Richardson Electronics, Ltd. (RELL): Business Model Canvas [Dec-2025 Updated]

Honestly, when a company like Richardson Electronics, Ltd. (RELL) decides to pivot hard into Green Energy Solutions, you need to see the numbers backing it up. Here's the quick math: they are funding this move with a strong balance sheet showing $35.7 million in cash and no debt as of Q1 FY26, built on $54.6 million in net sales that same period. Their entire model, centered around patented tech like the ULTRA3000® for wind turbines, is being rewired. Dive in below to see the full nine-block canvas that maps out this transition from components to clean power.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Key Partnerships

Global technology partners for advanced components like Pakal Technologies' IGTO(t)

Richardson Electronics, Ltd. entered a global technology partner agreement with Pakal Technologies, Inc. on July 9, 2025, to supply advanced silicon power semiconductor solutions. This includes Pakal's new 650V and 1200V silicon-based power switches utilizing IGTO(t) technology. The IGTO(t) is noted as the first significant advancement in high-voltage silicon power semiconductors since the IGBT 40 years ago, offering up to 30% lower conduction losses and improved thermal performance. This aligns with the Power & Microwave Technologies (PMT) group, where Semiconductor Wafer Fab Sales surged by 139% in Q3 FY25.

Distribution and installation partner Integrated Power Services (IPS) for ULTRA3000®

Richardson Electronics, Ltd. has a partnership with Integrated Power Services (IPS) in North America, allowing IPS to supply and install the patented ULTRA3000® pitch energy module. The ULTRA3000® is a drop-in replacement for lead-acid batteries in electric pitch systems within wind turbines. Richardson Electronics has reached a milestone with the shipment and installation of over 55,000 patented ULTRA3000® pitch energy modules, marking the largest retrofit of ultracapacitors for pitch energy modules in North America. The Green Energy Solutions (GES) segment, which includes these products, saw sales rise 14.1% in Q4 2025. Two multi-million dollar production contracts for these units were announced in December 2024, expected to ship during calendar year 2025.

Strategic alliance with KEBA Industrial Automation for wind turbine pitch control systems

A partnership agreement was announced on July 29, 2025, with KEBA Industrial Automation to bring a new line of cost-efficient pitch systems to North America. This collaboration integrates KEBA's Pitch Drive Technology with Richardson Electronics' custom-built Pitch Energy Modules. KEBA brings over 20 years of application expertise in pitch control systems. The GES business unit, which this supports, grew to $28.7 million in fiscal year 2025, a 23.6% increase over fiscal year 2024.

Manufacturing partners for products built to Richardson Electronics' strict specifications

More than 60% of Richardson Electronics, Ltd.'s products are manufactured in LaFox, Illinois; Marlborough, Massachusetts; or Donaueschingen, Germany, or by one of their manufacturing partners globally. All partners manufacture to Richardson Electronics' strict specifications and adhere to their supplier terms and conditions.

Long-term supply/service agreements for Siemens CT tubes and ALTA CT tubes

Following the strategic asset sale of a majority of Richardson Healthcare to DirectMed Imaging, Richardson Electronics entered an exclusive 10-year global supply agreement with DirectMed. Under this agreement, Richardson will supply DirectMed with repaired Siemens CT X-ray tubes. Furthermore, Richardson Electronics will continue manufacturing ALTA CT X-ray tubes for DirectMed for approximately 12 to 18 months. The loss on disposal of Healthcare assets was $5.1 million for fiscal year 2025.

Here's a quick look at the scale of some of these key relationships and associated performance metrics as of late 2025:

The Green Energy Solutions (GES) unit, heavily influenced by these wind energy partnerships, reported fiscal year 2025 sales of $28.7 million, a 23.6% increase year-over-year, with a book-to-bill of 1.25.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Key Activities

You're looking at the core engine of Richardson Electronics, Ltd. (RELL) right now, especially after they made that big move in January 2025. The key activities are all about making, moving, and supporting specialized technology, and the recent sale definitely sharpened that focus.

Designing and Manufacturing Engineered Solutions

Richardson Electronics, Ltd. maintains a strong internal manufacturing capability, which is a key activity for controlling quality and supply chain risk. As of the Q2 FY2025 investor presentation, Richardson Electronics, Ltd. designs and manufactures approximately 50% of the products it sells across its power, microwave, and imaging solutions for industries globally. To be more specific about their physical footprint, as of July 2025, more than 50% of their products are manufactured in their facilities in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or through their manufacturing partners worldwide, all adhering to strict specifications. This internal capability is supported by a state-of-the-art manufacturing facility in the USA, which is 250,000 sq. ft. in size.

