RELL Q4 Earning Release

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): June 21, 2004

 

RICHARDSON ELECTRONICS, LTD

(Exact Name of Registrant as Specified in Charter)

 

 
Delaware   0-12906   36-2096643

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 


40W267 Keslinger Road, P.O. Box 393, La Fox, IL   60147-0393
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant's telephone number, including area code: (630) 208-2200


Item 9. Regulation FD Disclosure



For Immediate Release

For Details Contact:                                      

Ed Richardson                                          Dario Sacomani

Chairman and Chief Executive Officer          Senior Vice President and

Richardson Electronics, Ltd.                        Chief Financial Officer

Phone:  (630) 208-2340                             Richardson Electronics, Ltd.

E-mail:  info@rell.com                                       

Richardson Reports Record Sales for Fiscal 2004

LaFox, IL, Monday June 21, 2004:  Richardson Electronics, Ltd. (NASDAQ: RELL) today reported results for its fiscal fourth quarter and fiscal year ended May 29, 2004. The Company achieved record sales levels for both the fourth quarter and fiscal year while sales for all strategic business units reached record levels for the fiscal year.

Fourth Quarter Fiscal 2004 Results

Sales in the fourth quarter of fiscal 2004 were a record $145.4 million, an increase of 22.2% from the prior year’s fourth quarter and marked the eighth consecutive quarter of year over year growth. Net income was $2.4 million, or $0.17 per share, compared to a net loss of $11.3 million, or $0.81 per share, in the fourth quarter of fiscal 2003. The prior year’s fourth quarter loss included after-tax charges of $11.9 million principally related to inventory write-downs, restructuring charges and incremental tax provisions.

Sales in all strategic business units grew in the quarter over the prior year led by RF and Wireless Communications sales growth of 30.4% to $67.9 million with strong growth in passive, interconnect, network access, and infrastructure sales, particularly in Asia/Pacific. Industrial Power Group sales grew 29.3% to $31.5 million led by increased power component demand. Sales for the Security Systems Division reached $25.4 million in the quarter, up 13.1% from the prior year’s fourth quarter with strong growth in the United States. Display Systems Group sales increased 3.7% to $18.7 million with particular strength in specialty display sales.

Asia/Pacific led all geographic areas for the Company with 53.6% sales growth in the quarter to $32.9 million with exceptional wireless infrastructure growth. North America sales grew 19.6% to $76.1 million led by increased passive and interconnect demand. Sales in Europe reached $30.7 million in the quarter, up 11.0% from the prior year, with across the board growth as all strategic business units increased sales. Latin America sales declined 9.5% to $5.0 million mostly due to the completion of a large broadcast project in the prior year.

Fiscal 2004 Results

For the full fiscal year, sales reached a record $520.1 million, an increase of 12.0% from fiscal 2003. Net income was $6.0 million, or $0.42 per share, compared to a net loss of $28.0 million, or $2.03 per share, in fiscal 2003. The prior year’s loss included the charges noted above for the fourth quarter and a cumulative effect of an accounting change of $17.9 million, net of tax.

Sales for all strategic business units reached record levels for the year led by RF & Wireless Communications with sales of $231.4 million, an increase of 13.2% from fiscal 2003 as passive, interconnect and network access sales experienced strong growth. Industrial Power Group sales grew 18.0% to $112.7 million led by increased power component demand. Sales for the Security Systems Division exceeded $100 million for the first time, up 10.7% from fiscal 2003 to $102.0 million with strong growth in Canada and renewed growth in the United States, principally due to an increase in digital video recorder sales. Display Systems Group sales reached $66.5 million in fiscal 2004, an increase of 3.5% over the prior year, with strength in the specialty display and medical monitor businesses.

Geographically, the Company’s sales in Asia/Pacific and Europe reached record levels for fiscal 2004. Asia/Pacific sales grew 33.2% over fiscal 2003 to $104.1 million led by strong wireless infrastructure and network access sales growth. Sales in Europe reached $116.8 million, an increase of 13.3% from the prior year, with increased network access and industrial power demand. North America sales grew to $275.6 million, up 6.2% from fiscal 2003, led by security systems sales growth. Sales in Latin America declined 2.2% to $20.1 million as decreased broadcast demand was partially offset by increased industrial power demand.

