Richardson Electronics sees 10 percent 1Q sales loss
LA FOX - Richardson Electronics, Ltd. reported a 10 percent decrease in net sales for the first quarter of fiscal 2017, as increases in the company's health care division were not enough to offset losses in the others.
Net sales for the period were $33.4 million, down from $37.1 million in the prior year's first quarter. Sales decreases of $1.8 million for PMT and $2.1 million for Canvys, primarily due to declines in demand from key OEMs relating to market conditions, were partially offset by an increase of $200,000 million in Richardson Healthcare.
Operating expenses of $12.3 million for first quarter of fiscal 2017 were flat compared to the first quarter of fiscal 2016. Decreases in SG&A of $400,000 in corporate support functions and $100,000 in Canvys were offset by an increase of $500,000 million in Richardson Healthcare to support its expected growth.
As a result, operating loss for the first quarter of fiscal 2017 was $2.1 million, compared to an operating loss of $1 million in the prior year's first quarter.
"We are disappointed with the decrease in net sales in the first quarter of fiscal 2017 as compared to the first quarter of fiscal 2016, although we did see growth in both Richardson Healthcare and in our Power Management Group," said Chairman, Chief Executive Officer, and President Edward J. Richardson,
Richardson noted the company reduced its workstaff in September as a measure in offsetting the losses.
"We expect that we will achieve annualized savings of $3 million from this workforce reduction along with additional voluntary executive management team compensation related savings of $800,000," he added. "This will allow us to continue to invest in our growth strategy.
The company's board of directors also declared a 6 cent per share quarterly cash dividend.