RELL - Earnings call transcript Q3 2024 | Richardson Electronics, Ltd.

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Operator

Good day, and thank you for standing by. Welcome to Richardson Electronics Earnings Call for the Third 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, Ed Richardson, Chief Executive Officer. Please go ahead.

Edward Richardson

to fiscal conference year welcome third for and of quarter XXXX. morning, Richardson call Electronics the Good

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

returned we'll call our involve risks filings and available in results factors. I'm increase to this pleased is materially uncertainties. reminder, well expectations our is risk and our making the that Therefore, different. for to to ULTRAXXXX benefits Please our SEC focus customers sales remind would reflecting press to of profitability Solutions, sequential strengthening Green balance increased improving for The the sheet. a on and release XX.X% current new be actual refer Energy conditions. report Sales be as our being drove and we that team's explanation As an sequentially, quarter. our diversification our Stronger as will for existing wind could statements like profitability encouraging, of demand GES, playback. I and that also you on from profitability business are strategies reflecting be third enhancing higher forward-looking recorded in sales. and based and

wafer to be during quarter. sales cyclical customers, continued the sales will believe of semiconductor declined fab We semiconductor our QX net $XX.X Our to revenue the in quarter. reflect which the lowest million sales nature

to of back anticipate they calendar year Our calendar XXXX. tell growth customers us in to year leading XXXX, sales the half record in continue

we've our on strategies working Wendy, time third call Ben, over in global with $X response quarter in financial inventory Officer, reflecting review improving our than primarily the that performance now teams first chain Bob the inventory decrease discuss better continue at to focused fiscal past our was business capital the new the improving future. Greg, in The aimed decline products, quarter across I'm expected years. pleased Jens grew update including sequential our align and in drive demand that and X on seen Chief Inventory XXXX, inventory, Then an detail. making. markets. our the turn to to million we marks performance, will Throughout programs for highlight several with levels years. I'll optimism Another in the quarter a supply unit in Financial the customers to to our the levels. progress over constraints are more prudent

Robert Ben

year's by our not pushouts the gross did underabsorption. customer Richardson battery in short-term North company's third as XX.X% of sales other EV fiscal the Thank sales $XX.X less provision you, fiscal $X.X our and of million a fabrication year's XXXX. to income which cash XXXX, position. Net due quarter including year's compared XXXX, quarter, in quarter primarily income a GES million morning. $X.X XX.X% company third the to a XX.X% of $XX.X last improved of interest mix. Operating quarter, the GES good semiconductor income to and $XXX.X due of tax by an of of operating to underabsorption margin mix. end tube decreased Other XXXX, year's manufacturing of of as $XX.X sales, for fiscal compared increased sales higher to year. sales Healthcare quarter of in for by fiscal fiscal lower third and of manufacturing parts our the XX.X% third by net $X.X third net $X.X for operating to in $XX.X million third of initiatives. to the year's recur tax million, prior of of sales. Backlog in the the compared of product the in in from at XXXX effective been the Canvys year $X.X foreign fiscal versus XX.X% million were product because result primarily fiscal quarter of increased of fiscal America. facility, million, and last or Canvys fiscal and of I was $X.X the XXXX rate $XXX.X last quarter review quarter prior of demand results or an compared prior PMT review GES a system XXXX gross CT the XXXX mix higher from third XXXX were $X.X for $X.X the to in increased third the XX.X% compared consolidated third fiscal manufactured of fiscal share the from third second per would XX.X% quarter by $XX.X third margin customers. Sales support fiscal of margin that third by expenses decline a the end in net to Canvys. Ed, tax offset locomotive or in the third totaled XX.X% fiscal sales margin $XX.X Without expense fiscal of quarter. underabsorption. quarter to the followed from our wafer will increased third decreased from XXXX third the quarter $X.X in driven last fiscal for margin million by gross included gross per million income in million common from PMT of for for exchange, the sale fiscal million, large million of product of gross equipment Healthcare's versus XXXX. growth XXXX, products fiscal million rate an year's for third Consolidated million financial diluted for of to third to million XX.X% of modules the common in company's million to primarily XXXX. R&D quarter income third gross third the quarter, backlog quarter that quarter third of the management due $X.X was expenses the in was $X.X margin for third XXXX. the XX.X%. PMT's income lower prior XX.X% XX.X%, estimates of compared million million. Net fiscal from in $X.X expenses, million the diluted was versus in expenses quarter year's resulted the a XXXX product in sequential primarily mix third quarter increased quarter have income and or of to decreased at million of tax product incentive second increased million, XX.X% million third mix. $X.X reported XXXX. due fiscal XXXX of share, third effective quarter The quarter third The quarter, company's operating quarter decline XXXX. Income offset in to for quarter quarter provision of $X.XX quarter the The of $X.XX partially compared of was than decrease XXXX quarter of

