UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 15, 2003
Exact name of registrant as specified in its charter Richardson Electronics, Ltd.
State or other jurisdiction of incorporation Delaware
Commission file Number 0-12906
IRS Employer Identification No. 36-2096643
Address of principal executive office 40W267 Keslinger Road, P. O. Box 393, La Fox, IL
Zip Code 60147-0393
Registrant's telephone number, including area code 630-208-2200

This Current Report on Form 8-K contains a total of 8 pages.


Item 9. Regulation FD Disclosure


  For Immediate Release

For Details Contact:                                      

Ed Richardson                                                  Dario Sacomani

Chairman and Chief Executive Officer          Senior Vice President and

Richardson Electronics, Ltd.                          Chief Financial Officer

Phone:  (630) 208-2340                                     Richardson Electronics, Ltd.

E-mail:   info@rell.com                                       

Richardson Reports Sales From Continuing Operations Increased 7.6% in Fiscal 2003

LaFox, IL, Tuesday July 15, 2003:  Richardson Electronics, Ltd.  (NASDAQ: RELL) today reported results for the fourth quarter and fiscal year ended May 31, 2003.  Record year sales were achieved in both the Security Systems Division and Display Systems Group.  Security Systems Division sales grew to $92.1 million in fiscal 2003, an increase of 8.2% over the prior year, driven by strong growth in Canada and Europe.  The Display Systems Group sales reached $64.2 million in the year, an increase of 5.8% over fiscal 2002, with strength in medical monitors and custom display businesses.  RF/Wireless Communications sales grew 9.9% to $222.4 million for the full fiscal year led by renewed growth in the United States and continued strength in Asia.  The Industrial Power Group also recorded growth for fiscal 2003, increasing sales 3.9% to $77.5 million.

Sales from continuing operations, which exclude the Medical Glassware Business sold in February 2002, grew 7.6% to $463.2 million in fiscal 2003.  The following results by area are stated from continuing operations as listed in the financial tables attached to this document.  Sales in Europe and Asia grew to record levels for the year.  Sales in Europe reached $100 million, growing 10.1% from fiscal 2002 driven by increases in Security and Display Systems.  Strong demand continued in Asia, where sales grew 15.6% in the year to $74.7 million, and all countries recorded growth.  Sales in North America grew in fiscal 2003, increasing 8.6% to $255.3 million in the year, led by RF/Wireless Communications sales in the United States and Security Systems Division sales in Canada.  Sales in Latin America declined to $20.2 million in the year, a decrease of 24.1% from the prior year, as many countries in this area experienced depressed economic environments.

Fourth Quarter 2003 Results

Sales in the fourth quarter of 2003 were $118.9 million, an increase of 4.4% from the prior year.  Net loss in the quarter was $11.2 million, or $0.81 per share, which included after-tax charges of $11.9 million principally related to inventory write-downs, restructuring charges and incremental tax provisions (noted in financial statements).  Net loss in the prior year quarter was $9.1 million, or $0.66 per share, which included after-tax charges of $10.3 million primarily for inventory and accounts receivable write-offs.  Excluding the above charges, net earnings in the fourth quarter of 2003 were $0.7 million, or $0.05 per share, compared to $1.2 million, or $0.09 per share in the prior year quarter.  Details of the charges are provided in a table at the end of this press release.

Fiscal Year 2003 Results

For the full fiscal year 2003, sales were $464.5 million, an increase of 4.7% over the prior year.   Including the charges noted above, loss for the year before the cumulative effect of accounting change (noted in financial statements), was $9.7 million, or $0.70 per share.  Net loss for the year was $27.6 million, or $2.00 per share.  Net loss in the prior year was $11.3 million, or $0.83 per share including the charges noted above and an after-tax charge of $2.9 million associated with the sale of the Medical Glassware Business.  Excluding the above charges and cumulative effect of accounting change, net earnings for fiscal year 2003 were $2.2 million, or $0.16 per share, compared to $1.9 million or $0.14 per share, in the prior year.  Fluctuations in certain foreign currencies increased 2003 net sales by approximately 1.5% for the fiscal year, however, due to the effect on costs, the impact to net loss was immaterial.

Edward J. Richardson, Chairman of the Board and Chief Executive Officer, said,  “We continue to manage through challenging market environments and have made strides in many areas to gain market share and move the business forward.  The provision for additional inventory obsolescence and restructuring was driven by the continued economic slowdown and limited demand visibility.  This will align our inventory and cost structure to current sales levels.”

