The stock of Richardson Electronics, Ltd. (RELL) gained significantly in the current market after the company announced its results for the second quarter of the fiscal year 2022. The stock of RELL is valued at $14.52 in the current market at the time of this writing. This is a gain of more than 14.87% from the previously closed value. At the end of the last trading session, the stock of (RELL) closed at $12.64. The volume of the stock traded in the last trading session was around 119.75K shares.
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Highlights of the 2nd quarter
- The revenue of the company was $54 million gaining more than 27.3% from the 2nd quarter of 2021.
- The Gross margin of the company was 32.7% of the net revenue of the 2nd quarter of the fiscal year 2022. In the 2nd quarter of fiscal 2021, the gross margin was 33.8%.
- The operating expense saw a significant decrease by $0.4 to $13.1 million as compared to the 2nd quarter of the fiscal year 2021.
- The operating income of the company was $4.5 million in the 2nd quarter of fiscal 2022. In the 2nd quarter of fiscal 2021, the operating income was $0.9 million.
- As of November 2021, the company had cash and cash equivalents of around $39.7 million in the 2nd quarter of fiscal 2022. In the 1st quarter of fiscal 2022 of the company which ended in August, the company had cash and cash equivalents of 436.4 million.
- The Board of Directors of the company also announced the quarterly dividend of $0.06 per share paid in cash.
Effect on the stock
The 2nd quarter of the company showed a strong balance sheet and high operating income. Seeing the numbers, the investors were seen interested in the stock of RELL and invested in it. Due to which the stock of the company raised significantly in the current market.
Conclusion
Despite the challenges like increasing inflation rate and rising new omicron variant, the company maintained to strengthen its balance sheet and reported a strong income statement. Such consistent performance will have a positive effect on the stock of RELL.
