RELL - Earnings call transcript Q1 2023 | Richardson Electronics, Ltd.

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Operator

Good day and thank you for standing by. Welcome to the Richardson Electronics Earnings Call for the First Quarter of Fiscal Year 2023 Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. to Richardson. conference like speaker to now Ed today, would hand over the your I

Ed Richardson

And to morning. quarter Good welcome of the call fiscal first for year XXXX. Richardson Electronics' conference

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

market XXXX. off, will the This in and is recorded we expectations to to growth great continue factors. Energy start or they pursuing of and we could the call making available this playback. year. a of actual Therefore, I quarter and in year. of Green new reporting Solutions SEC materially We're uncertainties. for like on be release fiscal over and statements, results were be revenue a our we reminder, our with all quarter QX also we're an for remind a As drive in current as GES. quarter, that extremely explanation being pay risks initiatives are based performance on Please forward-looking focus a will will strong involve was would Sales refer exciting pleased long-term our growth. that sequential in risk opportunities you be different. believe our as filings first to press up consecutive fiscal last our Beginning business new and to units growth segment, our Investments ninth our of

sustainable has to a solutions develop that engineering manufacturing the and healthier several in Over invested years, Electronics support last Richardson environment. resources

reported allocation batteries methane them growth Ben, provider continue the As Chief vehicles as the call acid developing million and review environments. or earth. we it solutions sales turn of we to I'll help company that Officer, we stations. in and initiatives. multiple and our to was Sales the wind, products We to from more energy, leading produce mines the the Greg, we sales our XXXX. companies people from company, Green in used the detail. been PMT business in EDG from Microwave to green will solutions. is shared Financial PMT ones performance an global excited grow on $XXX carefully Wendy new does and to believe a reviewed Power which business applications more noting our by sell the problems. and as customers replace as strip other growing product source sales well. working and energy EV, unit fuel magnetrons increase Today separate alongside Jens were want and diamonds, to offer will other Rest of customers lead them, solutions resource green the manufacturer to components XX-year assured, decided Group among With Technologies nearly synthetic Then electric Energy marketing financial & leading provide in sales quarter trend who With such and still not in including In that hydrogen Solutions Through engineered previously detail we've charging total also in We're future. solve a purposes. key will who the focus used increasing including patented listen fuel, come industry customers time critical of locomotives, infrastructure about a our confident and and these for and in reporting are strongly. or first that, our our backlog, profits and history teams, significantly and With PMG growing fossil solutions, We're buy customers, We that refuse. over a want never to that quarter, more damage from PMT. sell we provide and replace Bob

Robert Ben

or and prior four XX.X%, XXX.X% results I green year by morning, effects, of and to $X.X from expense. Net a our decreased fiscal from operating sales will Other higher sales year's of applications. year's the the products fiscal to sales versus Operating $X.X $XX.X income Thank by for manufacture million wafer quarter, for year's first or demand to sales Canvys first XX.X% Operating scrap fiscal and for over you, the the first expenses million orders manufacturing fiscal income new of exchange, million quarter review XX%, for expenses to customers. in including backlog million as quarter last sales of our power in $X.X quarter. of review primarily compared first last gross manufacturing America. Total Energy increased from million, on in $XX.X sales, all net in good net of sales for in operating or partially increased X.X% income from $X was for because our $X.X products quarter and XXXX during $X.X less was Ed first XX.X% or fiscal first XXXX. sales GES reported interest for due last to our in quarter fiscal quarter the first income to XX.X% employee due prior expense increased higher by of the Canvys, sales first unit. experienced of sales a XXXX, quarter decline first including alternative percentage margin quarter $X.X to in quarter at technology net of XX.X% XXXX, margin our XXXX. were increased fiscal the of million in the share manufactured for solutions by XXXX. million XXXX quarter year. XX.X% key XXXX, $X increased Net first of in mix first fiscal improved first the $X.X million net and storage sales higher tax the common quarter company of expenses sequential foreign fiscal the during first months. to financial to the across first other quarter million at GES XXXX the of company energy federal to position. end the of of XX.X%, the $X.X or margin income. components than GES million strong operating last in of in net Gross XXXX. the the the quarter Earnings increases tax from engineered to year's X.X% while for XXXX net fiscal compared for or fiscal absorption to increased from versus from the The XX.X% million product first to gross first of decreased XX.X% of $XXX.X for were of units and was Net foreign first million including a mix basis XX.X% prior fiscal million, per offset first $X.X efficiencies. segment the in of in of Income XX.X% and compared product fiscal for of end of quarter million, of first significant XXXX, or new first fabrication and margin diluted quarter compared $X.X fiscal expenses compared XXXX. Richardson market combines PMT and was XX.X% per year's quarter. the our NOLs Green $X.XX XXXX to business expense increased rate as incentive due to and or the decreased a $XX.X compared or compared to net PMT's prior to exchange net the Solutions primarily all $XX.X North $XXX.X equipment due XX.X%, The XX.X% our first significantly XX.X% expenses, was driven to due quarter. expenses quarter first cash of common lines. first sales the million to million design margin improved X.X% growth XX.X% was income quarter sales followed a share XXXX, of Canvys business management due the quarter year's XXXX, customer in XX% fiscal the semiconductor business in partners effective capabilities net was versus XXXX million, a were of fiscal first XXXX. net last quarter, resulted basis year-over-year Healthcare's $XXX.X the product growing use of strong XX first to operating Healthcare quarter fiscal of units, compared year's million quarter, increase across on fiscal growth compensation million quarter due fast higher for our $X.XX, The we in diluted sales in to the

