RELL - Earnings call 2 2024 | Richardson Electronics, Ltd.

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Operator

Good day, and thank you for standing by, and welcome to the Richardson's Electronics Earnings Call for the Second Quarter of Fiscal Year 2024 Conference Call. [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, Edward Richardson, CEO. Please go ahead...

Edward Richardson

Good morning, and welcome to Richardson Electronics Conference Call for the Second Quarter of Fiscal Year 2024.

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

press current playback. we'll reminder, like our on to China also to this our negatively recorded and conditions, be a As are our would rising second forward-looking SEC the expectations quarter is in explanation a an of inventory that for and will Please products. lagging interest the economy and rates, expectations. our you that risks of Economic I being higher XXXX call be making statements be for levels of refer our release fiscal and impacted factors. Financial available uncertainties. for short results actual for and involve risk demand results remind year materially based Therefore, different. could customer filings fell

energy we advantage global term position more maintain business we capital sources during take our is grow economic share. as climate, strong maintaining These is in rapidly large, as important to pursuing team in demand of with the focused additional margin of growth the near orders in our operate periods made many on can profitability we over a increased ensure reflects uncertain and adapt factory. is second decision underabsorption Unfortunately, balance period remain calendar management to equipment strategies economic our was customers recover manufacturing salespeople expect to a our market opportunities. The quarter have and long-term in gross As expertise stable the growing solutions to sheet access of significant our XXXX. this of we also a the navigated This strategies. we why impacted exactly maintain quickly difficult semiconductor strategic asset team manufacturing levels if We've Therefore, the with successfully as and throughout necessary. of continuity history. our the green to employees to

Within we efficiencies. shortly. changes on to to the the We which do team position Wendy focus you objectives, strategic inventory future business, tell improve and our will simultaneously made focused Overall, managing We're job growth. an some driving on Healthcare about company for continues expenses. excellent

strategy. FY we While in outlook 'XX, and we our will long-term anticipated, maintain acknowledge revenues be remain optimistic lower to our [indiscernible] committed

expand energy continue solutions. for our product green We to roadmap

for We that rail underway energy electric are new across initiatives of and geographies. adding customers wind, vehicles and take applications many transition the advantage

innovative roadmap the of While a we Electronics establishing leading innings have products, provider we're for technologies a global green are developed solutions of early energy markets. this quickly as in transformation, of Richardson compelling and engineered

across Activity business. our the extremely all specifically remains Energies Green business strong for and

Our pipeline to increase. of potential continues projects

a of new opportunities is that's to crystalline generators a our pilot In make diamond a we for further company. private underway, company applications. order that transition are technology power that from will to the initiatives materials addition and using create recent One the Inflation high-tech Act Reduction for energy public to reactor XXXX believe U.S.-based example XXX-kilowatt

to XXX-kilowatt will support and vehicle customer build this which Inflation higher rail is wind significant electric we other We expect Under factory, forecast. multi-reactor a a from benefit Inflation require Reduction the generators. Reduction Act, Act, customers to our and sales will of for grant a which believe the applying number

new easy business timing is our years, is business our gets As to and always predict. and in not scale much of the GES coming to quarters project-based near-term

energy suppliers support sales. to transition more opportunities that the partners want engineered focused our critical and model on business adding opportunities for gaps. by on solution as We're relationships often our and fill capitalizing and will focused globally. drive new remain profitable higher Inflation our supported opportunities lost any These the are initiatives technology company that market other also to that stress I Reduction we've on not Act

was million opportunities that long the our sales. With second turn Our as of then we call and this like Greg, balance over are remains performance Jens of remained numerous drive with quarter products, significant introduction, our well within sheet no line will in number and optimism and support that support inventory Financial business I'd our as Ben, the the including would transit inventory tube down in of increased growth which Officer, capacitors green our with Bob for balance strong business Chief profitable in to in financial initiatives. nearly and Inventory reducing to with in $XX to cash quarter the purchases lead debt. Thales time our are discuss new The customers line growth. required inventory our flat energy products, units indicating purchases our review our programs future Wendy to detail,

