Richardson Electronics (RELL) 25 Jul 242024 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Richardson Electronics Earnings Call for the Fourth Quarter of Fiscal Year 2024. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to your speaker today, Ed Richardson, Chief Executive Officer. Please go ahead.

Good morning, and welcome to Richardson Electronics Conference Call for the Fourth Quarter of Fiscal Year 2024.

Power Robert and Financial Healthcare; Solutions; General General of are Chief Wendy Greg and today Group, Manager Officer Technologies Manager Operating Manager our Jens me Ruppert, Ben, Green of Officer; Chief Diddell, Peloquin, which General Joining includes Microwave Canvys. Energy and for Richardson

and explanation several uncertainties playback. I'd making and reminder, remind expectations you to for lower segments press fab this recorded risks Energy forward-looking As semiconductor on an filings like a that involve wafer is sales Economic a our based due of and will was Solutions and to certain business. and opportunities. release within Therefore, results XXXX we'll be difficult Richardson uncertainties. delays program also contributed being our call our be for market statements are year also SEC to different. in Green our our across risk to of available our for higher be could factors. Fiscal and that Please current Electronics challenging actual rates refer interest of conditions materially

margins, these strong inventory opportunities. While sales during gross profitability year, levels, team long-term impacted is investing improving on strengthening and our our in and balance focused growth sheet the our trends reducing strategic

first fact, fourth decline inventory year-over-year the reduction in the quarter inventory second marked in consecutive fiscal In and the experienced quarter, where we since XXXX.

and operating million million flow the quarter, $X.X addition, the cash in with we cash year and equivalents. in the $XX.X generated company debt, In ended and during cash no fourth

energy. distribution and base strategies pursuing and I'm leveraging solutions, growth, sales we're include green While strong, increased and such pleased remains headed. year engineered it direction was for tough opportunities as customer partners business a with global supporting we're the The our our

of the key Energy modules base turbine market, batteries included locomotives. and acid our the fiscal replace to of expansion milestone During modules in sold, Solutions customer used in starter significant lead achieving generator Green launch number in a successes of XXXX, wind global

offer In multiple last and turbines battery our fact, on compared program wins an our more strategies, and replacements new year. Greg, now several including growth ULTRAXXXX the within acid performance, provide will unit lead expanding for on we details Jens solutions our and business update customer GES product OEM development, Wendy business, to relationships.

the to will quarter review Officer, to and I performance. First, year financial our Financial turn XXXX call Chief our Ben, fourth over fiscal Bob

our our fourth Thank you, year Ed, XXXX, review and and position. cash our of quarter morning. good financial for followed fiscal will I review a results by

quarter I of yesterday. Net of in In will million, year's economic decreased conditions addition, PMT $XX.X in last million to be which million due note A million net EV year's $X.X modules sales GES not our fourth comparable that sales fourth release $XX.X financial were that of in the the quarter for was fiscal measures issued non-GAAP press XXXX discussing quarter year as reconciliation quarter XXXX. Consolidated to the systems, fiscal sales available the higher measures. fiscal please the year's GAAP since of fourth compared XXXX decreases end GES, the to in increased million non-GAAP is items for fiscal the to fourth XXXX, locomotive RF quarter. of significant and quarter. of decreased of products. and $X.X million primarily fourth $XX.X fiscal year's a for impacting of sales, GES of declined end Sales last primarily by of by result CT in due the tube fourth approximately parts $XX.X healthy. at and million, included to did million the totaled by quarter sales in $XXX.X sales quarter, America. from compared that of XXXX. Canvys quarter, net million by by XX.X% versus lower Healthcare fourth microwave backlog medical $XXX.X of battery to million $X.X sales XX.X% quarter XXXX of or from sales recur $XX offset of partially last prior million a fiscal primarily the OEM Richardson XX.X% was demand. Backlog fiscal increased PMT was slight North increase fourth third $X.X at fourth margin remain in Canvys, improvement gross third compared sequential The quarter XXXX. which

tax expenses prior result year's million compared product fourth for of improved $XX.X to increased the fourth of fiscal scrap to higher incentives to favorable were GES in The in fourth margin the operating was fiscal of gross other the expenses non-GAAP reported XX.X%, prior the quarter prior year's fourth due $X.X quarter the XX.X% $X.X year. PMT's $XX.X gross prior mix. Healthcare's fiscal quarter million, expense fourth $X.X of increased for The Canvys' of fourth fiscal gross last to $X.X company credit to of XXXX, a The because as XX.X% XXXX. Income lower our the of fiscal of to of income had tax and quarter, margin to benefit and and quarter quarter. of an total business quarter mix income an of the million, and margin fourth from fourth in one-time year's income fourth foreign decrease XXXX and a from partially the quarter less income income in of product XX.X% operating benefit quarter fiscal XXXX product quarter the in of XXXX, XXXX. fourth fiscal in units fourth expense. expense, an XX.X% increased fiscal for including prior operating XX.X% in All fiscal loss mix. million fourth tax fourth versus the fourth XXXX lower million year's the the margin $X.X $X.X XXXX of less higher the resulted year. fiscal gross million product fiscal through gross $X.X $X.X non-GAAP quarter from benefit quarter than XXXX interest included due credit XXXX increased of by R&D in of million tax versus the was of margin XXXX, to for Other fiscal quarter year $X.X in the R&D fourth years of quarter to in from tax quarter for was a an exchange million in income million current million costs. versus the $X.X XX.X% in benefit million XX.X% than mix. Operating compared XXXX. quarter compared for for of million offset of