increased the continues both invest end million due and million of the of working $XX.X end due XXXX. expect and working PMT first review portion the which million, receivable to completed components fiscal in end $XX.X capital of Accounts of end at to fiscal was at largest The from position. to XXXX the Cash Inventory the we process $XX.X the of the growth first XXXX businesses, to $XX.X XXXX, grew fiscal fiscal the support million of million will fiscal first quarter fiscal the at The end the quarter be high a increases of quarter $XX.X to and $XX.X consumed our growth. mostly at sales by of investments to to for million Moving end the XXXX. at in to initiatives. million of quarter of cash were for $XX.X compared and company GES third from the increase of its our XXXX.

first Approximately investments healthcare days, the the first were system, Our IT $X.X $X.X quarter for of XXXX, XXXX. our in million $X.X million the $X.X million for of XXXX. expenditures $X.X and in $X.X million fiscal XX related DSO in year the was in million business. facilities, same for Capital fourth our to fiscal million manufacturing, as versus quarter our fiscal quarter

dividends investments We continue a manufacturing of additional FY first $X.X in as capabilities XXXX, higher make million the our We cash in we in and paid facility, quarter. level in to expect expenditures capital

quarter second In addition, share, dividend the a which per regular quarterly of our board be XXXX. declared based on directors fiscal common of position, $X.XX our current paid will cash financial of in

turn will the who & to I Now, results Green technologies discuss Greg, Solutions for Groups. our Power Energy the Microwave will call over and

Greg Peloquin

XX.X% another Thank And everyone. PMT year. with you, Bob. had excellent good prior over growth morning, quarter

such activity, to provide or growth, Our the on and on attributed careful Energy the strategic QX, million, Solutions This business green and were PMT We moved enhance consistently power Revenues transferred improved being allow of product wind locomotives exceptional review million unit captured as $X.X storage. both from in products execution the energy, million we apply segments vehicles synthetic of sales business to customer based ULTRAXXXX, applications in new new from and $X.X and numerous energy are for successful top-line profitability sales using this to our business. as and capitalize last and continues Green a substantial diamond solutions have us electric versus modules, use. of GES energy GES management resources formed strategic in generate manufacturing. for year. products FY'XX will electric $XX.X GES growth such expedite PMT and demand products battery focus locomotive growth. with and customers. a unit With to unit, QX strategic this backlog, and To