Robert Ben

second second our this you, nature wafer $XX.X primarily decreased a sales to second $X.X cash for the second of sales due for in due XXXX, to decreased as $X.X last of the by sales and year's to Thank review good $X.X fiscal will in quarter results from our primarily pushouts million modules I $XX.X million to million by year's line. Canvys manufactured fabrication declined North PMT semiconductor America. ultracapacitor compared position. Net net decline million for were GES sales result sales from primarily for for million, turbines of by customer quarter. equipment quarter XX.X% prior of fiscal morning. product lower quarter year financial Ed, in of of quarter, last project-based Sales down review year driven second a our wind of customers. a XXXX by products followed

parts second the margin demand mix reflecting net of company's quarter of that have XXXX mix of margin of second second to second gross facility, sales fiscal to underabsorption quarter offset XXXX and was decreased increased, quarter tube backlog year quarter a last decreased lower sales gross year's million margin million in $X.X XX.X% Healthcare XX.X% second from the absorption. GES were quarter margin prior Canvys XX.X% of to product gross of quarter system higher XXXX management Canvys underabsorption. XX.X% manufacturing XX.X% demand. Richardson and compared gross gross in due for mix. XX.X%. to as sales. Consolidated the and comparable compared to XXXX of XX.X% of product quarter freight the overall mix increase to CT to estimates Healthcare's $X.X in to However, fiscal higher for due due prior under product in decrease second the underabsorption. XX.X%, quarter fiscal second consolidated would in XX.X% been from of to year the a primarily manufacturing margin Without primarily in PMT's the the lower from XX.X% the increased in result prior gross margin year second manufacturing the and XX.X% costs. second product as quarter to the fiscal of XXXX because second in quarter company's fiscal

tax benefit million for compared a expense an XXXX fiscal of second operating the quarter $X.X fiscal tax quarter of and $X.X the Other to million expenses. second a of operating by of million the quarter expense the fiscal million second XXXX other of rate XXXX. Net compared versus XXXX. of XX.X% or decrease $X.X expenses lower company expenses compensation common million share net offset loss quarter fiscal operating million was in income or in second diluted million second of in $X.XX reported or last income $X.X the resulted $XX.X per higher effective common income compared partially loss fiscal of rate million diluted to $X.XX Operating XXXX was an $XX.X for was tax second expenses including fiscal tax in the quarter from foreign incentive provision the in employee interest XX.X% of $X.X fiscal of year. quarter million of fiscal income of XXXX. of The exchange second versus million second second XXXX $X.X quarter for share to for or effective for quarter The the XXXX. Income $X.X of per were the quarter $X.X

first X under was compared first months first absorption well versus income for X interest $X.X in XX.X% in a X Turning fiscal represented common income fiscal to XX.X% sales of an in XXXX fiscal XXXX decrease X year year $XX.X X million to months with rate loss million of months year to first increase were for favorable XX.X% $X.X The or a of from to lower the reduction months effective lower first effective in in $XX.X the of for compared of of which the or manufacturing common segments. exchange X months. The year, $X.X as Canvys. Operating months for the XXXX months million diluted from the the first was $XXX.X company prior partially higher benefit an year fiscal and of first across X as per expenses and increase under manufacturing share million X of severance year X $XX.X XX.X% compensation year net results product of of the of operating tax to fiscal XXXX million, the for including million expense business our fiscal a months XXXX. fiscal $X.X $X.X first of XXXX, X $X.XX share provision of sales of the PMT reported tax months million last to expenses or year. was relating decreased the for X XXXX. higher of months levels Net XXXX. Other versus by Gross in fiscal the scrap healthcare, freight was the rate year diluted loss the staff. Operating in first foreign which for income and or first of an million mix an costs reflecting XX.X% due with per million was of to first for months $X.X million of during X expense combined million $X.X for for fiscal fiscal the review healthcare's staffing associated increased XXXX fiscal the a of expense absorption income net were which as product million months primarily XXXX. Income the costs an primarily as first tax mix $XX.X the employee reflected year's fiscal from XXXX months X of fiscal margin other $X.XX offset tax first of

U.S. the cash XXXX to first second quarter million the of of the Moving XXXX. XXXX. and our fiscal fiscal $XX.X million million Cash to of a compared of of fiscal the end second position. the million of the of the at end were $X.X $XX.X investments versus quarter at review end and were end of quarter the cash XXXX first investments $X.X at fiscal at quarter

expenditures including dividends investments in in the million the in year Capital second the the were renovation quarter quarter related of XXXX. space. We $X.X office fiscal for million Approximately to included expansion second XXXX. versus year quarter paid $X.X final fiscal our of $X.X $X.X costs in million million second cash manufacturing and of facility in

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

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

requirements Board outside X-year of company's Directors a the $XXX,XXX a our directors. This ownership includes minimum created period. owning after for stock new Lastly, of of