“With many markets and economies around the world in a stationary mode, market share gains become the primary source for growth.  We believe our global engineered solutions model will continue to provide us with market opportunities for share gains and increased profitability”, Mr. Richardson concluded.

Consolidated GAAP (generally accepted accounting principles) Results

Comparison of operations is as follows:

(In millions, except per share amounts)

                                                                  Fourth Quarter                               Full Year

                                                              2003                2002                      2003          2002

Net sales                                              $118.9             $113.9                   $464.5       $443.5

Gross margin                                            14.8                 13.0                       99.1           94.2

Operating loss                                         (11.8)               (11.2)                      (1.7)           (0.4)

Loss before cumulative                        

  effect of accounting change                     (11.2)                 (9.1)                      (9.7)         (11.3)

Net loss                                                   (11.2)                 (9.1)                     (27.6)        (11.3)

Loss per share before cumulative

  effect of accounting change                     (0.81)               (0.66)                     (0.70)        (0.83)

Net loss per share                                    (0.81)               (0.66)                     (2.00)        (0.83)

Average shares outstanding                       13.9                  13.7                       13.8          13.6

Consolidated Results Excluding Charges and Cumulative Effect of Accounting Change

Non-GAAP Measurements

In addition to the GAAP results provided throughout this document, the Company has provided non-GAAP measurements presenting operating results on a basis excluding certain charges, details of which are presented in the table below.  The excluded charges principally represent charges for inventory overstock and obsolescence in excess of what management considers being more typical experience and charges for severance.  Net income excluding charges reconciliation is noted in the financial statements attached to this document.

Management, as well as certain investors, uses these results of operations, excluding charges, to measure the Company’s current and future financial performance. The non-GAAP measurements do not replace the presentation of Richardson's GAAP financial results. These measurements provide supplemental information to assist management and certain investors in analyzing the Company’s financial position and results of operations. Richardson has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Excluding charges, a comparison of operations is as follows:

(In millions, except per share amounts)

                                                                  Fourth Quarter                               Full Year

                                                              2003                2002                      2003          2002

Net sales                                              $118.9             $113.9                   $464.5       $443.5

Gross margin                                            28.6                 28.3                     112.9         109.4

Operating income                                       3.8                   4.3                       13.9           15.2

Net income                                                 0.7                   1.2                         2.2             1.9

Net income per share                                0.05                 0.09                       0.16           0.14

Average shares outstanding                       14.0                  14.2                       14.0          14.1

Charges Description

(In millions)                                           Fourth Quarter                               Full Year         

                                                              2003               2002                     2003          2002

Inventory charges                                 $13.8               $15.3                     $13.8         $15.3

Severance charges                                    1.5                   0.3                         1.5             0.3

Other charges                                           0.8                   0.5                         0.8             0.5

Loss on medical sale                                    -                        -                             -              4.6

Pre-tax charges                                    $16.1               $16.1                     $16.1         $20.7

Income tax provision                                 5.8                   5.8                         5.8             7.5

After-tax charges                                    10.3                 10.3                       10.3           13.2

Valuation allowance                                  1.6                     -                           1.6               -

Cumulative effect of

  accounting change                                       -                       -                        17.9                -

Total charges                                        $11.9               $10.3                     $29.8         $13.2

On Wednesday, July 16, 2003 at 9:00 a.m. CDT, Mr. Edward J. Richardson, Chairman and Chief Executive Officer will host a conference call to discuss the release. A question and answer session will be included as part of the call's agenda. To listen to the call, please dial 888-273-9890 approximately five minutes prior to the start of the call. A replay of the call will be available from 12:30 p.m. CDT on July 16, 2003 through September 23, 2003. The telephone numbers for the replay are (USA) 800-475-6701 and (International) 320-365-3844; access code 690425.

This release includes certain “forward looking” statements as defined by the SEC.  Such statements are not guarantees of future performance since the company's operations involve risks and uncertainties and actual results may differ materially from predictions.  Reference is made to the company's Form 10-Q's and 10-K's for a summary of some of the risks that may affect the company's performance.

About Richardson Electronics

Richardson Electronics, Ltd. is a global provider of “engineered solutions,” serving the RF and wireless communications, industrial power conversion, security and display systems markets.  The Company delivers engineered solutions for its customers’ needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics.  Press announcements and other information about Richardson are available on the World Wide Web at www.rell.com/investor.asp.


