Welcome!

News Feed Item

RF Industries Reports Second Quarter and Six Months Fiscal 2014 Results

RF Industries, Ltd. (NASDAQ: RFIL) announced results for the second fiscal quarter and six months ended April 30, 2014.

RF Industries reported net sales of $5.8 million in the second quarter of fiscal 2014, a decrease of 35% compared to net sales of $8.8 million in the second quarter of fiscal 2013. The Company saw a significant decrease in revenues from its Cables Unlimited subsidiary, where second quarter sales decreased by 61% to $1.7 million. Gross profit was $2.8 million in the second quarter of 2014 with gross margin of 48% as compared to gross profit of $4.0 million with gross margin of 45% in the second quarter of 2013. The Company reported operating income of $0.8 million in the second quarter of fiscal 2014 as compared to operating income of $1.8 million in the comparable prior year period. Income from continuing operations was $0.5 million or $0.06 per basic and $0.05 per diluted share in the second quarter of fiscal 2014 as compared to $1.3 million or $0.17 per basic and $0.15 per diluted share in the second quarter of 2013.

RF Industries reported six month net sales of $11.6 million for the first half of fiscal 2014, a decrease of 38% compared to net sales of $18.7 million in the first half of fiscal 2013. Gross profit decreased to $5.3 million with gross margin of 46% in the first six months of fiscal 2014 as compared to gross profit of $8.5 million and gross margin of 45% in the same prior year period. The Company reported operating income of $1.1 million in the first six months of fiscal 2014 as compared to operating income of $3.8 million in the first six months of 2013. Income from continuing operations for the first six months of fiscal 2014 was $0.7 million or $0.09 per basic and $0.08 per diluted share as compared to $2.7 million or $0.37 per basic and $0.33 per diluted share in the first half of fiscal 2013.

At April 30, 2014, RF Industries reported cash and cash equivalents of $13.4 million, no long term debt, and a current ratio of 15 to 1.

Howard Hill, Chief Executive Officer, commented, “As we anticipated and previously forecasted, we experienced a decrease in second quarter revenues, as compared to the prior year, largely related to a continued decline in revenues from Cables Unlimited as demand for the OptiFlex™ fiber optic cabling solution showed continued weakness. Because OptiFlex™ cables were specifically developed for wireless providers engaged in upgrading cell towers to 4G technologies, as those upgrades are completed, demand lessens. However, Cables Unlimited has a wide range of capabilities and is engaged in the development of innovative fiber connectivity solutions for existing and new customers and we are optimistic about the future contributions from that division.

“While second quarter revenue at our RF Connector and Cable Assembly division declined as compared to the second quarter of 2013, sequentially, revenues increased by approximately $0.3 million as compared to the first quarter of 2014. Gross margin improved year over year and sequentially, and we were able to decrease operating expenses by 7.4% compared to the second quarter of 2013. We are also pleased to have maintained profitability, which has been a corporate priority for 20 years. We remain enthusiastic about our long-term growth potential from both our existing business as well as new products in development.

“Consumer expectations for wireless connectivity continue to grow, with consumers expecting full connectivity in almost any location. Our focus on developing state-of-the-art, customized connectivity solutions allows our customers to address these demands and remain competitive in this space. It takes time to design and rollout new products, which can impact revenue growth but we are confident that we can capitalize on this rapidly growing market with our continued ability to provide innovative, customized connectivity solutions to the marketplace.”

Mr. Hill further commented, “Our Company has continued to grow its strong cash position and has no debt, so the cash generated from operations allows us to return capital to our shareholders through dividends such as the one we recently announced, and/or stock repurchases, while also allowing us to consider strategic transactions.”

Conference Call Information

RF Industries will host a conference call today, June 12 at 12:00 noon Eastern Time to discuss its fiscal second quarter and first six months of 2014 results. To participate, callers should dial (877) 407-9210 and international callers may dial (201) 689-8049. A simultaneous webcast of the conference call can be accessed from the Investor Information page at www.rfindustries.com.

A replay of the call will be available until July 12, 2014 and may be accessed by dialing (877) 660-6853. International callers should call (201) 612-7415. Callers should use conference i.d. 13583595.