These small success. engineers our Focusing are our launches the We're line our on rapidly is examples market. of power various service management We energy long-term discharge of OEMs voltage shunt is to discussions and the a but green ways resistor turbine company present plan of energy several to wind with pending, critical and key patent team product products energy and energy Recent in several for identifying all aggressively device. our second in used products applications engineering us and new major customers help green is weekly to in our succeed the storage for FY'XX. announce expanding half in products applications. and products green currently

through driving demand engineering a technology leveraging key the markets partners, from infrastructure. these capitalizing see, on secular trends that combination As while that benefiting sophisticated of and power is our protect We're GES solutions global for our emerging segment you help large can new are solutions capabilities, the global successfully existing environment. management our

long-term by result, to GES a excited have I'm As segment. the the grow opportunities current and we

our at Group last the in Power year Looking XX.X% increased to business period million, of Technologies in fiscal PMT in or fiscal PMT million XXXX to & Microwave year. $XX.X same first detail. more compared the quarter $XX.X

PMT's to was X.X. sales addition quarter, book-to-bill a strong ratio In over

and Our sales strong be excellent growth, bookings indicate year. will backlog FY'XX another

billings Our growth gross also equipment profitable for our in increased an due extremely supported strong Both the in mainly to in in quarter. margin versus semiconductor bookings to achieved is more and strong quarter business. and quarter sales in wafer and year, EDG the XX.X% we the and which fabrication the PMG XX.X% our first mix prior quarter

Group had products. quarter find for our extremely or robust applications grow we market Our and Electron tube two as EDG, share to new Device continue

In to fab addition, we our had semiconductor record wafer shipments customers.

excellent our or had & Microwaves also growth Group PMG. in Power We

Over energy wireless, the management to growth and and years, the management applications. new power that storage we've targeting partners technology This programs added high and includes dedicated applications. RF, new a power products

us has an excellent globally. with who identifying team partners entire job done niche technology Our collaborated

our Our and by CPI, to offering we key as partners Fuji Thales, engineered partners our solutions markets Qorvo, AMOGREENTECH MACOM, technology manage NJRC, continue global strategy fill to in worked the with as will Materials, and these with tube industry, Wave, Nokia us along in gaps such Photonis continue is grow. manufacturers customer as our requirements. LS to Semiconductor, technology NISB, led such to Again, add

We business. continue experiencing resources to PMT to growth support invest in and we're the both in GES

engineers in we're technical our as design and field We manufacturing expertise. are expanding engineers capabilities

still overall profits supply demand Our new solutions. the and existing successful creation component chain. challenged growth semiconductor capitalizing This lead revenues both on affects long highly products, We by engineered in years and business strategy has and remain the resulting customers, over been our by infrastructure. times

We model are our we suppliers. enough customers the can with to support us Richardson and to closely value cannot and suppliers. customers' aggressively collaborate I allow of ensure and investing our in we that inventory Electronics' backlog, our needs, while both stress meet customers

Our growing unparalleled legacy developed microwave and go-to-market the model power energy with capabilities. creative when taking focus solutions and unique technology global market. new We've with capability and are management and Through they strong to on arise. we will in the the our fast industries customers, business including strategy our solutions products RF continue partners steadfast that excel well on engineered fit focus to by opportunities advantage of

products Our backlog support And ever. partners There's turn been to has of Richardson question no Electronics it to remained discuss strategy over strong, customers, Richardson better. and Diddell, technology that, never the our and than with in our Wendy I'll more Healthcare. execution

Wendy Diddell

Thanks, Greg. Good morning, everyone.

systems. tubes QX and the for XX.X% FY'XX. our fourth first sales steady Healthcare parts scrap. helped issues quarter improved year, lines, Margin over response all CT quarter product also and to our including versus of in of an were quarter. First reflecting were to margin recent Gross increase Sales higher last XX.X% for million, in in reduce from most credits production by QX was several faced we suppliers in XX.X% $X.X

of the quarter giving series, completed used is models. purchase it equipment number G Canon to newer or And us The gross higher second most for revenue This production in is America, the able don't systems launch of a to used constant. we Canon we with In is tube growth works where component it and opportunities also that issues. is margin possible beta, realize our suffer in our This of XXXX, of available improving, significant Latin May particularly ALTAXXX proof when on soft and is do CT tubes. second the scanner tube. systems we sell ALTA we're good

approach Our to adjust tube processes and strategic we continues ensure is solid market as performance can needed. production our

sell which Canada. We Europe the required are is CE waiting approval receive to tube in to G still and

