管理層發言
Good day, and thank you for standing by. Welcome to the Richardson Electronics Earnings Conference Call for the First Quarter of Fiscal Year 2025. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ed Richardson, CEO. Please go ahead.
Good morning and thank you all for joining Richardson Electronics conference call for the first quarter of fiscal 2025. Joining me today are Bob Ben, Chief Financial Officer; Wendy Diddell, Chief Operating Officer and General Manager for Richardson Healthcare; Greg Peloquin, General Manager of our Power and Microwave Technologies Group, which includes Green Energy Solutions; and Jens Ruppert, General Manager of Canvys. As a reminder, this call is being recorded and will be available for playback. I would also like to remind you that we're making forward-looking statements. They're based on current expectations and involve risks and uncertainties. Therefore, our actual results could be materially different. Please refer to our press release and SEC filings for an explanation of our risk factors. I'm pleased to report that we had a solid start to fiscal year with net sales exceeding both our internal projections and exceeding our performance from the prior year.
Q1 sales were $53.7 million, slightly ahead of the $52.6 million we achieved in Q1 last year. As a note, Q1 last year benefited from an extra week of sales, making the year-over-year growth rate even more encouraging. Sales expanded in our green energy and healthcare businesses, reflecting continued success of our long-term growth strategies. We were particularly pleased to see revenue growth in green energy with sales nearly double what they were in Q1 last year. Our gross margin was below the prior year, mainly resulting from the product mix and under-absorption in our factory. We remain committed to retaining our production resources in anticipation of ongoing recovery in the semiconductor fab equipment market. While our Q1 sales in this segment remained low, we were up 16% compared with the first quarter last year and backlog is increasing. We expect growth and demand throughout the balance of the calendar year 2024 and into calendar year 2025.
We also anticipate the launch of several new products in our green energy business and in the first half of the calendar year 2025. These activities are expected to drive higher manufacturing demand and improve gross margin. As you can see, we expect demand in key parts of our business to improve over the coming quarters despite global economic uncertainty. This is a direct result of the value we provide our global customers as well as the multi-year growth strategies we're pursuing to diversify our business. In addition, we believe our strong balance sheet, customer base, and growing engineered solutions will provide the company with flexibility to navigate the current environment and invest in our long-term growth objectives. So with this introduction, I'll now turn the call over to Bob Ben, our Chief Financial Officer, to discuss our first quarter financial results and capital position.
Then, Greg, Wendy, and Jens will provide more detail on our business unit performance including an update on our growth strategies, new product development, program wins, and expanding customer relationships.
Thank you, Ed, and good morning. I will review our financial results for our first quarter of fiscal year 2025, followed by a review of our cash position. In addition, please note that I will be discussing EBITDA, a non-GAAP financial measure. A reconciliation of the non-GAAP item to the comparable GAAP measure is available in our first quarter fiscal year 2025 press release that was issued yesterday. Consolidated net sales for the first quarter of fiscal 2025 were $53.7 million compared to net sales of $52.6 million in the prior year's first quarter, which was a 2.2% increase. It is also important to note that the first quarter of fiscal 2025 comprised 13 weeks compared to 14 weeks for the first quarter of fiscal 2024. This was our first quarterly year-over-year increase in sales since the third quarter of fiscal 2023. This growth in net sales for the first quarter of fiscal 2025 was due to an 84% increase in sales for GES and a 48.7% increase for Healthcare.
Sales growth for the first quarter of fiscal 2025 was partially offset by a 4.3% decrease in PMT sales and a 22.8% decline in Canvys sales. Consolidated gross margin for the first quarter was 30.6% of net sales compared to 32.8% during the first quarter of fiscal 2024. The largest component of the 220 basis point decline in consolidated gross margin was due to our PMT business. PMT's gross margin declined to 29.8% from 32.2% as a result of product mix and higher manufacturing under-absorption as the company maintains much of its workforce in anticipation of increasing demand for its manufacturing resources. Partially offsetting this decline was higher gross margin at Richardson Healthcare and Canvys compared to the prior year's first quarter. Operating expenses as a percentage of net sales were 30% for the first quarter of fiscal 2025 and remain unchanged compared to the first quarter of fiscal 2024.