Here's a quick look at how their core segments performed in the latest reported quarter, Q4 FY2025, which gives you a sense of where the manufacturing focus is landing post-Healthcare sale:

Global Distribution and Logistics

Moving these engineered products requires a massive logistical backbone. Richardson Electronics, Ltd. operates a world-class logistics support network that is accessible anywhere in the world. As detailed in their Q2 FY2025 figures, Richardson Electronics, Ltd. is global with 60+ locations worldwide, maintaining legal entities in 24 countries. Furthermore, their logistics presence spans more than 43 countries. This network supports value-added services like same-day shipments for domestic customers when stock orders are received as late as 6 p.m., and they offer 24/5 on-call support.

Research and Development for Patented Products

Innovation is clearly a required activity, as the company is focused on launching new technologies. While specific R&D spend isn't explicitly detailed for late 2025, the progress is evident in business updates. For instance, they introduced a new multi-brand OEM turbine platform and expanded Green Energy Solutions segments into the EU and Asia. They also announced the introduction of a new patent-pending TurbineGuard™ Series in May 2025. This R&D effort is aimed at ensuring global competitiveness through strategic technology partnerships.

Providing Specialized Technical Expertise and Design-In Support

The value proposition here isn't just selling components; it's about embedding solutions. Richardson Electronics, Ltd. adds value through several specialized activities:

• Design-in support for complex systems.
• Systems integration and prototype design/manufacturing.
• Aftermarket technical service and repair capabilities.
• Testing services and acting as a 3rd party logistics provider.

Streamlining Operations After the January 2025 Healthcare Asset Sale

The strategic asset sale of the majority of Richardson Healthcare to DirectMed Imaging closed on January 24, 2025. This was a deliberate move to streamline the business and improve the financial model, allowing Richardson Electronics, Ltd. to prioritize profitable opportunities in higher growth markets like Green Energy Solutions. The remaining assets and operations, primarily CT X-ray tube manufacturing and repair, were consolidated into the Power and Microwave Technologies (PMT) reportable segment. As part of the deal, Richardson Electronics entered into an exclusive 10-year global supply agreement to supply repaired Siemens CT X-ray tubes to DirectMed. They also committed to manufacturing ALTA CT X-ray tubes for DirectMed for approximately 12 to 18 months post-sale.

This streamlining appears to have helped near-term profitability; for example, operating income rose from $0.3 million in Q1 FY2025 to $1.0 million in Q1 FY2026.

Finance: draft 13-week cash view by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Key Resources

You're looking at the core assets Richardson Electronics, Ltd. (RELL) relies on to execute its strategy, especially as of late 2025. These aren't just line items; they are the tangible and intellectual foundations of their operations.

Financial Strength and Liquidity

First off, the balance sheet is definitely rock solid. As of the first quarter of fiscal year 2026, which ended August 30, 2025, Richardson Electronics, Ltd. maintained cash and cash equivalents totaling $35.7 million. What's more, they had no outstanding debt on their revolving line of credit with PNC Bank at that time. That gives you a lot of operational flexibility, especially when funding capital expenditures, which totaled $1.0 million in that same quarter.

Here's a quick look at some key financial and operational metrics from that Q1 FY26 report:

Proprietary Technology: The ULTRA3000® Ultracapacitor

A major intellectual asset is the patented ULTRA3000® technology, specifically designed for wind turbine pitch systems. This is a drop-in replacement for traditional lead-acid batteries in GE 20 and 30 Nm pitch systems. The technology is engineered for longevity, boasting an estimated lifetime exceeding 15+ years and capable of over 1 million charge-discharge cycles. To date, Richardson Electronics, Ltd. has reached a milestone with over 55,000 of these patented Pitch Energy Modules (PEMs) shipped and installed, representing the largest retrofit of ultracapacitors for pitch energy modules in North America. For context on the component level, an individual cell capacitance is listed at 3,000 F.

Manufacturing and Engineering Footprint

Physical resources are concentrated in high-quality, domestic manufacturing. The primary facility is in LaFox, Illinois, which spans 250,000 sq. ft.. This site, along with others in Marlborough, Massachusetts, and Donaueschingen, Germany, accounts for more than 60% of the company's product manufacturing. Furthermore, Richardson Electronics, Ltd. is actively investing in this site; a planned expansion is valued at more than $8.5 million, which is expected to create 54 new jobs and focus on next-generation battery energy storage system technologies.