growth As gradual. sales be a we will expect result,

are in Z, The and a MXP We on Tube MX, Repaired four base Siemens operating types to The considerably The a program. to Siemens no beta FY'XX. critical PXX. for QX a helped making goal will steady on in was progress in larger release follow overall Ruppert positive tube the sales MX for element a I is MX good discuss types. third-party and quarter. replacement Z site the later providing the This track is of to start results achieving FY'XX, program is company tube year Canon's including a to call Canvys. series will QX improve company options currently XXXX. to series by these XXXX. now calendar remain year testing, the and there Stratton Stratton the Siemens contribution profitability are the Jens in we which as percentage than tube the The to repaired install our Siemens of is calendar turn of over

Jens Ruppert

equipment Wendy manufactures Thanks, custom fiscal quarter first set record new everyone. and the first percentage was Strong displays sell The and Gross XXXX. and and of sales mix during quarterly America year. demand from margin the a the performance quarter driven to increase margin XXXX, period to the $XX.X same down for primarily during morning currency manufacturers sales of outstanding original drove fiscal in industrial in XXXX. quarter throughout as an foreign North related XX.X% Canvys the effects. in last delivered product engineers, of million was the Canvys markets a of sales decrease medical net first XX.X% with world. in over fiscal gross XX.X% customer good of and

into support XXXX to sales XXXX. expect we and through Our backlog remains strong healthy, fiscal which fiscal

are growth. in of the positioned well the engineering for currently projects continued stage, we Given number

negatively pressures. demand recessionary chain by expectations current no and not obstacles Our is supply impacted from assume impact

deal We extended Asian are our and specific our continue To hand custom this, our for during compensate customers. quarter. the our All inventory suppliers. from earmarked times selected to with monitors for on for is components lead increased inventory

So usage to to avoid and we customers us believe there's above supply disruptions. In hold minimal inventory some paying annual are cases, beyond the chain risks.

we from OEM existing medical customers. During the both and orders quarter, received several new first-time

treatment, and these surgery. surgical teleprompters, are at P inspection and industrial robotic for machine am interfaces a These machines world, non-medical Some navigation, the I of the industrial packaging are pulse In XD, printers, our TV products process of space, includes cardiac endovascular radiation surface their in used systems, and human world. refractive talent variety ablation, of monitors proud assisted exceptional the and surgery, or we teams include applications. operating applications commercial performance. And clocks used pleased with Metal so stations HMI around around and automation. our extremely imaging,

new customer relationships a growth. customers for backlog existing orders growing of future global and we and it the as From value of customers product outstanding and is local from strong Our applications as us customers, together position the and our offer clear well variety with service.

stays organization an and the profitability cash of improving sales on operating performance Canvys's on improving is flow new focused ongoing our division, focused priority. the opportunities, stay While I maximizing

call Ed. to work chain our by with supply the challenges closely the will brought of We the particularly now continue turn the our delays. back partners over with I to to customers, meet demand industrywide

Ed Richardson

the so of world. employees. fantastic conditions team new are record group Canvys. Thanks, well, Jens. on and Richardson credit Congratulations It's throughout nice you Electronics' the to quarter performing our economic The to see considering for businesses of all to goes particularly a the

make the our we As our success. culture because I'm reminded anniversary, company's employees XXth that uniquely celebrate positioned us and

our to through Up, and our Never As new efforts ability times. mentioned in our preserve Give double difficult I also it's book,

to to I performance manner, working company. be We're them. challenges. has operating timely of in done great FY solutions team working We're We're with to chain the Our couldn't supply off more the with start customers focused suppliers a and deliver a proud our that, our overcome in 'XX. and of just on

company will questions. we'll time, was At revenue few it's been never Our answer healthier. year-over-year a this strong, very profitability the be and to happy be

Operator

first Our comes with from Sidoti. Instructions] [Operator Soderstrom Anja question

is open. now line Your

Anja Soderstrom

digging on the good new Hi. congratulations. and just segment. into Good my but the Thank within the Congratulations up quarter. you GES you I new, the want opportunities or for morning. to taking broke start questions not

So itself about wind GE in turbines well. opportunity million, your fit also right $XXX as in wind you're presentation, is the but to retrofitting capacitors turbine other those you talked

a So the larger could than lot opportunity be that.