Operating income was $0.3 million for the first quarter of fiscal 2025 versus operating income of $1.5 million in the first quarter of last year. Income tax provision was $0.1 million or an effective tax rate of approximately 9% versus an income tax provision of $0.4 million, or an effective tax rate of 23.7% in the prior year's first quarter. Net income for the first quarter of fiscal 2025 was $0.6 million, or $0.04 per diluted share, compared to net income of $1.2 million or $0.09 per diluted share in the first quarter of fiscal 2024. EBITDA for the first quarter of fiscal 2025 was $1.7 million or 3.1% of net sales versus $2.6 million or 5.0% of net sales in the prior year's first quarter. Moving to a review of our cash position. Cash and cash equivalents at the end of the first quarter of fiscal 2025 were $23.0 million compared to $24.3 million at the end of the fourth quarter of fiscal 2024.
Operating cash flow was $0.4 million compared to $1.0 million in the prior year's first quarter. This was the second consecutive quarter of positive operating cash flow. Capital expenditures of $0.9 million in the first quarter of fiscal 2025 were primarily related to our facilities and IT systems versus $1.1 million in the first quarter of fiscal year 2024. We paid $0.9 million in cash dividends in the first quarter of fiscal year 2025. In addition, based on our current financial position, our Board of Directors declared a regular quarterly cash dividend of $0.06 per common share, which will be paid in the second quarter of fiscal 2025. As of the end of the first quarter of fiscal 2025, the company had no outstanding debt on its $30 million revolving line of credit with PNC Bank. Now, I will turn the call over to Greg, who will discuss the results for our PMT and GES business groups.
Thank you, Bob, and good morning, everyone. We mentioned in our last call that even though our Q4 FY ‘24 results were challenging, we remained very optimistic about the future, both over the short and long term. Coming out of Q4 FY ‘24, we had a strong backlog, numerous new product introductions, an expanded customer base, and development programs transitioning from beta testing to pre-production. Based on this positive momentum going into FY ‘25, we are pleased to report strong growth in our GES segment and our RF and microwave components business, also quarter-over-quarter and year-over-year growth in our wafer fab equipment manufacturing business in our Q1 FY ‘25 results. Starting with our GES business, GES grew 84% to $8.1 million. Looking at these results in more detail, even our margin was down a little bit based on product mix, our first quarter sales growth benefited from numerous new programs, products, and customers.
Many of these have been in development since FY ‘23 and FY ‘24, and it's good to see them come to fruition. We had strong sales in our electric locomotive battery modules and new products for EV and diesel locomotives such as our starter modules. In addition, we had strong growth in our pitch energy modules as we added numerous new customers for our growing portfolio of products. We now serve dozens of wind turbine owners and operators, including exclusive partnerships with the top four owner-operators of GE wind turbines such as RWE, Invenergy, Enel, and NextEra. To date, we have sold over 57,000 units in North America. And as I mentioned on the last call, in Q2 FY ‘25, we're expanding into Europe with GE and other turbine platforms such as Suzlon, Senvion, Nordex and SSB. Our GES growth strategy is still in its early stages and as our new products mature, we expect to see sales and bookings fluctuate from quarter to quarter.
However, I'm pleased with the progress we are making, getting GES to scale as we continuously add new customers, products, and technology partners. We expect this trend to continue and contribute to growth throughout FY ‘25 and beyond. The team continues to excel in identifying customer requirements, establishing design and manufacturing capabilities, and launching beta site testing. In a short amount of time, we have designed numerous products, received several patents, and developed a growing large customer base of global industry-leading customers. The progress will help create more predictable quarterly revenue and booking streams as our GES business gets to scale. Our customers repeatedly tell us that we have maintained our market share for the core GES power management applications. Suggesting the slowdown in shipments in FY ‘24 was primarily a timing issue. In fact, our customer pipeline and opportunities continue to increase as we capitalize on significant energy transformation projects globally, including wind turbine repowering.
Turning to Power and Microwave Technologies, or PMT, which includes the Electron Device Group, EDG, our legacy tube and semiconductor wafer fab equipment business, and the RF and Microwave Group, or PMG, sales were $34.2 million, down 4.3% compared to the prior year. However, this decline was offset by growth in our RF and microwave components business as well as our semiconductor wafer fab equipment business. PMT margin was down in Q1 due to mainly product mix. Our combined GES and PMT backlog remains strong at over $97 million. Given our inventory position, we will continue to ship many incoming orders from stock, as we did in the past fiscal year. We remain focused on managing our business to support our customers' needs when they are ready. Having inventory on hand allows us to capture market share and expedite the MPI process or new product introduction process. We collaborate with our customers and suppliers and use our customers' forecasts to help us strategically invest in inventory and ensure we meet their needs.
