RELL - Earnings call 1 2024 | Richardson Electronics, Ltd.

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Operator

Good day, and thank you for standing by. Welcome to Richardson Electronics Earnings Conference Call for the First Quarter of Fiscal Year 2024. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Edward Richardson, President and Chief Executive Officer. Please go ahead. Instructions] [Operator

Edward Richardson

welcome Fiscal Conference Year and First for Richardson of Quarter XXXX. to morning, Call Electronics the Good

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

for for recorded remind and would a explanation that our will Financial our available risks materially As is refer our China wafer be fiscal an the business. below reminder, forward-looking rates, I to call customer period and downturn especially challenging due to Solutions semiconductor XXXX rising and in different. could in for and based expectations to given regarding making Energy of recession the also the It be press market being like are our was our economy a our a results on the expectations you filings factors. new were interest first orders this economic we'll playback. risk uncertainties. Therefore, of of across that conditions, Green and the of concerns and release timing fab lagging results Please be statements actual current base. year quarter involve global SEC possibility

our anticipated, excellent QX from improved lower fiscal the margin were cost. managing job an gross team And sales did than While XXXX.

optimistic future. Our year profitable the challenges, in and been we've near-term core businesses remained about company prior and quarter. the EDG our display the more line in were Despite with never

improve long-term and remitted future strategy. downturn and in committed to in coming the quarters, our the we We to the market expect demand

in globally. the ourselves solve a expanding and do plan leader our them We green helping customers the over is deep this problems. customers XX,XXX focused as leveraging building name We're Our strategy we for listening energy by our have solutions. growth to with relationships technology lines, product on quickly

market at we in to bottom in interim address they're levels companies impacting growth in success our remain the years. We're that these focused XXXX however, sales steps solutions the of customers from technology easy from business on that supported timing growth always exceeds increasing growth products fab hear sales continue These addition, the the key the and strategies, well cycle. by the critical taking business to and project-based XXXX and anticipate partners The year in not manufacture. come calendar cycle. green In new as profitability as slowdown equipment percentage these our efficiency Much We of that past is the of the without semi areas. during of our we this over sales several other is predict. to energy higher improved semi

in discuss $XX sheet will our financial optimism balance million operating managing will the first turning of remains on units Wendy our Our future. for number company, focused with debt. the Jens including our Then programs significant expenses no Bob Ben, cash inventory cash, positive fiscal driving toward and Throughout and is year. flow next cash annual the strong everyone review Chief products, Financial quarter customers opportunities numerous Greg, Officer, and our our drive and within that performance. business new into

Robert Ben

decreased of XX.X% expense the the absorption. GES first first prior $XXX.X and the of manufacturing for XXXX XX.X% was million for XX.X%, existing a manufactured quarter, our Healthcare's $X.X our a It sales of by for in that the XX.X% fourth decreased down quarter primarily sales quarter. were $XX.X GES important million gross net quarter replacement products modules to margin the XX.X% is difficult first equipment. lower From due prior for wind sales due first parts gross predict. primarily last in XXXX, was demand ultracapacitor for decline margin the product review XXXX. fabrication by by year's the from of driven I last to semiconductor lower first or PMT XXXX demand decreased of for $XX.X first our decreased Healthcare XX.X%, project-based quarter to the fiscal quarter due increased or last quarter lead to cash the gross in compared in result XX.X% prior you, XX.X% results in to of prior Net for to and as versus mix sales to million. $XXX.X end fiscal is of year's to lower to sales of in mix Primarily of first first XXXX to year's to is from quarter at turbines. quarter. XX.X% the of or backlog sales Total year's margin first by $X.X first lower position. year's compared XX.X% under to the followed fiscal in Thank at of first sales of $X.X by margin million batteries of quarter sales of due wind first XXXX Canvys company from in margin in the note were $X.X the fiscal from review orders Canvys North XX.X% XX.X%. in XX.X% manufacturing in absorption. net financial Compared million quarter timing Gross to a quarter million often the quarter to end good XXXX first year's due year's quarter first of wafer primarily freight Ed, increased morning. turbines by to and our and million customer product down year the under customers. Net costs. quarter fiscal because primarily gross equipment will scrap acid quarter. PMT's decreased million in product or XX.X% America. Richardson X.X% and increased and fiscal of fiscal the of mix.

reported $XX.X fiscal in increase Operating for expenses, first company expenses operating million first XX.X% net salaries. from XXXX expenses fiscal million quarter operating sales the resulted compared $X.X compensation or The net operating quarter $XX.X first $X.X of first versus of or to of for income last the XXXX. primarily million quarter of higher fiscal The of of employee year. sales income in the X.X% million of XXXX in quarter were the of

XX.X% of and $X.X tax or XXXX. first the the $X.X of Income fiscal for $X.X foreign of quarter compared effective tax net million an including income fiscal XX.X% provision tax the the versus fiscal rate quarter XXXX $X.X was XXXX. for million XXXX. Net interest first compared was in quarter income for a or tax Other million was $X.X other quarter in to exchange expense fiscal of income to million of provision income income million of $X.X the first quarter XXXX of effective first rate fiscal of first million