XXXX. in the $X.XX earnings million share of XXXX million $X.X earnings fourth was for Illinois for fourth expense the of tax the addition, quarter NOLs. fiscal $X.X income and net fiscal per of XXXX. Loss non-GAAP diluted and in the in of non-GAAP included quarter quarter common the share comes of earnings common share and loss of net $X.X income net $X.XX $X.X fiscal Net of fourth diluted valuation an tax establishment quarter quarter share, In million fiscal fourth and were income common was non-GAAP related million state to diluted allowance $X.X diluted million in income of was per per per XXXX, fiscal the compared to of $X.XX the of of fourth non-GAAP XXXX $X.XX per limitation compared to

sales by $X.X product XXXX. tax credits year healthcare, year. fiscal by XXXX than current tax net of including GES million, net sales million and XXXX. Income XXXX. net of establishment increased less XXXX benefit from product and manufacturing exchange other for tax interest because versus and resulted and $X.X $XX.X and while XXXX. Earnings results million XXXX million $X.X of as Turning was for under R&D to fiscal compared the and tax and fiscal were non-GAAP fiscal million operating review common non-GAAP for of and $X.X per last by $X.X margin $XXX.X fiscal were $X.X $X.XX income income to for million for XXXX share product Operating Net for common prior the compared The $X.X absorption mix and $XX income for million XXXX expenses, million of state to in expenses of year expense operating resulted On tax income fiscal income was during $X.X manufacturing $XX.X in of non-GAAP fiscal XXXX, XXXX diluted year $X.X fiscal Canvys, million year tax $X.X net income from under both fiscal offset income and XXXX. of to per by sales decrease per million and compared R&D was XXXX, million, per for expenses mix increased increase XXXX. $X.X fiscal GES, XX.X% was XXXX. expenses offset fiscal $X.XX and diluted of PMT, $XXX.X fiscal $XX.X million offset expense earnings for from a was XX.X% in million fiscal during diluted year-to-date million earnings fiscal for for basis, income sales increase share valuation foreign Healthcare. Gross million were million and million million. The was partially $X.X year $X.XX non-GAAP incentives. million, for freight share The million year Richardson of compared fiscal common tax $X.X income to for absorption fiscal fiscal common was million a year's decreased primarily $X.XX PMT, Net by $X.X tax were an Canvys. Operating income million in was for non-GAAP $XX.X XXXX. non-GAAP R&D allowance, an diluted million were for income Illinois of income share fiscal a for mix credit higher lower of $XX.X million for the earnings partially Other costs $X.X expense salaries expense net from of year, which of $X.X favorable lower and represented for a an for

equivalents XXXX, million and fiscal $X.X fiscal end third XXXX of quarter the paid $XX.X Cash fiscal million Moving XXXX. Total at generated to end quarter to were and third XXXX. in lower million versus the Capital review receivable and million of at fiscal in million fourth systems XXXX. end the fiscal of of Cash at the as $X.X $X.X inventory, in the related accounts expenditures at were end in $XX.X the to $X a and capital expenditures fourth total of of year due a $X.X the decreases end was compared cash fiscal in year XXXX in were $X.X $X.X $X.X cash $XX.X XXXX. quarter fiscal $X.X cash end and XXXX to of versus million were the offset of our quarter XXXX. the position. at fiscal XXXX, million in of at million facilities IT XXXX in of and and compared quarter equivalents of cash primarily XXXX fourth of the accounts payable. U.S. partially primarily million by of We million dividends quarter our million million fiscal of $X.X fourth cash million fiscal the the fiscal fiscal in of to

regular based position, current of financial of on our be common dividend quarterly cash per addition, XXXX. of $X.XX our In fiscal the first a which will paid in quarter Board Directors share, declared

the of with line million outstanding no revolving of company debt the had $XX end Bank. PNC its XXXX, on As credit of fiscal

business the groups. Now, GES will PMT who'll Greg, to discuss our over turn call results I and the for

you, and morning, Thank everyone. Bob, good

XXXX GES remain optimistic fiscal future, units PMT results challenging, long-term. short fourth both we were While and the for our business about our quarter and strategic both

excited the was our see First, strongest of of indicator a fiscal looking to and the business, year, being at bookings our QX. were health we backlog a booking over XX% QX this quarter GES backlog strong with growing

to sequential In quarter up growth. bookings backlog 'XX products, FY wind that GES new 'XX XX% us and QX recently bookings ULTRAGEN introduced bookings QX and FY modules Strong addition, The platforms. sales in confidence the for during new higher a to fourth customers will 'XX. modules in turbine FY QX gives led for energy show increase including and our locomotives our in versus were include pitch starter