Inventory was up slightly in Q1 FY ‘25, many due to a large purchase of electron device tubes to support long-term demand and availability. A key component of our growth strategy is selectively expanding our global technology partners. We continue adding new partners who fill technology gaps in our offering and support our growth strategy. Through these partnerships, we often identify opportunities for new products that we design and manufacture in-house. This increases the value we provide customers and allows us to capture more revenue while expanding and diversifying our customer base. These long-term supplier relationships are extremely strong, and when appropriate, we work with them on strategic purchases to maintain proper levels of supply. We negotiate special payment terms, stock adjustment privileges, and shipping schedules to help improve cash flow. In addition, we are a key component of their new product development and new product introduction programs.
We also continue to invest in our infrastructure to support our growth. We are bringing on talented design and field engineers and making investments to enhance our design and manufacturing capabilities. Our growing in-house design and engineering teams are doing a great job supporting the increased demand in our current products and new product designs. Our field engineering team continues to identify new customers and opportunities. With this team, we will continue to identify, develop, and introduce new products and technologies for green energy, power management, and RF and microwave applications. Going into Q2 FY ‘25, we remain excited about the opportunities within our PMT and GES businesses. Q1 FY ‘25 bookings exceeded Q1 FY ‘24 by 35%. We did not lose market share in FY ‘24. In fact, with the positive outlook in the semi-fab market, key customers are forecasting growth in FY ‘25, and our technology partners are continuing to support our unique global business model and drive our business forward.
As a result, we have many reasons to be optimistic about our growth strategies and the future of our business. I cannot stress enough the value of Richardson Electronics' unique model to our customers and suppliers. Our unparalleled capability and global go-to-market strategy are unique to the power management, RF and microwave, and green energy markets. We have developed a strong business model combining legacy products and new technology partners and capabilities that align with our growth strategy to provide global customers with our engineered solutions and capabilities. This model is unique to the industry and differentiates us from our competition. Through our steadfast and creative focus on customers, we continue to excel by capitalizing on opportunities as they arise. The execution of our strategy has never been stronger and it is clear our customers and technology partners need Richardson Electronics products and support more than ever. With that, I'll turn over to Wendy Diddell to discuss Richardson Healthcare.
Thank you, Greg, and good morning everyone. In the first quarter of fiscal year 2025, the healthcare division reported sales of $3.8 million, representing a 48.8% improvement compared to the same quarter last year. Additionally, this marks a $300,000, or 8.4% increase, over the fourth quarter. All product lines showed growth over the prior year's first quarter with a standout 50.6% increase in our CT tube business. This growth was primarily driven by the repaired Siemens Straton Z tubes and our proprietary ALTA tubes. The gross margin for the quarter improved to 32.3%, up from 31.6% in the same period last year. This improvement was primarily driven by a favorable product mix, which included higher margin part sales and lower scrap charges. During the quarter, we maintained steady production of the repaired Straton Z tubes. We fulfilled the backlog carried into the first quarter and sold every tube repaired during this period.
Progress continued with our repair program for the Straton MX, MXP, and MX-P46. We remain on track to launch this program later in the fiscal year. As a result of higher sales and gross margin, we were close to breaking even for the quarter. We have significantly reduced our loss compared to the prior year. While our first quarter performance is encouraging and we remain focused on efforts to improve sales and profitability, the company continues to evaluate strategic options for the healthcare business. I will now turn the call over to Jens Ruppert to discuss the results for Canvys.
Thanks, Wendy, and good morning, everyone. Canvys engineers, manufactures, and sells custom displays to original equipment manufacturers across global industrial and medical markets. Canvys net sales decreased 22.8% to $7.6 million during the first quarter of fiscal 2025 from $9.9 million for the prior year period due to lower sales in North American and European markets. We ended the quarter with $38.1 million in backlog, providing a strong base of business for the future. Gross margin as a percentage of net sales increased to 34.3% during the first quarter of fiscal 2025, from 34.0% for the prior year period, primarily due to an improved product mix. During the quarter, Canvys received orders from both repeat and first-time medical OEM customers. Some of these applications include optical coherence tomography, OCT, intravascular imaging, pulsed field ablation, computer radiography, lithotripsy, cataract surgery, medical device control, radiotherapy, microwave ablation, and robotic-assisted surgery.