Earnings to earnings per diluted the compared in fiscal share common $X.XX diluted common XXXX. of first per were $X.XX quarter of share

million $X.X our XXXX. first million of of at million a XXXX expenditures end expansion to fiscal space. investments of U.S. the $XX.X Capital XXXX. quarter of our fiscal of were We million and quarter office the $X.X of fourth quarter the of investments fiscal first Moving the fiscal the first related $X.X the first fiscal first to of year year XXXX. end end of million were $X.X fourth quarter in quarter compared manufacturing of the review of XXXX. Approximately renovation the million million in XXXX to cash and quarter investments facility cash the in at versus fiscal cash $X.X and fiscal the end were at $XX.X million in Cash the paid dividends XXXX $X.X of at versus of in including quarter position. the

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

the of line had fiscal of credit made the quarter on of its any not Bank. draws As million end PNC $XX the XXXX, with revolving of first company

who the will for discuss Now I the groups. our results over PMT to call GES and will turn business Greg,

Gregory Peloquin

and gain share GES, Technologies Solutions PMT Thank and maintaining everyone. developing products our new while In Microwave you, Energy or existing customers. Bob, & to by relationships with or Green QX market our share morning, Power customer FY continued market new 'XX, good and

a we However, of calendar show were slowdown this industry we through did year in are and in revenue semiconductor any by to which business due of 'XX, record to see year-over-year in down year project-based XXXX. note FY opportunities. PMT that fab late record the excellent year number we sales to relationships and which that XXXX. customer slowdown started half GES a XXXX mainly the Again, was out based on communication, XX% share very of coming industry And slowdown a very of is will large wafer in have market semiconductor anticipated sales and is the sales. primarily important And that back segment. in reaccelerate it hearing demand not lost calendar timing

several manage to timing $X.X opportunities. down in customer this GES the project-based as the million business on positioned million year well increases. to are prior major from due were $X.X We demand quarter, sales the

added Energy needing customers we niche market During our new increased the several Green and with share customers quarter, patented products. our

have GES with market. the wind in group, and our beginning many highlights QX for energy We

our new backlog customers bookings for added this in product over over we units. line During increasing our with flagship XX,XXX the quarter, in product, $X to ULTRAXXXX several million

XX,XXX wind companies farm the potential All and and product, more produce battery exclusive very over is operators we success The this couple relationships significantly X largest XXX market in America, the $XXX technicians. of we customers owner operators, directly and great as than continued for their Tier GE ULTRAXXXX doing North our than relationships remains we operators. GE and X owner with orders also for of million. our GE more in has With are targets lead at budgets with management excited owner Marketplace, technology opportunities. units to be replacement acid the with started over The and existing patents the the work product next about within site which are field, reliable expanding turbines years. continue farm to wind managers

Our power at UPS Ultra-UPS-XXXX batteries XXXX going and owner wind underway replaces with operators lead UPS uninterrupted the well. other Ultra acid beta sits and turbines every testing of is that of The turbine. and the our Siemens patent-pending or supply base in GE Siemens Wind of

on We expanding as begin wind other to anticipate are moving to product production, turbine this is as applications works and Nordex. a Once and UPS testing markets Senvion, we such used. platforms other we forward Suzlon anywhere

an owner-operators of energy module more in thousand is multi-brand completed locomotive North and have turbines is a America final the locomotives segment EV opportunity [indiscernible] in an Green Energy fiscal and issues, chain testing Our in in of superstructure for North is Northern This than Suzlon this more This and in year. beta America. for Solutions, or testing Latin in several and electric America, also will with supply basis. which X,XXX number ULTRAPEM on be diesel pitch SSB OEM Burlington builds alone pitch with QX India our product and of to QX late system. In due

beta patented and X Gen have our diesel We module manufacturers. orders Ultra EV starter with large received locomotive for XXXX

in in customers. We that FY both trains will XX these with to be of note important It are doing 'XX. we is the beta exclusive testing QX

continue patented in applications identify We to niche technology. other this

opportunity a beta is refrigeration trucks market the There and America with currently in where North ULTRAGEN lead in XXX,XXX truck estimate have acid $XXX several are to million. we testing of are manufacturers this TAM refrigeration batteries. be We replacing

such other 'XX, construction shipments slowed including After numerous that are backhoes. excavators, and record and applicable in bookings Solutions. feel extremely expect continue to from QX new product with as this With Green QX trend There in will Energy record customers, be for and loaders that equipment, markets we products the FY and QX QX and project-based strong will to this we forecast and QX. backlog along our be a

with lost market We to have any new market applications our and not increase customers. products, we continue share share and

steady. in million our year. and business sales were turning $XX.X microcomponents last decline XX%. business. versus PMG, equipment decline our remains fabrication our legacy tube in due and Power This laser the somewhat Group, PMT, decreased was wafer the to growth EDG, slowdown which semiconductor QX which million was to Now fiscal broadcast includes $XX.X in and Sales major tube offset The by business,

been and The been business our well strong cyclical. over RF fabrication saw supporting always XX team also We business the for years. has wafer in business. semiconductor its customers This has bookings