Richardson Electronics, Ltd.
Consolidated Condensed Statements of Operations
Fourth Quarter and Fiscal Year Ended May 31, 2003
(in thousands, except per share amounts)
Three Months
Full Year
FY 2003  FY 2002 FY 2003  FY 2002
Net sales $  118,935 $    113,881 $    464,517 $   443,492
Cost of products sold 104,114
100,850
365,427
349,326
Gross margin 14,821 13,031 99,090 94,166
Selling, general and administrative
expense 26,594
24,238
100,749
94,519
Operating loss (11,773) (11,207) (1,659) (353)
Other expenses, net 3,228
2,972
11,049
17,256
Loss before income taxes and
cumulative effect of accounting change (15,001) (14,179) (12,708) (17,609)
Income taxes(Note 1) (3,838)
(5,104)
(3,012)
(6,339)
Loss before cumulative
effect of accounting change (11,163) (9,075) (9,696) (11,270)
Cumulative effect of accounting change,
net of tax(Note 2)

(17,862)

Net loss $   (11,163)
$    (9,075)
$   (27,558)
$  (11,270)
Loss per share - basic:
Loss per share before 
cumulative effect of accounting change $         (.81) $           (.66) $           (.70) $         (.83)
Cumulative effect of accounting
change, net of tax

           (1.30)

   Net loss per share $         (.81)
$           (.66)
$         (2.00)
$         (.83)
Average shares outstanding 13,860 13,684 13,809 13,617
Loss per share - diluted: 
Loss per share before 
cumulative effect of accounting change $         (.81) $           (.66) $           (.70) $         (.83)
Cumulative effect of accounting
change, net of tax

           (1.30)

   Net loss per share $         (.81)
$           (.66)
$         (2.00)
$         (.83)
Average shares outstanding 13,860 13,684 13,809 13,617
Dividends per common share $          .04
$            .04
$            .16
$           .16
Note (1)     During the quarter ended May 31, 2003, the Company recorded incremental tax provisions of $1,586 to establish
a valuation allowance relating the Company's deferred tax assets outside the United States.
Note (2)     During the quarter ended November 30, 2002, the Company adopted SFAS 142, "Goodwill and Other intangible
  Assets" effective June 1, 2002 and as result recorded a cumulative effect adjustment of $17,862, net of taxes of
  $3,725 to write-off impaired goodwill. Additionally, effective June, 1, 2002 the Company no longer amortized goodwill.
Operating loss for the three months and the full year ended May 31, 2002, included goodwill amortization of 
$188,000 and $577,000, respectively.
Note (3) Net income excluding charges reconciliation   Three Months     Full Year  
FY 2003 FY 2002 FY 2003 FY 2002
Reported net loss $    (11,163) $     (9,075) $    (27,558) $    (11,270)
     Cumulative effect of account change 17,862
     Inventory charge 8,838 9,780 8,838 9,780
     Restructuring and other charge 1,452 509 1,452 509
     Valuation allowance tax provision 1,586 1,586
     Loss on medical business sale 2,913
          Net income excluding charges $          713 $         1,214 $         2,180 $       1,932
          Net income per share excluding charges $           .05 $            .09 $            .16 $           .14

