FORM 8K File:20041016-FY05Q2
UNITED STATES
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) :       December 16, 2004      

 
 
 

RICHARDSON ELECTRONICS, LTD.

(Exact name of registrant as specified in its charter)
 

               Delaware               

  

               0-12906               

  

               36-2096643               

(State or other jurisdiction

  

(Commission

  

(IRS Employer

of incorporation)

  

File Number)

  

Identification No.)
 

40W267 Keslinger Road, P.O. Box 393, LaFox, Illinois

  

               60147-0393               

(Address of principal executive offices)

  

(Zip Code)
 

Registrant's telephone number, including area code:

  

            (630) 208-2200            
 

                                                                                                                     

(Former name or former address, if changed since last report.)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[X]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Item 7.01 Regulation FD Disclosure

 
 

For Immediate Release
For Details, Please Contact:
Ed Richardson
Dario Sacomani
Chairman and Chief Exective Officer
Richardson Electronics, Ltd.
Senior Vice President and Chief Financial Officer
Richardson Electronics, Ltd.
Phone: (630)208-2340
E-mail: info@rell.com

Richardson Reports Record Quarter Sales of $151 Million,
up 18% from the Prior Year

LaFox, IL, Thursday December 16, 2004:   Richardson Electronics, Ltd. (NASDAQ: RELL) today reported results for the second quarter of fiscal 2005, which ended November 27, 2004. Sales in the quarter were $151.4 million, the highest quarter sales level in the Company’s history, and represented an increase of 18% from the second quarter of fiscal 2004. Net income was $1.7 million, or $0.10 per share, in the quarter compared to $2.2 million, or $0.15 per share, in the same quarter last year.

Sales Highlights - Second Quarter Fiscal 2005 Compared to Second Quarter Fiscal 2004

The Company recorded its tenth consecutive quarter of year over year sales growth. The Display Systems Group led the sales growth in the quarter increasing sales 58.5% as custom display sales more than doubled on large project deliveries to financial and retail customers. Sales in RF/Wireless Communications increased 16.7% driven by strong growth in Asia and higher demand for passive/interconnect and network access products. Industrial Power Group sales grew 12.3% with continued growth in Asia and power component demand. Sales in the Security Systems Division were up 4.8% led by increased sales in Canada and private label products.

Geographically, the Company’s sales in Asia/Pacific were up 26.3% with continued sales growth in China for wireless and industrial power products. Sales in North America grew 21.5% led by strong growth in custom display sales in the United States. Sales in Latin America increased 9.0% as all countries grew sales with particular strength in Colombia’s demand for wireless products. Sales in Europe were up 6.7% led by wireless sales in England and display systems and wireless sales in Germany.

“We are pleased with the record demand for our products and solutions and with the record quarter sales levels achieved by the Display Systems Group and Security Systems Division,” said Edward J. Richardson, Chairman of the Board and Chief Executive Officer. “Our earnings in the quarter were affected by incremental expenses associated with our ongoing Sarbanes-Oxley compliance program and PeopleSoft supply chain implementation. The system implementation successfully went live in early December after many years of work and investment. During the quarter, we followed a detailed implementation plan, which included training over 250 people, expanding our network bandwidth and testing system functionality. These efforts allowed us to realize a very seamless installation without disruption to our operations. Overall, we expect increased engineered solutions demand to continue sales growth and lower operating expenses to result in improved earnings.”

 
 

 
On Friday, December 17, 2004 at 9:00 a.m. CST, 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 888-423-3275 approximately five minutes prior to the start of the call. A replay of the call will be available from 12:30 p.m. on December 17, 2004 through March 23, 2005. The telephone numbers for the replay are (USA) 800-475-6701 and (International) 320-365-3844; access code 761015.

This release includes certain “forward-looking” statements as defined by the SEC. Statements in this press release regarding the Company’s business which are not historical facts represent “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s annual report on form 10-K. The Company assumes no responsibility to update the forward-looking statements in this release as a result of new information, future events, or otherwise.

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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE-MONTH AND SIX-MONTH PERIODS
ENDED NOVEMBER 27, 2004 AND NOVEMBER 29, 2003
(In thousands, except per share amounts, unaudited)
 

 

Three months ended

     

Six months ended

November 27,
2004

November 29,
2003

November 27,
2004

November 29,
2003

 

 

 

 

 

Net sales

 

$

151,374

 

 

$

128,051

 

 

$

289,894

 

 

$

247,357

 

Cost of products sold

 

114,320

 

 

97,109

 

 

219,238

 

 

187,300

 

     Gross margin

  

 

 

37,054

 

 

 

30,942

 

 

 

70,656

 

 

 

60,057

 

Selling, general and administrative expenses                   

 

 

32,148

 

  

 

25,495

 

 

 

61,437

 

  

 

51,340

 

     Operating income

 

 

 

4,906

 

 

 

5,447

 

 

 

9,219

 

 

 

8,717

 

Other expenses, net

 

 

 

2,623

 

 

2,398

 

 

 

5,095

 

 

4,992

 

     Income before income taxes

 

 

 

2,283

 

 

 

3,049

 

 

 

4,124

 

 

 

3,725

 

Income tax provision 

 

 

621

 

 

844

 

 

 

1,214

 

 

1,128

 

     Net income

 

 $

1,662

 

 

 $

2,205

 

 

 $

2,910

 

 

 $

2,597

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Net income per share

 

 $

0.10

 

 

 $

0.16

 

 

 $

0.18

 

 

 $

0.19

 

     Average shares outstanding

 

17,284

 

 

13,979

 

 

16,578

 

 

13,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Net income per share

 

 $

0.10

 

 