We but recovered expect XXXX. anticipated the half again, calendar of XXXX, in the slowdown second in business the

partners and requirements. and and of Our tube AMOGREENTECH, helps by Navitas Photonis. us global strategy engineered driven partners Fuji our and CPI, Nokia manufacturers meet LS Materials, Qorvo, Wave, technology solutions Micro manage such is customer Devices include global partners Key our Electric. Each Nisshinbo as MACOM, Thales,

identifying has and Our excellent job these relationships. done an team cultivating

capture We and with fill continually help keep and base. allowing we who them are purchases our long-term will growth. to products for We offering our work we opportunities extremely design the us continue customers our Often, motion. in partners through new revenue value we we increase source long-term These schedules our strong terms add support payment to these special gaps to and more customer technology flow. technology shipping to identify supply manufacture increasing on provide partners, strategic negotiate in to though, and improve customers and cash in-house, and relationships

us maintain allows In to addition, capture on inventory share. market and having hand

growth. our We also invest in continue to infrastructure to support our

enhance field capabilities. talented are design our to We on manufacturing investments engineers and making bringing and

teams Our and designs. microwave team, current new a the and products great are growing applications. develop green engineering with manufacturing with the identify, other demand and and products I'm doing to continue product management progress this and energy technologies for job we in-house supporting will for new power and design introduce and pleased increased

has the strategy by customer be growth as well on to infrastructure. develop products new been we'll demand years, continue highly existing and profits as successful creation our and Our capitalizing proven increase over revenue base, to

and electronics future us themselves. both through us the ensure the pipeline fill our suppliers. customers' belief based the that and with cannot forecast our can customer Our we to requires suppliers customers inventory invest in enough needs in the rich model of customers stress value to collaboration our I our on and meet close strategically to positioned

Our and unparalleled power go-to-market capability microwave strategy to are green and global and the unique energy, and markets. RF

continue steadfast arise. The been never about than need strong the excited developed our new customers, and a and with We our engineered excel including focus has on partners no strategy as question more and we and find they capabilities. products model and legacy support Richardson's by Through execution solutions technology our fit creative have of better. of taking for share to opportunities will business GES technology opportunities well build customers. that products advantage market partners customers remain PMT and with our is new products and our future There ever. We as we

patented Diddell beta it over And testing will continue phase with throughout work customers I'll closely Healthcare. team for Our the to exciting Richardson that, with discuss our turn the Wendy to products. to

Wendy Diddell

everyone. Greg. morning, Thanks, Good

lower Straton for sales improve million, division all our quarter $X.X quarter, versus services quarter categories, the repaired down the parts margin throughout of summer Siemens of and helping First were XX.X% down in Healthcare we all Z first In were for gross the the reflecting recent months. to last year. Sales demand sold our XX.X%. product most Tubes,

margin this than lower from the year's is While first this improvement a quarter, fourth was the quarter prior significant XX.X%. of

impacted by was a On scrap basis, gross in negatively margin higher costs quarter. the year-over-year

larger is a is Siemens tube on the Z, MX, to installed ALTA program. Z MXP The considerably repaired This are Straton options no than our progress third-party tubes, series and the repaired CT tube well is types, and the including performing the full types. continue for MXPXX. base replacement of production base these for make and there in Siemens We The in tube field. good Straton X installed

repair the tubes basis. we team consistent gradually in We to rise the coming our on a process in as production expand inventory to more add expect quarters sales and

demand progress We on Siemens also strong repaired continue on to customers. We make with series. discussions our MX good the is based know

important we on so. we having replacing believe the we tube component. first 'XX. around demand to customer repaired anticipate MX are end supply inventory right, limited it a While be do recent of critical that calendar to experiencing due and FY sufficient It until get year, we launching challenges track the delay will are the is series This to we meet will

in anticipate care While a for reloading our our our We still impact Siemens on to cautiously way process remain tube yet repaired this program, We program have engineers on registration small continue work within will even of local tubes to discuss FY in the turn Ruppert 'XX. may positive we will the results revenue the through fiscal enable work Brazil. fourth efforts health its Jens now of call over to Canvys. the that division the to this business quarter ongoing achieve I for breaking optimistic the development in goal the the year.

