Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Q1 FY2023 Earnings Presentation
27 slides from Richardson Electronics's earnings presentation, Oct 5, 2022
Slide 1: FY23 Q1 Investor Presentation
FY23 Q1 Investor Presentation October 5, 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 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 Q1 FY2023 cash and ISO 9001:2015 investments of ISO 13485: 2016 $35.6 million and Certified no debt 460+ Employees Global Customers
Slide 5: Our Business Units
Our Business Units 5 Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) o TTM Revenue: $160.4 million o TTM Revenue: $28.5 million o TTM Revenue: $12.4 million o TTM Revenue: $37.2 million o Power grid and microwave o Designs and manufactures key o CT and MRI replaceme
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 FY22 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: GES Launch Q1 FY23
GES Launch Q1 FY23 GES Highlights • Growth in ULTRA 3000 and other related product sales into the wind turbine industry • New power management and energy storage solutions • Increase demand for YJ1600 as synthetic diamond manufacturers continue to experience high demand for sustainable and reasonabl
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: 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 R ep laces dies el electric Progress Rail/Caterpillar order booked February LaFox, IL en g in e 2022 Fu el s avin g a
Slide 13: 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 14: 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 15: 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 5G PMT S
Slide 16: 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 17: Healthcare Update
Healthcare Update Healthcare Highlights • Richardson Healthcare Q1 sales were up 45.5% YoY due to higher demand in all product lines • Additional tubes will drive revenue growth and margin improvement as factory utilization rate improves • Continued to expand the number of countries in which Richard
Slide 18: 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 19: Canvys Update
Canvys Update Canvys Highlights • Demand for blue-chip medical and industrial OEM systems driving growth • Set a new quarterly record with sales of $10.4 million for Q1 FY2023 due to strong customer demand on a global basis • $47.1 million backlog for Q1 FY23, which increased 16.9% on a YoY basis Ca
Slide 20: Financial Results
Financial Results Total Sales ($ in thousands) $70,000 $65,000 • Net sales for Q1 FY2023 increased to $67.6 $60,000 million, up 25.8% compared to net sales of $55,000 $53.7 million in the prior year’s Q1 due to higher net sales across all four business units $50,000 $45,000 $40,000 FY22 Q1 FY22 Q2 F
Slide 21: FY2023 Q1 Balance Sheet and Cash Flow
FY2023 Q1 Balance Sheet and Cash Flow • Strong balance sheet with no debt, and $35.6 million in cash and August 27, May 28, ($s in 000s) 2022 2022 cash equivalents, and investments Cash and Cash • Allocated $0.8 million of capital in Q1 FY2023 to support the Equivalents and $35,633 $40,495 Investmen
Slide 22: Outlook
Outlook Total Company Backlog ($ in millions) $250 $200 • Backlog at the end of Q1FY23 was $199.2 $150 million up 57.5% YoY $100 $50 $- FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1 Total Company Book-to-Bill 1.60 1.40 1.20 1.00 • Eight consecutive quarters of book-to-bill 0.80 ratio of 1.0 or above. 0.60
Slide 23: Appendix: Detailed Company Overview
A Legacy of Engineered Solutions. A Future of Innovation. Appendix Detailed Company Overview 23
Slide 24: 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 25: 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 26: 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 27: 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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