The company's technical human capital is a key enabler for its engineered solutions business. You have a team that provides deep technical knowledge across components and manufacturing processes. This expertise supports their global infrastructure, which includes a presence in over 40 countries.

Quality and Compliance Certifications

Operational excellence is underpinned by recognized quality standards. Richardson Electronics, Ltd.'s manufacturing facilities hold critical certifications:

• ISO 9001:2015 Certification, audited annually by DQS Inc.
• ISO 13485:2016 Certification, which validates processes for the design, development, production, and delivery of medical devices.

The scope for the ISO 9001:2015 certification covers the distribution of power grid and microwave tubes, components, and the design, manufacture, modification, marking, branding, and special packaging of various electronic components and custom assemblies at the LaFox, IL location.

Finance: draft 13-week cash view by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Richardson Electronics, Ltd. (RELL) brings to its customers as of late 2025. These aren't just abstract ideas; they are backed by specific operational data and market penetration figures.

Engineered solutions that improve system efficiency and reliability for industrial OEMs

Richardson Electronics, Ltd. provides engineered solutions where they design and manufacture approximately 50% of the products sold across their power, microwave, and imaging solutions segments. This capability is supported by value-added services including design-in support, system integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair. The company finished the trailing twelve months ending August 30, 2025, with total revenue of $209.79 million.

Patented ULTRA3000®: a drop-in replacement for wind turbine pitch batteries with longer life

The ULTRA3000® Pitch Energy Module (PEM) is an ultracapacitor-based drop-in replacement for traditional lead-acid batteries in GE wind turbine pitch systems, specifically compatible with GE 20 & 30 Nm pitch systems. This technology is engineered for a lifetime exceeding 15 years and can handle over 1 million charge-discharge cycles. Richardson Electronics, Ltd. has achieved a milestone of installing over 50,000 ULTRA3000 PEMs in North America. This single retrofit effort is estimated to eliminate 250,000 toxic lead-acid batteries and save 3,300 tons of carbon dioxide ($\text{CO}_2$). The Green Energy Solutions (GES) segment, which houses this product, saw sales surge 84% year-over-year in Q2 FY2025, and posted a 14.1% sales rise in Q4 FY2025.

Here's a quick look at the performance metrics tied to this value proposition:

Custom, high-reliability display solutions (Canvys) for medical and industrial applications

Canvys operates as a global value-added integrator and manufacturer, creating visual technology solutions for Original Equipment Manufacturers (OEMs). You should note the recent positive momentum here, as Canvys sales increased by $2.6 million, or 39.5% year-over-year, in Q3 FY2025, driven by improved North American market conditions. The segment also posted a 9.1% sales increase in Q4 FY2025. However, the gross margin for Canvys decreased to 30.9% in Q1 FY2026 from 34.3% in Q1 FY2025, primarily due to product mix and higher freight costs.

Single-source global supply chain for power and microwave components

This capability is centered in the Power and Microwave Technologies Group (PMT), which benefits significantly from demand in the semiconductor wafer fab equipment market. In Q3 FY2025, PMT sales grew by 6.6%, or $2.1 million, year-over-year, largely due to this semiconductor demand. The semiconductor wafer fab business alone saw sales surge by 139% in that same quarter. Management has anticipated that this specific business could generate over $40 million in revenue for FY2025. PMT sales continued this strong performance, growing 17.8% in Q4 FY2025.

The overall financial health supports this global supply chain strategy:

• Cash and Cash Equivalents as of August 30, 2025: $35.7 million.
• Net Cash Position (TTM): $33.63 million.
• Annual Revenue for Fiscal Year 2025 (ending May 31, 2025): $208.91 million.

Technical expertise and aftermarket service for complex equipment like CT tubes

While Richardson Electronics, Ltd. has strategically sold the majority of its Healthcare assets in January 2025, the value proposition of servicing complex equipment remains through specific agreements. The company maintains a 10-year service agreement for Siemens CT tubes. Following the asset sale, Healthcare sales decreased by $1.0 million, or 32.3%, in Q3 FY2025. The company generated $1.0 million in operating income in Q1 FY2026, up from $0.3 million in Q1 FY2025, showing improved profitability as the portfolio shifts away from the divested segment.