“We are extremely pleased with the record demand that we saw across all of our strategic business units, especially in the Asia/Pacific region which continued to be our strongest market and fastest growing region,” said Edward J. Richardson, Chairman of the Board and Chief Executive Officer. “We look forward to building off fiscal 2004’s record performance as we continue to pursue new sales levels and earnings growth utilizing our engineered solutions strategy.”

On Tuesday, June 22, 2004 at 7:00 a.m. CDT, Mr. Edward J. Richardson, Chairman and Chief Executive Officer will host a conference call to discuss the release. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial 888-273-9887 approximately five minutes prior to the start of the call. A replay of the call will be available from 10:30 a.m. on June 22, 2004 through September 23, 2004. The telephone numbers for the replay are (USA) 800-475-6701 and (International) 320-365-3844; access code 735771.

About Richardson Electronics

Richardson Electronics, Ltd. is a global provider of “engineered solutions,” serving the RF and wireless communications, industrial power conversion, security and display systems markets. The Company delivers engineered solutions for its customers’ needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics. Press announcements and other information about Richardson are available on the World Wide Web at http://www.rell.com/investor.asp.


Richardson Electronics, Ltd.
Consolidated Condensed Statements of Operations
Twelve Months Ended May 29, 2004
(in thousands, except per share amounts, unaudited)

 

Three Months

Twelve Months

 

FY 2004

FY 2003

FY 2004

FY 2003

Net sales

$ 145,374

$ 118,935

$ 520,069

$ 464,517

Cost of products sold

109,015

104,114

392,117

365,427

     Gross margin

36,359

14,821

127,952

99,090

Selling, general and administrative expense

30,104

26,594

108,545

100,749

     Operating income (loss)

6,255

(11,773)

19,407

(1,659)

Other expenses, net

2,903

3,337

10,837

11,484

     Income (loss) before income tax and cumulative effect of accounting change

3,352

(15,110)

8,570

(13,143)

Income tax provision (benefit)

916

(3,837)

2,537

(3,012)

     Income (loss) before cumulative effect of accounting change

2,436

(11,273)

6,033

(10,131)

Cumulative effect of accounting change, net of tax (Note 1)

-

-

-

(17,862)

     Net income (loss)

$    2,436

$  (11,273)

$     6,033

$  (27,993)

Income (loss) per share - basic:
     Income (loss) per share before cumulative effect of accounting change


$       .17


$       (.81)


$       .43


$       .72

     Cumulative effect of accounting change, net of tax

-

-

-

(1.31)

        Net income (loss) per share

$       .17

$      (.81)

$      .43

$    (2.03)

     Average shares outstanding

14,153

13,860

14,040

13,809

Income (loss) per share - diluted:
     Income (loss) per share before cumulative effect of accounting change


$       .17


$       (.81)


$       .42


$       .73

     Cumulative effect of accounting change, net of tax

-

-

-

(1.30)

        Net income (loss) per share

$       .17

$        (.81)

$      .42

$    (2.03)

     Average shares outstanding

14,553

13,860

14,418

13, 809

Dividends per common share

$ .04

$ .04


$ .16

$ .16

Notes: 1. Effective June 1, 2002, the Company adopted SFAS 142, "Goodwill and Other intangible Assets" and as result recorded a cumulative effect adjustment of $17,862, net of taxes of $3,725 to write-off impaired goodwill.


 

Richardson Electronics, Ltd.
Sales and Gross Margin
Fourth Quarter Fiscal 2004, Ended May 29, 2004
(in thousands, unaudited)

By Business Unit:

Sales

Gross Margin

 

FY 2004

FY 2003

% Change

FY 2004

GM% of Sales

FY 2003

GM% of Sales

Fourth Quarter
     RFWC
     IPG
     SSD
     DSG
     Other


$ 67,896
31,505
25,438
18,696
1,839


$ 52,050
24,359
22,489
18,022
2,015


30.4%
29.3%
13.1%
3.7%
 


$  15,150
9,964
6,626
4,973
(354)


22.3%
31.6%
26.0%
26.6%
 

$ 11,608
7,287
5,633
4,241
(13,948)