Recent design successes illustrate our commitment to providing solutions that meet the evolving needs of our medical clientele. Furthermore, they highlight our ability to cultivate and sustain long-term partnerships with both existing and potential customers who require high standards, supporting our continuous growth in this vital sector. We also provide solutions for numerous commercial and industrial purposes. Our products are used for passenger safety and control rooms, directly within trains and buses. Other applications include human-machine interface, HMI, for printing, vending, and packaging machines. Given the considerable market uncertainties such as economic difficulties, regulatory shifts, and other near-term trends, we understand that many of our customers have opted for a more cautious approach toward new product development and inventory management. We are cautiously optimistic that customer demand will see an upturn by early next calendar year.
We see positive indicators and anticipate a steady recovery as the market stabilizes, supported by customer feedback. An important sign is the rise in projects our teams are handling, highlighting growth in our markets and acknowledgement of our offerings. Our sales team continues to explore new opportunities while I concentrate on implementing our strategic plan to ensure sustainable growth to create long-term value for our shareholders. I will now turn the call back over to Ed.
Thanks, Jens. While we know Q2 will be challenging, we remain optimistic that Canvys will return to growth given the expanding list of blue chip customers Canvys serves. Despite uncertain economic conditions, we maintain our excitement and commitment to our long-term growth strategies. The list of opportunities within our Green Energy Solutions business unit continues to expand. Even though product deployment and our customer approvals are taking longer than we'd like, our growing list of valuable customers for our wind energy transportation and power management sectors support our multi-year growth plan. Demand for energy is only increasing, and a recent report forecasts demand to increase at an annual rate of 11% to 18% through 2050. While fossil fuels will continue to play an important role in meeting energy demand, renewable energy sources, particularly solar and wind, will grow at a much faster rate.
These trends are aligned with our strategy to support global energy transformation initiatives, and we intend to leverage our engineered solutions to deliver substantial revenue streams over the coming years. As mentioned earlier, backlog from our semiconductor wafer fabrication assemblies is growing. Growth is being driven by rising semiconductor demand associated with AI, the need for more data centers, 5G deployment, and other factors including ongoing efforts to localize semiconductor manufacturing. We anticipate the growth in semiconductor wafer fab equipment market will continue over the next several years, giving us time and resources to continue investing and growing our Green Energy Solutions business. We continue to take a conservative approach to expenses, as we remain focused on managing inventory levels and are committed to maintaining a healthy balance sheet. We believe these initiatives will help generate operating leverage as sales expand.
Our focus for the remainder of the fiscal year is to continue the positive momentum. We remain optimistic about the opportunities in our pipeline and we are committed to delivering continued value to our shareholders. On behalf of everyone at Richardson Electronics, we look forward to updating you on the progress we're making. We'll be happy to answer any of your questions.
分析師問答
And our first question is going to come from the line of Bobby Brooks with Northland. Your line is open. Please go ahead.
Hey, good morning, guys. Thank you for taking my question. So in the press release...
Hi, Bobby.
Good morning. So in the press release, you specifically call out new program wins and improving demand trends for legacy programs that drove the $3.7 million year-over-year increase in GES sales. So I was just curious, what were those new program wins and then what were those legacy program wins and just any more color you could provide on that would be appreciated.
Well, the biggest new program what's going on throughout North America and in Europe is this large repowering of sites and wind turbines for all manufacturers of wind turbines. And so in the quarter, we booked and shipped a number of large orders for our ULTRA3000 which are being used in this repower program for the wind turbines. In addition to that, we shipped a number of products to 19 other customers specific to replacing their lead acid batteries in their turbines and also the electric locomotive modules and our starter modules had good shipments in the quarter.
Got it. Fair enough. And then kind of following up on that is, I think last month where the team did its first trade show in Europe to introduce the ULTRA3000 family of solutions, so I just wanted to hear how that went. Breaking into Europe would obviously be a major needle mover for Richardson. And maybe if you could then touch on any key differences between the dynamics for selling to wind turbine operators in the Americas versus Europe.