Finance: draft 13-week cash view by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Customer Relationships

You're looking at how Richardson Electronics, Ltd. (RELL) builds and maintains its connections with the market, which is clearly rooted in deep technical engagement rather than just transactional sales. This relationship model supports their specialized, high-value engineered solutions.

Dedicated technical sales support and design-in assistance (Assisted Sales)

The company supports its value proposition with a significant internal technical resource base. Out of a total of over 440 employees, more than half are dedicated to sales, engineering, and product management functions, which directly feeds into design-in support for customers. This structure helps them provide specialized technical expertise alongside their components and systems. This focus on technical partnership is crucial for their Power and Microwave Technologies Group (PMT) and Green Energy Solutions (GES) segments, which saw sales growth of 17.8% and 14.1% respectively in Q4 2025.

Long-term, contractual service agreements for critical equipment

For critical equipment, Richardson Electronics, Ltd. (RELL) employs agreements that are typically long term. These contracts usually include provisions allowing either party to terminate if there are significant, uncured breaches. This structure underpins the stability of their service revenue, which supports a business with annual net sales of $208.9 million for fiscal year 2025. The company maintains a strong foundation for future business, with a backlog at the end of fiscal year 2025 reported at $33.9 million.

Co-creation of engineered solutions with key customers and technology partners

Richardson Electronics, Ltd. (RELL) explicitly states its strategy is to provide specialized technical expertise and "engineered solutions" based on core engineering and manufacturing capabilities. This involves co-creation through system integration, prototype design and manufacturing, and testing, often in collaboration with technology partners. For instance, the company has entered strategic technology partnerships to ensure global competitiveness, which is vital as they expand Green Energy Solutions into Europe and Asia.

Focus on long-term viability and defintely respecting every interaction

The stated philosophy for Richardson Electronics, Ltd. (RELL) is a focus on long term viability for the company, its community, and the world. This translates operationally into a commitment that every interaction is important and deserving of respect. This ethos is intended to build the trust reflected in their customer base of over 20,000 OEM and end-user customers globally.

Aftermarket technical service and repair through global infrastructure

Value is added through comprehensive aftermarket technical service and repair, which is delivered through a global infrastructure. Richardson Electronics, Ltd. (RELL) operates with 60+ locations worldwide, maintaining legal entities in 24 countries. This infrastructure supports customers across diverse markets including healthcare, aviation, broadcast, communications, and semiconductor manufacturing.

Here's a quick look at the scale of the customer-facing structure as of late 2025:

The company's commitment to technical depth is evident in how they structure their personnel. You can see the emphasis on engineering support in the breakdown of their operational focus:

• Design-in support for engineered solutions.
• Systems integration and prototype design/manufacturing.
• Testing, logistics, and global repair services.
• Long-term agreements for critical equipment.

Finance: draft the service revenue component of the Q2 FY2026 forecast by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Channels

You're looking at how Richardson Electronics, Ltd. gets its engineered solutions and products to market. It's a mix of direct technical sales and a wide physical and digital footprint. Honestly, for a company focused on specialized tech, the channel strategy has to be deep, not just wide.

Direct sales force of degreed engineers for complex engineered solutions

The core of selling complex engineered solutions relies on technical expertise right at the point of contact. Richardson Electronics, Ltd. supports this with a significant internal team. Over half of their 440+ employees are dedicated to sales, engineering, and product management, providing the necessary design-in support and systems integration for customers.

Global network of 60+ facilities for local support and logistics

Richardson Electronics, Ltd. maintains a substantial global infrastructure to handle logistics and local technical service and repair. This network is key for aftermarket support across their diverse customer base.

• Global reach includes legal entities in 24 countries.
• The network comprises 60+ locations worldwide.
• Key manufacturing locations include LaFox, Illinois, Marlborough, Massachusetts, and Donaueschingen, Germany.

Here's a quick look at the scale of their physical presence and manufacturing base as of their July 2025 filings:

This infrastructure helps them provide value through testing, logistics, and aftermarket technical service.

Strategic distribution partners like IPS for specific product lines (e.g., ULTRA3000®)

For specific product lines, Richardson Electronics, Ltd. uses strategic partners to expand market penetration, especially in the Green Energy Solutions sector. For instance, they partnered with Integrated Power Services (IPS) in North America to supply and install their patented ULTRA3000® pitch energy module.