Jens Ruppert

million performance up fourth and first the Thanks, Wendy, engineers, the everyone. to million slightly manufactures $X.X from million $X.X remains sales $XX.X custom of and good during morning, in displays return medical in the world. quarter Canvys, with the equipment and quarter fiscal Canvys of last manufacturers sell and year quarter. from throughout first markets for industrial strong XXXX. Down

quarter a was strong. to million, the which quarter globally, XXXX. and XX.X% we backlog demand customer net the of of during sales margin remains of first Gross fiscal as with sales stable quarter percentage reflected finished compared during First of first quarter the a $XX.X fiscal XXXX XX.X%

The increase was in primarily margin related to mix. more product favorable a gross

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

equipment, documentation surgical space, Some applications. of ophthalmology, industrial packaging commercial nonmedical human are used and navigation. these large-sized applications video products robotic-assisted surgery displays industrial talent includes interfaces broadcast machines the in in and a include laboratory market. tailor variety and In our public systems, the for monitors in used and the transportation automation, industrial prompting, clocks space, printers, This used machine of

will more when at the short-term continued conservatively near a and high on forecasting is term, inventory only business. Customers have level. the and expect impact placing Over our rates orders inventory we minimum increasing levels are interest a

a quarter-to-quarter expect to our vary levels. inventory sales we We program, but depending customers' haven't on lost

the towards end sales number the of in currently this the reaccelerate projects we of Given year. fiscal stage, engineering believe will

ability and customers. engineering for help products efforts the of our innovations of create that our value proud to team design are the talented and and We productivity

variety display by special our XK further high-end companies the the refraction. with low have to medical LCDs monitors quarter, by we adding During film offering evaluated advanced The a to ensure large a been and super From customers, and localized service. the value of is our feedback. customers products from existing orders outstanding global well of clear the positive of new it as and very applications as customers

our as will our operating demands our improving cash as focus with closely customers. I the an we Maximizing focused turn over flow Ed. priority is continue ongoing and back the performance While stays they of profitability on to opportunities, division. the sales meet organization work the to on now Canvys to partners new of improving call

Edward Richardson

We face, solutions our growth given committed remain engineered emphasis aftermarket challenges and shareholders. relationships to business we're to and that revenue we confident just on customers, sustainability. that started. The in have solutions a stronger reoccurring continue products. provider. are Jens. our you an We're manufacture but their energy our green as initiatives We're used Canvys improve headed. consumable remain we're We understand investing recognition near-term display our Thanks, leading conclude, that will suppliers and achieve we improve the solutions for To legacy the our is with EDG employees, direction excited about operating grow our products the custom including in Much a business getting goals. GES we help companies efficiencies applications and of

bottom repair inventory improvement cash of Within protect Siemens our care in helping turns. strengthen our our on X health focus anticipate the improving line. and the business, launch we We'll program,

and Finally, positioned in year. from profitability the we're to in we'll the stronger that confident sales period grow and challenging emerge later better

but your answer not we'll a if it's believe this to questions. of to At be continue happy matter win. We time,

Operator

And our question Anja first comes from Instructions] Sonderstrom from [Operator Sidoti.

Anja Soderstrom

as was timing in larger curious sales seeing So longer just came how talk just quarter? I'm for about second first, had or Or it -- quarter shifted you there? we Can into you this softer anticipated. cycles these than second for about projects that are the that Was something just I the is think it should the the quick GES GES?

Gregory Peloquin

of a Yes. It combination X was things.

fantastic XXXX. were all, and year and to quarters. their an over turbines in II our and the fiscal job the of with taking The of And America. Phase North are next they with product many was one dates it. implement tied turbines the absolutely we operator major going acid was getting needed that of ULTRAXXXX. I That many Phase out our in them will to in farms setting each They're expedited. orders how then start phase in That First The team GE how installing did batteries wind budgets, the them lead the customer they people terms couple of the to owner start according completed. every to early capital

XXXX, Phase our calendar of in sales So for the seeing essence, the last now, like, is example, right backlog of II. And bookings looks our about year. the it we'll today size first quarter start for

will looking customers much very but and grow timing is QX exact business project-based is So to inputs in kind forward. to of in progress this from year. we're do be ship how will fiscal QX. This the going The the that of hard that,

Anja Soderstrom

as the quarter second -- to quarter at the be is it sort level So the first expect could same of?

Gregory Peloquin

It will be very shipments. first the close quarter to

Anja Soderstrom

to Okay. the PMT saw continuing the is and was stronger And the quarter? What's flip And driving that that? then second growth we on sequentially. how side

Gregory Peloquin

the of wireless Both and good. business and the wireless lot business bookings and last business and QX The in component tube RF did fiscal strong a received QX Yes. of year. RF component then

grew grew, in so and backlog had QX. year-over-year shipments strong very And and we their they

have strong tube business And business we also, market. with laser real On [indiscernible]. side, large some growth in our had tube the replacement a we

XXX% very being But because but numbers with not business. year. that's consistent have down It throughout business, business, So X%. it's just goes the recession-proof, or the replacement coming it's seem and X% it's recession to repair up a we this and on consistent

So and we'll we growth in saw the see that now type the of QX throughout probably in QX year. same

Anja Soderstrom

what's included half? these to large -- need you going And that in inventory second are that the then the well to managing orders in in And of to start building be how that for that Okay. expect you seems inventory? quarter anticipation

Gregory Peloquin

orders very was to of sure discontinued next Yes. the increases inventory, long-term source months products. had years years we've support a strategic the product the There of to many over of And XX, main couple X and X our had make ULTRAXXXX for inventory being of on lifetime supply. it part we was XX in purchases, the other one, on the X buy that's with have ago, customers some customers our GES

trying a project-based a like it's a have build customer, we quarter's inventory. them up they of minimum to the quarter's When hard to next we're inventory these they orders. come or of week. predict just in, So -- worth the month where in Because typical next want

we So an with as and years calls business. on both in of the the X builds, numbers locomotive customers went let job chain I turbine our their through can't from issues we supply 'XX saw daily did supporting and wind down, and amazing Phase FY the we the you