The demand for our ULTRA3000 product is just as strong in Europe as it is in North America, although there are significantly fewer GE turbines in Europe. Over the past year, we've been successful in establishing a strong presence among GE wind turbine operators with our product. The four main platforms in Europe are Suzlon, Senvion, Nordex, and SSB, and we currently have customers testing three of those platforms that we met at the trade show. We also had strong interest from companies like Vestas. Regarding repowering, operators expressed a desire to eliminate lead-acid batteries from their turbines, aiming to replace them with our five platforms of ULTRA3000. We are enthusiastic about this opportunity, as we have a competitive advantage with our patents and exclusive design. The trade show reaffirmed our understanding of the market, and we plan to ramp up our product launch to ensure customers are aware of its availability. Once they know it's available, discussions and beta testing with them have already begun. Overall, the show was a success, validating our strategies and positioning us well for the global repowering trend.
That's great to hear. Just to confirm, you already have the products ready to place with Nordex and the other three companies you mentioned. You’re not required to create a new solution; it's essentially a plug and play, correct?
Yeah, right now, in all five platforms and products at our booth, there might be little things. I'll give you an example with Suzlon. With that large program we have going with Suzlon India, in the end they asked for a couple of tweaks. Put the handles in a different spot, move over the positive connector, which our engineering team is so talented. To support the customer, we do these small tweaks. So there might be some small mechanical tweaks, but in terms of electrical performance, they're ready to go. And like I said before, they're being tested. I just want to add, Bobby, that this is a loss because of Europe, but there's also a number of farms in North America that have Senvion, Nordex, SSB, and Suzlon, we are also selling that there. In fact, we shipped some of those products, about 200 units of the SSB in North America. So it's kind of a launch of new platforms but the major launch would be obviously to get us into Europe where we're not today.
Awesome. Thanks for the color, guys, and congrats on the solid first quarter.
Thanks, Bobby.
Thank you, and one moment for our next question. And our next question is going to come from the line of Anja Soderstrom with Sidoti. Your line is open. Please go ahead.
Hi, thank you for taking my questions.
Good morning, Anja.
Good morning. Congrats on the nice progress here. I'm just curious, how is the system in India progressing?
The program in India?
Yeah.
Just fantastic. In fact, we had a long meeting with them also in Europe. So the first phase will be for them to replace all the lead acid batteries, other wind turbines that are in the field. In India, there are 9,000 today. We are in the final sign-off. We fully expect production orders this quarter, probably starting at the end of the month with the nice shipments between now and December, but the majority will be the rollout will be 2025. But in addition, we also have partnered with KEBA, who is the largest producer of pitch controls. That's the type of pitch control that Suzlon uses in their OEM product. And that design is complete. And they're forecasting about 1,000 new turbines a year starting in 2025 and our product will be in that new turbine. So, all the stuff we're doing now is obviously replacing lead acid batteries and existing turbines in the field. Our first OEM order and program will be with Suzlon and every new turbine they build will have our product in it, giving them a jump on the competition.
Okay, thank you. And what other sort of, what other projects do you have in a prototype or beta testing where you see some near-term maybe orders coming through potentially?
Yeah, a number of things are beta and some are beta plus. The starter modules, we have that program going on with two of the largest diesel and electric locomotive manufacturers. The one program they were here, it's been signed off by their CEO and we're going to start shipping that product in volumes starting January. Also we have our inverter program that we're doing with them and also the wind turbine manufacturers. Those have moved from alpha to beta to beta plus. Again, we expect bookings this quarter or next. We have the other stuff we talked about. We have the emergency lighting program going out with Metra. That's getting final signatures. We have the microwave generator program in Korea with that customer. That's being tested with great success. We have the ultra-fridge which replaces lead-acid batteries in refrigeration trucks. So yeah, a lot of things in queue but one thing as I mentioned last year was challenging but at no time did any of these programs stop.
We continued to work with them, they continued to do the beta testing, we continued to tweak the product to meet their needs and their specific specs, and now we're seeing, as you saw in the quarter, shipments and Q2 will be a very strong booking quarter for us compared to the last few quarters. So yeah, a lot of things moving but the good news is they've never stopped and everything's been going not on schedule, of course we don't have a lot of patience, but the customer is very, very happy with our support.
Thank you, that was helpful. I have one more quick question about inventory. Do you anticipate that it will decrease in dollar terms in the upcoming quarters?
