RELL - Earnings call transcript Q2 2021 | Richardson Electronics, Ltd.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Richardson Electronics Earnings Call for the Second Quarter of Fiscal Year 2021. [Operator Instructions] I would now like to hand the conference over to your speaker today, Edward Richardson, CEO. Thank you. Please go ahead, sir.

Edward Richardson

Good morning and welcome to Richardson Electronics conference call for the second quarter of fiscal year 2021.

Power Robert and Financial Healthcare; Manager General General of are Chief Wendy Greg of today Group; Manager Officer Technologies Operating Manager our Canvys. me Ben, Ruppert, Officer; Chief Diddell, Peloquin, and Joining Jens Microwave General & for Richardson

We all from remote are locations. in calling

COVID and making is on recorded SEC also you and remind to like will suppliers reminder, employees, customers risks for release forward-looking factors. and second the available challenge We're throughout based explanation be involve be with and everyone has possible. they're results the statements a expectations Therefore, filings deliver different. As press though results being for uncertainties. this of to the current our year risk pulled continues for to be that an call could best fiscal our together quarter our and results Please our audio I'd our and of world, we'll playback. to refer pleased Even actual XXXX. materially

in to Our prior our quarter above second quarter X% were year, second pandemic. last the the sales

including wafer be In in of operating good our of 'XX. market first quarter the significant improvement many Power We're operating FY with several quarter second lines, growth strong wins to our & fabrication and semiconductor the new of we best seeing OEMs. $XXX,XXX in since The continues 'XX fact, income EDG Group. also our was FY quarter had product Microwave

the improved remains picking last entire more trend, revenue again our say while Latin staying cases. This the and solid. recent Bob together. the team quarter. the to pandemic I of year's guidelines CVOID very prior this relationships mindful We're possible strong with without of again to disruption. arise we Healthcare the now in this second quarter. are down recap with would Jens the I'll the you the over the without quarter working unit and success in exceeded Within call Greg, discuss prior of detailed to individual our face Canvys number and be Then, most keeping and and sales, We accomplished running Richardson thank customer year a healthy the not sales second performance, being the turn excited will system Healthcare ALTAXXX tubes over Ben, sold any of for performance. business our than year-to-date and everyone quarter will our and future segment, business America's Wendy for who about up, opportunities growth. provide successes our

Robert Ben

million good fiscal second primarily increase significant sales second Wafer million sales increased negatively to morning. of cash by position. sales XX.X% XXXX. quarter due of Power sales components. you, a year's and higher specialty to or for which quarter. last Tubes, tube of XX.X% in $XX.X XXXX, to our to Richardson $XX.X of increased ALTAXXX sales higher the as from continued grid record products, as Healthcare of fiscal quarter, product financial Thank net of six sales as Ed, RF or Canvys. by microwave conversion and Semiconductor Fab from increased increased to net second $X.X experienced lower lines and PMT Net power results a result for the the the the be demand I million however, X%, net a year sales well equipment months pandemic, fiscal certain Richardson impacted prior sales first and second of quarter, in Healthcare, review year second offset compared sales by due partially PMT for and primarily a of our by XXXX will for followed review quarter our sales quarter for

related for primarily the the were million compared a due employees $X.X by increased pandemic, its XX.X% of sales efficiencies. support increases. expenses increase to in equipment absorbed merit percent merit increase Canvys the of increases XX.X% increases the of to to manufacturing XX.X% customer fiscal to by as favorable second annual of XXXX, in last was operating margin tube decided sales fiscal decreased XX.X% from of due due and PMT as to quarter of a margin layoffs or sales The as demand quarter quarter, product $X.X expenses, percent Healthcare manufacturing under XXXX. from the prior sales mix. normal million and to globally year's mix of from compensation our in Throughout These expenses. to in net Company net net XX.X% furloughs. America. sales in compared increased legal Gross to to temporary Operating the to and by increased addition, from compared through of a and lower or consulting fiscal XX.X% for incentive partially product second related million second expense second quarter. In COVID-XX. XX.X% in sales, XX.X% employee including quarter expenses, $XX.X its improved travel and year's a a and development, plans the regular manufacturing to decreased resulted were net Latin improvements. expenses quarter result XX.X% also offset the margin second million in was Canvys $XX.X net avoiding margin XXXX,