Operator

Taylor comes Our Ross Instructions] [Operator with Partners. Investment question P. line the from ARS next of

Porter Taylor

I get full couple the things. very A name. of rarely

revenues space, were the best margins in probably that in equipment $XX about semi-cap your First, million about down carries firm. your

around would that $X So neighborhood guys to you million? of on be buy profit safe in assume it something an basis probably hit the operating that

Unknown Executive

operating profit. the On

Robert Ben

assumption. about a little be It a that, That's that's fair than probably correct? but might less

Porter Taylor

you drop any to below ability profit operating when see a Do the Okay. have associated other costs like that? line you reduce the

Wendy Diddell

it's we We had a Wendy. cost take were some take out able Ross, people voluntarily cost there. layoffs furloughs, out had able some We So and to take there. were some few we to

in. the actually considerably higher than sales came plan where is Our

that. SG&A. at look on not that $X we back had can we hold the staff. things we back cut noncritical like adding in reduction certainly on So we travel off But marketing and we're to And any general, area cut million in on going a see we adds incentive not you're -- savings in to

Porter Taylor

Okay.

$X.XX it's to that So an share. basis, on say cost safe probably a $X.XX, operating

saw record true? look Is be 'XX, told would being that to last that You're at better year. than levels you fiscal for

Wendy Diddell

anticipating will half a the is business anticipating that in we're XXXX. year. year calendar they're what the the record back be start again XXXX, improving calendar that So year will of And

Porter Taylor

Yes.

Calendar that's better. Okay. Calendar. even XXXX, Right.

Okay.

to levels up, is even not there any move that as record space? So you able reason or you looking of profitability improve to revenue to back in sustain at be should that believe set that

Wendy Diddell

can absolutely We that. achieve

Gregory Peloquin

addition side come There's a continued that on market. compensate that GES large programs any In there to number for out with that. back would of the

think lot last there's the be So really us added will that get -- of we or these record to we that will saw things in so. to pipeline the back that, year profits in

Porter Taylor

move Okay. GES And in X,XXX each to on what, Suzlon. base towers the time? have, let's They

Gregory Peloquin

currently total We have turbines. X,XXX about

call with the biweekly a group India. in have We

and The in one actually. of we're partners X,XXX and week week the testing week in end very those worked in I here will do we've Suzlon turbines, with our I it be all And up first October, are states Phase all next or tested a set so beta third India, product the in to and that turbine the owner-operated after, has guess, very, well. of

ULTRAXXXX was number for. an And really sites, obviously, program, of getting which designed OEM we're with a So and to about the excited working that own them. in addition that, GE also they

program So to going that forward, very absolutely. at look be strong we

Porter Taylor

Okay.

XX there for we it's ultracapacitors. -- XX ultra demand look the that's side, X, capacitors when So X on are your for at the if right? that's GE So batteries,

X. of On technology, the Suzlon from X a it's like for the my understanding

mean would end something be need right? looking that modules having you'd or would in XX, the So of tower at you X,XXX you'd or that like something the equivalent putting about Is XX needing India if like towers, say neighborhood of then something XX,XXX XX,XXX that X,XXX alone modules that in each be total. there's The up that.

Gregory Peloquin

modules every Suzlon, That's it for X modules turbine and close. specific but XX in The a every the on GE there's in turbine. technology, module is Suzlon versus redesigned based Suzlon ULTRAXXXX is

is product this a However, little more expensive ULTRAXXXX. the than

you about XX,XXX of up these. X,XXX, came is So with which it'd be what Xx

Porter Taylor

in something alone million And of profits, probably opportunity out project, looking million like alone. revenues $XX-something so $XX and million, that operating we're is at to million that $XX that of neighbor project $XX something in

Gregory Peloquin

Yes.

Porter Taylor

to an you Okay. for would How order ultracapacitors? fulfill it long take XX,XXX

Gregory Peloquin

it's manufacturing now, resources. just Well, produce a people. X,XXX Right about area, the We the new get with can we month. X,XXX to probably

wouldn't it take that So long.

Porter Taylor

type could up, inside you situation? of or if fulfill could that it So inside less you a year. X fulfill And ramp easily you months

Gregory Peloquin

started repower, a in. Oh, and large we absolutely. all did sites meaning and acid program, they the these received we And Unique order put they picked when they batteries out the took complete about this lead

can -- of owner have a product competition or the it's the it out can batteries other the to the in the these our warranty in, X in put from and fail. you when a put operators, want turbine XX keep turbine they that one other unique until is Some bet, -- batteries you if things you that's about keep runs

sweep replace doing them they of batteries So site. every as the a versus fail just

a and timing thing. a great great great But that's program, So just business product.