XXXX million foreign or operating rate or scrap mix of year's the X Net prior last of versus million income X $XX.X $X.X expenses a year tax manufacturing higher net first million of the due income were of an million, from months of an $X.X company or in first first by income months freight product and for for the as reflected exchange, income by from in offset months mix X XXXX of year X tax across X increase expenses, margin year. first was the in underabsorption $X.X year per X results tax $XX.X fiscal effective was million expense XXXX. versus first business the $X.X Gross interest fiscal X for PMT, tax lower and to first X an Operating The sales first X to $X.X XX.X% sales other manufacturing was and the decrease review income in of of first of for million fiscal GES Canvys. Operating XX.X%, which the of of XXXX, XXXX months the rate months underabsorption fiscal diluted favorable million first compared expenses. expense for primarily fiscal our effective as fiscal fiscal $XXX.X compared in product was product a fiscal the $X.XX year of X common share well first income salaries to share represented first during of of million months was for first million increase partially for were year $XXX.X fiscal to of and the mix million year months $X.X or expense for the offset including first provision $X.XX months X the costs Turning year reported XX.X% months of the net months increased The which for Healthcare, X an an XXXX, X the fiscal XXXX. million $X.X to million of fiscal which partially common per XX.X% Other and of of segments. of R&D incentive XXXX. Income year, the diluted months. XXXX of as lower provision as for a months the months lower $XX.X from decreased fiscal reflecting XXXX.

and fiscal quarter in end the The a in of third XXXX. $X.X quarter to of quarter resulted payable, million at total quarter cash million third U.S. in $X.X fiscal of decrease XXXX cash were of system XXXX review dividends partially million during million offset of the XXXX. We $X.X versus $X.X quarter in investments decrease XXXX the of XXXX million of IT Moving second end and $X.X of expenditures in at of of relate a position. $X.X quarter and accounts of the million paid a versus fiscal year primarily million, quarter million to by of investments use a our third the $X.X year $XX.X second XXXX. year receivable third Cash increase fiscal inventory. at a investments end of of of in fiscal third in at the third cash $XX.X and the XXXX. Capital were the our fiscal fiscal end cash the the in to compared million $X.X fiscal quarter million from were the the accounts

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

of line of end outstanding revolving no fiscal third quarter credit the debt PNC had of Bank. of with on company As the $XX its the XXXX, million

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

Gregory Peloquin

Thank morning, and you, everyone. good Bob,

strong We from GES fiscal $XX.X XXX% are to quarter, group, and million. experienced for $X.X pleased growth or were third sequentially year-over-year share in to XXXX growth slight sequential quarter-over-quarter our GES. Green that Energy Solutions up million we sales

book-to-bill addition, customers, of the is third In partners. with technology products, new our GES X.XX new addition quarter new and the for

implement do key establishing In growth As launching of products, customers. customer several received are stream. help design we terms a until designed develop site sales. patents, this from team testing. we requirements, more mature, quarterly continues our a and quarter will capabilities strategy numerous of identifying and of in to job GES predictable seeing to have are The beta short All we developed quarter and growing revenue our fluctuations a amount time, and products great list a new manufacturing

and Energy locomotive benefited our development to projects several rollout market GE of reminder, owner-operators large such confident to ]. remain expand. replacement GES We including that of lead Modules and from the electric Imbor wind NextEra, last batteries as Enel, fiscal with a of turbines, Pitch As large-scale acid continues Energy our major year, share [

have tell new revenue core purely repeatedly opportunities, a QX customers and we applications, Our our in market QX the slowdown maintained our and issue. GES identifying timing us in share for was

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

Our remained combined backlog GES $XX and strong at PMT over million.

business we convert position, we to to quarters reduction, cash our will We customers' focused significant which on in inventory believe QX. in our we coming incoming our as expect Given as ship we collected. continue able will stock, inventory remain support are This they from when into in are many do were needs the receivables orders ready. managing resulted to

ULTRAXXXX $XX.X $XX.X So million detail. that, year's million XXX% quarter driven at base, quarter, product with up up in for third partners. a mainly new were the GES look groups both the customer component from our revenue increase quarter, performance in let's technology and quarter, larger with the the third for in well from sales the in GES from PMT designs as more and over as prior prior by

grow Beginning saw to in shipped our an to with niche, individual the for see site management QX rollouts excited the products. green customers continue With power trends for customers. emery QX positive share 'XX, focused We are market in we increase over needing patent date, expect and our to budget program this XX wind to million 'XX. FY we continue in see FY

