This is certainly our favorite exchange this quarter in the ongoing dialogue between management and shareholders at Richardson Electronics (RELL). The pertinent facts you need to know here are that there is an “A-B” structure that keeps voting control with a 71-year-old CEO…and that said CEO is investing for growth versus “short-termism.”

Shareholder (Steve Bush): Well, thank you for taking my call.

CEO Edward J. Richardson: Hi, good morning Steve.

Shareholder: I guess, I’d follow-up with the last caller and I would say my first question is, is there any stock split since 1990?

CEO: Not that I can remember.

Shareholder: Okay. So our stock is at the same price it was in the 1990, same price it was in 1995, in 2005 now we’re here in 2015. So to say the market is impatient, well, I mean it’s 25 years, where we haven’t gained any traction except for small dividend. And we’re promising growth again in three years to five years, but if I look at your 2011 press releases of our sale of the RFPD division, our quote from that from you was we will now focus on realigning our cost structure to fit the remaining business while we begin executing our growth strategy. So our growth strategy since 2011 has not been particularly good, and the only execution, as the last caller pointed out has been our stock.

So now again I will go to 2012 and 2013 statements and it’s the same things as we just said now, from the 2012 year-end we said, with the ongoing pricing in the economy we expect sales of EDG and Canvys in 2013 to be $36 million to $38 million and we remain optimistic our growth markets will achieve sales of $170 million and $175 million. But we were about $141 million, or $30 million shy of our forecast and below the 2012 year. And then we said in fiscal 2014 we anticipate sales to be in the range of $155 million to $160 million, yet they were $138 million and $21 million shy of forecast, and again below the prior year.

And then finally, we said we believe sales for fiscal 2015 was presented will be in the range of $140 million or $150 million, and it was $137 million. So our growth strategy that you guys have been predicting for years has not materialized, in fact, it’s gone the wrong way. And so what is the basis of this $160 million to $170 million 2016 plan, and why should anyone have any faith that you’re even going to come close to that?

CEO: Well, I think we just explained that we reorganized now into SBUs; two of them that are new in construction in this year are making very substantial investments in the business; in growth areas we’re seeing traction in product development and manufacturing, and we’ll start to see traction in Healthcare, but it’s going to take time.

Shareholder: Okay. But it’s been 25 years since, and we’re still at the same price and it’s been five years since we sold off our big business and we supposedly had a growth strategy. So now we’re starting over the clock again, so in another three years to five years, and frankly I don’t think that’s a – it sounds like a delusion, more than a plan. It just sounds like we’re just going to keep saying the same things and hope for the best one day. So my question is, when does management take accountability for a complete lack of progress on any of the plans? And I mean how do you even justify missing guidance by that much for years, and then come out with a more bullish guidance again?

CEO: Yeah, I appreciate your position on it, you know, I don’t think there’s any one that has more to lose or gain than I do, I’m still a major shareholder in the business. So we just outlined in detail what we’re doing to grow the business and…

Shareholder: Okay. Well, so yes, you’re a major shareholder and I would submit to you respectfully, you know, I like the company, I like the balance sheet. It’s just so we don’t seem to have any growth, and I think one of the biggest problems as you know I feel is you got this [indiscernible] structure with no accountability. So you’ve got – I mean it’s just stupid. So what’s the point of having, getting rid of a two-class structure so that the board and management is actually focused on the company and not focused on simply keeping control of something that seems to be dying on the volume?

CEO: At this point, there is no present plan.

Shareholder: Okay. Well then I guess that the board needs to start executing its fiduciary duty, because frankly I don’t – it’s not anything personal, but if my stock price was where it was 25 years ago, and I’ve missed every growth projection since 2011, you know, it’s time for new management, and maybe you need to consider for your own net worth sake to step aside and make management changes, [indiscernible].

CEO: I think we just outlined a number of additional senior managers that have been added to the company this year.

Shareholder: I understand. But why we’re paying a lot of excess – you’re going to pay $1 million a year to have a 25 year stock price. So I don’t understand. As an outside shareholder that should imply and as a fiduciary duty of our board of directors I would think that they would start executing their duty on managing the company, but that’s my piece for now, and like I said, I like the company, I like the concept, I like the balance sheet. But I think we’re just stagnated because of this two class structure, it’s just created inability for people to actually act in a responsible manner, in my opinion.

CEO: Certainly, I appreciate your opinion.