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

Gregory Peloquin

Thank you, everyone. good Bob, and morning,

was project-based As some fiscal timing in second and Green and orders a the the a challenging XXXX Solutions due expected, to Technologies fab economic Microwave fluid decline and groups market. our Energy sales the in environment, quarter Power for wafer semiconductor of

new particular, our GES For start-up results quarter our second nature business business. any in reflect of the

ago and our test also we with strategy, scale new and to as site launching new opportunities and reminder, revenue customer GES testing, designs having only started and X infancy to manufacturing more sales to establishing of are years fluctuate requirements, in beta streams. GES we a develop predictable expect As the we growth pursue get

going list patents received into However, customers over in $XX and million new amount XXXX. numerous backlog of a than have we ever-growing shipped designed an with to million several short products key more year $XX of time, calendar in

in significant expect QX We received 'XX. be bookings and of QX to FY

owner projects So including NextEra, benefited to turbines operators very continue needless and of be large such next we Last the excited and electric say, X development to GE about major as several locomotive year, from years. Enel Inverenergy. GES wind

nature products from quarter-to-quarter. of business, GES project these our not are revenue consistent the necessarily Given

the roll many in matter weekly past In they customers over XXXX with new months half only completed customers, including of placed. calendar our orders budgets out a calendar will product XXXX. In fact, purchases our first of major X of and is until note time conversations are our year it the

Our customers product and core tell in are applications us market new issue. timing a opportunities we our purely GES we repeatedly share maintained identified is the experiencing have our for revenue have and decline

to In number energy globally. fact, advantage our customer of of to we pipeline increase significant take transformation and look the continues opportunities projects as

at million. Our strong $XXX GES and PMT backlogs over remained

quarters. coming which believe expect ship inventory will our we capital convert we position, we Given cash from orders incoming the stock, working into will in many

are support GES We business ready. they are managing when our customers' needs our to

our decline introduction, customers. second turbine $XX.X was detail. GES record builds were in our the quarter, year-over-year the GES sales rollouts phase $X.X in second performance So revenues sales million quarter. The included Last locomotive to customers let's the year's in quarter of the and PMT down wind first from on at GES groups due prototype of that opportunities. GES and with prior look more major several EV year, project-based for in timing to million

added quarter, XX% I'm EDF major of as new BP QX customers Energy wind report we were in ULTRAXXXX and with sales Energy, Renewables. several EDP the pleased our During customers. such to that new

with we as believe quarters. the provided II green XXXX sales strong niche The will of naming QX fiscal fourth will rollouts completed begin their recently our which believe they third GE many in increase our Phase point our of patented forecast We for drive these in We continue customers budgeting and process. FY growing products. our customers to energy QX and wind have to 'XX orders, share market customers

the India of which owner-operators our of to forward. The well more anticipate pending begin chain believe calendar opportunity third are site XXXX our turbines. for the will ULTRA system beta UPS X,XXX EV locomotive is by product wind due have the in in Senvion quarters year. outside ULTRA to locomotive This UPS will and patented the We several in be America. FY North which and replacement or OEM also turbine for program This One important is from Suzlon, other owner-operators electric the ULTRAPEM testing lead Railroad UPS America and other such basis. issues to customers continue Siemens at batteries for led in orders us builds also of with and several Suzlon than fiscal major improvements We our Tests will Nordex. and the base X Phase parts of America. market we wind testing supports for platforms EV QX suppliers, locomotives the initial Latin ULTRAPEM beta with is XXXX, multi-brand thousand of acid will XXXX, and our fourth in and and segment and by in replaces BNSF turbines North We America. piece final in going GE more supply 'XX. An This in our used be going alone expand QX of is turbines XXXX. product. We're superstructure an be in helping late QX Long completed as this North Island testing for ULTRAPEM wind in

these to with and with both for large important have manufacturers. model note also It electric exclusive orders patented diesel We starter ULTRAGENXXXX beta our manufacturers. module are that is X

applications for continue ULTRAGENXXXX. We niche to the other identify

new truck numerous such markets with growth other benefit technologies solution, that opportunities utilizing to can acid lead this are leadership customers applications summary, partners, we GES leverage loaders share. expect various as we companies market We backlog believe that sequential begin and growth we and construction will excavators, as the the batteries. want in have these beta with and technologies power throughout from our related stress driven is periods other project-based QX from refrigeration are are customers. I ULTRAGEN and incremental lost future our sources manufacturers, we where equipment, revenue any QX by supported forecast backhoe. that see by many There replacing and the not products, in testing ultracapacitors all across business to large as position several within in we to These add longer-term world. In

our issues result fact, the the business. In increase of our recent to with we performance continue and customers nature products, and timing our of applications share and emerging is market new GES

our to our will business anticipated calendar sales second and cyclical. decline in continued fabrication cyclical XXXX. This due wireless business. communication EDG, the was Group, strong supporting fabrication expectations a to turning was wafer Components always our the RF $XX.X decreased been million. includes of double-digit wafer our We and to XXXX, our semiconductor in growth Power PMG, slowdown slowdown frustration and that XX.X% business in offset but wafer has business bookings and the which semiconductor equipment The maintain recover legacy downturn mainly business, tube This mainly in by Microwave So with PMT, customers. infrastructure the business half the wireless of fabrication