The ULTRA3000® unit, a drop-in replacement for lead-acid batteries in wind turbine pitch systems, is a major focus. Richardson Electronics, Ltd. secured two multi-million dollar production contracts for these units in late 2024, with expected shipments throughout calendar year 2025.

Online presence and investor relations for financial communication

The company communicates its financial performance and strategy through regular investor relations activities, including conference calls accessible via webcast. They announced the conference call for their Q1 Fiscal Year 2026 results on October 8, 2025, following the Q4 Fiscal Year 2025 results call on July 23, 2025. This digital channel serves their global customer base, which numbers over 20,000 OEM and end-user customers worldwide.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Customer Segments

You're looking at the core groups Richardson Electronics, Ltd. (RELL) serves, which directly map to their business unit performance as of the end of fiscal year 2025. This is where the money is actually coming from.

The Green Energy Solutions (GES) segment, which heavily targets global wind farm owners and operators, saw significant financial growth in fiscal year 2025. GES sales reached $28.7 million for the full year, marking a substantial 23.6% increase over fiscal year 2024. For the fourth quarter specifically, GES sales increased by 14.1%, driven by pitch energy modules and related wind energy products. The segment maintained a strong book-to-bill ratio of 1.25 for the full year, showing strong future demand visibility.

The Power and Microwave Technologies Group (PMT) serves the semiconductor wafer fab equipment manufacturers, which is clearly the high-growth area. PMT sales for fiscal year 2025 totaled $137.8 million, which is a 7% year-over-year increase. The momentum was strong in the final quarter, with PMT sales rising 17.8% year-over-year, supported by continued strength in the semiconductor segment. The book-to-bill ratio for PMT in the fourth quarter was 1.03.

The Industrial OEMs in power conversion, welding, solar, and robotics are served primarily through the PMT segment, though specific revenue allocation isn't broken out beyond the semiconductor focus mentioned. The overall PMT segment's gross margin improved to 32.5% in Q4 FY2025 from 31.1% in Q4 FY2024, reflecting an improved product mix, which likely includes these industrial applications.

Medical device manufacturers and end-users requiring custom displays are served by the Canvys division. Canvys sales for the full fiscal year 2025 were $33.1 million, a 2.2% increase from $32.4 million in fiscal year 2024. However, the fourth quarter showed a 9.1% increase in sales, exceeding both plan and the prior year's performance for that quarter. Still, the gross margin for Canvys was noted as lower compared to the prior year's second quarter, which is something to watch.

The aviation, broadcast, military, and scientific markets for specialized components fall under the broader PMT umbrella, though the search results don't isolate their exact revenue contribution. The company as a whole designs and manufactures approximately 50% of the products it sells for power, microwave, and imaging solutions to industries worldwide. The total consolidated net sales for Richardson Electronics, Ltd. in fiscal year 2025 were $208.9 million, up 6.3% from the prior year.

Here's a quick look at how the major revenue-generating segments performed in FY 2025:

The company supports over 20,000 OEM and end-user customers globally, operating with legal entities in 24 countries across 60+ locations. The strong backlog at the end of fiscal year 2025 stood at $33.9 million, providing a foundation for these customer segments moving into 2026. The cash position supporting these operations was $35.9 million at the end of FY 2025.

You should note the diversity in segment performance, which is key to understanding the customer base:

• GES sales growth in Q2 FY2025 was exceptionally high at 129% year-over-year.
• PMT sales growth in Q2 FY2025 was 9.9%, driven by semiconductor wafer fab customers.
• Canvys sales decreased by 6.0% in Q2 FY2025, though Q4 showed a rebound.
• Healthcare sales declined by 22.8% in Q2 FY2025, reflecting the sale of the majority of those assets in January 2025.

Finance: draft 13-week cash view by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Cost Structure

The Cost Structure for Richardson Electronics, Ltd. (RELL) is heavily influenced by the nature of its business as a global manufacturer and distributor of engineered solutions, which inherently involves significant Cost of Goods Sold (COGS) related to components and production.

Significant cost of goods sold (COGS) due to manufacturing and component distribution

The cost associated with generating sales, which is the COGS, is reflected in the Gross Margin figures. For instance, in the first quarter of fiscal year 2026 (Q1 FY26), the consolidated Gross Margin was 31.0% of net sales. This margin reflects the costs of the components distributed and the manufacturing absorption for the products, which are designed and manufactured in facilities across the US and Germany, or by global partners. To be fair, the gross margin varied by segment; for example, the Green Energy Solutions (GES) gross margin was 29.6% in Q1 FY26.

