Richardson Electronics (NASDAQ:RELL) lost ground in Thursday after reporting that its backlog was smaller than a year ago.
The company posted a backlog valued at $175.1 million in its third fiscal quarter. That’s less than the $175.6-million backlog seen in the same quarter a year prior.
Elsewhere, the company’s earnings were better than expected. Per-share earnings came in at 44 cents for the quarter, six cents ahead of what the one analyst polled by FactSet expected. And revenue came in at $70.4 million against the $70.2 million anticipated.
Net sales of $70.4 million were up 27.2% from last year’s third quarter driven by increases in Power and Microwave Technologies, Green Energy Solutions and Canvys business units.
Said CEO Edward Richardson, “We are extremely pleased with the strong financial performance resulting from capitalizing on new market opportunities and continued execution of our key growth initiatives. The third quarter of fiscal 2023 was the 10th consecutive quarter of year-over-year revenue growth and builds on our momentum for another strong financial performance in fiscal 2023. In addition, third-quarter operating income increased 110% year-over-year, compared to sales growth of 27% as we benefit from significant operating leverage of fixed expenses.”
RELL shares ditched $3.43, or 15.9%, to $18.17.
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