Ed Richardson

owner GE success the Yes, NextEra, great and ULTRAXXXX Enel. Embro turbines. started top-three with operators wind of the original for was designed of Energy We

of We are the three testing that supplier different buying noticed are But it, exclusive inception our North owner have it. turbines XX now owner GE or operators North great in of in caught America. product operators and wind we America to those since it's the

to of So will the be of calls with before European which And we're now a manufacturers ULTRAXXXX we'll sometime testing -- [ph]. be year. site announcing contact developing the in in wind we multi-brand, the be them. used of them in in have addition version we'll QX of we weekly for be FY'XX And doing Siemens, we'll with are Senvion, Nordics, Suvion turbines beta end of our

be adding technology we're on And and we'll operators. continue the product for other improve turbines GE wind owner So same it. that other to

Anja Soderstrom

might you clarify, to it's that module you're the not but itself? modifying, capacitors Greg, want the

Greg Peloquin

and the cetera. technology communication for it's we Yeah, the supply, updating power capacitors board, capacitor and Mtron increasing a partnership But et the the capacitors. with improving LS have -- we're module,

Anja Soderstrom

you appreciate the of there out just locomotives, order with also just it's that market sort you And total you scratching the sort put And the opportunity thank addressable there? clarification. can Okay, electronic a And like around within have. about us number have talk then you of surface you're potential?

Robert Ben

wind turbines. to quarter. with owner what releases a to now We number four past have of GE you saw press that operator different products the the we're similar of in selling very Yeah,

the with So ULTRA ULTRAXXXX. started capacitor,

with are market. electric now into for We locomotives. the selling is designing and products strategy different same So the that

also management structures, the for locomotive. includes the iron they're about in which the the modules balance that, a is of the partner participating needed building three over our here. that to on going we the will in year. used biggest trains and with and building we'll one diesel equipment XX we're be that is years. current module, now, their producing be is also Caterpillar, right next on train design trains that today, forecasting sometime they super We're module fiscal working a battery So the the now And X,XXX be And ULTRA we're that in sorry, the of voltage design works lithium-phosphate We're for have building batteries ProgressRail, trains. the with starter or the manage Within ProgressRail QX will capacitor, this help about through them. QX

So with XX the our with years. to trains to we locomotives million being $XX million and just one over proximately, their that a next $XX forecast business this electric content three at look for the

Anja Soderstrom

them Okay. electronic about beyond with is the growing right, Caterpillar And partnership that talking you're locomotives? also the

Robert Ben

Right.

One and they're best you're about mentioned, design just than products coming their their Caterpillar that now I electric be ProgressRail, at opportunities all the to Anything other a locomotives we'll for sure. becoming is the in products company now but things locomotives, us with right for involved designing four a partner like for in future other Caterpillar other And products family. the designs. of for diesel the other within be for them announce there'll

Anja Soderstrom

that? then progressing from announcements around can base beta testing and been those you've expect [Indiscernible]. there stations, And of power some How of in terms the some with Okay. are doing what we

Ed Richardson

Yeah.

The generator. is lead product for cell testing we're it. bottom is the replacement of the acid going batteries well, tower generator, is the tweaking in a of So, used there every

get orders and the But goes. facilities. again, in QX, with still to and this for to their beta year. their ULTRAGENXXXX As QX production also We in testing hope we're the generators site build, critical site in partnership Medical of Northwestern Alpha

mountain we we're on The largest operator So far. America. started North the results with of in the so the owner ULTRAXXXX, happy top with

So far, in They're this in And again, production we results seen and terms than new with process. our orders what But of we've product support QX. happy probably good. introduction one our design. to is normal so or in get a sometime QX going hope the past

Anja Soderstrom

PMT. moving then you. And thank the to Okay, on

of wafer what there people the of In seeing terms of do customers? the the are you towards terms maybe that What demand? see fab, think in your you cycle? end we're with that And

Ed Richardson

slowed Well, down or [ph] us. hasn't with Land bookings their their forecast

growing they it that to And at told saw months. did XX year. rate to look we building seen over at the from consider haven't them. the pace They've we the inventory going same last and So continue last getting us much pretty as continue it at to growth they're

