Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Q3 FY2023 Earnings Presentation
29 slides from Richardson Electronics's earnings presentation, Apr 5, 2023
Slide 1: Third Quarter Fiscal Year 2023 Investor Presentation
Richardson Electronics Third Quarter Fiscal Year 2023 Investor Presentation April 05, 2023 NASDAQ: RELL
Slide 2: Forward Looking Statement
Forward Looking Statement This overview includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements regarding the Company’s business which are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a di
Slide 3: Engineered Solutions
ENGINEERED SOLUTIONS Richardson Electronics (NASDAQ: RELL) designs and manufactures more than 60% of the products it sells for power, microwave, and imaging solutions to industries worldwide. Technical expertise and Value added solutions through Global infrastructure and “engineered solutions” based
Slide 4: Key Facts & Figures
Key Facts & Figures FY2023 YTD Sales: FY2023 YTD Net Income: $203.8 million $1.27 per diluted share (up 25.1% YoY) (up 78.9% YoY) FY2022 Sales: FY2022 Net Income: $224.6 million $1.31 per diluted share (up 26.9% YoY) (vs. $0.13 in FY2021) Strong Balance Sheet: Certified Experts Q3 FY2023 cash and IS
Slide 5: Our Business Units
Our Business Units 5 Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) o YTD Revenue: $132.8 million o YTD Revenue: $32.3 million o YTD Revenue: $8.6 million o YTD Revenue: $30.2 million o Power grid and microwave o Designs and manufactures key o CT and MRI replacemen
Slide 6: A Legacy of Engineered Solutions, A Future of Innovation
A Legacy of Engineered Solutions A Future of Innovation Ignitrons & Microwave Power Grid Tubes CW Magnetrons Thyratrons Generators Pulse Magnetrons CT Replacement Refurbished CT Custom OEM All-In-One Ultracapacitors Tubes Systems Displays Computer Solutions Investor Presentation | © Richardson Elect
Slide 7: Local Service Supported Through Extensive Network of Over 60 Global Locations
Local Service Supported Through Extensive Network of Over 60 Global Locations FY2023 YTD Sales by Geography Sophisticated Global Infrastructure • More than 60 sales offices & stocking locations • Global field engineering support including over 75 RF, Microwave and CT engineers for leading technology
Slide 8: Strategy Supported by Strong Core Business, New Products and New Markets
Strategy Supported by Strong Core Business, New Products and New Markets Management has created a strategic plan focused on driving growth and creating sustainable value for shareholders Growth supported by strong core Strategy focused on leveraging core Global footprint supports customers and busin
Slide 9: Growth Opportunities and Focus
Growth Opportunities and Focus: Richardson’s Strategy Aligned with Compelling Market Dynamics Market Market Driver / Update Richardson Opportunity • Semiconductor capex cycle expected to • Products support the global semiconductor remain strong over the long term wafer fab equipment market Semicondu
Slide 10: Green Energy Solutions Business Unit Supports Massive Growth Opportunity
Green Energy Solutions (GES) Business Unit Supports Massive Growth Opportunity GES Overview Strong Total PMT Backlog • Sales transferred from PMT: • Alternative energy, energy storage, EV, power generators • YJ1600—diamond manufacturing • Fusion research, sustainable goods manufacturing, hydrogen pr
Slide 11: Long-term Strategy Focused on Capturing Disruptive Market Opportunities
Long-term Strategy Focused on Capturing Disruptive Market Opportunities Components of Nine-Month Sales Growth (000s) FY23 YTD Sales $200,000 Driven by Rapid GES Growth $150,000 $32,275 $13,136 New End Markets $100,000 Helping to Offset Legacy Semiconductor Cyclicality $50,000 Higher Gross Profit $-
Slide 12: GES Update
GES Update GES Highlights • Growth in ULTRA 3000 and other related product sales into the wind turbine industry • New EV applications, power management, and energy storage • Increase demand for YJ1600 as synthetic diamond manufacturers continue to experience high demand • Growing partnership with Pr
Slide 13: ULTRA3000 Growth Opportunity
ULTRA3000® Growth Opportunity Years of experience utilizing and distributing ultracapacitor technologies • Created specifically for replacement market within wind turbine generators (WTG) • Patented product with more than 20 protected embodiments Significant benefits to customers • Estimated lifetim
Slide 14: New Product Launch: Lithium Iron Phosphate Battery Modules
New Product Launch: Lithium Iron Phosphate Battery Modules For EV-Electric Locomotives Designed, manufactured “Green” Benefits: Design wins with Multi-million dollar and supported in Replaces diesel electric engine Progress Rail/Caterpillar shipments expected in LaFox, IL Fuel saving and reducing em
Slide 15: BSE Gen-Start Growth Opportunity