in the and to other our we turbine production wind patent-pending XXXX ULTRAUPSXXXX market the which ULTRAPEMXXXX as in the The completed at Suzlon, down program turbine. platforms the Siemens India also We with be outside base mentioned well, or both going on is by in thousand SSB, such multi-brand beta is ULTRAXXXX UPS Europe. system for ULTRAUPSXXXX, customers. We're are GE serve alone, our ULTRAUPSXXXX acid of Senvion, same turbines replaces America products, the more improvements Nordex, the an Suzlon The testing from will continue Tests test is testing owner-operators batteries or in our America. also in September turbines. wind as with replacement We beta designs beta of revenue used the product. product of replacement tower the other lead important and have OEM in line more basis. and QX with opportunity led generating but North mechanical major to anticipate late than wind and for North ULTRAPEMXXXX testing several X,XXX function and expanding I different One with as which the

due with We in production which SSB also Clean orders X in Hamburg, Latin America, ULTRAPEMXXXX October ship Suzlon, out Show testing expect operators fourth for in quarters The new production America shipping several will suppliers of We'll September railroad piece builds parts this and XXXX. for XXXX. In be units the and will BNSF and in versions North prototype into in starting Suzlon manage QX supply fiscal completed design third changes, final We the the issues SSB superstructure of XXXX. Nordex, locomotives locomotive and chain quarter our owner segment, the our calendar late in is rolling EV Germany to pitch for systems. longline at now for and to begin anticipate next program and Senvion, year. be electric Suzlon, Europe Energy and of in

our We want EV module our these year-over-year that have large exclusive QX project-based QX. in last and QX both beta over orders unit, are summary, by planned, from within and backlog year, in sales a ULTRAGENXXXX all growth I begin quarter-over-quarter revenue the by months the slow starter manufacturers. growth diesel If suppliers that note orders in production despite market for expecting supported again We will did It's with forecast any to continues in X not stress of customers. QX manufacturers. to increase and We're new and we technology in lose the share. and large that products, quarter, we locomotive to July anticipated we X customers first as growth anticipate XXXX. In the saw fiscal growth we QX. patented and of important in late GES sequential driven business

share new customers. In fact, we to market applications increase and with continued our new new products,

microcomponents fabrication the to Turning Device which Group XX% slightly or our legacy wafer business semiconductor power in microwave business, & PMG, $XX.X wafer or semiconductor the and Power due our million. decline Group, primarily fab from Microwave growth Microwave X million Sales decline Technologies, in decreased to to Power $XX.X business. PMT, includes RF power by group. components The group. EDG, or our and the was the offset slowdown was equipment in This the and Electron

based QX of market for on to business over out expect a overall FY We of in X.XX QX. and coming predictions growth 'XX book-to-bill and PMT equipment wafer fabrication for our see quarter-over-quarter with customer feedback semiconductor

negotiate QX, to led including strategy technology Ideal our fill technology continue Our technology relationship of global and support our our and global diversifying Solutions partners These offering base. schedules purchases We Wolfspeed, adjustment with cash In growth, add April, Engineered in our MACOM. gaps Wolfspeed, partners. and we extremely we through excited on stock shipping our by expanding is who Power identify with through privileges, In we customer be with the for more capture Semiconductors This when increases terms, maintain supply. revenue appropriate, manufacture of the in-house. we Often help to flow. addition to to are design products them are RF us provide opportunities we portfolio Components. and strong. that these MCI And new long-term special allows microwave supplier partnerships, strategic customers and we improve levels while proper relationships expanding long-term work value our to Cree and and

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

Our relationships growing customer help base these us opportunities. products and new strong and develop with customers

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

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

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

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

Wendy Diddell

Thanks, everyone. Greg. morning, Good

primarily quarter. increase we division our a for were In quarter, the were Z of quarter, to year sales improvement period compared quarter again third Gross due most higher primarily in system benefited quarter Straton Siemens were the our to sales tubes. Healthcare's customers repaired from parts the improvement to The the Third compared over the the second versus America. in improved from quarter. gross was XX.X% year's $X.X second a gross Healthcare XX.X% slight receipts and fiscal last to tube cash margin margin tube to in million, including product mix, the quarter and last prior same third of part Siemens while sales up our was recent of favorable XX.X%, XX.X%. the an sales. due margin Latin year down, and CT in timing of sales

We also focused realized the on reallocation of repaired tube of Siemens done and end the benefit resources of the program. quarter restructuring at the second

expand starting to base. steadier performing ramp live have we production includes A program. in excellent Straton X repaired and with series continue MX, sales a our The beta Z in performing and are of to in full production the repair Straton as MX and tests. tubes We types, is make Straton tube can are Z progress customer field. and MXP repaired Z, well the well up The Siemens the MXPXX. program Siemens flow

later to components. the in to the small critical when may repaired anticipate series quarters, tubes full of able replace summer be X sell of the this next While we're MX release a we able number we

closely We the goal will in continue series, but Jens the the investments other a will sales to With now performance fourth Ruppert I Canvys. to discuss right company. the challenging, monitor to opportunities in Healthcare's Siemens with quarter. our of results with remain turn limited call taking the are to achieving repaired financial we point breakeven of of the the steps this over balance

