Richardson Electronics Reports Strong Quarter, Driven by Semiconductor Boom
Richardson Electronics, a leading provider of engineered solutions, has reported a strong quarter with significant growth in key business segments. The company's semiconductor wafer fab equipment business and power microwave components segment both experienced robust growth, driven by increased demand and improved market conditions.
The semiconductor wafer business, which is the company's highest-margin segment, is booming due to the AI revolution. It has the potential to double to $40M-plus a year. Meanwhile, the company's revenue was up 8.3% to $8.3M, reflecting improved market conditions in Europe, with a strong backlog of $38.4M.
The Green Energy Solutions (GES) segment, although experiencing a 10.2% decrease in sales to $7.3M due to the non-recurrence of a large EV locomotive order, would have shown quarter-over-quarter and year-over-year growth excluding this. The company's main business lines, a supplier to the wafer equipment business and GES, have experienced a cyclical downturn but are now on track for recovery.
The RF and Power Microwave Components segment experienced growth led by increased demand in RF and microwave components, notably in military, defense, and communication applications. PMT's gross margin increased 120 basis points to 31.3%, driven by a better product mix and increased production. The Semiconductor Wafer Fab Equipment Business experienced a 52% sales growth in Q1/26, with management expecting continued growth through Q2/26 and strong growth forecast for Q3 and Q4.
The Green Energy Programs segment is positioning itself as the main growth business, with a focus on wind turbines and battery energy storage systems (ESS). The company generated $1.4M in positive operating cash flow, marking six consecutive quarters of positive operating cash flow, with cash and cash equivalents remaining strong at $35.7M. Overall, Richardson Electronics' diversified business model and focus on high-growth segments have contributed to its strong performance.
