LAFOX, Ill. — (BUSINESS WIRE) — January 8, 2014 — Richardson Electronics, Ltd. (NASDAQ: RELL), today reported sales and earnings for its second quarter ended November 30, 2013. The Company also announced that its Board of Directors declared a $0.06 per share quarterly cash dividend.

Net sales for the second quarter of fiscal 2014 were $35.4 million, a 3.2% decrease compared to net sales of $36.6 million in the prior year. Sales for the company's EDG business were flat while sales for Canvys were down 10.9%, compared to the prior year's quarter. Gross margin increased to $11.0 million, or 31.1% of net sales during the second quarter of fiscal 2014, compared to $10.7 million, or 29.3% of net sales during fiscal 2013. Operating expenses were $10.5 million for the second quarter of fiscal 2014, compared to $10.2 million for the second quarter of fiscal 2013. Operating income for the second quarters of fiscal 2014 and 2013 remained flat at $0.5 million.

Income from continuing operations for the second quarters of fiscal 2014 and 2013 was $0.6 million, or $0.04 per diluted common share.

“We remain committed to our strategy of building a strong platform for growth that allows us to leverage our global distribution network to drive profit improvement. While we see some economic improvements in China and Europe, we expect challenging conditions to continue so we will closely manage our expenses and working capital investment. Our balance sheet is strong which provides financial flexibility to invest in our growth initiatives, return capital to shareholders, and acquire businesses to diversify our portfolio,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.

“We believe our third quarter sales should be in the range of $34 to $36 million. Our goal is to build our business to achieve sustainable growth over the long term,” said Mr. Richardson.

FINANCIAL SUMMARY ─ THREE MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the second quarter of fiscal 2014 were $35.4 million, down 3.2%, compared to net sales of $36.6 million during the second quarter of fiscal 2013.
• Gross margin increased to 31.1% during the second quarter of fiscal 2014 compared to 29.3% during last year's second quarter.
• Selling, general, and administrative expenses increased slightly to $10.5 million, or 29.6% of net sales for the second quarter of fiscal 2014 compared to $10.2 million for the second quarter of fiscal 2013, or 27.9% of net sales.
• Operating income during the second quarter of fiscal 2014 and 2013 was $0.5 million, or 1.5% and 1.4% of net sales, respectively.
• Income from continuing operations for during the second quarter of fiscal 2014 and fiscal 2013 was $0.6 million, or $0.04 per diluted common share.
• Loss from discontinued operations, net of tax, was $0.1 million during the second quarter of fiscal 2014 compared to $0.2 million during the second quarter of fiscal 2013.
• Net income during the second quarter of fiscal 2014 was $0.5 million, or $0.03 per diluted common share, compared to net income of $0.4 million, or $0.03 per diluted common share, during the second quarter of fiscal 2013, .

FINANCIAL SUMMARY – SIX MONTHS ENDED NOVEMBER 30, 2013

• Net sales for the first six months of fiscal 2014 were $69.7 million, down 3.5%, compared to net sales of $72.3 million during the first six months of fiscal 2013.
• Gross margin increased to 30.4% during the first six months of fiscal 2014 compared to 29.6% during the first six months of fiscal 2013.
• Selling, general, and administrative expenses slightly increased to $20.5 million, or 29.5% of net sales, for the first six months of fiscal 2014 compared to $20.4 million, or 28.2% of net sales, for the first six months of fiscal 2013.
• Operating income during the first six months of fiscal 2014 was $0.7 million, or 0.9% of net sales, compared to an operating income of $1.0 million, or 1.4% of net sales, during the first six months of fiscal 2013.
• Income from continuing operations during the first six months of fiscal 2014 was $2.6 million, or $0.18 per diluted common share, versus $1.3 million, or $0.08 per diluted common share, during the first six months of fiscal 2013.
• Loss from discontinued operations, net of tax, was $0.1 million, during the first six months of fiscal 2014, compared to $0.3 million during the first six months of fiscal 2013.
• Net income during the first six months of fiscal 2014 was $2.5 million, or $0.17 per diluted common share, compared to net income of $1.0 million, or $0.06 per diluted common share, during the first six months of fiscal 2013.