Richardson Electronics Ltd. (NASDAQ:RELL) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Richardson Electronics Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.01 in the quarter versus EPS of $0.21 in the year-earlier quarter.
Revenue: Decreased 9.47% to $35.18 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Richardson Electronics Ltd. reported adjusted EPS loss of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.
Quoting Management: “Unfortunately we did not see the global economic recovery we had expected in fiscal 2013, which resulted in lower-than-anticipated demand for replacement tubes particularly in the semiconductor wafer fabrication, textile, and wood drying markets. In addition, we experienced a drop in demand for medical monitors due to uncertainties surrounding healthcare reform, which had a negative impact on capital spending by our customers. As a result, we did not achieve our operating margin goal of 5%. Throughout the year we took steps to reduce our costs, and we continue to evaluate our resources to ensure maximum efficiency without putting the Company at risk of losing talented people or missing key opportunities for growth,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.
Key Stats (on next page)…