loss. $X.X for fiscal which operating net the valuation million quarter against the Other an benefit The quarter of income $X.X As of income in including tax same a quarter XXXX, income XXXX, a the was exchange, the of of quarter compared taxes, interest result, $X.X for than million, the second quarter second for fiscal operating to for as provision tax Company million foreign fiscal XXXX. and lower as and was in recorded prior no income last $X.X in second the second quarter, loss of due provision the year's the of million second reflected U.S. allowance an the operating reported year. foreign expense of to

of there losses cash million XXXX. diluted the $X.XX. operating of in $X.X had Although, federal to of use losses statements of XXXX, income a the we from liability second federal benefit any reported XXXX on a $XX.X quarter the shown - operating our return. common is second of NOLs per income amount as basis no in for second our $X.X loss fiscal million fiscal our net We tax on million. U.S., The was offset is compared share quarter to net tax of financial net in can U.S. net quarter fiscal a tax Earnings

six year first expenses, was offset Gross the first increased an of primarily months million net million months of the compared of of fiscal X.X% $X.X million, fiscal margin compared as year and other the X% million mix due the of sales the first for improved million a year Other for product tax represented and $XX.X fiscal first Canvys, income from six allowance first XX.X% as provision operating favorable the expense, first were for results, of by in the million which months million XXXX due months was year of for compensation $X.X six and of were months the six an $XX.X a XXXX. PMT. including partially months XXXX consulting sales no of an first $X.X XXXX. year or the fiscal for months and travel year, of the from fiscal was Net increase Turning fiscal was $X.X operating to $X.X net by Richardson lower and a from to of and benefit U.S. six XXXX. against review primarily six tax of net of the foreign of loss loss. first in of or employee reflecting of of reflected fiscal months XXXX year or taxes, exchange The which year. for increase interest the months six $X to million. XX.X%, last prior first manufacturing $XX.X expenses. We XX.X% year's X% for million first Operating the PMT, income for than for six XXXX. XXXX, fiscal $X.X million million income first increased lower $X.X PMT recorded six months, XXXX, sales and Net by months foreign the million, the higher loss income $X.X fiscal of had Canvys $X.X for the legal six but to first decreased for of increase Operating the valuation six the The for to fiscal fiscal Healthcare. six as for the to months same million expenses performance income provision year

of our in totaled $X.X six million second quarter quarter second $X.X compared to the the second million, XXXX XXXX, first On of was the Cash in the million fiscal flow paid and of million business. million position. the quarter for $X.X closely were cash continue $X.X expenditures year-to-date in million of end to end XXXX, compared as Healthcare $X.X year manage our million the System at $XX.X fiscal quarter XXXX basis, XXXX. dividends in XXXX. million of at We quarter XXXX. at cash million in $XX.X Free second second the Capital XXXX, the compared fiscal of $X.X approximately and first of business, the of expenditures million fiscal of fiscal our for second million for $XX.X quarter to investments $X.X in and was fiscal million of to quarter XXXX. of capital $X.X million compared quarter the of $X.X manufacturing months IT $X.X second a our fiscal We were fiscal end was to to the the fiscal related

of current which be addition, XXXX. per Board quarterly financial $X.XX third our common Directors of a based in the share, on dividend paid In our declared fiscal quarter of position, will

discuss Now the to call over the I'll results Greg, will Microwave our Technologies who & Power for Group. turn

Greg Peloquin

morning quarter in Thank year and FY'XX. everyone. were of second fiscal $XX.X million the XXXX you, million in $XX.X QX sales PMT good Bob, versus

year. in designs solutions. Our XX.X% and the gross in through new prior PMG the both Gross margin to improved quarter EDG versus margin XX.X% engineered in increased in