our Solutions technology Engineered is our global mentioned, led partners. As by strategy

products provide continue increased the these our support that improve more identify are maintain them appropriate, base. design our supply. We growth, long-term to flow. cash of offering through strong. diversifying our We shipping manufacture negotiate payment supplier to gaps and strategic us we who with and partnerships, when and we help customer special purchases allows terms expanding These technology levels extremely add while schedules relationships and appropriate often value on And revenue long-term opportunities to partners in-house. work fill in customers we and for to we new This capture

share. both suppliers in needs. our with customers' and collaborate help meet us allows inventory inventory strategically customers having ensure market invest we addition, hand our customers' our maintain capture forecast to We and leverage to In us and can to

base customer our customer base. strong intimacy helps and version and relationships us existing model growing Our our opportunities new products suppliers develop customers using with of a and these customer with

continue to invest also our We support where our growth infrastructure needed.

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

products teams and introduce develop for job for customers power great green are Our our team, With this the of demand design applications. I manufacturing we to and growing a Electronics to engineering microwave stress enough products management supporting new identify, continue model value technologies will current suppliers. in-house doing cannot new and energy product and designs. and other Richardson increased and and

our Our unparalleled go-to-market green fit and power new unique strong energy products and business focus solutions markets. to products well strategy turn Richardson excel partners to our are technology global the and discuss a technology and and to arise. our There's been that Through We customers when RF opportunities with microwave Healthcare. has continue strategy capability with customers, our to legacy it developed advantage over steadfast will on of Richardson's The that, model need and ever. And of I'll than never Diddell more taking creative by capabilities. support including execution energy better. and partners engineered and Wendy we no they question capabilities,

Wendy Diddell

morning, Good everyone. Greg. Thanks,

at to lay second reduce the second year very our receipts from up part the versus tube ALTA of tubes quarter our tubes. margin which to last produce improved costs. sales We compared improvements were our overall year than has quarter, while XX.X% reason focus did the to than and the continue end fewer year. for drive from In margin first reduced most quarter in the continual Z Canon Siemens due allow but inventory. associated million, temporarily absorption Healthcare and parts due repaired production primarily division anticipated. We higher us healthcare and tubes. Healthcare's and decided X% to decision of lower growing with retain gross staff America. production, timing may to cash in system program. $X.X supply will the sell last our to to These scanners. We were off did under replacement the for Latin opportunities down prior recent are sales the quarter. were tubes at resources sales will on who due in in decline sales inventory the benefited was less XX.X% ALTA down our Second for scrap our low in quarter Straton over quarter, quarter of quarters, tubes CT off resources of margin repaired the product well of design was to not The quarter the on customers as increased cost prior critical to working we ALTA Siemens large CT as reduction gross suspend Throughout tube compared

reallocating In fact, focusing on development the who some ALTA employees by supporting team we the tubes. are of the are

flow the progress and are make to MXPXX. field. a anticipate a MX, The team to program sales repaired with in as have continue. The more Z the and excellent full Straton tube performing MXP Siemens Straton continue up steadier Z, Z the Siemens this program in to production. X with well ramp We just Straton includes production we focused of and is types, starting repair

MX third The anticipate in are We and first our later introducing test beta series the goes quarter. repaired well. market to testing the provided these tubes in

MX right GMP will way are received until a for will to breakeven certification the by of monitor stands to supply These performance series healthcare's export us limited we last we set in the in quarter. National This with made Manufacturing results fourth with but with the mentioned opportunities for the a to Agency Practices. more the achieving limited this in of We our first As quarter, Brazil. are investments over through to ANVISA in production the will will period, assured, discuss of Brazil. also year. Rest the tubes and FY we standards due we sales a shipments business. I to in lower anticipate quarter with our fiscal our specific Ruppert in turn ALTA who This call the to goal the the sell in in financial paves balance Good the Surveillance of Brazil, Jens in going country. or now doing point be be to be for will the to our sales the customer Canvys. plan customer continue reload tubes challenge things the the Health GMP the 'XX. In

Jens Ruppert

manufactures good Canvys' in and manufacturers everyone. Canvys morning, Wendy, original the certain XXXX second engineers, of and custom America. primarily fiscal the in to markets sells Thanks, displays equipment medical customer sales for world. pushouts North throughout quarter industrial reflects

result, to a $X.X the were sales $XX.X As million for last million the year. second quarter compared for quarter second

backlog as On during of the positive The gross finished related quarter XXXX. Gross which second sales more margin of net favorable increase second XXXX. we strong compared side, during a $XX.X quarter fiscal was a lower XX.X% quarter product primarily the mix XXXX freight fiscal to quarter by in increased to improved XX.X% costs. the with margin percentage million and the from of very of a the fiscal to of million, $X.X first

