Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Q3 FY2022 Earnings Presentation
25 slides from Richardson Electronics's earnings presentation, Apr 7, 2022
Slide 1: FY22 Q3 Investor Presentation
FY22 Q3 Investor Presentation April 7, 2022 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 FY2021 Sales: 9 Mos. FY2022 Sales: $176.9 million $163.0 million Strong Balance Sheet: Certified Experts $39.1 million in cash and ISO 9001:2015 investments, no debt ISO 13485: 2016 Certified 450+ Employees Global Customers Over half in sales, Over 20,000 worldwide engineering an
Slide 5: Our Business Units
Our Business Units 5 Power & Microwave Healthcare Canvys Technology (PMT) o TTM Revenue: $167.6 million o TTM Revenue: $11.3 million o TTM Revenue: $34.6 million o Power grid and microwave tubes (EDG) o Started in 2015; $35M+ invested o Custom display solutions for healthcare, o Power management for
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 FY21 Sales by Geography Sophisticated Global Infrastructure • More than 60 sales offices & stocking locations • Global field engineering support including 75 RF and Microwave and CT engineers for leading technology supplie
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 near-term wafer fab equipment market Semicondu
Slide 10: 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 11: 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 12: 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 launch expected in CY22 Initial application focused on wireless base stations • In 2019 there were 395,562 cell sites, approx
Slide 13: New Product Launch: Lithium Iron Phosphate Battery Modules For EV-Electric Locomotives
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 Progress Rail/Caterpillar order booked February LaFox, IL engine 2022 Fuel saving and reduci
Slide 14: PMT Update
PMT Update PMT Highlights • High growth in demand for Electron Device Group (EDG); new applications (diamonds, hydrogen as fuel source, sustainable building products) • Semiconductor wafer fab equipment benefitting from market growth; chip shortages create new wafer fabrication installations • Power
Slide 15: 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 16: Healthcare Update
Healthcare Update Healthcare Highlights • Richardson Healthcare sold a record number of tubes during Q3 FY22, led by increased tube sales in China. • Additional tubes will drive revenue growth and margin improvement as factory utilization rate improves • Continued to expand the number of countries i
Slide 17: 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 18: Canvys Update
Canvys Update Canvys Highlights • Demand for blue-chip medical and industrial OEM systems driving growth • Post-Covid recovery in Europe contributing to FY22 growth • Ended Q3 FY22 with a record $52.4 million backlog as customers ensure inventory availability amidst supply chain challenges • Canvys’
Slide 19: Financial Results
Financial Results Total Sales ($ in thousands) $60,000 • Net sales for the third quarter of fiscal 2022 $55,000 increased to $55.3 million, up 22.3% compared to net sales of $45.2 million in the $50,000 prior year’s third quarter due to higher net sales across all three business units. $45,000 $40,0
Slide 20: FY2022 Q3 Balance Sheet and Cash Flow
FY2022 Q3 Balance Sheet and Cash Flow Feb. 26, May 29, ($s in 000s) 2022 2021 • Cash used in the third quarter of fiscal year 2022 resulted Cash and cash $39,147 $43,316 primarily from an increase in working capital that was necessary to equivalents support the significant year-over-year sales growt
Slide 21: Outlook
Outlook Total Company Backlog ($ in millions) • Backlog at the end of Q3FY22 was $175.6 $200 million up 19.5% over the second quarter. $150 • PMT’s backlog increased across numerous product lines, most notably in power $100 management, semiconductor wafer fab, and magnetrons. $50 • Canvys backlog at
Slide 22: Appendix: Detailed Company Overview
A Legacy of Engineered Solutions. A Future of Innovation. Appendix Detailed Company Overview 22
Slide 23: 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 24: 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 25: 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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