Richardson Electronics, Ltd. (NASDAQ:RELL) Q1 2024 Earnings Call Transcript

Wendy Diddell: And that particular product, Ron, is the ULTRAUPS 3000, which is also in test with other large wind turbine companies. Greg, you want to comment on that?

Greg Peloquin: Yes, it’s again a base design that we’re designing for Siemens, but also we have beta testing going on with Nextera and RWE. So yes, it’s — and again, it goes in every one of their turbines, so we’re excited about that product.

Wendy Diddell: And they’re aftermarket. So Siemens might be an OEM opportunity but the other ones are aftermarket.

Edward Richardson: They’re both aftermarket.

Wendy Diddell: So it’s not waiting for turbines to be built. So if that’s your concern with Siemens, that’s not an issue.

Edward Richardson: Yeah, no. It’s not based on new builds.

Unidentified Analyst: Okay, great. Thanks for the color. Appreciate it.

Edward Richardson: Thank you.

Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Michael Hughes of SGF Capital Markets. Your line is now open.

Michael Hughes: Good morning. Thanks for taking my questions. First one, can you just — Hi. Can you break out the backlog by segment for the quarter please?

Robert Ben: Yes. Hi, Michael. This is Bob Ben. Yes, so again the total backlog at the end of the quarter was $148.1 million. Of that, approximately $67.4 million was PMT, $36.5 million was Green Energy Systems, $42.6 million was Canvys, and the remaining $1.6 million was healthcare.

Michael Hughes: Okay. And then, Wendy, I think you referenced an issue with a critical component for the Siemens tube program. Can you elaborate on that a little bit?

Wendy Diddell: A little bit. I don’t want to get into too much detail on this call, but it is a part that we thought we could use a refurbished part or a part that’s already been used on another tube, and unfortunately that method is not going to work, so we have a — we need to wait until the patent expires. In the interim, there are a number of the MX series that we can repair without replacing that specific component, and that’s what we’ll focus on. Which is why I say we’ll have limited supply until next summer.

Michael Hughes: When does the patent expire?

Wendy Diddell: During the summer of 2024.

Michael Hughes: Okay, right, right. Okay, that makes sense. And then last question for you. I’m not sure if you’ll disclose the precise number, but was the semi-cap equipment revenue up or down sequentially?

Edward Richardson: It was down certainly. It’s pretty much flat.

Michael Hughes: So flat for the May quarter?

Robert Ben: Yes, it’s running about $4 million or $5 million a quarter.

Michael Hughes: Okay, great. Thank you very much. I appreciate it.

Wendy Diddell: Thanks, Michael.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Andrew Rem with Odinson Partners. Your line is open.

Edward Richardson: Good morning, Andrew.

Wendy Diddell: Good morning, Andrew.

Andrew Rem: Hey, guys. Thanks a lot. Just on the beta test coming up in October, what needs to be proven in that beta test?