I'm addition, In that to margin over our GES the in previous improved pleased year. report gross

growth had quarter. in revenue into that number our Looking QX Energy negatively at Group in showing We pushouts FY shipments $X.X decreased to during QX, our our After million Green impacted quarter. results in more of a our the detail. QX 'XX revenue the in

of half half second $XX.X XXX%, $X the predicted, we over revenues as up However, in 'XX versus million of of year. was million the FY the with first

from products infancy Our strategy quarter-to-quarter. will see GES our somewhat mature, we And still sales new as in fluctuate growth is its stage.

positive technology side, year. FY a do establishing added sales throughout with the to and The team job good products, On of beta developed requirements, identifying launching patents have growing amount numerous design we for and customers, partners 'XX, received $XX.X of continues the short million capabilities, new customer had we time, products, customers. several and key testing. In list and of site manufacturing a a designed numerous

help prototype large-scale pitch will from this and replace electric quarterly more year, stream. including GES of develop All with batteries to Last of 'XX, of predictable benefited with X,XXX agreement starter turbines grow wind acid operators projects, with share our rollout major lead we such module. several energy and large development patent-pending revenue market modules an locomotive Enel FY to NextEra, saw GE a owner the diesel as outfit Invenergy. In locomotives

turbine SSB. turbine products and we in have and with wind new the America X and In of Europe, globally the rollout are energy operators turbine addition, platforms expanding purchasing us, We platforms, Senvion, our including now pitch by Suzlon, Southeast XX selected Nordex wind owner over numerous new Latin Asia. from were modules wind

the Our in us customers timing repeatedly was shipments our 'XX that in we applications, power primarily suggesting market slowdown issue. share maintained core a for our have GES management FY tell

customer take projects our continue the transformation and opportunities of of energy to we as significant pipeline number fact, In increase, globally. advantage

Device Technologies, the Group, business the and or Group, due business. our to quarter. to to was fourth from Microwave slowdown Electron fabrication primarily $XX.X & Power $XX.X X% in the sales our This million decreased semiconductor equipment or tube includes legacy which in and decline PMG, wafer PMT, million Turning Power Microwave EDG,

the However, quarter higher and during we we increased semi-fab bookings. as saw shipments demand experienced

up FY over largest QX fact, In revenue the XX% year 'XX quarter was business, wafer for our this QX. fab semi

growth year-over-year see in predictions. on to semiconductor and business market wafer customer expect based fabrication FY We feedback for equipment 'XX

are FY a extremely On we into of to X.XX 'XX. see book-to-bill wireless side, the RF and going happy

Our strong PMT over and combined remains GES backlog $XXX million. at

maintain leverage many reduction were of Given as selectively quarters we QX, we opportunities who increases stock, which in expanding We support from this orders our a coming value growth design, and in are QX improve receivables our and them incoming in and year. inventory convert purchases negotiate we privileges, the resulted position, to offering expanding test special to stock we'll that hand of customers' when help can allows capture focused key QX shipping continue customers' inventory is to our This needs proper are our added remain are Often growth both supplier strategically to share. forecast allows customers' our work market payment partners and support new cash customers these us managing inventory and and to strategic our partners. In collaborate and we to our do when to business us strategy. to relationships as while and long-term strong fiscal This We on suppliers customer on A We for global to terms, invest and capture schedules technology products ship to us past the they gaps with adjustment more with we and we in meet our identify help partnerships, ready. Having provide inventory, in-house. cash appropriate, inventory flow. technology base. These our revenue, collected. on we maintain our needs. customers extremely strategy manufacture able technology will diversifying and fill levels. in ensure

to to We our infrastructure in invest continue support growth. our

manufacturing talented field design design capabilities. enhance engineers and investment engineers are our engineers, We bringing on and making to both to

and applications. sales job, we and engineers, current growing and applications, new demand and great manufacturing identify, increased will products to technologies along products management and this introduce are green supporting designs. and develop field team doing microwave product for new engineering our power With continue for in-house teams Our design, other a energy with

Going the not of businesses. share in 'XX. new QX about FY We the and into GES share 'XX our FY we did market FY our 'XX, in customers 'XX, current addition in and opportunities fact, gained our PMT in with excited share products with remain grew any we Bookings FY customers. with bookings exceeded market and lose QX

the our continuing market, customers positive to model, the many we customers our growth and our stress growth fab global value forecasting FY in our business business cannot the enough and about drive semi in partners and With Richardson suppliers. our and to reasons model the strategies have key 'XX be to outlook new technology the of future excited business. I Electronics of

unique are go-to-market the capability and global and and power markets. Our and unparalleled energy microwave energy, green strategy to RF

products execution creative a with we legacy with to opportunities strong technology products our The strategy capabilities. Through when never including it more well arise. and continue our and of taking our have by our customers partners Healthcare. that, model, solutions no Richardson Diddell on will fit and developed over has engineered turn discuss We been that advantage and question, customers, partners excel technology better. need to support new business There's Richardson Wendy focus to of they steadfast ever. And than I'll

quarter. CT Good Fourth fourth most the Thanks, improvement Healthcare increase prior million, quarter. morning, compared the everyone. to Greg. or division the sales over system an XX.X% XX.X% sales last versus a up and $XXX,XXX were year's parts for third year were quarter tubes, $X.X and recent fourth quarter of the of