Porter Taylor

economics And with like it's it's not but what we're than little is pretty bigger, at -- might for maybe be not for of more but it's would technology xX base, the you're or the one saying a much Okay. xXX assume a same each different Siemens Suzlon, base one I the that's tower. GE at is valuable a the probably Siemens is seeing powerful as unit it the

Gregory Peloquin

Yes.

a the a under module, the power So is the supply. UPS The is -- energy is ULTRAXXXX ULTRAXXXX. UPS tech power technology different product a pitch than

turbine, but it's the So of there's only amount Xx X per ULTRAXXXX.

the not working now. design UPS, So ULTRAXXXX. we're It's that's for right the on the Siemens

Porter Taylor

that's similar And a margin.

Gregory Peloquin

Yes.

Porter Taylor

Okay.

concerned to I'm that only up. here and next ask market leads and my questions. I ask seems that's me to know X focused know supposed going Wendy so looking questions. speed But I it always they So got to area, X We've -- going not I'm know and at be Ed that setting which what's its looks really on to mean a about on,

Gregory Peloquin

That's okay.

Porter Taylor

a at this selling Richardson of worth really it. dad company done wrong And something this of number the and you've be into I really that you've It's mean in can changing focused markets there's what has me tells just highly area the I'm I you looking kind of signing at net-net to primary assets other for. nothing of with your things cyclical value the at proud it, time, and really an The When years So was of I think that company. what you've point diversified current amazing is literally its would than going at and job a with back done saying this one company one thinking. working this X actually that liquidate capital. is business. that, are look

would what I'm your to in have. satisfied beyond X is with dad call, to think on this And be -- I honest, going hearing be be you years,

hearing just put enthusiastic guys earnings can I looking earnings pieces you at that a be but meaningfully think these be -- about We're return to you of not I'm than that. last had year, the higher you'd together. you talk level because the

is doesn't 'XX But back I model is a the I I I are given there you not and what inability to bank it's get you. that down out, with that And Meaning, for market share that biggest X the Vice bank some we the that that me to bank talk also things can't sheet. that think working your to financial X level, you've we accord in of to allow in that say asinine accord banking a the world's They it I with balance this but institutions. need banks where go stock one going, want go back would at $X.XX to today buy think one it's of you your it the guys can when One you're of going the I absolutely appreciate tells is problematic. fiscal or And I of net-net it Chairman which past, think to buy in capital and accord that. that for reflects he do argue, indicated is is don't selling RELL parabolic. is your one -- stock. When get I

going a risk no There generator. bank to money. lending you flow is to in massive a free It's cash be

start get that type that us banks us time that opportunity. give and it's to we of respect So

on So debt at Taylor Ross year. a down your stock situation. think that the [indiscernible] that's banking do moment you my comment this at a do lot that, looking we're if I that's

point? asset have XXX have That's plus at this X-plus You X acres million, now, unused it's land. -- it's an being being you right a formed really

Wendy Diddell

. Correct.

Porter Taylor

leasing get be acreage that out you found? to When on

Unknown Executive

acres. We We we've acres $XX,XXX XX get -- an about $XXX with sold acre. an sold XXX

will value tell what you the it is. much So pretty

Porter Taylor

Right.

you're land. now, $XX,XXX a on right about So year getting that

Unknown Executive

on Progress to we that be want space acres business, true. XX We keep are we to and the electric and able huge space with to in Rail be to want a front That's locomotives that the we're we to XXX-acre and backwards keep property, going think the expand can Wabtec that Yes. ultimately of expand.

Porter Taylor

acres, you XX you you and did before, bought $XX,XXX -- into and off sold if you the got So you've turn that XX-year treasuries.

mean enough suggest You'd my use to my lot land and could environment, [indiscernible] acres -- stupid. X ways, something by you're you based of X a But in I still of me it a XX that's does strike or here. to to factor I so smart career in to and reason The into. the daughter daughter market tell on as -- you -- the land market. leads that of expand this why, literally tell isn't cusp it out. increase the you -- that is of stupidity like major the to expand figure some right on off income There's leaves I'd is a and I'd my of

So that that's asset, in a lot we look of just way that something things money. if $X.XX monetizing the of make at That's plus use share could do there's can pretax. do in of we a some more good we

the use of if time, in end of same might stock you maybe the take are you and wake to the that their looking off pressure not and at at they year selling or At let auction opportunity. bankers feet, people some your something could would because retire up, touch use that, the the the

think need working at stock the net-net So that's why X I because capital. trade to something should at there we is look reason

is capital be is the the multiple anything working worth and universe that capital that's in should business. easily net-net power at And working I a an on the find low-teens world. add-in. challenge earnings of in trading Your net-net to don't have business my people this I much

Now on [indiscernible]. my next to

Wendy Diddell

Ross, time one give everybody we got to else. Last to

Porter Taylor

Board. your with frustrated really I'm

been you. You've be will who've honest for with X there years. own got I XX stock. They X directors

there right? look shouldn't I I for years, been who've it's mean dogs, at XX it's not acceptable. guys You your known changing. less stock business, And than my

is day you a that who every have they're in on to lot you people to price business company to of would to stock. to spend share your before. of love a see this willing change going put a Your I'd believe buy I weren't love enough Board. places and happy say you meal the