BSE Gen-Start Growth Opportunity Leveraging ultracapacitor expertise to create replacement modules for lead acid batteries in generators • Patent-pending technology • Product launched in CY22 Initial application focused on wireless base stations • In 2019 there were 395,562 cell sites, approximately
Slide 16: Power & Microwave Technology (PMT) Opportunity
Power & Microwave Technology (PMT) Opportunity Bringing key technologies and solutions The leading distributor of power grid and microwave tubes and to the world for power, microwave niche related consumable parts applications o Electron Device Group (EDG) which includes legacy tube business and sem
Slide 17: PMT Update
PMT Update PMT Highlights • High growth in demand for Electron Device Group (EDG) • Semiconductor wafer fab equipment benefitting from market growth; chip shortages create new wafer fabrication installations • Power & Microwave Group (PMG) continues to have excellent sales growth related to the RF/w
Slide 18: Healthcare Growth Opportunity
Healthcare Growth Opportunity Richardson Healthcare provides OEM quality replacement parts and training to support in-house clinical engineering and third-party equipment maintenance companies. Richardson Healthcare’s CT Tube The Company has invested over $35 Richardson Healthcare first launched the
Slide 19: Healthcare Update
Healthcare Update Healthcare Highlights • Improved factory utilization and lower scrap costs improved gross margins significantly in the third quarter to 39.8% versus 25.1% in the third quarter of the prior year. • Tube reloading in Brazil and in the Americas creates new opportunities for Richardson
Slide 20: Canvys Opportunity
Canvys Opportunity Canvys is a global value-added integrator and manufacturer that specializes in creating comprehensive visual technology solutions for OEMs. Canvys is focused on providing small run, Canvys brings together a deep Expertise manufacturing display sizes smart displays for specialized
Slide 21: Canvys Update
Canvys Update Canvys Highlights • Demand for blue-chip medical and industrial OEM systems driving growth • The 19.0% year-over-year increase in third quarter sales was due to strong customer demand in North America • Freight costs coming down will help drive margin improvement • Healthy backlog, whi
Slide 22: Financial Results
Financial Results Total Sales ($ in thousands) $75,000 $70,000 • Net sales for Q3 FY23 increased to $70.4 million, up 27.2% compared to net sales of $65,000 $55.3 million in the prior year’s Q3 due to $60,000 higher net sales in PMT, GES, and Canvys, $55,000 partially offset by slightly lower sales
Slide 23: FY2023 Q3 Balance Sheet and Cash Flow
FY2023 Q3 Balance Sheet and Cash Flow February 25, May 28, • Strong balance sheet with no debt, and $24.6 million in cash and ($s in 000s) 2023 2022 cash equivalents Cash and Cash Equivalents and $24,645 $35,495 • Allocated $0.8 million of capital in Q3 FY23 to support the Investments company’s regu
Slide 24: Outlook
Outlook Total Company Backlog ($ in millions) $250 • Total backlog at the end of Q3 FY23 was $175.1 million versus 175.6 million at the end $200 of Q3 FY22 • GES backlog increased to $54.3 million in Q3 $150 FY23 versus $29.0 million in Q3 FY22 $100 • Backlog in PMT declined due to the cyclicality o
Slide 25: Appendix: Detailed Company Overview
A Legacy of Engineered Solutions. A Future of Innovation. Appendix Detailed Company Overview 25
Slide 26: Green Energy Solutions (GES)
Green Energy Solutions (“GES”) GREEN ENERGY SOLUTIONS Strategic Business Unit Overview: GES Product and Services Highlights • Newest strategic business unit formed because of our exceptional growth in demand for green energy applications (sales previously including in PMT segment) Lithium Module and
Slide 27: Power and Microwave Technologies (PMT)
Power and Microwave Technologies (“PMT”) Strategic Business Unit Overview: PMT Product and Services Highlights • The leading distributor of power grid and microwave tubes and related consumable parts (EDG Group) EDG Products • Power and Microwave Group (PMG) brings key semiconductor and passive tech
Slide 28: Richardson Healthcare
Richardson Healthcare Strategic Business Unit Overview: Healthcare Product and Services Highlights • Richardson Healthcare helps lower the cost of healthcare delivery with high value parts, upgrades and training solutions for hospitals and third-party service providers CT Tubes Parts • Healthcare ma
Slide 29: Canvys
Canvys Strategic Business Unit Overview: Canvys Product Highlights • Canvys develops custom display and All-In-One computer solutions for Original Equipment Manufacturers (OEMs). We evaluate each customer's unique needs and craft the right solution 5” to 82” Custom Displays • Key capabilities suppor
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