XX.X%, last period our improved of sales basis, mix, year same full gross primarily was margin X.X% compared parts gross Siemens including favorable margin were XX.X% parts the product by down Healthcare a inserts FY and year tubes gross million, in X%. more in in quarter, fiscal to improvement repaired Siemens year On 'XX, margin to the while nearly During by to full China. Healthcare's by year. offset ALTAXXX manufacturing The which to of respectively, over was basis, to scrap a related sales Siemens due quarter sales gross 'XX we margin prior the under were the 'XX. to in a tube We system lower Sales sold sales offset tubes FY improved tubes, both and the a a X%, full positive CT X% continued XX.X% and including sales. from versus absorption. charges. tubes. over reflecting by product $XX.X Siemens benefit were mix, On Straton and This increase of was higher lower sales Z FY XX.X% primarily year

Siemens MXP improvements repair program the Z, During the quarter, and MXPXX. tube we MX, Siemens repair the Straton made The to program. includes types, significant X

in field, objective Straton to meet the the not which repairs to summer. Unfortunately, we well series MX is life due beginning were performing tube demand meet full production on Z will over We carry While to our repaired and able challenges. supply MX quarter in production to the test. chain processes, focused on the in failed we the this

in critical now a expiring MX June, with However, the a in tubes. patent to place repair we're better

limited As production did quarter, a our in supply fourth achieve the the quarter. result in and breakeven challenges of we chain not

are While will options Ruppert results for the we efforts to company evaluate Canvys. Jens for improve the the profitability, business. I the to continuing now healthcare discuss strategic over to is call sales beginning turn and to

in year pushouts in to market. In was fiscal recovering driven our Thanks, sales quarter sales XXXX, American dropped North XX.X% Wendy, in revenues $XX.X achievement of quarter and sales medical North The good fiscal morning, fourth reported the in 'XX. quarter million of the backlog, was largely year, gross a We for during a our year the modest improvement by with original the $X.X the improvement decrease markets. for custom about providing year fiscal a the XXXX. million XX.X% from customers. the to in the across million, the industrial of quarter of quarter to sequential sequential equipment third in base previous business significant earlier fiscal $X.X everyone. in due demand Canvys from year the American within of improvement and engineers, by year XXXX, of manufacturers from strong the quarter $X.X same A million and million fourth margin. ended this $XX.X global displays sells manufacturers Canvys

in XX.X% Our XX.X%, fiscal of margin percentage fourth up from rose a sales quarter to the as of gross year net 'XX.

a as commitment percentage The margin and gross increased to XX.X% from increase cost in control. to XX.X% highlights sales stringent year XXXX XXXX. year of fiscal unwavering operational Our our fiscal excellence

received first-time both customers. firm from our medical quarter, the and repeat orders During OEM

include, pulsed address Some customers. systems demonstrate robotic-assisted of delivering to our device reaction new these of monitoring, the PCR, our microsurgery, field and polymerase dedication chain or ablation, medical that for solutions medical wins These surgery. dental changing design applications control, demands patient displays

long-term Additionally, prospective relationships high industry. they crucial showcase and ensuring ongoing this expansion customers with who our capabilities to standards, build demand our maintain current within and

In than the XX we medical more serve top of global today, half device companies. fact,

solutions provide for also numerous commercial industrial We and purposes.

for will for we and dispensers many used in uncertainties, connection year. our as of that are secured products remain significant improve and large-size including development cockpit, to all machine upcoming a with cautiously human demand Our train to regulatory in factors, a that machines, machines. economic once respect ticket vending Further, changes printing market conservative product challenges, machines customer environments. Due new retail interface sizable and product recognize in the rooms, in control other to packaging used have we in with inventory. stance Nevertheless, adopted customers continue optimistic order we

encouraging reinforces stable. this hear signs if from customers and our environment belief. noticing market becomes are more directly What a steady the we expect recovery We

of markets serve within These new the and opportunities of the number our recognition Another the projects products increased is services. working key and indicator underscore teams our and on. acceptance are we growth

initiatives While will call sustainable drive our our value and on sales over strategic organization to long-term shareholders. I stays now our the focused focused to remain back opportunities, create executing on Ed. I growth new for turn

Jens. Thanks,

to growth your pipeline OEMs, While it and in strong a FY for Canvys, year was in 'XX. of backlog our key a with a new opportunities confidence supports return medical tough

