Porter Taylor's questions to RICHARDSON ELECTRONICS (RELL) leadership • Q3 2025
Question
Asked about the profitability outlook for key business segments like semiconductor wafer fab and wind turbines. Also inquired about the company's ability to service its backlog, specifically for customers like Lam Research, and whether they might see more short-term orders.
Answer
The wind turbine power management products are profitable and expected to see continued growth through geographic expansion and new product introductions. The semiconductor business also remains highly profitable. The company has excess manufacturing capacity, which will improve margins as they absorb more 'Made in America' projects. They can respond to customer orders, like those from Lam, very quickly (within a quarter), with component lead times being the only major constraint.