Richardson Electronics, Ltd. (NASDAQ: RELL) reported financial results for the first quarter ended August 29, 2026, and announced a quarterly cash dividend. The company reported net sales of $64.9 million for the quarter, an increase of 18.9% compared to the prior year's first quarter of $54.6 million. Net income for the period was $4.1 million, or $0.27 per diluted share, representing a significant increase from $1.9 million, or $0.13 per diluted share, in the prior year.
Gross margin for the first quarter was 34.6% of net sales, up from 31.0% in the prior year. The company generated free cash flow of $4.2 million for the quarter. Backlog at the end of the quarter was $184.4 million, an increase of 36.9% year-over-year and the highest level in more than three years.
Richardson Electronics operates in three business units: Power and Microwave Technologies (PMT), Green Energy Solutions (GES), and Canvys. All three units experienced year-over-year sales growth. PMT sales increased by 19.7%, driven by strong demand in semiconductor wafer fabrication equipment and RF and microwave products. GES sales increased by 27.1%, supported by higher sales of wind products and new Battery Energy Storage Systems (BESS). Canvys sales increased by 7.9%, reflecting higher sales in North America.
The company also announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share to holders of common stock and $0.054 per share to holders of Class B common stock. The dividend is payable on November 25, 2026, to stockholders of record as of November 6, 2026.
As of August 29, 2026, the company had cash and cash equivalents of $36.9 million and no outstanding debt on its revolving line of credit with PNC Bank. The company invested $1.7 million in capital expenditures during the quarter, primarily for facilities improvements and IT systems.