Jens Ruppert

XXXX good everyone. Canvys global morning, engineers, primarily of sales certain and and quarter manufactures, custom customer reflect North to sells displays and pushouts across Thanks, third equipment Canvys manufacturers fiscal Wendy, medical markets. industrial America. for regional in the

$X.X third $XX.X a quarter, quarter last like sales is million. One sales million million backlog. As highlight I'd our strong the compared area were year to result, to very $X.X for a with of

demonstrates our a remains you at in robust, competitive clients This As us for and long-term the market our revenue to backlog only our services, can with foundation future providing see, but secure growth. environment. our strong backlog ability contracts reflect also products confidence not have

gross highlight our the the is Another from third quarter fiscal notable margin. in of XXXX improvement

net period that resulting XX.X% on our to This our cost are been our the last Through our focus and as percentage excellence We sales management. year. operational of to we've report to XX.X%, gross operational structure, strategic a relentless pleased margin increased enhancements, in cost enhance and improved margin. initiatives improvement same underscores compared and efficiency optimize during to able

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

broadcast public key variety market surface space, consoles the a or for market. human interface our air inspection nonmedical establish segments. In passenger monitors, Some HMI relationships these monitoring, entertainer These the commitment pulse and in include ability used prompting used these navigation, with driver growth us solutions and such medical colposcopy, surgical of includes control, clocks as applications evolving positioning applications products sustaining transportation systems customers and used laser needs in underscore applications. highlight Furthermore, are in commercial for machines, surgery. to to in monitors they clients, the in and new displays innovative long-term talent the of train cultivate super and space, meet applications our information that both the patient traffic our This providing sector. robotic-assisted and machine and our industrial of existing

to our prevailing through important acknowledge that some the environment, customers it's dynamic market of have cautious exhibited As uncertainties. approach we navigate due to a

stabilize. quarters. market demand rebound promising a indicators gradual optimistic caution, in We've this despite the observed coming and However, conditions the as about remain recovery anticipate of we

Our dialogue ahead. our the supports recovery customers confidence potential with in ongoing

optimism design our wins and the for recognition drivers key increased stemming in These business the solutions the of from One our and wins. underscore products is new market. acceptance of

Our our demonstrating laying challenges development, commitment Despite engineering have objectives. the engineering remained emerging product growth on diligently of level the wins team We've capitalize innovation our approach. of our activity and the for strategically been [indiscernible] positioned to groundwork and to post on teams have high a future engaged, these opportunities, and strategic opportunities. factors, effectiveness focused design validate ourselves

continue to target we from wins, customers clear and and value of markets, penetrating we further leverage on as service. As as these the is and we're outstanding revenue orders our of global variety and applications participating localized customers share. From our well offer a impact it growth positive new the existing products customers, market

While our executing will drive organization our back stays to Ed. shareholders. on over growth be initiatives I call and our create focusing focused long-term strategic opportunities, to new now value on for turn sales sustainable I the will

Edward Richardson

recent we're a pushouts source your frustration Thanks, for improve that But Jens. with wins, backlog you and and customer team. been sequentially. will have confident of strong know I business the

Despite economic interest in conditions, headwinds growth from strategies. our China, remain optimism committed economy maintain rates, our lagging a we and higher to long-term and

for if large ever-expanding road be capital, large, going product on why help The they global access necessary, customer carbon growth. a cost convinced global balance to for a growing but exactly to Solutions years. we're capitalize acid our and is advantage of take must we also We pursue of X not part lower continue every fund our crucial trends. We map by our lead develop believe Energy we this positioned or well recent solutions only customers forward. to and strong the stimulus government growing base. In sources be programs wind new engineered as This We're created energy for growth market, global significant to maintain savings solutions that transition of revenue batteries goals, sheet to create replaced X opportunities projects emission achieve will markets. Green rapidly offer example, additional with

saves years. well in costs expansion as more uptime, than never greater turbine opportunities for a generated. power XX brands turbine. diamond and demand XXX-kilowatt replace more well by power as pilot life replacing our growth may as there applications. operators growing. Last this has created as quarter, of U.S. ULTRACAPACITORXXXX we wind reactors ship to Wind for over Our to within labor to the materials resulting ensures that high-tech the to This Act as the are ULTRAXXXX In XXXX, modules expectancy These wind provides have before other to apiece. crystalline generator. the Inflation International turbine quarter, evidence such opportunities more the $XXX,XXX generators make are ultracapacitor of generators we'll Reduction referred first customers

like impact locomotives. still its infancy, the California will We demands applications, many be This diesel expect fab AI that also positive this is are of vehicles. as and demand many in the for chips but transition have states used mandating such a first in rail of from the for on will the large electric wafer semiconductor vehicle equipment. Electric

alternative out and remains this than applications priority. States, the United a rolling significant. outside on while the Other mining remains like anticipated, top we be are solutions green So slower opportunity originally may the emphasis

integral in stress player discussed these of their that have again to closely teams products an growing. are customers' or working customers, our supply want chain. I or and are engineering been are that projects We None programs with lost we've opportunities canceled.