Operating expenses of $16.0 million in Q1 FY26, controlled tightly

Operating expenses (OpEx) show a tight control, especially relative to sales growth. In the first quarter of fiscal year 2026, Operating Expenses were $16.0 million, a slight decrease from $16.1 million in the first quarter of fiscal year 2025. As a percentage of net sales, OpEx improved to 29.2% in Q1 FY26, down from 30.0% in Q1 FY25. For the entire fiscal year 2025, OpEx represented 29.8% of net sales. This focus on fixed cost management helped drive operating income to $1.0 million in Q1 FY26, up from $0.3 million the prior year.

Research and development investment in Green Energy Solutions (GES)

RELL continues to invest in engineering and manufacturing resources to develop its power management and green energy storage solutions. The company has explicitly stated it is investing in additional field engineers and R&D resources, with some funding coming from the sale of its healthcare parts business. This investment supports the development of next-generation battery energy storage systems.

Costs associated with maintaining a global infrastructure and specialized workforce

Maintaining the global infrastructure is a key cost driver. Richardson Electronics, Ltd. operates with global operations spanning 60+ locations and legal entities in 24 countries. Furthermore, a planned expansion in La Fox, Illinois, involves a capital investment of more than $8.5 million over the next four years, which is intended to enhance operations and create 54 new full-time positions while retaining nearly 200 jobs. This highlights the ongoing cost of supporting a specialized, global workforce and manufacturing footprint.

Capital expenditures of $0.5 million in Q2 FY25 for facilities and IT systems

Capital spending is directed towards maintaining and improving core assets. In the second quarter of fiscal year 2025 (Q2 FY25), Capital Expenditures (CapEx) totaled $0.5 million, primarily for facilities and IT systems, a significant reduction from $1.5 million spent in Q2 FY24. More recently, in Q1 FY26, CapEx was $1.0 million, focused on manufacturing, facilities improvements, and IT systems.

Here are some key financial metrics that inform the cost structure:

The cost structure is managed through a focus on controlling SG&A (Selling, General, and Administrative) levels and improving gross margin through a more profitable sales mix.

• Investment in engineering and manufacturing resources for GES.
• Costs associated with global infrastructure across 60+ locations.
• Costs tied to specialized workforce, including planned creation of 54 new jobs.
• Costs related to component distribution, impacting gross margin.

Finance: draft 13-week cash view by Friday.

Richardson Electronics, Ltd. (RELL) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation engine for Richardson Electronics, Ltd. as of late 2025, based on the most recent quarterly snapshot. The top line shows continued momentum, marking the fifth consecutive quarter of year-over-year sales growth.

For the first quarter of fiscal year 2026 (Q1 FY26), Richardson Electronics, Ltd. reported consolidated net sales of $54.6 million. This figure represents a 1.6% increase from the $53.7 million reported in the prior year's first quarter. If you look past the divested healthcare business, which saw the majority of its assets sold in January 2025, the underlying net sales growth was 6.8% year-over-year. The trailing twelve months (TTM) revenue ending August 30, 2025, stood at $209.79M.

The revenue streams are clearly segmented across the Power & Microwave Technologies (PMT) Group, Canvys, and Green Energy Solutions (GES). Here's how those streams performed in Q1 FY26:

The strength in the PMT segment, particularly from semiconductor wafer fab customers, is a major component of the current revenue mix. The company also generated $1.0 million of operating income in the quarter, more than tripling the $0.3 million from Q1 FY25. The total backlog at the end of Q1 FY26 was $134.7 million.

Revenue from aftermarket service, repair, and spare parts is embedded within the segment results, though the dedicated healthcare aftermarket component is reduced following the January 2025 asset sale. The company declared a quarterly cash dividend of $0.06 per common share. Cash and cash equivalents on the balance sheet at the end of the quarter were $35.7 million.

You can see the gross margin contribution from each area, which affects the quality of the revenue:

• PMT Gross Margin: 31.3%, up from 30.1%.
• GES Gross Margin: 29.6%, up from 29.4%.
• Canvys Gross Margin: 30.9%, down from 34.3%.

The consolidated gross margin for the quarter was 31.0% of net sales, an improvement from 30.6% in the prior year's first quarter.