About RF Industries

RF Industries is a leading designer and manufacturer of innovative interconnect products and complex cable assemblies across diversified, high growth markets including wireless carriers & infrastructure, medical and industrial. The Company’s products include RF connectors, coaxial and custom cable assemblies, fiber optic cables, wiring harnesses and medical wiring. The Company’s connectivity products are used throughout the growing and evolving wireless infrastructure. The Company has reported 20 consecutive years of profitability and is headquartered in San Diego, California with operations in Las Vegas, Nevada and Yaphank, New York. Please visit the RF Industries website at www.rfindustries.com.

Forward-Looking Statements

This press release contains forward-looking statements with respect to future events which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: changes in the telecommunications industry; the operations of the Cables Unlimited division; and the Company’s reliance on certain distributors for a significant portion of anticipated revenues. Further discussion of these and other potential risk factors may be found in the Company’s public filings with the Securities and Exchange Commission (www.sec.gov) including its Form 10-K. All forward-looking statements are based upon information available to the Company on the date they are published and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.

 

RF INDUSTRIES, LTD. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

               

April 30,

2014

October 31,

2013

(Unaudited)
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 13,416 $ 11,881
Trade accounts receivable, net 2,691 3,160
Inventories 5,574 5,995
Other current assets 687 1,552
Deferred tax assets   322   322
TOTAL CURRENT ASSETS   22,690   22,910
 
Property and equipment, net 928 1,053
Goodwill 3,076 3,076
Amortizable intangible assets, net 1,297 1,407
Non-amortizable intangible assets 410 410
Note receivable from stockholder 67 67
Other assets   21   30
TOTAL ASSETS $ 28,489 $ 28,953
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES
Accounts payable $ 307 $ 792
Accrued expenses 1,154 1,741
Customer deposit   52   51
TOTAL CURRENT LIABILITIES 1,513 2,584
 
Deferred tax liabilities   950   950
TOTAL LIABILITIES   2,463   3,534
 
COMMITMENTS AND CONTINGENCIES
 
STOCKHOLDERS’ EQUITY
Common stock - authorized 20,000,000 shares of $0.01 par value;
8,242,892 and 8,075,124 shares issued and outstanding at April
30, 2014 and October 31, 2013, respectively
82 81
Additional paid-in capital 16,715 15,706
Retained earnings   9,229   9,632
TOTAL STOCKHOLDERS' EQUITY   26,026   25,419
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,489 $ 28,953
 
 

RF INDUSTRIES, LTD. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in thousands, except share and per share amounts)

             
Three Months Ended April 30, Six Months Ended April 30,
2014       2013 2014       2013
 
Net sales $ 5,764 $ 8,847 $ 11,614 $ 18,742
Cost of sales   3,012   4,895     6,280   10,225  
 
Gross profit   2,752   3,952     5,334   8,517  
 
Operating expenses:
Engineering 214 204 470 399
Selling and general   1,775   1,944     3,762   4,296  
Totals   1,989   2,148     4,232   4,695  
 
Operating income 763 1,804 1,102 3,822
 
Other income – interest   7   6     14   8  
 

Income from continuing operations before provision for income taxes

770 1,810 1,116 3,830
Provision for income taxes   310   522     393   1,085  
 
Income from continuing operations 460 1,288 723 2,745
 
Income (loss) from discontinued operations, net of tax   18   (110 )   19   (85 )
 
Net income $ 478 $ 1,178   $ 742 $ 2,660  
 
Earnings per share
Basic
Continuing operations $ 0.06 $ 0.17 $ 0.09 $ 0.37
Discontinued operations $ 0.00   (0.02 )   0.00   (0.01 )
Net income per share $ 0.06 $ 0.15   $ 0.09 $ 0.36  
 
Earnings per share
Diluted
Continuing operations $ 0.05 $ 0.15 $ 0.08 $ 0.33
Discontinued operations   0.00   (0.01 )   0.00   (0.01 )
Net income per share $ 0.05 $ 0.14   $ 0.08 $ 0.32  
 
Weighted average shares outstanding
Basic   8,208,278   7,610,309     8,175,376   7,337,101  
Diluted   8,746,358   8,461,544     8,789,752   8,249,455  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
Many companies start their journey to the cloud in the DevOps environment, where software engineers want self-service access to the custom tools and frameworks they need. Machine learning technology can help IT departments keep up with these demands. In his session at 21st Cloud Expo, Ajay Gulati, Co-Founder, CTO and Board Member at ZeroStack, will discuss the use of machine learning for automating provisioning of DevOps resources, taking the burden off IT teams.
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...