Richardson Electronics’ QQ1 2025 quarter delivered a modest top-line expansion with net sales of $53.7 million, up 2.2% year over year despite a 13-week comparison against a 14-week prior year period. The quarter showcased a meaningful shift in mix, led by Green Energy Solutions (GES) which grew 84% to $8.1 million and Healthcare that jumped 48.7% to $3.8 million, while Power and Microwave Technologies (PMT) declined 4.3% to $34.2 million and Canvys fell 22.8% to $7.6 million. Consolidated gross margin weakened to 30.6% from 32.8% a year prior, primarily due to PMT mix and under-absorption as production resources are retained in anticipation of improving semiconductor fab equipment demand. EBITDA amounted to $1.7 million (3.1% of net sales) with an operating income of $0.3 million as the company incurs higher near-term investments in growth initiatives. The balance sheet remains solid: cash and cash equivalents of $23.0 million, no outstanding debt on the $30 million revolving line, and a strong current ratio of 4.62x. The company declared a quarterly dividend of $0.06 per share and continues to emphasize inventory management given elevated levels in support of long-term demand, particularly in legacy PMT and Canvys. Management signaled confidence in a recovering demand environment into calendar year 2025, with new product launches in Green Energy and ongoing ramp in GES, supported by a growing backlog (over $97 million combined for GES and PMT). The QQ1 results underscore Richardson’s strategic pivot toward engineered solutions for energy transformation, with Europe and India as key expansion pillars, while Canvys and Healthcare are expected to stabilize as product mix improves and new programs reach production. Investors should monitor: (1) the pace of GES bookings and the rate of execution on ULTRA3000 deployments, (2) PMT/Canvys margin recovery as under-absorption declines with production, (3) semiconductor fab equipment demand in calendar 2025, and (4) working capital trends driven by inventory build to support multi-year demand.