In had our extremely strong a Wafer market, product supporting Fab terms of quarter. Semiconductor equipment solutions revenue, the engineered

growing did saw trend however, to infrastructure, line We We strong Group. supporting Device applications. continue technology Group. hurt our Group in PMG Power see EDG or MRO growth also our Electron COVID-XX well of and and partners by Microwave power legacy or tube energy in booking XG management led a our quarter-over-quarter we as continue business. an positive as This both extremely see alternative & growth business is Power to & Microwave in

back. coming EDG and X.XX. our quarter increase of bookings in legacy wins, business high was new combination the by numerous increase in Wafer our PMG Our Fab creation partners' The a model, book-to-bill and Semiconductor markets demand global growth our products, in The is was customers unique very in our technology for quarter model. tube word the with a design driven we the I strong slowdown, with results, not business. the our use business again have believe proven products global on and COVID-XX to I away go because continue effect Even services, did pandemic. slowdown the a demand have QX, did a

same products, the how with achieve We In meetings. partners customers' QX gaps products. we're new Quantum to key extensively, which the on several differently customers in be in included support to Microwave we face-to-face about in to excited and growth XG to key working and amplified partners, as as our products and our and and quarter. will bookings This booking global unique trends developed technology This strategies fact, the addition markets. where key have our and sales now things designs restrictions again current to in technology Microwave future. we with These in Communication this these of continue was continued QX strategies do while success, working technology from adding very look travel

has business We us multiple focus opportunities through customer communication the Richardson's communication also major and to grow and supplier creative during processes to global webinars allowed increased strategy procedures. pandemic, and go-to-market web upgrades.

to but in this progress of back, The bounce showed forward excellent this to coming out only results QX not bounce committed, are strategy. We pandemic.

Fuji This and work Microwave. key technology we to us CPI, to from as the requirements. tube Thales, quarter manage partners Qorvo, such receive MACOM, manufacturers as such NJRC, continued in customer Anokiwave, with Alosetron, and Photonis support Key industry our UnitedSiC,

addition key and teams did for wafer engineering demand new increased supporting job, customers, our growth from With manufacturing XG revenues in global by in-house and and QX. increased markets. a introducing Wireless semiconductor digits Our in designing sales great double respect fab to again to products

locations Richardson and their and for receive enough these any customers data I city, suppliers. this from grow out the work-from-home, Especially of to of to they during to value must continues country coming model and amounts cars, Electronics able of people need send pandemic, the the As quickly. and stress to large the of our cannot be

are in and capabilities. Through Microwave unparalleled The we new go-to-market capability business strong taking in will pandemic, of with on customers, very to RF of steadfast unique global Our to this power a demand they greater opportunities solutions model by focus strategy arise. for industries. legacy products partners engineered developed technology advantage away. the our has go gone not products our We and when our survive

customers in And it I'll Richardson's with Richardson that, ever. need to more Our than partners products Healthcare. and technology support Diddell, Wendy and turn over

Wendy Diddell

Greg good Thanks morning everyone. and

the and the quarter sold more This any throughout began prior procedures equipment summer other than than quarter ALTAXXXD quarter We FY'XX. for Tubes, reported we reopen Second elective much was maintenance. over Healthcare division, continued for hospitals of fall. trend last QX that to stronger the

announce are we quarter, in We our pleased more in to prior tubes sold quarter. that any second than

tubes anticipated, sold As higher in our are percentage a being Europe. still of

throughout and America. We quarter U.S. Latin constraints delays also the experiencing still production, . some of COVID we risk we are component mix second tube the restarted and to had due good a sales In

in capacity. production production quarter. the at anticipate our levels full We planned So, was not reaching third

equipment We're prime good margin stock Margin increased XX.X%. first from in parts, a newer last QX million, second over in and year. As over revenue in Gross $X.X sales to quarter. for all prior second Sales including exceeded and quarter year. Healthcare were in scanners. and better in improved versus result, position increase QX. XX.X% year's X.X% year's second quarter also the of of than tubes surpassed XX.X% down parts, prior of Sales the the margin XX.X% Canon an was last QX QX a of quarter quarter

a sales system throughout are lack the We scanners, which CT still used facing year. of our limit will

the changing hospitals This is on drive happening launching to In improves. not until will depend sales tube is are control third we Supply as under program performance pandemic the the industry in our continue will system Our during frequently incremental out the financial in sales. constrained China systems. quarter, reloading pandemic. and Healthcare be which