Green we our grow. and unit conditions interest and exceptional from list Canvys The rates, strategies. to Energy a to within in committed result, our headwinds future. Despite Solutions continue operating economic continues growth to produce the of optimistic we're performance higher our will long-term believe opportunities business As uncertain

develop positive unique than market, within we are solutions. initially over discussed partners our business, market we energy energy growing we're the of by customers global more key our in we several to engineered leverage core our to wind time on have management. None know we've list transportation and the impression power quarters been have lost, the making in past continue of we to and While projects opportunities taken thought, the to drive cultivate technology our our lines into is global opportunities our leveraging large, engineering green A and growth markets. a leading position partners, relationships interest with expanding technology fast-growing to with new capabilities product component our

Over large years, new supports Throughout and believe wins transportation sheet. we've to this the levels within markets, strategies, we the management X believe past important progress we announced focused power To our on and meaningful and the global opportunities. fiscal wind, pleased we platform revenue balance a platforms with on and support to each inventory growth improving working made cash. I'm it's capital maintain we our year. XXXX, our multi-year converting critical strong

growth the us our flexibility support We initiatives. sheet to return closely balance to to produces of the with our point. provide to investing continue uses capital the compared growth greatest in this at We believe manage investment on

we our As scale additional our at and to we're further solidifying allocate cash capital. opportunities growth strategies operating flow, look

early return basis, starting growth. to Richardson leverage your wafer impact the semiconductor demand While produce we we'll with positioning believe sales forward We're of XXXX. On will look our within be at and of gross making, growth as in we see and higher year-over-year questions. on to margin happy financial answer we're model a that progress Electronics, improved I optimism sales updating fab sales compelling everyone our behalf to support you the markets, strategies to which to our mix will is profitability on indications combined growth quarter-to-quarter fiscal existing operating

from Northland comes with Markets. question first Capital Brooks Our Instructions] [Operator Bobby

the mentioned remarks wanting And sequentially. in a third the ULTRAXXXX. GES that just really about something healthy stepped third revenue the quarter, down Obviously, was revenues So guys GES you customers and were broadening in strong. had talked of bit quarter, the in you a prepared

quarter in was was talk just GES? then the And continued, into broadening the down seen the quarter? hear if trend extended that at of I'm about maybe step then quantify you that all? sequential just fourth So in what driver trend us third that the if to for could And curious

Sure, very, the you quarter-to-quarter you're Bobby. Good fluctuations business again. to and start-up. very revenues new both common hear NPI virtually when from process bookings is and introducing products Having in from a through

But the new fiscal we're numbers, a the look that, that's of So we've at keeps in year, products excited us those new number seeing year. a common. number customers and you what added throughout if of

in that QX, QX, QX QX. So -- revenue in became

a we've so, throughout then And over actually new had of we out the growth in bookings a coming year. And year-over-year record increase and modules. pitch operators added year, turbine large wind energy XX owner buying

to new the addition year, SSB. throughout that, with In Senvion, and Suzlon, added X Nordex we've platforms

bookings you in from developed phosphate X and of designed large also We saw iron locomotive lithium X based, and QX were the some modules, of with largest the that. manufacturers start -- X ULTRACAPACITOR based,

fluctuations and 'XX, had what's and So excellent a very QX, revenues you're in in into shipments strong see QX, that's strong QX into in both We going bookings QX. to We QX. bookings turned had bookings. FY transitioning which looking at in

that, of is to strong known keep profits the and new million revenue, result million until are platforms quarter-to-quarter. manufacturers, in wind mentioned pipeline products diesel those and that energy consistent add of up, But revenue one we it to and starter pitch see we're premise I out up, large going the and X $XX.X like to the growth And continue margins with of new also exclusive this those, that both product where Bobby, have diesel a to and with adding it manufacturers. that kind electric We're technology of end wind modules, fluctuates. new new are more in working and that with more manufacturers. Again, on turbine have of very going. But going locomotive nearly locomotive you're stream, why $XX backlog way, market our in and fluctuations we're that modules to expanding QX, partners gets turbine talked globally. small into that's when we And orders in adding as turbine of products we it as last more which, buying now IGBT We're tie to market. by then new locomotive then here. EV about niche and we X we are wind the new are for comes So market the the thing inverter GE, becomes the customers very well

in the Senvion So beta Suzlon press this already X,XXX, launched XX,XXX we through in you Italy been testing nearing if know where site is Nordex, about next end X.XXX, we're has testing has North the on at France. And you India. to release, we the SSB as mainly with the of is Suzlon close it. these week, manufacturers, going of worldwide, beta have turbines has America and X,XXX. But And and look as

touched quarter-to-quarter. these So updating far a bookings, in consistent of going kind we point I revenue from stream, am once but more as and view also we And upticks the in haven't introduced to you're see these concerned. kind positive revenue in as surface get of products of a

sequentially, down sales sales to wafer it. And mentioned were really Got you Greg, but PMT. fab just topics in hear. overall up stepped the to sequentially. then PMT XX% good That's then switching that the

the that offset that the a semi-wafer very weaker or PMT quarter. in was of So what increase just XX% third in increase stuff maybe base that XX% within fab was small off

know, because that a in products. those as like Yes. And for prior the was the to you XXX% prior record year, I year. you mean year of compared get it as numbers

fab seeing a was and just were comparison. dealing why their and like that And we had our it's in the bookings comparison, companies. terms forecast a So revenue with in pick lowest comparatively, year-over-year that quarter-over-quarter stronger, year semiconductor but comes billings. quarter fourth for wafer of in And numbers it's that's backlog, growth your that, bookings you're but to that as it up they

clarify, still than FY to Just in to than lower it the QX though, And QX the was yes, market. in point, your revenue was rate considerably run 'XX. semiconductor still was stronger for it

