted Average Number of Shares Outstanding, Basic	12,200	12,171
Weighted Average Number of Shares Outstanding, Diluted	12,431	12,539
Net income per share:
Earnings Per Share, Basic	$ 0.04	$ 0.09
Net income per share:
Earnings Per Share, Diluted	$ 0.04	$ 0.09
Common Stock | Basic
Numerator for Basic and Diluted Earnings Per Share:
Less dividends	$ 739	$ 732
Common Stock | Diluted
Numerator for Basic and Diluted Earnings Per Share:
Less dividends	739	732
Common Stock Class B
Numerator for Basic and Diluted Earnings Per Share:
Undistributed (loss) earnings	(34)	51
Undistributed (loss) earnings	$ (34)	$ 49
Denominator for Basic and Diluted Earnings Per Share:
Weighted Average Number of Shares Outstanding, Basic	2,049	2,052
Weighted Average Number of Shares Outstanding, Diluted	2,049	2,052
Net income per share:
Earnings Per Share, Basic	$ 0.04	$ 0.08
Net income per share:
Earnings Per Share, Diluted	$ 0.04	$ 0.08
Common Stock Class B | Basic
Numerator for Basic and Diluted Earnings Per Share:
Less dividends	$ 111	$ 111
Common Stock Class B | Diluted
Numerator for Basic and Diluted Earnings Per Share:
Less dividends	$ 111	$ 111

Segment and Geographic Inform_3

Segment and Geographic Information - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Sep. 02, 2023
Segment Reporting Information [Line Items]
Net Sales	$ 53,725	$ 52,581
Gross Profit	16,426	17,264
PMT
Segment Reporting Information [Line Items]
Net Sales	34,202	35,744
Gross Profit	10,202	11,511
GES
Segment Reporting Information [Line Items]
Net Sales	8,086	4,394
Gross Profit	2,374	1,580
Canvys
Segment Reporting Information [Line Items]
Net Sales	3,799	2,554
Gross Profit	2,621	3,365
Healthcare
Segment Reporting Information [Line Items]
Net Sales	7,638	9,889
Gross Profit	$ 1,229	$ 808

Segment and Geographic Inform_4

Segment and Geographic Information - Schedule of Net Sales and Gross Profit by Geographic Region (Details) - USD ($) $ in Thousands		3 Months Ended
		Aug. 31, 2024	Sep. 02, 2023
Segment Reporting Information [Line Items]
Net Sales		$ 53,725	$ 52,581
Gross Profit		16,426	17,264
North America
Segment Reporting Information [Line Items]
Net Sales		8,976	7,463
Gross Profit		23,007	19,630
Asia/Pacific
Segment Reporting Information [Line Items]
Net Sales		10,655	12,812
Gross Profit		3,336	4,143
Europe
Segment Reporting Information [Line Items]
Net Sales		17,262	15,752
Gross Profit		4,869	4,859
Latin America
Segment Reporting Information [Line Items]
Net Sales		2,826	2,802
Gross Profit		989	1,092
Other
Segment Reporting Information [Line Items]
Net Sales	[1]	(25)	1,585
Gross Profit	[1]	$ (1,744)	$ (293)
[1] Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses.