v3.25.2
Segment and Geographic Information
 12 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
12.
SEGMENT AND GEOGRAPHIC INFORMATION

The Company reports its financial performance to its CODM based on the four operating and reportable segments defined as follows:

Power and Microwave Technologies ("PMT") includes the power grid and microwave tube business and RF, Wireless and Power technologies. PMT provides design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair PMT also offers its customers technical services for both microwave and industrial equipment.

Green Energy Solutions ("GES") designs and manufactures products for the energy storage market and power management applications. We provide design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Display solutions include touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages and certification services.

Healthcare manufactures, repairs, refurbishes and distributes high value replacement parts and equipment for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions currently under development for the diagnostic imaging service market. After the January 2025 sale of certain assets to DirectMed, the Company manufactures and repairs CT tubes and sells them to exclusively to DirectMed under an supply agreement.

The CODM for Richardson Electronics, Ltd. is Edward J. Richardson (Chairman, Chief Executive Officer and President). The CODM utilizes segment gross profit compared to both the current forecast and the prior year to analyze and assess financial performance by segment. The CODM’s assessment of each segment’s financial performance is utilized to deliberate and execute decisions to allocate resources to manage the growth and profitability of the individual segments and the entire Company. Inventories, net is the only segment asset metric analyzed and reviewed by the CODM.

Operating results by segment are summarized in the following tables (in thousands):

 

 

 

Fiscal Year Ended May 31, 2025

 

 

 

PMT

 

 

GES

 

 

Canvys

 

 

Healthcare

 

 

Total

 

Sales

 

$

137,752

 

 

$

28,719

 

 

$

33,145

 

 

$

9,293

 

 

$

208,909

 

Cost of sales

 

 

95,197

 

 

 

19,689

 

 

 

22,256

 

 

 

6,967

 

 

 

144,109

 

Gross profit

 

 

42,555

 

 

 

9,030

 

 

 

10,889

 

 

 

2,326

 

 

 

64,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,173

 

Loss on disposal of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

Loss on disposal of healthcare assets and other charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,074

 

Operating loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,463

)

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

392

 

Foreign exchange gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

496

 

Other, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(1,531

)

 

 

 

Fiscal Year Ended June 1, 2024

 

 

 

PMT

 

 

GES

 

 

Canvys

 

 

Healthcare

 

 

Total

 

Sales

 

$

128,697

 

 

$

23,233

 

 

$

32,444

 

 

$

12,086

 

 

$

196,460

 

Cost of sales

 

 

89,980

 

 

 

16,626

 

 

 

21,471

 

 

 

8,417

 

 

 

136,494

 

Gross profit

 

 

38,717

 

 

 

6,607

 

 

 

10,973

 

 

 

3,669

 

 

 

59,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59,548

 

Loss on disposal of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

70

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

348

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

284

 

Foreign exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(436

)

Other, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

157

 

 

 

 

Fiscal Year Ended May 27, 2023

 

 

 

PMT

 

 

GES

 

 

Canvys

 

 

Healthcare

 

 

Total

 

Sales

 

$

164,299

 

 

$

47,596

 

 

$

39,331

 

 

$

11,432

 

 

$

262,658

 

Cost of sales

 

 

110,210

 

 

 

33,877

 

 

 

26,956

 

 

 

7,926

 

 

 

178,969

 

Gross profit

 

 

54,089

 

 

 

13,719

 

 

 

12,375

 

 

 

3,506

 

 

 

83,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,713

 

Gain on disposal of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,983

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

295

 

Foreign exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(278

)

Other, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

25,030

 

The segment assets, which consist of inventories, net are summarized in the following table (in thousands):

 

 

 

PMT

 

 

GES

 

 

Canvys

 

 

Healthcare

 

 

Total Segment Assets

 

2025

 

$

72,538

 

 

$

17,367

 

 

$

9,289

 

 

$

3,605

 

 

$

102,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

67,068

 

 

 

20,857

 

 

 

9,457

 

 

 

12,767

 

 

 

110,149

 

 

 

The reconciliations of segment assets to the Consolidated Balance Sheets are summarized in the following table (in thousands):

 

 

 

May 31, 2025

 

 

June 1, 2024

 

Total segment assets

 

$

102,799

 

 

$

110,149

 

Cash and cash equivalents

 

 

35,901

 

 

 

24,263

 

Accounts receivable

 

 

24,117

 

 

 

24,845

 

Other current assets

 

 

3,070

 

 

 

2,397

 

Property, plant and equipment, net

 

 

18,355

 

 

 

20,681

 

Intangible assets, net

 

 

345

 

 

 

1,641

 

Right of use lease assets

 

 

2,276

 

 

 

2,760

 

Other non-current assets

 

 

228

 

 

 

209

 

Non-current deferred income taxes

 

 

8,744

 

 

 

5,500

 

Total assets

 

$

195,835

 

 

$

192,445

 

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 31, 2025

 

 

June 1, 2024

 

 

May 27, 2023

 

Net Sales

 

 

 

 

 

 

 

 

 

North America (1)

 

$

91,096

 

 

$

77,269

 

 

$

112,214

 

Asia/Pacific (2)

 

 

43,211

 

 

 

45,264

 

 

 

59,557

 

Europe (3)

 

 

64,949

 

 

 

61,476

 

 

 

62,017

 

Latin America (2)

 

 

8,366

 

 

 

10,908

 

 

 

28,924

 

Other (4)

 

 

1,287

 

 

 

1,543

 

 

 

(54

)

Total

 

$

208,909

 

 

$

196,460

 

 

$

262,658

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

North America (1)

 

$

36,718

 

 

$

29,306

 

 

$

43,580

 

Asia/Pacific (2)

 

 

13,890

 

 

 

13,682

 

 

 

18,775

 

Europe (2)

 

 

18,572

 

 

 

18,516

 

 

 

18,760

 

Latin America (2)

 

 

3,236

 

 

 

3,983

 

 

 

7,735

 

Other (4)

 

 

(7,616

)

 

 

(5,521

)

 

 

(5,161

)

Total

 

$

64,800

 

 

$

59,966

 

 

$

83,689

 
(1)
Primarily applicable to the United States. No other country generated a material amount.
(2)
No country generated a material amount.
(3)
Primarily applicable to Germany and Netherlands. No other country generated a material amount.
(4)
Includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add cost and other unallocated expenses.

Net assets by geographic region are summarized in the following table (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 31, 2025

 

 

June 1, 2024

 

Net Assets

 

 

 

 

 

 

North America (1)

 

$

92,312

 

 

$

100,550

 

Asia/Pacific (2)

 

 

12,483

 

 

 

10,895

 

Europe (3)

 

 

50,167

 

 

 

44,521

 

Latin America (2)

 

 

1,697

 

 

 

1,986

 

Total

 

$

156,659

 

 

$

157,952

 
(1)
Primarily applicable to the United States. No other country generated a material amount.
(2)
No country generated a material amount.
(3)
Primarily applicable to Germany and Netherlands. No other country generated a material amount.

The Company had long-lived assets of $20.5 million as of May 31, 2025 and $25.1 million as of June 1, 2024. The long-lived assets which include property, plant and equipment-net, intangible assets-net and right of use lease assets, were primarily in the U.S. There were approximately $2.1 million of long-lived assets that belong to our foreign affiliates as of May 31, 2025 and $2.1 million as of June 1, 2024.