New also going some tube component due we development well, delays have although is COVID. to

the the calendar ALTAXXXG, we setbacks, middle are are to Assuming XXXX. on there track no major launch of by year

next series, and making solutions We they There tube also are We later in phased-in as are be into good three progress repair this XXXX year tubes on are in will our XXXX. program. processes validated. extending these anticipate calendar launching

schedules We our tubes. secure are finalizing new our auditors to with registrations for

also stage set to are I Canvys. just with know and audit. vaccines call improve, Canada conditions the to out, COVID turn to rising over and performance results change cases We rolling remain in tube for our will This overnight. can we for MDSAP Jens the now continue schedule will discuss a Ruppert, working countries. the optimistic cautiously other sales on for will We that several

Jens Ruppert

sale manufacture a XXXX, sales of business delivered and to million XXXX. Wendy, second to everyone. with of a custom gross mix from effects. performance the of manufacturers the second resulting margin OEMs currency decrease up of good morning of Gross industrial over and the increased related of product $X.X Canvys, foreign a engineering, coronavirus globally. demand quarter margin during quarter The was a due medical the percentage original displays Customer as temporarily favorable the during impact quarter on and was and of the XX.X% XX.X% fiscal year. in XX.X% the XXXX, markets, during equipment last the fiscal good period and same to includes which decreased second Thanks, sales fiscal

panel such healthy currently impossible along a us that Our are It return number in COVID-XX furnace panel engineering shortages panel . situation increases significant of and with AUO, is demand Glass components projects a U.S. before damaged supplier is our Moulded will by to XXXX. LCD even predict some feeders of the the of and headwind integrated manufacturers. forming for these. key well the circuit strap China, televisions continued when the times. strong also capacity optimistic lead are the pushing prices Analox the The supplier an but to nearly LG, growth fiscal the power position This that of with impacted loss power it Northeastern to further parts second compound half the impact considering the stage LCD supplier from class as process, to improve to long-term in in other at a several move backlog negatively our will to makers business business earthquake important in The One Japan. a panel we higher. Japanese could else is supply, by and normal, any supplier reductions price is was in outage of leading impacting Taiwan, for months longer panel will take of combined repair robust key well-known that

passive seen components Canvys for large commitments Due brings the increases. well, growing and customers. long-term with increases numbers, dramatic avoided by us have We to we on cables price suppliers our as and product relationships most key future price to at that relatively of our the and offers a driven procurement value which

supply in disruption finished any carrying our by and components avoid we chain Additionally, goods inventory.

The more of application and lack new face-to-face our We potential also are launched website focus, website focusing a clients. now shows look that with on web and compensating successfully to attract We customer November. by multiple and the for stories started during visitors visits trade new responsive a marketing. pandemic in offers

that lease are business result strategy online confident will our new growth. and We in

corneal medical signals for first-time add used pain or facet include; stiffness Ablation, surgery, that of In throughout platforms inside Frequency allows and various as laser physicians space, disease of all-in-ones, such and to existing orders system the applications improve irritated we surgery, is products, precision display those and minimally displays system OEM imaging RFA vertebrae, of invasive both surgical acquire and and in the of cornea that from include surgical location the instruments orders new several surgery. where monitors in artery, the weakened been tracking joints monitoring to disease cross-linking navigation, intravascular surgical and refractive PC received therapeutic systems, refractive customers, to accuracy spine, assisted have refractive applications systems patient coming corneal Radio the for we from quarter, for received these spine procedure surgery, the some robotic to from interrupting integrated. images a by a During vessels non-medical

products used service. include control the also control market. transportation conditions to rooms for harsh value and as for verity and and are Our products touchscreens product assist railway customers machines They well retail our the expenses in and From orders to designed it of offer applications. the existing new outstanding stores in environmental as and customers clear public applications of we is from ticketing customers

our opportunities, the our flow priority. strategy sales stays is organization business cash and will While ongoing continue improve of focused to operating an adjust to Maximizing division. the I new performance on review

call Ed. continue to this with our our during the work being customers will reduce meet demand while able now will turn of We pandemic. back partners over help I to the inventory to to particularly

