Richardson Electronics Files 2024 10-K

TL;DR

Richardson Electronics filed its 2024 10-K. All systems go.

AI Summary

Richardson Electronics, Ltd. filed its 2024 10-K report, detailing its fiscal year ending June 1, 2024. The company, a wholesale distributor of electronic parts and equipment, reported its financial performance and business operations. Key financial data and operational details are presented in this annual filing.

Why It Matters

This filing provides investors and stakeholders with a comprehensive overview of Richardson Electronics' financial health, strategic initiatives, and risks for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not contain immediate red flags or significant new risks.

Key Numbers

• 20240601 — Fiscal Year End (The report covers the fiscal year ending on this date.)
• 0601 — Fiscal Year End Month/Day (Indicates the end of the company's financial reporting year.)

Key Players & Entities

• RICHARDSON ELECTRONICS, LTD. (company) — Filer
• 20240601 (date) — Fiscal Year End
• LAFOX, IL (location) — Business Address
• 630 208-2200 (phone) — Business Phone

FAQ

Key Financial Figures

• $0.05 — nge on which registered Common stock, $0.05 Par Value RELL NASDAQ Global Select
• $31.2 m — one customer in our PMT segment totaled $31.2 million, which accounted for 12 percent o

Filing Documents

• rell-20240601.htm (10-K) — 2743KB
• rell-ex4.htm (EX-4) — 32KB
• rell-ex10_6.htm (EX-10.6) — 22KB
• rell-ex14.htm (EX-14) — 255KB
• rell-ex19_1.htm (EX-19.1) — 179KB
• rell-ex21.htm (EX-21) — 41KB
• rell-ex23_1.htm (EX-23.1) — 6KB
• rell-ex31_1.htm (EX-31.1) — 13KB
• rell-ex31_2.htm (EX-31.2) — 13KB
• rell-ex32.htm (EX-32) — 10KB
• rell-ex97_1.htm (EX-97.1) — 44KB
• img207184161_0.jpg (GRAPHIC) — 27KB
• img207184161_1.jpg (GRAPHIC) — 200KB
• img222363299_0.jpg (GRAPHIC) — 112KB
• 0000950170-24-090651.txt ( ) — 13999KB
• rell-20240601.xsd (EX-101.SCH) — 1354KB
• rell-20240601_htm.xml (XML) — 3064KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 17 Ite m 1C. Cybersecurity 18 Item 2.

Properties

Properties 19 Item 3.

Legal Proceedings

Legal Proceedings 19 Item 4. Mine Safety Disclosure 19 Part II 20 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20 Item 6. Reserved 21 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 33 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 59 Item 9A.

Controls and Procedures

Controls and Procedures 59 Item 9B. Other Information 62 Item 9C. Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 62 Part III 63 Item 10. Directors, Executive Officers and Corporate Governance 63 Item 11.

Executive Compensation

Executive Compensation 63 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 63 Item 13. Certain Relationships and Related Transactions, and Director Independence 64 Item 14. Principal Accountant Fees and Services 64 Part IV 65 Item 15. Exhibits and Financial Statement Schedules 65 Item 16. Form 10-K Summary 65 Exhibit Index 66

Signatures

Signatures 69 2 Forward Lookin g Statements Certain statements in this report may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The terms "may," "should," "could," "anticipate," "believe," "continues," "estimate," "expect," "intend," "objective," "plan," "potential," "project," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management's current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the risk factors set forth in Item 1A of this Form 10-K. We undertake no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements contained herein whether as a result of new information, future events or otherwise. In addition, while we do, from time to time, communicate with securities analysts, it is against our policy to disclose to them any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not our responsibility. 3 PART I

B usiness

ITEM 1. B usiness General Richardson Electronics, Ltd. (the "Company," "we," "our") is a leading global manufacturer of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. Nearly 55% of our products are manufactured at our facilities located in LaFox, Illinois, Marlborough, Massachusetts and Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company's strategy is to provide specialized technical expertise and "engineered solutions" based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure. Our fiscal year 2024 began on May 28, 2023 and ended on June 1, 2024, our fiscal year 2023 began on May 29, 2022 and ended on May 27, 2023 and our fiscal year 2022 began on May 30, 2021 and ended on May 28, 2022. Unless otherwise noted, all references to a particular year in this document shall mean the fiscal year for such period. Government Regulations We are subject to a variety of federal, state, local and foreign laws and regulatory requirements relating to our operations. These laws and regulations, which differ among jurisdictions, include, among others, those related to financial and other disclosures, accounting standards, privacy and data protection, cybersecurity, intellectual property, corporate governance, tax, trade, antitrust, employment, import/export, anti-corruption, and environmental regulatory compliance. Expenditures

R isk Factors

ITEM 1A. R isk Factors Investors should carefully consider the following risk factors in addition to the other information included and incorporated by reference in this Annual Report on Form 10-K that we believe are applicable to our businesses and the industries in which we operate. While we believe we have identified the key risk factors affecting our businesses, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect our results of operations. Business and Operational Risks We may not achieve our plan for sales growth and margin targets. We have established both margin and expense targets to grow our sales with new and existing customers. If we do not achieve our growth objectives, the complexity of our global infrastructure makes it difficult to leverage our fixed cost structure to align with the size of our operations. Factors that could have a significant effect on our ability to achieve these goals include the following: Failure to achieve our sales and margin growth objectives in our product lines and business units; Failure to implement or properly execute our growth strategies, including failures to identify, consummate and successfully integrate acquisitions and/or other opportunities to diversify, extend and expand our business; Declining gross margin reflecting competitive pricing pressures or product mix; and Limitations on our ability to leverage our support-function cost structure while maintaining an adequate structure to achieve our growth objectives. We have historically incurred significant charges for inventory obsolescence and may incur similar charges in the future. We maintain significant inventories in an effort to ensure that customers have a reliable source of supply. Our products generally support industrial machinery powered by tube technology. As technology evolves and companies replace their capital equipment, the ma

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View this 10-K filing on SEC EDGAR