22.3%
29.9%
25.0%
23.5%
 

          Total

$145,374

$118,935

22.2%

$  36,359

25.0%

$ 14,821

12.5%

Fiscal Year To Date
     RFWC
     IPG
     SSD
     DSG
     Other


$231,389
112,737
101,979
66,452
7,512


$204,427
95,508
92,090
64,191
8,301


13.2%
18.0%
10.7%
3.5%
 


$  52,340
34,694
26,045
17,105
(2,232)


22.6%
30.8%
25.5%
25.7%
 

$ 45,687
29,523
22,939
16,218
(15,277)

22.3%
30.9%
24.9%
25.3%
 

          Total

$520,069

$464,517

12.0%

$ 127,952

24.6%

$ 99,090

21.3%

 

By Area:

Sales

Gross Margin

 

FY 2004

FY 2003

% Change

FY 2004

GM% of Sales

FY 2003

GM% of Sales

Fourth Quarter
     North America
     Europe
     Asia/Pacific
     Latin America
     Corporate


$ 76,066
30,715
32,948
4,968
677

$ 63,599
27,676
21,456
5,490
714

19.6%
11.0%
53.6%
-9.5%
 

$  19,562
8,804
7,077
1,324
(408)

25.7%
28.7%
21.5%
26.7%
 

$ 16,633
7,679
4,695
1,220
(15,406)

26.2%
27.7%
21.9%
22.2%
 

          Total

$ 145,374

$118,935

22.2%

$  36,359

25.0%

$ 14,821

12.5%

Fiscal Year To Date
     North America
     Europe
     Asia/Pacific
     Latin America
     Corporate


$ 275,622
116,820
104,068
20,074
3,485

$ 259,640
103,129
78,146
20,523
3,079

6.2%
13.3%
33.2%
-2.2%
 

$  71,894
33,709
23,304
4,869
(5,824)

26.1%
28.9%
22.4%
24.3%
 

$ 67,863
28,387
17,895
5,274
(20,329)

26.1%
27.5%
22.9%
25.7%
 

          Total

$ 520,069

$ 464,517

12.0%

$ 127,952

24.6%

$ 99,090

21.3%

Note: Fiscal 2003 data has been reclassified to conform with the fiscal 2004 presentation. The modifications include:
        -  reclassifying broadcast tubes from RF and Wireless Communication Group (RFWC) to Industrial Power Group; and
        -  reclassifying direct export and a portion of Corporate to identified geographic areas based on ship to location.
        Europe includes Sales and Gross margins to Middle East and Africa.
        Corporate consists of Freight and non-area specific Sales and Gross Margin.

Richardson Electronics, Ltd.
Consolidated Condensed Balance Sheets
(in thousands)

 

(unaudited)
May 29,
2004

May 31,
2003

ASSETS

     Current assets:

          Cash and equivalents

$   16,927

$   16,874

          Accounts receivable, net

106,130

85,355

          Inventories

92,297

95,896

          Other

19,739

26,320

                Total current assets

235,093

224,445

 

 

 

     Property, plant and equipment, net

30,589

31,088

     Goodwill and intangible assets

6,726

6,129

     Other assets

13,309

3,269

               Total assets

$  285,717

$  264,931

 

 

 

LIABILITIES AND EQUITY

     Current liabilities:

          Accounts payable

$   33,473

$   23,660

          Other accrued liabilities

  18,663

  16,880

          Current portion of long-term debt

4,027

46

                Total current liabilities

56,163

40,586

 

 

 

     Long-term debt

133,813

138,396

     Other liabilities

11,631

10,318

               Total liabilities

201,607

189,300

 

 

 

      Stockholders' equity

84,110

75,631

               Total liabilities and equity

$  285,717

$  264,931

Note: May 31, 2003, data has been reclassified to conform with the May 29, 2004 presentation.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

RICHARDSON ELECTRONICS, LTD

Dated: June 21, 2004

 

 

 

By:

 

/s/    DARIO SACOMANI

 

 

 

 

 

 

Name:

 

Dario Sacomani

 

 

 

 

 

 

Title:

 

Senior Vice President and

Chief Financial Officer