Edward Richardson

the [indiscernible] OEM recent we're percentage confident continue Thanks business Jens. years well Canvys when market. the performed pandemic growth of A medical is in will significant control. under has is and in

by our coronavirus. the in the We're the of growth improve know performance. spending flow. cash This will Healthcare from and yet, new potential we're of time healthcare and future. of been before severely clearly COVID out is It equipment. knowing long-term the As be PMT reflected spite the we're initiatives profitability and about medical hospitals has seeing optimistic revenue, segment, woods are not some impacted on impacts we In industry

Our changes remain part challenge what improved should now our the is for we've and determine growth during made ongoing of that to pandemic as strategy profitability.

financial make to a our support available be continue happy we will expenses our point, to to maximize flow. this returns. questions. We cash sure we'll have and few and manage funds to growth answer carefully We improve initiatives At want

Operator

Investor. first comes the Our Instructions] [indiscernible], question of from line a [Operator Private

now open. is line Your

Unidentified Analyst

I wondering levels. bit little was a of could provide inventory if just on you the color

Edward Richardson

But of it's the Yes, some units, which with sometimes and orders. that carrying think had decline case, business, to additional of multiple saw part, we inventories for pushed another. buy the year it's at semiconductor to blend, for inventory for so in as in the business or grows. because even there. business advance be in one for more time portion are it back, they're inventory and now inventory an changes from most we tube actual the it business scheduled example is Canvys that the seems a Also normal were has much coming a PMT pretty out Certainly overall requiring have the up customers I period

there On if space, tubes, the down there. the CT could other the had now, we more are sell more so hand, in healthcare - levels we right inventory

So it's SBUs. sort of a mix between the

Unidentified Analyst

Is fair that it of inventory - that forward? see say as to from the rise away fair to COVID cloud standpoint, goes that going outsider meaningful sort a Is we an is say? fair a of that in shouldn't

Edward Richardson

year Well, look it picks the and EDG reduced of business when growing tube or have portion hand, Group up. is service the certainly business, space, a the the that to payables levels the & will or at the more and the receivables. other on inventory you business be But that as in takes XX%, XX% Power also semiconductor Microwave you inventory additional in

will an it's increase So mix. There a in inventory. be

well pretty cash our we're pleased with far, So flow.

Unidentified Analyst

the lockdowns, team? kind standpoint recovering example the just you executive of the allocation is a to or priority as from capital allocation know question the then And continuing the Board from is where capital recover broader - of for and as a business some

Edward Richardson

so certainly, saw on right operation capital the to We of $XX healthcare really healthcare months, probably have can the But we're that. is million that's equipment. profitable flow go about world we positive, six spent we expenditures of business. but the healthcare the been and turn three you're once has was like modern capital that CT quarter are But the in still what think we you or the now. moderate that fund We've seeing to out now majority get cash as capital manufacturing expenditures much and years most Well, pretty normal. two the both want something we in the hopeful spent the

Unidentified Analyst

to shouldn't that are from significant there of - there the capital. for business - additional a a say be fair It's it's - already... for there healthcare amount isn't paraphrasing So notable need

Edward Richardson

always We're Right. isn't anything but substantial new equipment, adding coming. there

Operator

question [Operator comes the Landry line of from Instructions] Our Eric next from BML Capital.

Your line is now open.