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

include device navigation, surgery and controls market. applications in In these in public the radiotherapy, products transportation applications. equipment, pulse displays laser laboratory the includes This machine robotic-assisted of interface space, used room, prompting, and systems, applications clocks surgical laser tailor of within nonmedical microscopy. super variety industrial Some are medical and human ablation, our the used monitors the broadcast talent used and in operating commercial space, a

caution been our have customers' more ordering some Over of of months, couple in we behaviors. the past

our interest customers rates, weakness in have uncertainty, some seen rapid a geopolitical ordering, particularly rise OEM slowdown continued and and expanding global industrial the With more applications. recently, in medical in

in temporary. towards as these the with dynamics markets the our various imaging growth Given next-generation customers' products strong of drivers excitement current and levels

quarter-by-quarter. are potentially Canvys vary causing to Design cycles at sales long

customers globally and well customers the macro from as growing outlook a customers programs However, in customers, new variety engineering leverage term, the design, new we and the service. over our products towards and of near and the as we applications we our supported projects stage. it value a of we engineering as will global the by the remain best-in-class Despite fiscal orders promote focused believe year, and the cautious of offer number more on of clear capabilities. reaccelerate end is sales From currently and adding localized outstanding service existing backlog

While operating our we improving ongoing new continue Canvys' profitability our the stays of our and of focus to to work partners managing meet as opportunities, division, performance inventory demand on stay with focused cash the is flow, an I maximizing organization closely sales priority customers. on the improving

will now Ed. I the call turn to back over

Edward Richardson

Thanks, . cross-outs efforts without manage long-term partnerships. Jens your appreciate to We team's customer sacrificing our

and our Greg, long-term As outside to committed remain you and and pleased much cash we've implemented We'll on a on continue heard improving in requiring protect engineered from time, to also directors about and your the profitability to are be Jens, there solutions Richardson excited improve and shares We of stock. At be we'll questions. purchase in to happy Electronics. and is emphasis inventory with turns in strategy our initiatives, Wendy coming growth We're program an our our we'll focus maintain that investing answer sustainability. quarters. committed our this shareholders ownership to our to announce

Operator

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

Anja Soderstrom

the seeing you energy. for wind risk -- Or? Indian are you you working with out do as those to testing, are power are Those that beta So by Suzlon orders see well? the any being ULTRAPEM pushed in

Gregory Peloquin

on X the turbine Senvion to multibrand, and Nordex. different Specific manufacturers. Suzlon, platforms We're of which focused wind is

now, the pricing have going we're Right No. The are they numbers exclusive. strong. still is given and opportunity beta rollout us for The great. testing

in beta unit. for in of testing. wind servicing and the to going Suzlon have we North And again, far, that's so America working up installation a received actually India the a orders we're turbines people to And do few finish weeks

opportunity. that excited in numbers I very my we're the about opening. I So believe gave

we When the opportunity arena. of into our a sites. roll or applied customer. rolled things Motorola. be conditions, of what rollout. an lot or But a rollout. thing had QX the globally, budgets, quarter turbine where things economic the world a of of base where issues similar, It's station out, out we're at the be example, are role this X. experience that nature of doesn't that that's forecasted get technology certain had seeing shipping the director I a and X et it's we'll end could based into delayed and in marketing economic they cetera. wind Yes, This mean just change different in X? area QX or result I've the in budgeted on when a is very only Historically, infrastructure one So to just for They market timing

no, see be don't total lowering would the of So that the reduction being opportunity, we number but limited. sites the

Anja Soderstrom

Okay. up is there time going And the And Research? third [indiscernible] the in that semiconductor, you with conversation in quarter? still confident how pick to Lam are

Edward Richardson

Well, on they're ever vendor to business they it's a their be and end think maintain the been. listened of their will basis the subsidize even that vendors their that because XXXX, they by to we monthly stronger calls will us capability telling than

So that to be seen. remains

Our year. went business from XG XG, of and and $XX it down up $X is But $XX million to million we're sort down from to a went coaster. from -- million $XX this $X it goes It to million. to to million $XX about and roller it's million like when XG

end Lam to of according by anticipating higher XXXX. ever that than the we're will So be

Wendy Diddell

in in and do anticipate in after QX. the year. It to We're we as QX starting in and Just to QX. anticipating QX, the that, growth of of business Ed QX not be a lot that, Lam calendar add will mentioned, QX

Edward Richardson

inventory. the burning is off It

Anja Soderstrom

QX. and QX Okay,

Wendy Diddell

confusion. XXXX, sorry, year of our and XXXX, QX QX year the for Calendar fiscal

Anja Soderstrom

Yes.

