Richardson Electronics Ltd (NASDAQ:RELL) stock rallies 16.67% (As on April 9, 11:31:14 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that exceeded analyst expectations. The company’s performance was driven by strong momentum in its PMT segment, particularly in semiconductor wafer fab and RF and Microwave products. Excluding Healthcare, PMT net sales increased 14.5% YoY. The company have now received orders from customers in Brazil, Australia, India, France, and Italy in addition to the strong rollout in North America. Gross margin improved to 31.9% from 31.0% in the prior year’s third quarter, supported by favorable product mix and lower manufacturing under absorption in PMT. Total backlog at February 28, 2026, reached $151.2 million, up 11.4% from $135.7 million at the end of the second quarter, marking its highest level in nearly three years. The increase was primarily driven by growth in the PMT segment. Operating income was $1.5 million for the third quarter, compared to an operating loss of $2.7 million in the prior year’s third quarter. Net income was $0.9 million compared to a net loss of $2.1 million in the third quarter of fiscal 2025.

Moreover, the company is excited about the positive feedback from the semi-fab customers, expressing ongoing optimism and continued growth going into the FY 2027. Across both segments, one of the most important priorities is accelerating the design to production cycles. The company is expanding the design capabilities to move more products more quickly from concept into manufacturing and test in LaFox. The company is also adding experienced industry talent to help expedite growth. The Illinois-based design center, intended to showcase the BESS solutions, which the company had expected to be operating in Q4 FY 2026, is now more likely to come online in Q1 FY 2027.

RELL in the third quarter of FY 26 has reported the adjusted earnings per share of $0.07, beating the analysts’ estimates for the adjusted earnings per share of $0.06. The company had reported the adjusted revenue growth of 9.7 percent to $55.5 million in the third quarter of FY 26, beating the analysts’ estimates for revenue of $54.09 million.

Additionally, the company maintained a solid financial position with cash and cash equivalents of $29.5 million as of February 28, 2026, and no outstanding debt on its revolving line of credit. The Board of Directors declared a $0.06 quarterly cash dividend per share, payable on May 27, 2026.