Anja Soderstrom

that should Okay, And we to ship then to How you. away, about of that it but backlog? declined? about you the we the that? inventory thank how says think Was backlog think trending? backlog the getting should Or do more

Ed Richardson

grew is [ph] to very the backlog PMT, slight the decline GSF specific again, Yeah, decline. mainly and Canvys actually -- slightly in The quarter. was

Anja Soderstrom

When that takes forward? how should gross you there. seems And also there, we and going then think margin Okay. like for and healthcare. moving it absorption have over to puts about better and the the the scrapping What are

Wendy Diddell

worked So, to the in is what quarter staying full advantage obviously, mentioned, I production. our in as

going first far forward, gross there we As things the margin quarter. pointed in as couple the that are out that benefited a

improved absorption There QX, the the some XX.X%. So X.X%. had margin then about scrap that And was again, the first X.X%. overall improved about the quarter benefit was and that in we by recoveries some margins from

had for basis things with et modeling that purposes any on challenge the I'd right mark. we around ongoing it cetera. an any yeah, again, tubes, if be would that on number the issues, that would still So component And -- keep XX% then issues

So in I range. would comfortable that feel

Anja Soderstrom

questions. back you. ask queue else and thank get I'll Okay, let someone into

Wendy Diddell

us Anja. thanks, anytime. Okay, Call

Anja Soderstrom

Thank you.

Operator

question Our question for by next comes ARS. with Taylor, our stand Ross from Please next

is now line open. Your

Ross Taylor

it you hope you. that Thank congratulations year a on was what quarter. on keep up pick and is up can And next to following My year. three as really blow way this the

Ed Richardson

have still million $XXX backlog. We

So we hope so.

Ross Taylor

well. hope as I so

that you have build from It should able think guys you here. looks be I to really like

do started in working of idea excited into kind you that the initially pretty regard with about initiate that would see other them see one or Siemens out the I'm of from existing you their With you wind So as manufacturers OEM announcement replacement how soon? we is products and the business, components of turbines, an replacement European that. well to as --

Ed Richardson

would lead that. be battery still does, it few what That's in it the of wind places a years. a batteries acid replacement batteries the the product only car lead Obviously like acid turbine. Yeah, this last

months. with every are and working fleet in it their builds We Siemens six India,

So they of for of rid in products. that's now, the focus our main and the batteries But love other get lead product turbines the to really is wind acid product.

Ross Taylor

would the factory or repair coming replacement on equipment? the to seeing type original with cycle initially, opposed as be we of But sales part the out of as a business ultracapacitor

Ed Richardson

be in Phase X. as opposed absolutely. make OEM it to discussions major the acid manufacturers yes, in lead field. the sale with And that batteries of an to Yep, are replacing would some That turbines definitely we're wind owner

Ross Taylor

Okay, that be would exciting.

the diesel trains move Is type the business, see it like It we deal at the would motors. modernize was Caterpillar efficiency improve starter to diesel, locomotive recently, electric on Pacific looks and the signed on part about fuel done $X in plus as locomotives. XXX on saw and what Looking of diesel Union you that on diesel billion deal. module of

Ed Richardson

diesel replace and Yes, mandate a the goal for take battery. current exactly the battery phosphate. a they, a acid reduce where that engines to design of that's we and their they or diesel with as on, we're their the existing And emissions working lead have lithium-ion and that either

part all that's all you manufacturers. program that read about yeah, So of that

Ross Taylor

to you diesel? talking U.S. electric the industry can't to seems quickly us interest, up of seem major do as And would electric XXXX build in to from seeing get on by without by emissions that really you activity are reasonably XXXX. locomotives. life ramped zero the then opposed see you or It many start Okay. the be coming And out to rails think locomotives? zero modifying it greater the of of When emissions about the

Ed Richardson

at think and I the if I have also and ProgressRail's with we weekly our look forecast, calls team team, team. business their engineering

to Because and look trains. People I of expedite a your of expediting building I won't product. XXX% is across XXXX. you're without now their see a the of large If greatly But lithium think electric ultracapacitors fleet forecast, emissions it's part electric going think end and right get end zero we're the at you to it's deadlines, of of used XXXX, board. going huge right, to emissions, in are their the to new at having understanding spike at a I the vehicles. getting the these

Ross Taylor

like. Yeah, It seems it does.