What you a Okay. in Wendy. for at this just you to mentioned need terms Healthcare in do revenue can one, fourth you, point? you breakeven reach When other the quick one the unit breakeven for still of think you quarter. And

Wendy Diddell

sell need lot a tube We the the both more ALTAXXX. sell. to Siemens CT and and need to we repair tubes, Siemens Well,

probably $X terms more were be should we higher In we bit fare. maybe line, or hit on It QX breakeven than QX point, a top to of how so little than order margins depends that our about at where that. million in in

of of to our people costs margin. tubes. our underabsorption in factory, the the we've the Siemens take to in actions -- QX As more some We reduce and had we the mentioned, there those reallocate hurt has which gross making people did

be holds the to So good up. we see shape, should how margin we'll in but have

Operator

Holdings. DeForest [ our next from comes And from Hinman ] question [indiscernible]

Unknown Analyst

you Can couple a lot GES just some just has It I place. business? really seemed excitement XXXX. business opportunity the ago. over within there's been like of there perspective, give really a context good more sounds performance quarters just of still the performance It a on color of mean all the a us revenue from like the but in lot opportunities

semi we I offset it GES a think X months were I within the growth the was talking softness know ago, could if of lot space. don't in about

occurred. hasn't really that So

So Your things can months? like months? the in improving. reframe X maybe XXXX? this if Within the there then fiscal revenue is just within opportunity the could XXXX business look you what next what And next XX start

Gregory Peloquin

Yes. Thank question. you. Great

months failures and new I've of the on team in the The market us products, the products in acid which for to we saw job. to new cost a introduction example, market. infrastructure took the time and cycle brought within is entire product the XXXX because that what introduce It for X.X customer design, rollout over And I an was new LDMOS, it after getting the the my So versus, manufactured, based in the process took batteries. the years that of mentioned tested, done need lead Motorola those career did we such part. amazing been

top opposite which budgets almost They Inverenergy, RWE and actually than for first wind they ULTRAXXXX turbines their got budgeted. So forecasts from and the ordered the GE NextEra, and was Enel. and rollout, year, X we forecast in of North more give of was of they this operators that XX% designed us owner America, that kind the

amazing did job. an However, team the

meet these and You we have supply didn't cetera, were chain we et the requirements but a all able March to issues, stock year. of had in last all part until

so we the bit a there. little numbers this opposite. are And opportunity the still year, still what saw The of

operators. represents patent North the we believe, that done BP up before, beta instead the at program XX mentioned, testing this within specific today, doing, other of have if XX,XXX XX of I to owner over to release they've site as And X. this company, turbines in EDF, done turbines. customers as key Energy our you in [indiscernible] in Energy, America, But operators. business, EDP, like we've I add However, press People their December, I mentioned wind it's in owner the sites, turbine day, over Partners, meantime,

And going to to that, that Now outside how to meantime, we application. some And Again, be adding to look due year. the before, to go Marketplace over Also, products we're And that more out, become able India. years. huge Suzlon supplier will of roll for products see in continue to exclusive we'll we're were going we add out see X and North to to as marketplace the new other issues, in on America. as the less. the But be GE opportunity to more I ULTRAXXXX. come mentioned

as see to we're for the wind in turbine to of come In kind excited team, the not back applications increase. because ULTRAXXXX UPS. or ULTRA owner just operators, business. the to both the orders why wind meantime, about specifically market energy can has waiting the The you and into before, of the So mentioned designed products, for other relationships I go with green strong these turbine

of, Now course on needs with team in calls there's day good change. call just There's to going there's we And changes single very turbine scheduled It's in a hey, every But with change in lot NPI directly the every spec, items. UPS have we on one works that very customer a the process, very, mentioned. site I But testing. ULTRA here the the this. of need that's weekly beta customer well. that specific a the

UPS. that's of and turbine So kind for the wind ULTRAXXXX the ULTRA business

Progress needs and program structures. a manufacture, be to electric -- the modules battery and partnership where locomotive We that's super with team expedited. did fourth finished now last with all quarter that meeting we shipped locomotive year. our Rail the case, in this that an electric exceeding have that products of into go that requirements. we build the with customer of And also the amazing all needed another the needed test in to job again, came design, side, and and And On

taking and 'XX, QX in products. shipping customer of our suppliers the product So our them, and building year QX to units. now finished for there and are fiscal they're of according FY QX. their end course, that beginning other And to other they're the They're

year production prototype XXXX. And products So prototype just just the we And worth remember, in those last for for expect million half builds. builds. calendar of the builds, orders sometime year $XX these quantities that prototype we are for second of shipped over

base, say, So numbers accepted by to been excited. accepted never math gets the electric vehicles more we've get per as needless after again, train, that locomotives like that about talking the they're electric customer the