Okay.

were... nice sequential what was a So off well, it because was that -- of base small was and growth that it

Exactly.

And Sidoti. from comes the Soderstrom next question Anja with

do you see in still building than uptick expect that anticipated? A follow-up fiscal fab. up or maybe Do slower this on you you the previously XXXX, wafer

which also, suggesting then be the calendar of all uptick year or some they're the that 'XX. second XXXX our of reports, Yes. half in you customers our to of real and FY According the see market will

to we're see going So growth.

the will base and getting smaller to year a normal from real back QX, in off numbers mentioned, the past calendar but QX Bobby some uptick XXXX. in As be

expect this Okay. a similar think, And a helped lot prototype I the occur the it for in coming Or quarters? was Can margin like we in pressured, to year by just sustainable the mix. sort like locomotive little by from margin, the And the you product prototype last bit something -- was is that here? shipped. seems of

manufacture test The on make design, components into we're lower and we partners, on customers' stronger applications. margins their in designing products where we are and like Yes. obviously products technology

grow FY Energy, So And grows if talked in 'XX. we and -- as maintained. both we're be we quarter-over-quarter in solutions year-over-year Engineered to uptick our will just our Solutions that engineered as Green the capability, and margin Lam about, expecting

strategic Okay. you've down, And we -- you working it it should decline? to Should of to for you How about start will Or think forward? -- but that we then inventory, that keep continue like purposes. terms should increasing? seems do some think inventory need inventory been going in that

funny for Yes. chain XX purposes The people of dealing almost we made itself, products we get XX weeks. were issues supply years X.X some inventory can to with for where forget, strategic because how we

RF market, I bookings products as station 'XX could increasing. we were sales And new as pretty why to yes, a we customers strategic have decision, strategic business buy grows. again, a strong so in, very able market. quarter, brought very it, shipments are turbine mentioned it's And we decision before, is that's we and But increase. because growth this the expect are seeing support a in just rollouts, made FY I'll similar so, my made in base to these to see the that infrastructure increasing, product we're that's the product, in the that now and but we, to wind background, call in We

that inventory. lowering will effect have on so our direct And a

What us going is, significant Anja be last is to will builds vendor exiting that still impact because time for that, manufacturing. we one have they're doing

to continue the product offset strongly you? make focus vendors' that offset, help to -- we but forward focus and on will that'll Does sense go reduction So for that inventory growth. as on other team line

for for you reminding Thank That that. me of was me. all Yes.

Our next Taylor question with Partners. Investment ARS comes from P

we high-XXs you demand very equipment peak of in the Congratulations, given much were of see was cash, inventory major 'XX and space flow margins a to year revenues an revenues how be for manage medical And much a last in going question first return in pretty there a what's your what the of both It's all, that think, sense also over and difficult a of quarter, see I on alternative drop expect just XX% exploration kind in forward. that the business to that XX side. converting or been impressive how to performance will imaging of kind guys -- driver in operating generally, think the I out to And earnings calendar carry, very on even beginning drop? area 'XX? would company, how that through be cash we strategic year period? If of a that the XXXX, fiscal in level did would the you semi-cap free the inverted

we to back looking what being kind get So recovers? numbers of able industry this at as are to

FY get Based we 'XX on, very The versus to business, are That was right. million involved. margin what the again, exactly 'XX. a saying, are manufacture you're 'XX down ourselves saying, back customer strong Yes, expect in to that they up, was because levels in FY hard do the engineering they FY that's revenue largest and to and $XX make 'XX. with customers FY

Bob 'XX. that impact that's there, of at would kind from I and but just has if of don't looking know on both it's we're has a that calendar going for math, what So huge forward, and year profits what revenue a FY breakdown mean,

year... Calendar

Yes, calendar year.

Yes.

that's calendar Just [indiscernible]. clarify, year to XXXX

Yes.

hit. you customer million largest and was said $XX the -- So

side? the year What a last whole do revenue this other space. You the that's as on after think you drag a in the customers do have semi in cap equipment space

Last million, in year is $XX down the what this was $XX year and million... million, $XX low

million. $XX

million. Yes, $XX

see the it going to it's calendar was 'XX, rate us decline. can a they're the that be And of that by in than you higher telling 'XX. end So growth

you the exceeds million get $XX very can an impact the strong, margins is idea it of on what So and are if our company.