I got yourself if would with background pocketbooks you've have And people come expertise also and because That who great brought done a stock. like space. here background the cap people company. their to semi opportunity people job see a capital who People with who have nature, that background, you such you've equipment but in energy bought this surrounded in and green not things and those great such have brought people those just of markets with expertise and their

perspective, my you guys need expertise it unwillingness would to lack opportunity. everything you opportunity this on to tells around to of Street capital I But always take the it's people send need clear board of look are your long at a and need get their and outside outside have the they seriously. And from to people you just they bring message this to buy that champion and understand think these they a as me out and be I people the that I to I expertise I need skills commit to -- time. stock who investors, my we industry hard. need Boards-- guys for know so can you been that financial

strongly my so in blood bring We mid-XXs. new the would some into And I board. I'm advocate.

in calling we close and honestly think this can own opportunity that's right who and this XXs I So above is buy bring And need stock and But for say I new people to that I I $X them. by now people few insane. old. board to in come a that excited that on of expertise working $X are hate in a their $X.XX capital lot to want years, earn net-net going and to

let others And I'll talk now.

Unknown Executive

certainly Yes. million stock, agree you cash Board -- have be million we in here We'll and in $XX with to had when years, this the today. Well, think company next in were will about week with they X agree a cash we and flow go the we we $XXX consideration. this that's and under XXXX. We X discussion buying long positive

things agree we the say and your you appreciate all we So opinion. with,

Operator

from [Operator will next with Instructions] Money Our Management. come the Barry Mendel of line Mendel question

Unknown Analyst

locomotive in or the couple be catalyst quarter start would increasing of when quarter, your least things. I at the backlog stock. know expect fourth Yes, a you third expect do sometime I One, for a this you big orders of to because you -- year. last the think said that

to backlog So when kind out? the do bottom expect of you

Gregory Peloquin

Yes.

that. look and be the of businesses end side then at X side, we GES the delivery very the these we QX some of start project-based to having On backlog PMT our next the months at beginning the And the expect will over QX. after of the

be very So end on and -- of QX. testing the quarter, should we beta have booking of customer's forecast strong but QX, QX based some a and the then

Unknown Analyst

Your fiscal QX.

Gregory Peloquin

yes. fiscal Our QX,

Unknown Analyst

Okay.

expected to what's -- because second the calendar In improve of you just not that? the I sending last I reason half terms semi space 'XX recall for the half calendar quarter, space the mentioned 'XX in thought semi the of first

Wendy Diddell

customers in -- consistent We have saying been half. think been Wendy. the second forecasting It's -- our I we've are improvement it's the

some or anticipating XXXX. that the We see of half calendar are in, we always first really hoping recovery would to been in but significant any year maybe the that half, it's come until they not of that consistent start were second

Unknown Analyst

their going Okay. And on the [indiscernible]. was What with business?

Wendy Diddell

that? I'm sorry, bit a You're you could distorted. little repeat

Unknown Analyst

on there? the going magnetrons business the terms What's in of sales with capacity and

Unknown Executive

progress hydrogen -- trying make the creating of kilowatts. a also and a out demand of new capacity for synthetic that. we out market there's methane Magnetrons, tubes we're And equipment. plus improved out a There's there, the build they area to huge huge yes. application. big gas, XXX and in we're in year, decarbonization of another test filament which then to and the magnetron that our over monthly have XXX-megahertz advantage we're tube diamonds, probably Well, building take is We've at X,XXX

of already. So magnetron our develop the make the well higher-power can ones is and how business and fast is restriction improve strong quality and the we we magnetrons

Unknown Analyst

year this summer. business redoubling what in spring earlier was in the and you, that recall I capacity early As

Unknown Executive

having getting Yes. to month a up need a difficulty build there. to -- progress. about problem type slow. And which is equipment we're but where It's is ] geared now we we that too custom can $XXX YJ X-kilowatt the get the there. but on $XXX We're The all still [ made. It's is month, we've tube XXXX

Unknown Analyst

you [indiscernible]? expect When

Unknown Executive

months out. X say would I

Operator

[Operator Instructions] Our of next Richards. line question comes from Ron the

Unknown Analyst

we to that I when Siemens? in was you now, have beta you're problems of any light start is know I guess plus having, all as that orders might the some in right from wondering Siemens receiving do

Gregory Peloquin

Yes.

it's request the how on capital money. think structure similar based their other and ones I to they

it. probably they we them testing. part's put orders but successful again, for testing our when fiscal alpha on been QX, per based received production we'll The for of And think orders QX, they're year QX is what orders. getting telling and in in -- beta they're production We've already QX us. testing, So be

Unknown Analyst

Okay. That your fiscal QX, QX?

Gregory Peloquin

Yes.