And forward. Just to come said just know new before, map this this, I add what that. after could customers math I've up opportunity. easily to and continue going new products don't we but numbers with, million It's you $XXX

the market, So electric also relationships modules we locomotives. and That we locomotive fourth for for the and have owner manufacturers over top and within product is diesel orders because our of third that, have the of we with which today the and designed of designed have. product trains ULTRAGENXXXX, for we've X electric XX starter is electric

And a there's very are us to exclusive not everything talked them. not second competitor, I There's about source. a we that business exciting. is So obviously just with

as which it pipeline grow, on to to the but very, products it's front. the a new makes excited continue use us as like issue stands is the business they with infrastructure add infrastructure energy infrastructure for out. the grow, we'll turbine going relationships comparing that because to word energy is, wind roll to green that I'm timing base today stations, it pipeline these very as So I'm

Unknown Analyst

point Okay. debt. obviously, market trading no that's is mean, around probably your helpful. with this at book not enthusiasm, I sharing the the mean, I stock's value

Should about it's And authorization? themselves So and stock a be then repurchase issuing stock? the X-part management we, should thinking shareholders question. expect buying the as to a buying share team Board be

Gregory Peloquin

to part the got year last rollout Solutions thought want of and the X market on what our the to excitement touch excited of strategy. I'm and it. Energy is the going enthusiasm shareholders I Phase I very call Green

out project-based product they as we as as coming. the roll this I about about opinion mentioned Phase as customers just but would Ed today, have that. new is next the going excited forward. think coming. I My These let about suppliers, new should products, It's SBU talk be It's confirmed excited And just I be steps new that. which, line, I'll X,

Edward Richardson

Board instituted just on worth with buy as that Board to just that's the our they're and a required $XXX,XXX of their stock participation We implemented. program been

place. in that see you'll So go

foreign about and have U.S. in $XX the or subsidiaries is only cash is million million million cash, of We $XX in difficulty about $X XX the have we that

in answer the be to is the buying stock So that that future. we doing our back near won't

Operator

Ross our next Taylor from Steve Instructions] [Operator Partners. Investment And ARS comes question from

Ross Taylor

companies invested move board doesn't with stock the Congratulations when the that's an and shareholders along on along important the with and investors. be succeed Board getting to management have I Board seen a the very because a step. Board when think I've the of with rarely that doesn't small have interest

XXXX being that that is, be is or the ready for -- XX telling calendar that fiscal correct? the commented you words Is really from you you biggest first or Lam them? you've question my should saying seen Second year

Edward Richardson

correct. that's Yes,

Ross Taylor

was, in years year or that X million at space about in so biggest ago revenues? the And you've had $XX

Edward Richardson

That's right.

Wendy Diddell

we year [indiscernible]. Last

Ross Taylor

Okay.

pretty once a So would running we where to this over is what they pushing see get they're what going currently plus you're XXX% situation going, you're effectively expect really revenues pretty at. looking those ramp up, quickly like significant a at growth turn that in

Edward Richardson

That's correct, yes.

Ross Taylor

And or that that's when average Okay. to company than you get a probably carries better multiple up margin... operating level

Edward Richardson

its matches product, is margins. our and I we normal better the proprietary know where make products margin than RF

Ross Taylor

Okay.

That forward? is going being we're margin. And driver that operating say, to about mid-XXs plus million in talking at itself revenues a added be so alone, $XX-plus huge

Edward Richardson

Absolutely.

Ross Taylor

drawing convert into creation inventories? can you or cash talked about idea down the thought own of inventories your on from an Second you to -- kind like and process get cash. ability generation you've get how of Do have you the is, can what the

Edward Richardson

Well, that built for what already the turbines? about built? total ultracapacitor already What's have number wind we we do the XX,XXX have modules of

Gregory Peloquin

with Yes, that much customers. XX,XXX and backlog but built on

Edward Richardson

All right.

mentioned, right their Greg So the of process. of It's matter it's year. as spring release. now, it's when budgeting a they a in yes all turbines, all they're to timing they're Normally, wind. going not, do And going these through maintenance the if wind

So we released them. but have these they orders haven't

So it's timing. of a matter

Ross Taylor

ability convert dollars? multimillion as convert the we of what several to into inventory is But cash million should dollars see they to

Edward Richardson

Yes.

