Richardson Electronics Sales Rise 18.9% to $64.9 Million in First Quarter
Key Facts
Richardson Electronics reported net sales of about $64.9 million in the first quarter of fiscal 2027, ended August 29, up 18.9% from $54.6 million a year earlier, according to the company’s announcement. Net income rose to $4.1 million from $1.9 million in the year-earlier period, according to its filing with the U.S. Securities and Exchange Commission. Diluted earnings per share increased to $0.27 from $0.13. Quarterly results showed sales growth across all three of the company’s units, alongside improved profitability. Chief Executive Edward Richardson said the company recorded its ninth consecutive quarter of year-over-year sales growth.
Results exceeded analyst estimates reported in an Investing.com report published October 7: earnings per share were $0.27 versus an estimate of $0.10, while revenue reached $64.92 million compared with consensus of $59 million. The Power and Microwave Technologies unit recorded year-over-year sales growth of 19.7%. Green Energy Solutions sales rose 27.1%, while Canvys sales increased 7.9%. Sales growth therefore spanned all three units, though at varying rates. The company said growth in Power and Microwave Technologies was tied to strong demand for semiconductor wafer fabrication equipment and radio frequency and microwave products.
The company attributed Green Energy Solutions’ growth to sales of wind products and new products, including battery energy storage systems. Gross margin rose to 34.6% of sales, compared with 31.0% in the first quarter of fiscal 2026. However, recovery of IEEPA tariffs contributed 1.7 percentage points to the margin, the company said. This means the reported margin improvement included an effect from that recovery during the quarter. Operating expenses rose to $17.4 million from $16.0 million, while their share of sales declined to 26.8% from 29.2%.
The company said the increase in operating expenses was primarily related to employee compensation and travel. Free cash flow was $4.2 million during the quarter, according to the company’s filing. Cash and cash equivalents also rose to $36.9 million on August 29, from $31.8 million on May 30. The company had no outstanding debt on its revolving credit line at quarter-end. These figures provide a picture of liquidity and cash flows alongside sales and earnings growth.
Backlog ended the quarter at $184.4 million, up 36.9% year over year, or about $50 million, its highest level in more than 3 years. Backlog also increased 12.2% from the end of fiscal 2026, when it stood at $164.4 million. The company attributed the increase during the quarter primarily to its Power and Microwave Technologies unit. Green Energy Solutions’ backlog improved 10.2%. Management cited the backlog level as one factor underpinning its expectations for growth in the current fiscal year.
Richardson said the company expects fiscal 2027 to be another year of profitable growth, supported by its highest backlog level in more than 3 years. He said demand in semiconductors, power management, energy storage, defense and specialty displays supports this outlook. He added that the broader economic environment remains volatile. The company held a conference call to discuss quarterly results on October 8, 2026, at 9 a.m. Central time. Management’s expectations for the remainder of the fiscal year center on continued sector demand and the backlog level.