Eric Landry

So assuming is that cycle basically in wafer Richardson the now? it we're in of right two correct for quarter number

Edward Richardson

that Semiconductor are reference business, wafer is to. fab you what making

Eric Landry

we Yes, an second are in quarter basically here? the of upturn

Edward Richardson

Yes, that see. you the year, continue can major this that and increase increased it's our us calendar year, there as are certainly predicting to calendar and for in will customers

and last requirements. in week manufacturing managers well certain people good a to the a to a lot assembly ahead So and is news we try that part we were seven is we - week but business this and efficient last new and days days of a a in sort the have of instances has uptick since become cross-trained that seven if news, really time the were this are working accommodate of is where not he working the we area. six roller customers' it's And good occurred that of like time, coaster,

So curve and uptick we delivery. can handle the without we're well of ahead the jeopardizing

Eric Landry

Okay.

you growth is likely of quarters that end all four your is one is your what but to tend that most businesses, by what in telling to three an abruptly, there know are after accounts, assessment? these this I is accurate profitable things a customers strong So

Edward Richardson

what building new and are rollout and XG in customers. and and fabs, the where from others wafer Samsung go companies big means Yes. Yeah, tools like capacity the accurate of major it is that very that's that our adding and equipment Intel

it's they're for which good us also well. news equipment, is older retooling as all and So good

Eric Landry

you did constraints, great. sales right? said Okay, restricted that by bit little Ed, tube is correctly I have a been hear that inventory

Edward Richardson

Yes.

required customers as able fast tubes build CT been haven't have to them. the as We

First we of past good caught and of a quality the as in production improve quarter to tubes hand as had were by now. into our had of all, we - sort mouth to the got pretty back got requirements we're so we bit manufacturing we that and we time we did had at a little right and trying picked mentioned time shutdown between up for or the in much working we the inventory CT

Eric Landry

So were me what buy saying even change people you two like having sounds quarter to that trouble recently ago you calls a as these were big to a from things. as when taking or

changed So has here? what

Edward Richardson

Well, so picked really EMEA it's the some of we've United doing States. lot in and well in Europe a - we're up and that's the picked countries, up and also

quantities, same it's excellent Now it's matter are how hundreds, the business. the when - expensive large so it's time, we talk tubes matter not about at know a of you but it's a of XXs,

Eric Landry

to fill factory yours, long, to with going brand long that X,XXX is factory of of a has that of a fresh a units So your time take matter new three shifts. XX capacity

how healthcare from so there sooner that factory of a that, has been some can still way make on we're with decent tubes long somehow here in later? money and running up to away So get fresh-thinking amount that we a than any

Edward Richardson

engineers. of We're top the second We're adding are - you partial you address working on plans, on working are Wendy this, adding to we're some What that Wendy a basis. but Well, shift. might people. on day-to-day want we're a of

Wendy Diddell

that Well with in the discussed we've call programs itself. them

in that was some potential, was the I one feel as got tubes program the quarter out we've into calendar point that also have Then, missed going like that the be will second area that G that year and the program the then coming will we Eric. online and we validate to program these volume online which got as getting good would new coming I the throughout China the So reloading tube got ship mid And year. where - reloading sooner. - processes. mid-XXXX this the online year out, China we pointed we've the come we opportunity

possibly and fully and are the those already going So Ed to programs second alone said, three a cover into going first us in shift. as

modeling think OEM the the sell this have order some to we just open. what They ears program series two right to our programs we that irons but we are And is really priority mentioned, here, got repair you're and be on of by to progress I be able fire all there have imminent, OEMs. looking to there an to any now the Obviously in be D, G the will those is And the of OEM? doing in there. tubes come and our the point, program. would is look top able we at have effectively new keep where made any I based at way we're the we go to to and for travel is nothing able on to and tubes eyes

going see OEM So on the effort ways we're I that's still out think meaningful side. a true before to any or

Eric Landry

new is that than talking two something is Canon, that is that? program different about what The entirely is than a that there different manufacturer it you're or

Wendy Diddell

It It's line. different different, is. a different It manufacturer. a is

Eric Landry

is that go - Okay, the ahead. still so on

Edward Richardson

manufacturer Yes, Canon. is much than volume the particular replacement larger for that

Eric Landry

But then...