 $

0.15

 

 

 $

0.17

 

 

 $

0.18

 

     Average shares outstanding

 

17,479

 

 

14,361

 

 

16,801

 

 

14,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

 $

0.04

 

 

 $

0.04

 

 

 $

0.08

 

 

 $

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
RICHARDSON ELECTRONICS, LTD
SALES AND GROSS MARGIN
FOR SECOND QUARTER FISCAL 2005 AND 2004
ENDED NOVEMBER 27, 2004 AND NOVEMBER 29, 2003
(In thousands, unaudited)
 

By Business Unit:

SALES

GROSS MARGIN

                               

  

  

  

  

  

  

  

  

  

   

  

  

  

  

  

  

  

  

  

  

  

FY 2005

FY 2004

%  Change

FY 2005 

% of Sales

FY 2004

% of Sales

Second Quarter

     RFWC

$

67,358

$

57,705

16.7

%

$

15,661

23.3

%

$

12,846

22.3

%

     IPG

31,304

27,868

12.3

%

9,527

30.4

%

8,678

31.1

%

     SSD

27,360

26,109

4.8

%

7,304

26.7

%

6,664

25.5

%

     DSG

23,562

14,864

58.5

%

5,298

22.5

%

3,727

25.1

%

     Other

1,790

1,505

(736

)

(973

)

          Total

$

151,374

$

128,051

18.2

%

$

37,054

24.5

%

$

30,942

24.2

%

Fiscal Year to Date

     RFWC

$

131,785

$

107,520

22.6

%

$

30,331

23.0

%

$

24,028

22.3

%

     IPG

60,951

53,718

13.5

%

18,634

30.6

%

16,347

30.4

%

     SSD

53,121

51,281

3.6

%

13,802

26.0

%

13,025

25.4

%

     DSG

40,542

30,943

31.0

%

9,431

23.3

%

7,986

25.8

%

     Other

3,495

3,895

(1,542

)

(1,329

)

          Total

$

289,894

$

247,357

17.2

%

$

70,656

24.4

%

$

60,057

24.3

%
 

By Geographic Area:

SALES

GROSS MARGIN

                               

  

  

  

  

  

  

  

  

  

   

  

  

  

  

  

  

  

  

  

  

  

FY 2005

FY 2004

%  Change

FY 2005 

% of Sales

FY 2004

% of Sales

Second Quarter

     North America

$

79,833

$

65,702

21.5

%

$

20,835

26.1

%

$

17,064

26.0

%

     Europe

33,695

31,576

6.7

%

9,226

27.4

%

9,009

28.5

%

     Asia/Pacific

31,777

25,160

26.3

%

7,741

24.4

%

5,648

22.4

%

     Latin America

4,983

4,572

9.0

%

1,432

28.7

%

1,118

24.5

%

     Corporate

1,086

1,041

(2,180

)

(1,897

)

          Total

$

151,374

$

128,051

18.2

%

$

37,054

24.5

%

$

30,942

24.2

%

Fiscal Year to Date

     North America

$

154,218

$

131,133

17.6

%

$

39,849

25.8

%

$

34,620

26.4

%

     Europe

63,224

56,942

11.0

%

17,680

28.0

%

16,386

28.8

%

     Asia/Pacific

60,566

47,490

27.5

%

14,457

23.9

%

10,587

22.3

%

     Latin America

9,848

9,677

1.8

%

2,726

27.7

%

2,301

23.8

%

     Corporate

2,038

2,115

(4,056

)

(3,837

)

          Total

$

289,894

$

247,357

17.2

%

$

70,656

24.4

%

$

60,057

24.3

%


Note: Fiscal 2004 data has been reclassified to conform with the fiscal 2005 presentation. Direct Export and a portion
         of Corporate have been reclassified to the identified geographic areas based on ship to location.
         Europe includes sales and gross margins to Middle East and Africa.
         Corporate consists of freight and other non-area specific sales and gross margins.

 
 
 
 
 
 

 
 

 
RICHARDSON ELECTRONICS, LTD
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

As of

November 27,

    May    29,    

2004

2004

                                                                                                                                               

(unaudited)

ASSETS

Current Assets

 

 

 

 

 

 

 

 

 

Cash

 

$

17,328

 

 

$

16,927

 

 

Account receivable, net

 

 

115,186

 

 

 

106,130

 

 

Inventories

 

 

106,546

 

 

 

92,297

 

 

Other

 

 

15,418

 

          

 

19,739

 

 

 

Total current assets

 

 

254,478

 

 

 

235,093

 

 

Property, plant and equipment, net

33,294

30,589

Goodwill and intangible assets

 

 

6,899

 

 

 

6,726

 

Other assets

 

 

10,908

 

 

 

6,480

 

 

       Total assets

 

$

305,579

 

 

$

278,888

 

    

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

36,754

 

 

$

33,473

 

 

Accrued liabilities

 

 

21,290

 

 

 

23,224

 

 

Current portion of long-term debt

 

 

3,796

 

 

 

4,027

 

 

 

Total current liabilities

 

 

61,840

 

 

 

60,724

 

 

Long-term debt, less current portion

 

 

123,584

 

 

 

133,813

 

Other non-current liabilities

 

 

460

 

 

 

241

 

 

 

Total liabilities

 

 

185,884

 

 

 

194,778

 

  

Stockholders’ Equity

 

 

119,695

 

 

 

84,110

 

 

       Total liabilities and stockholders' equity

 

$

305,579

 

 

$

278,888

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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.

Date:   December 16, 2004  

By: /s/  DARIO SACROMANI            

 
Name: Dario Sacromani
Title:    Senior Vice President and
            Chief Financial Officer