sheet $XX capital hard working cash million debt. strong convert and improve cash. and working our to balance to remains position in with We're no Our nearly inventory

be create in this 'XX. Overall, time, pursuing on opportunities to we producing remain remain the while At a flow we focus cash and the profitability your for sheet, our direction focused extremely FY improving we'll healthy value cash we're balance operating approach Our position global to questions. answer positive on by strong headed will excited we're and maintaining in and shareholders. happy

Operator

question Anja Soderstrom from Instructions] is first [Operator Sidoti. from The

Anja Soderstrom

would or a increase? Was And several drove a that projects large nice business in It's there project have jump was -- to what GES that? the sequential drove quarter. it see that specific different

Gregory Peloquin

Yes, it's actually increase customer base. the ULTRAXXXX a portion great of the was increase business. in the A major

this would gets example, over approved. And stock shipped product from QX and got as stock. had X increase market And it, what past QX, their that CapEx those on customers that accepted, they customers. word X forecast, be their and support Just and and putting slow, an that the we said quarter, happened. was the last for budgets to they're doing had their for we seen beginning from we to people approved are we were together, XX QX, based ship and X, XXXX built we've able a up in This and placing started an orders. the we got out, for becomes and year, very They it exactly new CapEx to QX

So in of and it ULTRAXXXX. in was our the an increase number terms the actually customers, largest of was product the increase

Anja Soderstrom

Okay. the a X one XX,XXX a you press you completed that's March, phase right, of release modules? shipping in And had that out

Gregory Peloquin

They yes. X and generated and -- They that their that in about review QX they it phases. to it. another everything And approvals and is $XX,XXX according at looked Phase and them, started so reason. we phase CapEx seeing Exactly, X was start-up,

Anja Soderstrom

same you since expect going And the can what have or more X? expansion phase to could it be think be you from magnitude now? Is that do we an customers

Gregory Peloquin

the amount. largest add a from started little bit good The could customers. these that be it be group, same together, turbines. higher, of way, we Again, the X and owner-operators are with, GE based you but forecast the about the wind balance will a in all on It if them smaller

So X. we're phase that for plus expecting

Anja Soderstrom

to and continuing what increase fourth of Okay. what in beyond the you sequential gives do expecting visibility of And kind the this [indiscernible]? have confidence quarter, you in growth terms

Gregory Peloquin

the on and have based it inventory backlog about confident and deliveries the we to to very shift that. the We're

No very in are is because can't saw one their we people well. can. customer which QX, forecast like base far, meeting forecasts, so And surprising the

mainly fact that that the being forward. the X, the of it's support schedule have our book-to-bill on to backlog backlog over So based and and it we inventory going

Anja Soderstrom

Okay.

squeeze about to inventory. Going one in here the

flat should So Or inventory that the work in that continue nice to should was But even continue, maybe to coming be increase amount? now we the expect growth a dollar quarters? it to in when could decline staying down. or -- you expect

Gregory Peloquin

on GES. touch I'll

people. the to SBU and increase to sales go the I'll expect let specific GES, We to inventory and other down

Wendy Diddell

that do Anja, entire we have that, Yes. management I focused the would just team add on to it.

to to is go as wouldn't intent, going absolutely to so that it's decrease, happen. everybody's we While say far that make is

pushing So and back to negotiate We're suppliers. with We're different can, we can. we on board. we're certain all where cutting trying out where arrangements

Operator

Investment line Taylor from Our Partners. from of the next ARS Ross question comes

Porter Taylor

Congratulations on to operating strong see the nice the in in you profitability-wise. performance It's quarter. back a green

this for indicated the nadir semi-cap on major You in the call driver drop are the you think and we equipment been a at basically that's profitability. business, that to that

that area. you to year that be calendar indicated them customers also 'XX expect your calendar a in You've expect record for --

a to So 'XX, you right months, XX think level of would guys? be for should that be record calendar I producing you those assume revenues

Edward Richardson

ever. a our customer, Applied and Yes. customers I a Materials and regular they're basis that semi number we will space. but largest the Electron than also on in be Lam listening to is Research, us who higher to mean, wafer we're that XXXX, other fab And sell of Tokyo all in business telling

million in very margin. $XX know, last And than we year, million. nice it's did year, that at As space $XX you this less a

if it be record can $XX on next So a year. year over being you should million, count