Hi, Anja, this is Bob Ben. If you're asking about the impact excluding foreign exchange, yes, it was a slight pickup of about $124,000, I think, if you look at our cash flow statement.
Okay, but going forward, do you expect inventory to decline or do you expect it to increase? Because you’re sitting on a lot of inventory already, right?
Right, we still have a lot of inventory. We would expect that the efforts that we're putting into control inventory, we're going to continue to do that. As we've discussed before, we have one large vendor that the inventory will continue to grow. And that will happen through calendar year 2025. And as Greg mentioned in his script, that's in support of our long-term demand for our legacy products. That particular location, the factory, is ceasing production at the end of calendar year 2025, so we are adding inventory and that will continue to grow. So the other area that we anticipate will continue to show some growth is in green energy. As Greg just mentioned, we have a number of programs and we don't think it's necessarily going to grow substantially, but we are willing to invest in that area as he brings these new products to market. We have plenty of the ULTRA3000s already built in stock. We have plenty of ultra-capacitors to build more in stock, but there could still be some increases for some of the other programs. So we don't want to rule that out per se. On the other hand, we continue to monitor, Greg's group is doing a phenomenal job of going through every order, every requirement for inventory, making sure it's going to ship when it comes in. And that's where we're seeing some of the offsets.
Okay, thank you, that was helpful. I'll get back in queue.
Thanks, Anja.
Thank you, and one moment for our next question. And our next question comes from the line of Chip Rui with Rui Asset Management. Your line is open. Please go ahead.
Good morning…
Good morning, Chip.
…Wendy, Ed, and everybody. Good quarter. It does seem like we're finally inflecting off the bottom and things look good. Can you give a little more detail on the inventory? How much of it is PMT for semis? How much would be green energy? And how much kind of everything else? And then maybe just assure us that the inventory is all still kind of state-of-the-art and ready to ship, and because it's so large, there's no aging product life cycle on that side. So that's one question. And second, again, with positive cash, positive operating cash flow, and kind of the good forward thoughts on continuing cash, seemingly now might be a good time to start repurchasing a modest amount, I mean not huge, but what do you think of that Ed? All right, thank you.
Let me begin by addressing the inventory question and then I will hand it over to Bob or Ed to discuss cash utilization. Regarding inventory, we had approximately $111 million at the end of Q1, with around $21.5 million associated with green energy. We do not provide a breakdown of how much of that growth or inventory is tied to the semiconductor market, so I cannot provide that information at the moment. However, we are confident in our inventory and do not see any risks. Much of the growth is due to one of our major suppliers for tubes, and in the past, we've added extra inventory when halting production and have successfully sold through all available tubes. Additionally, we conduct a thorough inventory analysis with BDO every quarter and annually. They scrutinize our processes and review all available quotes, and once again, we do not identify any risk in this area. Furthermore, associated with our growth initiatives, including the PMG business, Greg and his team have secured inventory balancing and return agreements, ensuring that we maintain the latest inventory required to meet customer needs. Now, let me hand it over to the others for the cash flow discussion.
Well, we're always asked at some point, are we going to start to rebuy the stock. One of the things that's occurring is the semiconductor wafer fab business is starting to increase and that takes a lot of inventory and a lot of resources. And as you probably know, in a good year, our semi wafer fab business is over $40 million and last year it was below $20 million. So if it turns around and that Lam Research and Applied Materials and these companies that are in that business are telling us that 2025 is going to be larger than ever, it will take a substantial amount of our cash to fund that growth.
Bob, you want to talk about where the cash is located?
In addition to that, we have $23 million in cash at the end of the first quarter, with approximately $3.5 million in the US and the remainder distributed among our foreign subsidiaries, which require cash to operate. Over 55% of our sales occur outside the United States, so we are continually managing cash flow and moving money around, but we need to do so very carefully at this time.
Okay, great. All right, guys, congrats again. Thank you.
Thank you.
Thank you. And I'm showing no further questions at this time. And I would like to hand the conference back over to Ed Richardson for his closing remarks.
Well, thank you again for joining us today. We appreciate your investment and interest in Richardson Electronics and you're welcome to call us at any time. We're always free and happy to talk to you. We look forward to our ongoing discussions and sharing our second quarter results with you in January. Thanks very much.
This concludes today's conference call. Thank you for participating and you may now disconnect.