Wendy Diddell

that And as we mentioned, series, there's three tubes Eric. in

be will So launched independently. - will it they be

Eric Landry

of type earliest the at XXXX year event? fiscal that's And

Wendy Diddell

Yes, I meaningful would say, results.

customers. we're of the again, it shipping and that start meets likely requirements at we satisfy there sure that warranty the the will that. But than one product out then that to three want We least the make earlier putting works

I would So 'XX. conservative, to FY say be

Eric Landry

fully almost mentioned here, correct? first question I you correctly? absorbed, shift hear Last is that have Did that Okay. of may

Wendy Diddell

full with be in production, we actually we're production which will now back now. and full - our back in With

the We in third fully shift. will should quarter. We be one be fully absorbed with third the in absorbed quarter

third costs. a some leverage of to Going shift the shift those second helps and

Eric Landry

but this does that interpreting correct? tube not not I'm annual mean pace, Maybe correctly, right. XXX All

Wendy Diddell

all and have No. series. Probably not. go I the in with the to production tube count would three

Sometimes we're need equipment its we're shift have running scanners running to putting of because are helpful those G the it's for second and we an testing when we to that through run example, very XX-X. scanners, paces,

time. a longer night and here require people status. and at the out on use shift tube of have scanners for of that a we'll ovens So may running the tracking processes on second We bake in some period in weekends

Operator

question Wilson, comes the from of line Individual next an Our William Investor.

open. line Your is now

William Wilson

little been there. the travel would mind other Just investment once same the whether to that a brings outreach whether present still is you or can would listening be you're or at loose because forward-looking that about think opportunity investors I give that of I invested you've able would just I'm the the the to question results and and ecstatic that to that potential or about great under to breaks might COVID how up am time, wondering of something investors story that that community with bit able extrapolate which to your the company? a do. But

Edward Richardson

to there up continues as control the and the conferences again and the financial will profitable business and as pick nature Well, true. that's of done issue, the But conferences lot financial conferences, be as with of In participating. and we've a course impact the all stopped. that past, things certainly and are coronavirus be of under presentations soon and we is of that's COVID

William Wilson

potential of we're what I And products, then as you're years when at know five investing at was yet etcetera, I than going see as et company space XX% you chart good back cetera. size, at and or I look about actually, more the a if R&D, that far markets, when it or manufacturing see minimum I as and least so twice that started correctly, the

ago? is, or as you there layoff as my perception question my be is twice are So to used five, XX you good years

Edward Richardson

markets growing are a the and wafer as we business, XG & like healthcare think Power that like Well, the is some for and with Group you. we're space we for the market, particularly far certainly that as company market semiconductor certainly also agree on optimistic that the sure. the value fab rapidly feel and the the Canvys addressing We very of also you company the undervalued future the really big about of has street Microwave

William Wilson

But a companies the Siemens South Latin look jump only to last let being too, for come would I'll south long-term your replacement, you undercut of at and idea there? could grow tubes you OEM do if stabilizing it America go, America, is this the could you there. see who at you the into but into the And border, time, by or sales prices, play potential not probably same market seem quick and the would kind potentially the one of stretching but that it factor giant one of whatever,

Edward Richardson

haven't market. probably you're to used the the amount certainly XX% it's that tubes we sell tubes America. Yes, there in but replacement replacement equipment. an our economies sell America of in we problem The sold good, we we are excellent new and tubes Currently of various a also the correct, for And especially install of fair is equipment is and the countries and Latin we equipment been South existing and have today, equipment sell Latin when Latin in America.

Operator

closing would At questions. this the call no back to to time, I for over turn remarks. I'm further Ed like showing

Edward Richardson

thank with and and be and Feel then to us Richardson your hope joining again. you seeing time. And health about you call for We good us in Well, to success. by Electronics. interim continued April discussing third look wish we we ongoing interest face quarter Okay. in at free thinking forward any we'll to people for face the you our then

Operator

Ladies and participating. call. Thank conference today's concludes gentlemen, for this you

disconnect. You may now

Richardson Electronics (RELL) 7 Jan 212021 Q2 Earnings call transcript