Porter Taylor

able do And be you back same to a that kind of should margins you better ago? year saw or

Edward Richardson

mean, a our are we're those I lot margins very so of proprietary Yes. good. products in

Porter Taylor

you've Yes. been Energy call number Historically, and come the it the like type indicated looking appears, correlation. on you previously over business Green that months. XX next a Also, X:X at indicated tremendous is of sell-through, XX kind or on almost opportunities that a of this to there's

guys think a assume at able say, of you level be let's 'XX? performance business of as, you record that to looking Green well that would I produce think the months XX as So should calendar would the

Edward Richardson

slower tremendous than that the when, of think turbines, certainly if. of the There's diesel much that a matter not anticipated. locomotives in especially only we starts for not or We rolling a but pushouts lot if kinds it's seen it's of electric battery space. in a wind as we've opportunity ultracapacitors it with locomotives, Well, the areas, but and all out seems

Operator

Our from from comes Mendel the next question Management. of Money Mendel line Barry

Barry Mendel

but Yes. heard going forward. that so what on you But be Progress customer Progress I Rail? biggest assessed year with remember a maybe about is about your could really Rail, much ago, going them, haven't

Gregory Peloquin

America and in we've you North on for Australia thing the are currently main Rail, Northern. prototypes, and met their know, I think commitments Railroad Progress in the both Their for then all in main Long going in orders the initial Well, Brazil. Island as Burlington customers,

the They're phase. building the product, design-in So up built we've to it them. a we working with now their shipped and then entire train customers long through

locomotives make are We owner-operators the modules X and in developed release That got XX product X programs the we [ that trains. largest X market think I we ] in However, LaFox. of starter a just the have for diesel designed locomotives. 'XX, main here FY in for is the going

product the over of one into manufacturers this time. example, for will go XX,XXX there's diesel So -- owner trains that locomotives, of

space. So to 'XX, opportunities quarter, the start have customers in potentially designed electric module identify the buying if that them. the I locomotive trains. other in will And it's FY in at, we But this look we in continued end case, we've their at look fourth the meantime, starter for

Barry Mendel

shipping So you're could quarter? fiscal fourth you your in start saying up

Gregory Peloquin

for orders our modules for and their FY our that yes. diesel But The starting of we've in locomotives. forward, for battery stuff diesel starter and shipped their that actual the in our modules release the we've a quarter have are designed developed electric already superstructures fourth locomotives. we for is to 'XX, other Obviously, QX going locomotives

at IGBT for have a looking for So we new We're that them. finding we're great designing some with them. opportunities modules relationship them. There's

they accepted that customers. content those orders there's largest dollar and we on have So the is large start placing of amount that X Progress for yes, manufacturers the you're electric those, question aware locomotive their I of trains will end -- our be once business by customers think those no

Operator

Our from Management. Instructions] next Rui [ line Rui from of comes ] [Operator Chip the Asset question

Unknown Analyst

the little ability prevent given in finished the at Just to think, The compared the you, little bit. talk you rock of the Q, to that I good quality the of deliver, being about that. And if the bit me the balance $XX of million, that, sheet focusing there's of a could of course, any on delivered cost inventory. on it was solid value sheet to kind market cash, I if inventories with the aging issues, a the last quarter, company. $XXX.X would and, as anything better wonder million combined balance of And at that look than inventory inventory,

things the is to there Just kind be inventories wondering if taken that? And as-is know talk could let finished to on percentage really good shelf modified what's of what or the you get us going the on of versus you inventories needs about like other as shelf.

Robert Ben

Chip, inventory. very this our We Bob good Ben. the is about feel quality of

is product than on As so And note have a total now, you auditors. noted, by of $X year just -- million which right total once inventory we reviewed we reserve a have we our every We reviewed might million. you about every and quarter. our understand, that. I that, review review $XXX also about in gets that some a more

well Group, I'm for the So And core Device I specifically our tube goods do in exact I'm inventory specific We'll have don't overall, Healthcare as as it I handy, questions more have business just as did amount you in our has is division. noted, But I sorry, our that have Greg goods. goods. be about finished but million your good. we again, have would as now. And division in certainly, that break later that of amount And finished and would out of the or at that? XX-Q Electron fingertips. answer did question Canvys products we -- but looking on or very footnotes highest $XX most for today, feel expect, finished don't have amount. our the Yes, GES the of you segment our we the almost my right it

Operator

Partners. ARS from from line the question comes next Our of Ross Investment Taylor