And Richardson right cusp would pretty pretty type the think, adds a be. substantial, would to $X So breakthrough that the that locomotive on be of on we're for you company, of for to this. fast. something That's the depending or really backlog major a obviously it million million I a

Ed Richardson

technology not What's battery interesting for and the XX Yeah, timing I technology lithium with been we've working better. over mean, be ultracapacitor years. the could is

And us. these that of applies information ProgressRail X, finding lot standard a talk product another probably we type and And insight to niche we definitely opportunity picked day, high everything's right of products will. X. they to that turbine, owner a guess, to really rollouts, Phase We another for time operator of a have or we and wind Phase head obviously, end we products X, have the solve And, shareholders. we don't I is lot a you now. But kind rollout Phase is we're ULTRAXXXX problem of a every really think standard XX received years, power well timing the focused this for company the internally So great company the build of what growth being our power is ability our start has if a on have and market customer's and most have. management the at the been is, of I to products. a bring and

Ross Taylor

with you're the of X equipment trucks Class the as to diesel types these from engines have for Cat ultracapacitors Do markets broader well? use like they on working earthmoving application engines, to products, everything the

Ed Richardson

can. and Yeah, down. goes And up it it

So iron the locomotives are electric phosphate using on actually ultracapacitors. using the of lithium turbine, batteries with the ULTRAXXXX they're wind

have is and technology manufacturers ulra two one largest medium Materials for and with larger cells, one Binatech in is We world LS with the number signed number partnerships the smaller cells. cap for then

the in application product. So power the we're batteries seeing of literally all management applications replacing

that -- charging it is very, with talking current yes, involved as lithium the and as market ultra charged or modules distances. just It energy to literally already going And all lithium is station kind The opportunities, storage. And to applications farms solar across country, cap, it's replacing And is We're we're highest a into support go that products. design freight get United about technology commuter So very next these people modules is, trains. goes a then drone even and and this they of strong. this as power, to the one go we to country, an locomotives, all other these things program going energy trains, containers storing capability unique a support just the big they have build and longer and going higher lighting, is district And in those is, and manufacturers, stations. ultracapacitor step as to we're forward. conversations. looking every wind of farms as we're ties States. in and talking charging largest up yeah, the and And is of with Wyoming battery and street across together, and grow at just superstructure for type the keep across the stopping

Ross Taylor

So first -- to keep in of write have up, idea of a if you going electric sequel. to all, this Ed's new the

Ed Richardson

just a story. do to I think Well, unique is, like neatest this. the thing I it's

if with an believe. the that booked in So as order this Metro. the with have announced batteries three read they you Chicago for book, know, walkie ProgressRail father radios, started a talkie. locomotives And mobile his talkie was company land you've electric I selling It

La metro Fox, the across here. the the from Illinois, actually train computer So corporate commuter in street stops our headquarters

phosphate built were electric here Fox, that Fox. lithium-ion superstructure locomotive be the later, XX Illinois. station, an There'll through Fox La La years in be using locomotive here at that will designed and batteries manufactured Richardson So the product, La going that

a but in put second. trip, it'll So his quite been unique to it's story that it's of kind a have a

Ross Taylor

His second book.

to regard -- with Now

Robert Ben

anniversary. The XXX year

Ross Taylor

Well, that. won't read be around I to

you're these, how idea that of But is looking clock, it problem a with lot the about You won't, you that's idea that resting you're is at we do of talking wind, jobs. about what that? storage, the talking around will, I what do what of energy XXX? products is, available have different the like So make solar a other and

Ed Richardson

green hike sites call Oil ABB Well, there's containers, for turbine, the that the that can it and larger, energy like wind the or store a this companies sell to solar use and products, in other in is conversations and much energy it farms is better. to and market, the both design announce all with That's they level and our market build ESS and is using that's the these energy can niche huge. ultracapacitors. storage And today. next energy systems but in find Fox, which a containers of yeah, billion-dollar energy to Shell need are store And we're we'll today price we're these energy be for manufactured modules, this when program energy lithium then But need I storage, going La energy, those the absolutely to to applications Yeah, here going the market. It's produce forward. designed will storage Illinois. looking and

Ross Taylor

where, story a getting been struggle. it's area I wanted But to one keeps just better. The to shift

of about a you're quarter the your that's idea the to healthcare at fiscal positive talking Looking XX? 'XX, space, getting by fourth of of contribution the kind

Wendy Diddell

correct. that's Yes,

Ross Taylor

we business that see million lost a steady about -- you move towards as ramp, do what year? that $X a last in And Okay.