Ross Taylor

larger as several, not it's than being several. number a Since take I'll multi

Edward Richardson

correct. That's

Okay. In do turbines alone. normal over a with we year the year, $XX million wind

Ross Taylor

reading we the same listening combination guys It hit for of the that time, they same this that your what quarter that events, at should on. see release talk was seems to be in the was a me quarter. uncorrelated, all going correlated this there nature But -- you to unfortunate

share. call at to And going of what's and should then the I year, the ironic trading under actually rapid this then rapidly had, free growth stock see half down in kind see incremental bullish to so all. it's slowly about and we're some really most we occurring second and quarter moving a they broke where this idea day mean generation say top always then flow should the your line, move first you've start the and on listening we with beyond as to and of we is incremental that cash earnings, the XX% $XX it's that

Edward Richardson

saying understand. you fall a fully I floor. can't off have We No. the

the have things X business we And XX% think be going positive. green we years, of flow our forward. that these we will energy will within extremely company, of all and think going, $XXX be with So million cash

Ross Taylor

point don't you as can off said, is, this This which think floor. is -- you you that from fall really, from? fall -- the that a can't that And you

Edward Richardson

absolutely off did, are, but the went amazed just you've backlog, we that's it's fallen it we that No. have to the cliff we level, We're business like and that the inventory. where but have this

of timing, matter but wind. a it's if So not

Ross Taylor

this a on And background bit Market or... in opportunity give size can of you hydrogen? little

Edward Richardson

in Yes. starting We're that area. work to just

this of are that in Caterpillar run that into use they're having lot ways at hydrogen generators manufacture. the they're that's tube that $XXX,XXX. is like They their on actually, microwave future than acetylene converting And $XX,XXX hydrogen and and and the more So value But methane talking to gas generate about equipment make acetylene. generator the most we and a is the XXX-kilowatt one of generators we has companies, hydrogen. point, including hydrogen profitable XXX-kilowatt about the a buying using

a that future. profitable be could business for us the So in

Ross Taylor

need? you And how many do tubes

Edward Richardson

generator. in one There's each tube

We this mentioned we have and crystalline generators synthetic the over few about they're that making buying diamonds XXX one talking for for industrial applications that's years. customer next

Ross Taylor

X Over years? the next

Edward Richardson

years. Several

Ross Taylor

Several years.

hydrogen acetylene guess so we I this, then as you look -- you of the the and the or then Okay. reduces and at making a -- business up what that part you the is and you sell acetylene. have eliminates cost end hydrogen sell model benefit actually And if And the beyond of that.

Edward Richardson

correct. that's Yes,

Ross Taylor

I've the Okay. by look I isn't think Well, call fact of the discouraged bullish This that And heard you it's as said, guys looking hood basically investors at the the most fascinating. draw I have. by get at car. don't

Edward Richardson

stock we've $X.XX Well, and $XX. only been my for the around And been history, in has XX years.

a we'll matter So there, just of wind. get

Ross Taylor

highs. to Let's Congratulations. get new back

Operator

comes And question our Ronald [ ]. Richards from next

Unknown Analyst

what India. you're And coming GES was have in So orders those in I wondering progress making? kind you markets, foreign other of penetration about

Gregory Peloquin

an Suzlon It actually opportunity is Yes. PEM going the product, the it in is turbines. their make also India, That facility specific Suzlon to within be will wind be won't The acid meaning by multi-brand tested lead be the it in system will replacing and be to turbines. to but their is designed at biggest OEM it batteries far that opportunity. their biggest

Germany. We in Enel have numerous in opportunities with Italy not nearly as large with Nordex

products products, getting to share new global and these the they're relationships grabbing not these too. of brand because, and market on sales we the now XXX% train because market, can but again, North -- them continue exclusive getting American force we to GE it's all So the new our

world, biggest in to to once operators is XX turbines because are go seeing the all into that months beyond throughout transcend but production going owner we and be we their sorry. globally Suzlon, for will the next So the opportunities, probably send I'm India,

Operator

the showing back And Richardson, to CEO over I closing Ed questions. I further call no turn remarks. for would now to am like

Edward Richardson

appreciate prosperous your that new matter it's want not in from up assure we we a you happy of to Electronics. only you a Well, investment interest all year and you We don't Justin. and Richardson available in and Thanks, we're year, but And April. and very our wish hesitate call XXXX much. we with you very take third calls forward so here discussing time, any fiscal us. wind your to to look to if, Thank quarter at

Operator

today's This Thank concludes for you participating. you. Thank conference call.

disconnect. now may You

Richardson Electronics (RELL) 11 Jan 242024 Q2 Earnings call transcript