Porter Taylor

very how phrase or to working a we started $X questioner be selling have since a think this to I that's net the have basically the careful wanted got stock questions. above disciplinarian you on I this, severe get to I capital. prior about and to get, is I company

selling book You're value. under

on debt no have You sheet. the balance

about this call inventories. on talked You've monetizing

sitting You money mostly also goods, said effectively an and means they're the there, stored that's which are profitability and cost they are finished good basically overstated inventories impact. reflect

own calendar a because it stock? I baffles who Buffett, you're only should even of you And back. at not being just what been others that -- next you're it why this Looking supposed hear you year advice the are back at it fearful, Not year. and year, all about not buying me aggressive, not talk be record Warren people buy buying its has that tells aggressive in to of are really company when

$X.XX. was There prior over $X.XX. in call but that, some onetime Your year let's items it were

of book I here, in have is value. worth think $XX less at And value. you trading believe than is which book You're to $XX, company more the this

known front what get So on in a then the advantage history, I for a the little you? rocket don't, what long Why to a believe you in bankers time. debt better you're mean, bankers. be have putting 'XX? taking keeping should good. you've severe and dislocation a aren't of ship balance sheet is If long got your money They've that you they of

Edward Richardson

stock. To Well, now, inventory reduce we position mentioned, get pushing Right to we're talk keep do we're positive to back. buying trying the cash flow as the time we and And once would FPD of positive, it we'll of $XX that. price our the about at buying to you cash idea, we've every sold bought we XXXX, Board the certainly and really stock meeting, when we possibility in give a every bought stock And the down. back, of at look million stock the of back. we possibility some stock go the

of stock down. So value the was investment the all the company on we at to price the drive looking people the of achieved and were only, cash

stock So we don't experience a buying good have back. on very

Porter Taylor

think Southern quote didn't idea to was failed tell lightbulb mean, inventing that it's my you, banging me, I didn't he work to it The he made hear it fact but past, the the trying. thud, mean, famous I and work about that a on that in that honestly, I if kept the how business. times me many not just you're Edison head hate -- you I the desk.

a opportunities. have lot growth -- base you a business, more have much of have broader a You more you

that lecture would can't the you and we courage. company in he if that's a opportunity know need can't letting yourself Buffett you it, than I've meetings, of advance Board. on actually bit that literally each past, Board type that golden I that you, stifles the your guys has If we thing need of Warren a brought different you We I then progress. have some -- other. little see by. And today a your a then what think Board doesn't how who of you you're one different Ed. it, Board -- were we And into vision, see to happened mean, a go talked you're That

past, a that you of the things is an with environment what very doing business the collection different right? a man, than happened in bright should of a holders you different has company in different what today, something under better be are You're know measure you today and effective

Edward Richardson

We certainly appreciate opinion. your

Operator

Joseph next line of comes Investments. question from from Nerges Our the Segren

Joseph Nerges

we guess to my -- I interested key agreement plans have a in release with month Power. from was global technology? around press question distribution is you very And I products develop do their proprietary that their any last when signed Ideal wave bidirectional here

Gregory Peloquin

Absolutely.

model to all our fit When products really focused a already we're disruptive that month we've them global. And that power back, of technology X disruptive partners couple right for some looking of on exclusive, their that. technology that's have calls I technology. And came management at. which fits here. We're have about built have does Power our is and who It's one We we're into that. signed Ideal is specific the key talking we're designs X and RF, we a unique. with They a markets, that

obviously, internally in and it could designing manufacturers absolutely our our for then to battery for use be into their technology that that absolutely, using been for this Ideal be of our of customers that. And So Power engineered means into A both components solutions. this suppliers. there's announce they'll modules, products right any lot use they've our their we'll I couple a great. can't we're now working on And point, at but by

it's that great come we -- our solutions already. is into see what a to like as we It's competitors customers, with that design relationship our have use into you then We release suppliers, and design company a it fruition. disruptive threefold. do our our technology, it this for when to a it exactly when has engineering a opportunities press engineered mean, -- I they also But

Joseph Nerges

with widespread, their a Well, technology on can to -- these product seem the let's I'm say, I again, big these the can in enter, Because... pretty to -- do some something competitors applications wondering, a enter are ULTRAUPSXXXX, and markets. But we very think thinking it's that of just market data have we center the -- UPS similar product mean, be and we successfully again, I'm you UPS great. or that?

Gregory Peloquin

know be few we it's technology major although for. the major, be yes. will you, a used and talked UPS Ideal in small [indiscernible] there, tell them can to is that so we've many I people an key And a months, program. product, we application using but our of one a The Yes, relationship, market. customers new again, will it's applications. Power it It's inverter for that a

major anything years. But that spec from there an will application, It's be their inverter this sheet module, inverter product that the with with a answer over of people And I've now is there program. are there many your right that's one that in question specifically, And worked using. capacities technology, that's out it will So yes. to the for separate the is, the think, other we're the we today.