Wendy Diddell

X. to closer Yes,

Ross Taylor

X. to Closer

should have these ordered questions. Okay, I

the but stuff bloody is, the at Yeah, So amazing. end. other good so ones were the

now we're looking losing this money business. this of of closer that is kind on kind X, at earning So which to basically, money you're

mean, you earnings? and being to the constant a loss kind probably faster can adds northwest plus, alone see see -- end are to that we loss? at getting So to $X.XX Or of the $X.XX going of looking move disappear I at add that rid of a period? that, that the it constant do

Wendy Diddell

speed to timeframe least breakeven even that in at operating providing start contribution. the we Ross, or which up is absolutely our goal is

made for The was first significant. If improvement line bottom really our be the first to quarter, the goal. towards to good would good, analyze we company quarter we were the progress the

So That is Z. the to in same those with quarter, absorb yeah, puts I into tool tubes, right to when going I think and starting be the can't going sales it'll but quarter-over-quarter, hopefully shipping another the two, product the in we're us Stratton every another first quarter of then production Siemens we our to on track. I will it'll factory, improve And and quarter say start bag, the margins. puts say that or fixed get be costs gradual. people's as next the we're the helps it

to a us, with that's Maybe able so I hang little So time-to-time, steady positive. everything show upward do looking from is And yes, we'll think, trend. a goal. our bouncy be but

Ross Taylor

know looking don't at a on being mean, be that my bad were it have I as that what over the some could that up model all at alone point just earnings think you from got or really analogy, for you you're how this years tells cautious considering a the really by And know this time, potentially But So talking that earnings launchpad to we've years last double that's going me we rockets company other sitting something next But that about lately. that they that's stuff as then year. shouldn't, years, you're gone really more easily drive timeframe. we're and -- conservative this off on. how on in or this here three where I I you're seems very you're might I two more XX% guide.

Robert Ben

about like seeing we're year. like certainly growth, under projecting And think or that. $XXX but promise the over two still million we'd next about not something this just revenue three perform, XX% and years. five And to for years, We're we in

look number like. breaking can you the five least line just you for imagine even, next at years looks year growth every If the healthcare what in at XX% bottom

Ross Taylor

exciting beyond story. it's Yeah, powerful. an It's say, as I really

Okay, congratulations enough go, setting say I'd others let up. way I've of monopolized thank but time. for I'll you your and this is the

Robert Ben

question. we're anytime your happy call answer to Well us

Wendy Diddell

Ross. Thanks,

Ross Taylor

forward Well, look to Thanks. Take guys. care, it.

Operator

no Richardson for questions to now Ed queue. am the turn conference the I in are showing remarks. would I closing [Operator Instructions] like to

Ed Richardson

what I it's the doing see support. obvious excited us. flat Thanks, teaching, you're and actually we Wendy? very a a any call us Well, We're appreciate call is give your the and come you that area, very future or it have if next week, about Chicago We're in organization Michelle. questions, so anytime we're

Wendy Diddell

It's on Tuesday.

Ed Richardson

tour starting in o'clock of come, any morning. And Tuesday, individual that's come in we're the of lunch. investors you invited On to the inviting where institutions factory Tuesday XX and and are to a a for

advance our discussing us forward so we anytime. Anyway, in January. fiscal well new look we've lunch for you to very as of Thanks So give got these us performance as notice quarter much. with Call some programs many make we you. sure second XXXX a

Operator

Today's participating. Thank for conference call. you

may You now disconnect.

Richardson Electronics (RELL) 6 Oct 222023 Q1 Earnings call transcript