Stock News Alert: Richardson Electronics, Ltd. (NASDAQ:RELL)

Richardson Electronics, Ltd. (NASDAQ:RELL) stock observed trading -28.51% off 52-week high price. On the other end, the stock has been noted 23.68% away from low price over the last 52-weeks. The stock disclosed a move of 9.03% away from 50 day moving average and 8.10% away from 200 day moving average. Moving closer, we can see that shares have been trading 8.00% off 20-day moving average. It has market cap of $65.92M and dividend yield of 3.88%.

On Jan. 8, 2020, Richardson Electronics, Ltd. (NASDAQ:RELL) released financial results for its second quarter ended November 30, 2019.  The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

Second Quarter Results

Net sales for the second quarter of fiscal 2020 decreased 4.1% to $39.6 million compared to net sales of $41.3 million in the prior year’s second quarter. Canvys sales increased by $1.4 million or 20.9% due to higher demand in both its North American and European markets. Although PMT sales benefited from much higher sales of power conversion and RF and microwave components, overall sales for PMT decreased $2.7 million or 8.4%. This was primarily due to a soft market for power grid tubes with OEM customers and the quarter over quarter decline in sales to the semiconductor wafer fabrication equipment market. Sales in the semiconductor wafer fab market are starting to improve but were held in check due to our suppliers’ inability to deliver critical parts. Richardson Healthcare sales decreased $0.3 million or 12.6% as a result of lower sales of equipment in Latin America, partially offset by higher sales of our ALTA750 TM CT tube.

Gross margin decreased to $12.7 million, or 32.0% of net sales during the second quarter of fiscal 2020, compared to $13.0 million, or 31.4% of net sales during the second quarter of fiscal 2019.  Margin increased as a percent of net sales primarily due to a favorable product mix in Richardson Healthcare and significantly improved manufacturing overhead absorption in both PMT and Richardson Healthcare.

Operating expenses were $13.2 million for the second quarter of fiscal 2020 compared to $13.4 million in the second quarter of fiscal 2019.  The decrease in operating expenses resulted from lower severance and legal expenses, partially offset by higher research and development expenses for Richardson Healthcare.

As a result, the Company reported an operating loss of $0.5 million for the second quarter of fiscal 2020, the same as in the prior year’s second quarter. Other expense for the second quarter of fiscal 2020, including interest income and foreign exchange, was $0.1 million, compared to other income of $0.3 million in the second quarter of fiscal 2019.

The USA based company Richardson Electronics, Ltd. moved with change of 4.28% to $6.18 with the total traded volume of 59155 shares in last session versus to an average volume of 20.99K shares. The stock was observed in the 5 days activity at 9.84%. The one month performance of stock was 10.23%. RELL’s shares are at 7.18% for the quarter and driving a -24.59% return over the course of the past year and is now at 9.84% since this point in 2018.  Right now the stock beta is 0.3. The average volatility for the week and month was at 4.22% and 2.82% respectively. There are 10.66M shares outstanding and 8.92M shares are floated in market.

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