Richardson Electronics, Ltd.
Sales and Gross Margin 
Fourth Quarter and Fiscal Year Ended May 31, 2003
(In thousands, unaudited)
By Business Unit:
Sales
Gross Margin
FY 2003 FY 2002   %   Change FY 2003 GM% of Sales FY 2002 GM% of Sales
Fourth Quarter
RFWC $56,045 $55,958 0.2% $12,477 22.3% $12,650 22.6%
IPG                    20,364                 19,558 4.1%                6,418 31.5%               6,151 31.5%
SSD                    22,489                 21,854 2.9%                5,633 25.0%               5,244 24.0%
DSG                    18,022                 14,278 26.2%                4,241 23.5%               3,872 27.1%
Medical Glassware                         129                   1,028 -87.5%                    (54) -41.9%                   214 20.8%
Corporate                      1,886                   1,205            (13,894)           (15,100)
  Total $118,935 $113,881 4.4% $14,821 12.5% $13,031 11.4%
Excluding MG $118,806 $112,853 5.3% $14,875 12.5% $12,817 11.4%
Full Year
RFWC $222,448 $202,409 9.9% $49,889 22.4% $47,467 23.5%
IPG 77,487 74,578 3.9% 25,321 32.7% 24,356 32.7%
SSD 92,090 85,087 8.2% 22,939 24.9% 20,080 23.6%
DSG 64,191 60,697 5.8% 16,218 25.3% 15,864 26.1%
Medical Glassware 1,269 12,940 -90.2% 164 12.9% 2,727 21.1%
Corporate 7,032 7,781 (15,441) (16,328)
  Total $464,517 $443,492 4.7% $99,090 21.3% $94,166 21.2%
Excluding MG $463,248 $430,552 7.6% $98,926 21.4% $91,439 21.2%
By Area:
Sales
Gross Margin
FY 2003 FY 2002   %   Change FY 2003 GM% of Sales FY 2002 GM% of Sales
Fourth Quarter
North America $62,456 $60,389 3.4% $15,801 25.3% $15,337 25.4%
Europe                    27,041                 23,971 12.8%                7,089 26.2%               6,106 25.5%
Asia / Pacific                    20,571                 18,487 11.3%                4,323 21.0%               4,064 22.0%
Latin America                      5,467                   8,136 -32.8%                1,153 21.1%               2,192 26.9%
Other                      1,514                   1,693 -10.6%                    349 23.1%                   432 25.5%
Corporate                      1,886                   1,205            (13,894)           (15,100)
  Total $118,935 $113,881 4.4% $14,821 12.5% $13,031 11.4%
Full Year
North America $255,916 $241,767 5.9% $64,913 25.4% $61,832 25.6%
Europe 100,388 92,351 8.7%              26,389 26.3%             24,261 26.3%
Asia / Pacific 74,746 65,534 14.1%              16,705 22.3%             14,906 22.7%
Latin America 20,506 28,943 -29.2%                5,065 24.7%               7,736 26.7%
Other 5,929 7,116 -16.7%                1,459 24.6% 1,759 24.7%
Corporate 7,032 7,781 (15,441) (16,328)
  Total $464,517 $443,492 4.7% $99,090 21.3% $94,166 21.2%
Note : Fiscal year 2002 data has been reclassified to conform with the current presentation.
Richardson Electronics, Ltd.
Area Sales and Gross Margin From Continuing Operations
Fourth Quarter and Fiscal Year Ended May 31, 2003
(In thousands, unaudited)
By Area - Continuing Operations:
Sales Gross Margin
FY 2003 FY 2002   %   Change FY 2003 GM% of Sales FY 2002 GM% of Sales
Fourth Quarter
North America $62,366 $60,212 3.6% $15,832 25.4% $15,294 25.4%
Europe                    26,940                 23,807 13.2%                7,012 26.0%               6,069 25.5%
Asia / Pacific                    20,571                 18,454 11.5%                4,327 21.0%               4,064 22.0%
Latin America                      5,466                   7,523 -27.3%                1,151 21.1%               2,032 27.0%
Other                      1,514                   1,693 -10.6%                    349 23.1%                   432 25.5%
Corporate                      1,949                   1,164            (13,796)           (15,074)
  Total $118,806 $112,853 5.3% $14,875 12.5% $12,817 11.4%
Full Year
North America $255,257 $234,980 8.6% $64,757 25.4% $60,059 25.6%
Europe 100,037 90,844 10.1%              26,204 26.2%             23,928 26.3%
Asia / Pacific 74,742 64,659 15.6%              16,706 22.4%             14,738 22.8%
Latin America 20,232 26,663 -24.1%                4,979 24.6%               7,018 26.3%
Other 5,908 7,103 -16.8%                1,458 24.7% 1,761 24.8%
Corporate 7,072 6,303 (15,178) (16,065)
  Total $463,248 $430,552 7.6% $98,926 21.4% $91,439 21.2%
Note : Fiscal year 2002 data has been reclassified to conform with the current presentation.

Richardson Electronics, Ltd.
Consolidated Condensed Balance Sheets
(in thousands)
May 31 May 31
2003 2002
ASSETS
Current assets:
Cash and equivalents $    17,498 $      15,485
Accounts receivable, net 85,355 84,156
Inventories 95,896 107,159
Other 26,320
20,999
Total current assets 225,069 227,799
Property, plant and equipment, net 31,088 28,827
Goodwill 5,137 24,914
Other assets 4,261
5,296
Total assets $  265,555
$    286,836
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $    23,660 $      27,387
Other accrued liabilities 16,926
13,669
Total current liabilities 40,586 41,056
Long-term debt 138,396 132,218
Other liabilities 10,318
13,959
Total liabilities 189,300 187,233
Stockholders' equity 76,255
99,603
Total liabilities and equity $  265,555
$    286,836