Wendy Diddell

you want other it's large UltraUPSXXXX, that? particular comment wind And Ron, in companies. also with turbine product, the test Greg, on is that do which to

Gregory Peloquin

again, design and have a NextEra Yes, Siemens, we're RWE. also with base that we it's, on going designing beta testing for but

of their turbines. and it goes in -- it's yes, So again, one every

excited product. about that we're So

Wendy Diddell

Siemens an but to -- the aftermarket be aftermarket. Turbines the might be other built. ones so OEM are And opportunity,

Siemens if your So concern that's it's not an issue. with

Gregory Peloquin

Yes. new No. It's not based on builds.

Operator

of [Operator SGF question comes Markets. from Instructions] Capital of Hughes Michael Our line next the

Michael Hughes

for First can you the the quarter, -- please? one, just can segment backlog by out break you

Robert Ben

Bob Michael, Yes. Ben. this is

again, the Green approximately Canvys end $XX.X was $X.X of was $XXX.X million $XX.X million. at that, backlog remaining and million Systems, quarter Of was So is the $XX.X the total Energy PMT, healthcare. the was million million

Michael Hughes

issue the Wendy, Okay. think program. a critical And on little with referenced Can you an for Siemens that X I you a bit? then components elaborate

Wendy Diddell

And get could going is used much is or we on detail too thought not a part method call, want we part to the X. been unfortunately, refurbished a part to but it don't I work. use that already this that bit. little on that's another A into

we'll that expires. repair summer. have without we'll that what -- limited interim, we wait So I say the that's can on, MX are until which specific we the component patent of need we next replacing series a and focus have is number to why In until the there supply

Michael Hughes

When does patent expire? the

Wendy Diddell

of XXXX. During the summer

Michael Hughes

Okay. Right, right.

not I'm disclose or Okay. question the the That down but sequentially? And makes you'll number, if equipment sense. for semi-cap up revenue last sure then precise was you.

Unknown Executive

certainly. down, flat. much was Pretty It

Michael Hughes

flat the quarter. May for So

Unknown Executive

a Yes. or It's running million about $X quarter. $X million

Operator

next question. for One our moment

next from Andrew comes the with of line Rim Odinson question Partners. Our

Andrew Rim

Thanks a lot.

Just on up to needs the proven what October, in in that beta beta test coming be test?

Gregory Peloquin

turbine They and take it. shut it down. just the they run They --

in just So the it's They some large there's I to electrical in to just it do if year. a a to for it of some the months, fault see we our it But specific to a large months. between get an local the these want it testing time year, X X some then data, beta part, want customers, works. testing, months most almost X the for a all when for the in done for averages to a -- run want you turbine but just [indiscernible] we've do go for turbine period orders, can in labs either to

it need have of it. do period a that there. might but tweak They run to tweaks, beta it's But just here it the into so certain just we to and a just it way They in sure really performance be fits box in turbine issue, say, works. I mechanical to meaning it to a handful of of time. run a a to was make going might want just then testing, the the there it for

Andrew Rim

the Okay. mechanical piece. Setting nuance with the aside box

plus talked until XXXX where that beta of kind deployment. of we back seeing wouldn't test probably if kind start be might fair X wind that assessment? 'XX, a you've could months of knowing the you full half reasonably about Is try think it calendar But to towers. expectation, that realistically, take rollout of Just the

Gregory Peloquin

half orders production year we'll I've Yes. of almost the goes introductions the see we year second these fiscal specific on large been everything work, But NPIs be new early If for that's XXXX in Suzlon opportunity calendar 'XX. or part to when product the history see and and will years, things XX way The doing going on. the -- and based QX our yes, yes, and India. perfectly, in shipments of

Andrew Rim

couple people go. All I question the right. I of want or a think to tag on,

want as much suggesting and I might mentioned foregoing would do stock pile that to about be you buyback. investors. this at return that to buyback profile dividend because I take by a payment think a comment on Rob for look to higher stock a same comment want

So would here, you on investments way obviously, realize should pay ownership. because it's investors Board, a you you be shareholders. more be to do what a It's the double taxes. able and obviously, the stock about and be you Also that do should it trying are they return said to what significantly -- way you in both terms I if to of efficient down And for higher, the have great pay to guys don't that to would a on so back.

have that's lastly, a so guess for I And you soon. just, a Ed, it there. I different X you So sounds couple lot, maybe then guys. a get votes of thoughts cold, well Thanks like you hope

Edward Richardson

Thank you.

Wendy Diddell

you. Thank

Operator

Thank back turn closing you. to remarks. like would Mr. Richardson now the to for I conference over

Edward Richardson

was happy Noma. a question-and-answer time. period. We're you call to Do calls company, we appreciate Richardson we in quarter all any your and with ongoing Electronics. us our to hesitate to second We in very comments, January. give take and sharing XXXX, discussions your look your Well, a forward the It you Thanks, to and talk appreciate our and good fiscal interest not investment individually.

Operator

your concludes participation. you. conference Thank today's This you for Thank call.

You have day. Everyone, a disconnect. may now wonderful

Richardson Electronics (RELL) 12 Oct 232024 Q1 Earnings call transcript