Semiconductor equipment, RF and wind-turbine products drove growth in all three business units, while backlog reached $184.4 million.

Richardson Electronics Ltd. (NASDAQ: RELL), a LaFox, Illinois-based maker of power and microwave components, green energy products and custom displays, reported first-quarter net sales of $64.9 million, up 18.9% from $54.6 million a year earlier. Demand for semiconductor manufacturing equipment, RF and microwave products, wind power components and battery energy storage systems supported growth across its three business units.

The company reported net income of $4.1 million, a 112.6$ increase compared with $1.9 million in the prior-year quarter. Backlog reached $184.4 million as of Aug. 29, up 36.9% from a year earlier and 12.2% from the end of fiscal 2026.  The results mark the company's ninth consecutive quarter of year-over-year sales growth. 

Semiconductor wafer fabrication and RF and microwave products led growth in the Power and Microwave Technologies unit (PMT). Higher wind and battery energy storage sales lifted Green Energy Solutions (GES).

Net income climbs on wider margins

Diluted earnings per share rose to 27 cents from 13 cents a year earlier. Operating income increased to $5.1 million from $1.0 million, while EBITDA, a non-GAAP measure, rose to  $6.0 million from $3.3 million.

Gross margin expanded to 34.6% of sales, up from 31.0%. An IEEPA tariff refund added 1.7 percentage points. Favorable product mix in PMT and GES also supported the improvement.

Operating expenses increased to $17.4 million from $16.0 million, primarily due to higher employee compensation, including sales-related incentives, and travel costs. However, operating expenses declined as a share of revenue to 26.8% from 29.2%, reflecting the stronger sales base. 

The company generated $.2 million in free cash flow during the quarter. 

Three Units Post Higher Sales

PMT sales rose 19.7% to $46.8 million, driven by demand for semiconductor wafer fabrication customers and growth in RF and microwave products. The business also serves markets including satellite communications and defense.  

GES sales rose 27.1% to $9.2 million, supported by wind turbine power management products and initial shipments of battery energy storage systems (BESS). The unit also supplies products used in synthetic diamond manufacturing. 

Canvys, the custom display unit, reported $8.9 million, up 7.9%, on higher North American sales.

Backlog grew 12.2% from $164.4 million at the end of fiscal 2026 on May 30. PMT backlog was $99.4 million, GES backlog was $43.2 million and Canvys backlog was $41.8 million, executives said on a call Thursday.

Tariff Refunds Arrive Sporadically

The tariff refund contributed to quarterly profitability, but management cautioned against assuming a similar benefit in future periods. Chief Financial Officer Robert Ben said refunds were arriving irregularly and the company did not receive detailed information identifying the periods covered by each payment.

Chief Operating Officer Wendy Diddell said she did not expect a refund of comparable size in the next quarter. 

The distinction matters because the refund is separate from the company's underlying sales growth and operating performance. Product mix, revenue growth and expense management will remain important drivers of margins as the company moves through fiscal 2027.

Executives Describe Demand Across Units

Edward J. Richardson, chairman and chief executive, said he believes fiscal 2027 will bring another year of profitable growth. He cited the backlog and customer demand in semiconductor manufacturing, power management, energy storage, defense and displays.

Greg Peloquin, executive vice president and general manager of PMT and GES, said about 75% of their backlog is scheduled to ship in fiscal 2027. The timing of shipments remains important to how quickly the backlog translates into reported revenue. 

Diddell said Richardson began shipping its first Alaska order, a multimillion-dollar project of 18 battery energy storage systems for seven remote communities.

Board Declares Dividend; Call Replay Available

Cash was $36.9 million on Aug. 29, versus $31.8 million on May 30. No debt was outstanding on the company’s PNC Bank credit line.

The board declared a quarterly dividend of 6 cents per common share and 5.4 cents per Class B share. It is payable Nov. 25 to holders of record Nov. 6. A replay of the Oct. 8 earnings call is available for seven days.