Power we Ideal about all through. the and our technology go excited partners. also we're That's process yes, So, of

Joseph Nerges

what guys the Yes. within to Well, seeing months. come several you up next look forward I

Operator

Management. Mendel next line of the Our question Barry from from Money Mendel comes

Barry Mendel

follow-up the modules What's ASP the and Wabtec. the a starter Progress on Yes, them? Rail for on

Gregory Peloquin

Yes.

I with on competitors type our NDAs resells cost our Too to or many share have there those of We or customers. those can't out even them. listening. applications

Barry Mendel

you Is Okay. be there aren't Ideal a that isn't on could of how big or agreement -- there? Power, put distribution as And how in could of you amount well? you? somewhat terms important for dollar any And

Gregory Peloquin

their started But I've we're products is type couple this look one dollars. of devices. millions, experience view, if on just a an Yes, millions it's you limited. into, a at But engineered of From a best view, market to strategy. And up know in bringing our that them of market. But seen we to with these it's of portfolio partners go technology, programs global discrete they and it's solutions in NPI module new the go-to-market lot introduction doing are now, have Qorvo, millions a pure of this are. that invest the with it dollars. product get Right bring companies I from as and big they but markets it's they can't process, very companies the that come of to technology became right? number, world the like feel developing in point it's all a to number if I've have where of capabilities, both they the They introduce. we both. of and process, with how It's I of that had new based technology discrete they infrastructure of point we

but excites their input markets. growth this energy they're limit, on us the green inverters the about and sky's industrial, to for but developing I that know reduce emissions. markets it's So the for the are that great product thing need it's people as is us

designing that into. put design end it, we internally electric one So It dollar product up a major product be of but it's we station one could charging or can't dollars. vehicle on a millions I that

Barry Mendel

already. talked of them I them doing for and highly you're to yesterday actually, spoke know I Yes. they what

Gregory Peloquin

the lot of I X, engineers, one had [indiscernible] we like of their of our -- within mentioned XX customers. design field before, And We sales attributes, we and Yes. engineers. global hours, have in day trained product a immediately, don't I trained them We've front patients.

things to of one say so just the unique One to every to codes want customers, assign the is can so to, up add X. it, our I'll we application and us, on of call, which I

hours. with to customer and anyone for within sales customer new that can an those our station. And XX and like a identify sales application, and Power product And out customer inverter Ideal engineers base field an who's so a sort electric entire or built those their specific [indiscernible] when that get comes tools a global product charging ever samples

Power. know I excited there because mentioned market. a [indiscernible] small the like we're and again, about it's And yes, before, So, Ideal people we

Operator

comes question the next Our David from of Schneider. line

Unknown Analyst

this First territory the again. over but need Ideal like it of Is the to stock being cyclicality because I the right up so go as all, an things actually could possible applications point. of few to want in maybe you company with over that and give he Power of company from your business. growth cap company change relationship maybe can the to the product down as past no perception new hit left Ross of literally that of there's company a gone Power smooth you've your that and trajectory Could being the -- but nail some a no-growth valued equipment A+ the a out become it's head, semiconductor the Taylor and the at Ideal I'm that has, the out? And is again? wondering, valued things, years,

Gregory Peloquin

technology the and has but new before coming. that And call, of subsidize had to list other I think we're Ideal I equipment think the for rollercoaster as the you've business it heard apply as think Suzlon, the it's the have people all on as model releases signing, will we're Power seen, you've products, with that the in and opportunities. all and that has Nordex, I engineered partners, developed, years. We and solutions XX introducing I know solutions the together, that they mentioned about industry obviously, Senvion this we SSB, engineered press ride semiconductor manufacturing absolutely,

for the ride that's XX, a company, semiconductor kind market. little of higher experienced all and doing profitability this are price it the for goal fab help of wafer the stock the growth the years Some of than XX but the but we're rollercoaster others, bit, does that subsidize that we've in

part of these green like the markets So yes, and power management, cetera. high-growth et of that's be list in Ideal partners energy but and that, new technology will the products whole new

a downturn XXXX you're of turned So a could year year upturn alone green a it. business to or subsidized in in we've a way energy make and so That overall been has years, that's just so right, the done, down seeing it. obviously, so. the lot past in all just But the in past why flat million, way this the severe sales. of And that's positive like the that's X.X $XX to lot XXXX, -- up severe, was of

Operator

would closing At conference to like for now remarks. Ed turn I over to back time, this the Richardson

Edward Richardson

any XXXX Well, hesitate today. very thank We with happy to look our our in time. you for you sharing and July. up want us an to to us call discussions your Thanks interest talk investment to Richardson ongoing and give you again if directly joining Please We at fiscal don't We're in much. you Electronics. appointment. a appreciate to forward set

Operator

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

You may now disconnect.

Richardson Electronics (RELL) 11 Apr 242024 Q3 Earnings call transcript