That's hugely powerful.

per You're it measurable looking at dollars share. on

CT able at not and -- see how a the at were much still nice the to or the back but You year, looking end cost recovery breakeven. of So looking 'XX? tube loot did get to us in business that,

So what was the drag there?

Yes. at still right We're under just $X million, right that million. $X

Okay.

moves a tube out the looking mid-$XX we're at is looking increase what 'XX in get and of breakeven home either new business, year semi it could you million resolution CT So to a making money perhaps margins. you're to in calendar and see business, start both perhaps it back cap where recovery the at or a plus high revenues significant a at to

really is be year 'XX it? year, calendar to a So setting exciting up pretty isn't

think for sure. so, We

ahead. green that Ross, And you even really on factor didn't mentioned Go programs Yes. all energy. the Greg of in

schedule the great. worked the repeat. new thing Group, end we products, also hit I that that but of that mentioned One Yes. Energy in programs the within And the asked Green customer $XX remember million about products us, every number and let's

they're that September X their delivering throughout it end to until months. customer And test then customer. still not will locomotives full However, the actual next electric the

half 'XX year start in 'XX, chance coming in that electric there's will FY also business second that's big numbers locomotive FY a calendar that back, or of year we and the 'XX record And FY that so in experienced the too.

of things got control. -- and company, lot our in it's things lost we've metal of have yes, position with do not of things outside on But lot a partners a pedal these new things of the ourselves and to have technology there's of kept market new a to with a lot juggling and kind any unfortunately share products, So a as products.

it be able back, So all. we'll does come to when support it

quick offshore negative the question. primarily is a press one but onshore. There's of Is it wind, not? on lot And industry

legs Siemens our getting is as yes, as many and thought. Yes. that the market talk And And of all the onshore. GEs, not to world, that we them, of business or they is the application yes,

a So in the all with we've been lot of last lot of of couple to that we have share sand to over grab the meantime, a market doing the stuff years. grab

up look half calendar 'XX second -- does out And like 'XX, looks hopefully, like could a it of jungle. of it we're 'XX, Well, be lighted year. things calendar the coming real particularly the

comes Rewey next Rewey Instructions] Our Chip question [Operator Management. from with Asset

easy white well, it's existing And both think through my aftermarkets think the model, who things And cares. really potentially Greg, space to if on GE an comes of set basis. aftermarket, that's your one or aftermarket meaning up my whether quarterly it a it the you're think selling it's on not question rail. kind is if in question maybe, there into compelling growth to and even me let's PMT growth is, cyclical I for in it's And fairly into healthcare, really it's story is about if OEM about green seems the me the compelling. aerospace growth existing all you you, model, wind energy, it's because to mind, prior understand. The of I of it But hope for

sales get wind lead replace those to the huge. of in batteries quickly a numbers trying huge there turbines how I'm are understanding So could on locomotives The out existing where acid are better grow. could you

rail 'XX, where dunk. could on So much these of it think seems through, the your makes an maybe with replacement share seems or me, and work? Again, wind solutions, fast. on slam walk you eventual But it the the if the that better see to maybe to an could come operator else not it could acids through talk not replace one And trade-off basis? be? you it's you something through come for what think what And really maybe replaced if 'XX some? of be of there Do it Is lead comes operating will why through be sales the all a in? would just

Yes.

So the head. numbers on -- you the hit it

globally. If you at a with obviously the look number huge wind it's TAM, of turbines

SAM. successful. [ at -- the doing always in ] where make many look be I -- That's you we by started this, can years However, my of this

You over a in were lead has product acid take or cost a replacement either a that turbines. business able of and batteries wind that advantage, have technological existing we to

We've will side I into it. the have will worked Suzlon. -- They've new that X,XXX produce still We've gotten out to got product our year, of financing we the which in should turbines And time, business, with software. with getting is each OEM into it's However, government or first developed look they've wind meaning a specifically, OEM them. turbines be approval in designed add, India at it. our

these we're farms look So there's more Vestas like that's the companies the and many And another that up turbines. it's wind at and but right wind and GE, play who Siemens, of whole Suzlon, buy program. turbine or they're -- more companies we yes, aftermarket, repowered seeing come now, servicing Nordex SSB

that. And old so when take making our your replace in what just car, standard of like college is They're and they get kind running. everything you're do with it part and

also they're our the at the the and blades UPS time replace they when So product. replacing and that inverter,

and either this told program, be on include would repowering terms you turbines our what me add increased through that of So of the is was, then that opportunity that, which that will aftermarket product. wind replaced in number the the

to So turbine they for replace batteries duration the of ULTRACAPACITOR us want what get of itself. of lifetime turbine the the they'll that the wind all, global all percent of because hard market, will it's do time, this, to they're these been telling them last over

year expenditures. for repowered pushouts XX fail and and The XX a capital noticed wind our not was every was it thing XX the years. is delays, -- specifically lead XX we real batteries lasts say So turbine that about months, this we really to XX product years. But acid to

lot lead they turbines, parts with different acid batteries. issues than the have of other wind So a

and they money and at wind repowers products selective needed fix update what they've to do. they within other to had to borrow So I to product, think money that replace definitely money, they very to in to turbine. have our be but put have borrow don't X%-plus and do in to And borrow to

needed things going. to they fix them So there keep are to some

kind energy as turbine, we we're has time in again, saying, fixed replacing months view, progression pretty life up profit paid Ours replacing of a XX of a Or introducing opposed needs infrastructure hold. But of a as every your for was and haven't with of to that on But turbine a much Does it what seeing keep point that's kind cost the turbine, call put that of ours the timing of them platforms. a it... with meaning is new about been we're putting lost while from rollout going the -- one support battery, acid highly technician, learn the the we're as to any and we wind question? we a waiting, answer share, market of this, growing I'll world. lead

the what on give given industry starter trains? And and of battery the same for electric about probably helpful. you Very the modules power saying kind overview us compelling. is need the the Can for power,

Yes.

having these less where companies to trying same the it's all scenario a are by the emissions. their So of number certain product, reach XXXX

which out started refrigeration if past, But backlog, largest these the to in designed of electric the $X 'XX. be And trucks. modules of with trains. orders over presentations FY is diesel and in of lead the between like in we'll also wind will, about I all and we products million of manufacturers we anyway, months, X similar have ULTRAXXXX, locomotive. modules was in think, batteries talked specifically so, And the acid diesel one for train shipping -- a X products of in of X from We them these were the those starter kind over now turbines starter the investor that North and little America, to you part design maybe and how in replace the bit, electric

largest trains been starter and the a Kohler like contract the we've So we But for in be with X,XXX this I as of mentioned, think earlier North success. I has of that product ULTRAGEN modules, great specific was on. product, people one morning, based train things going the manufacturers used can Generac, And America. which for on have a lot and a to that

And we're power the source meet new that very same it's current the So designed that or example, management or understands them. knowledgeable the starter to place we a to change design products green in in components, existing And taking group into a in introduce these of them all these their either applications. terms energy And all technology power and these very technology very, management for and for different products. technology. partners modules battery technology needs ULTRACAPACITOR a partners, making technology to have on power applications, team have X strong then have we have new great kind we're all just of

of new and technology pricing engineering So team up niche these model everything we're the these. where it's in what that numbers, industry, world. it's kind manufacture these doing technologies can I have agreements. coming the we such those technology us. design continue unique to Then this we of about, the relationships that in to X products, niche even can all as great next what a those terms introduced an of throughout globally is I then have have in, And better design, know at that can model. cells. we call before we to bring so we it's And they talked them customers but and and to much a have to test pipeline support just It's not ability,

with Odinson Andrew question last our Rem Partners. from comes And

color sky sorry. portfolio you does kind for of of exactly I'm some on could maybe give when Wendy, expire Can blue your patent tubes? you and the

the So was on expired window. June, Andrew patent and that questioning, that a you're the already in patents

more it MX series. does that us what So is the in tubes allows repair to

think what I that's So you're to. referring

Yes.

it of So kind about you you like -- do you to continuing how just year, we of Because yourself? time breakeven, $X was the much how or it of sounds own go, on How kind give opened? we long basically, million window do worth lost much just How the is the need this decision? you or allow then to started should do kind time not? determine no-go so what's think -- you about the I mean, think when said

it the while options made we profitability exploring we've we're think that I work Well, clear element. on

-- is the group frame. in that I of will definitely we during tube. the repaired time healthcare performance there significant you sessions, our no as we operating tell in defined show move with improvement planning a forward So the Siemens

prepared we're all think I right now. say to that's Andrew, So

annualized was you loss just say Can quarter? the fourth in what the

In else. XXX can't XXX fourth I'll quarter, it. you about what That's the tell also or I [ Yes. was it well, -- but anything ]

you And backlog specifically? you then, the So in GES, can Greg, backlog what the PMT was just in in gave clarify but it PMT?

million of the the engineered solutions have you made real largest Bob, the will that, Do it defense radar of is number and and one group wireless for backlog the base up $XXX balance of total. stations, backlog PMT? And be SATCOM, and mainly for biggest of backlog microwave parts Lam. the growing power of RF is then components quick, And used and the applications. mainly is

that million question? for So about Does $XX your PMT. answer

in $XX had and you're guess GES saying add million roughly $XXX quite it doesn't if I you it and $XX Yes, million, million. the was up, was total

Yes, then that Yes. would $XX be million.

for it PMT? was [Indiscernible] Okay. What

million was in FY into 'XX. going Sorry, PMT $XX backlog Yes.

turn would Ed remarks. to for closing like I now over back to the call

Please very and forward and who Thanks, much. you, in don't to Michelle. ongoing interest are sharing to our fiscal hesitate time. we and calls, quarter October. joining in all you happy with you investment our first call to We thank us again, your Richardson take We're and us XXXX Well, any appreciate of your thanks discussions look today, Electronics. to

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