SAN DIEGO, March 15, 2017 /PRNewswire/ -- RF
Industries, Ltd. (NASDAQ: RFIL) today announced results for the fiscal first quarter ended January 31,
2017.
![](https://mma.prnewswire.com/media/404121/RFI_Logo_Logo.jpg)
First Quarter Results
Sales for the first quarter of fiscal 2017 were $6.6 million compared to sales of
$6.8 million for the same quarter last year. The net loss for the first quarter was
$194,000, or $0.02 per share, compared to a net loss of $353,000, or $0.04 per share, in the same quarter last year. Custom Cabling
Manufacturing and Assembly (Custom Cabling) segment net sales declined 15% to $4.1 million from
$4.8 million in the same quarter last year, due to continuing weak demand for wireless cabling,
telecom equipment and competition from offshore manufacturing. RF Connector and Cable Assembly (RF Connector) segment net
sales increased $579,000, or 30%, to $2.5 million from $2.0 million in the first quarter of fiscal 2017, primarily associated with improved sales to the Distributed
Antenna Systems (DAS) marketplace. Excluding sales in last year's first quarter from the Aviel Division, which was sold in
December 2015, RF Connector's first quarter fiscal 2017 sales increased $665,000, or 36%, compared to sales in the same quarter last year.
Gross profit for the first quarter of fiscal 2017 was $1.9 million, or 28% of sales, compared to
gross profit of $2.0 million, or 30% of sales, in the same quarter last year. Gross margin
declined due to continuing weakness in demand from the wireless market combined with lower overall sales at the Custom Cabling
segment.
The first quarter fiscal 2017 selling and general expenses declined by $441,000, or 18%, to
$2.0 million, or 30% of sales, from $2.4 million, or 36% of sales in
the first quarter last year. Lower costs were primarily due to Company-wide cost control efforts, lower executive salaries
and expense reductions at the Cables Unlimited division. Overall, Custom Cabling segment expenses declined to 22% of sales,
compared to 23% of sales in the same quarter of fiscal 2016.
CEO Comments
Howard Hill, Interim President and CEO said, "The first quarter is typically our
weakest quarter, so we are pleased with the 36% increase in net sales from the RF Connector division. Higher sales of DAS
products and a modest firming in demand for RF Connector products is encouraging for the remainder of fiscal 2017. While
the Custom Cabling segment is being affected by weakness in the telecom industry, the data center market and increased off-shore
competition, we are working to improve sales and control expenses for this segment. We are cautiously optimistic that these
efforts, combined with reducing annual Company-wide expenses by our goal of approximately $750,000
in the current fiscal year, can lead to improved results for the remainder of fiscal 2017."
Financial Data; Dividends
At January 31, 2017, the Company reported working capital of $12.8 million, including cash and cash equivalents of $4.4 million, a current
ratio of approximately 4.8-to-1, no long-term debt and stockholders' equity of $21.1 million.
During the first quarter, the Company paid out cash dividends of $0.02 per share, or $176,000, to common stock shareholders.
At its March 9, 2017 meeting, the Company's Board of Directors declared a quarterly cash
dividend of $0.02 per common share, payable April 15, 2017 to
shareholders of record on March 31, 2017. All cash dividends are made at the discretion of
our board of directors, subject to applicable laws, and depend on a number of factors, including our financial condition, results
of operations, capital requirements, plans for future acquisitions, contractual restrictions, general business conditions and
other factors that our board of directors may deem relevant.
About RF Industries
RF Industries is a leading designer and manufacturer of innovative interconnect products and complex cable assemblies
across diversified, growing markets including wireless carriers & infrastructure, and industrial. The Company's products
include RF connectors, coaxial and custom cable assemblies, fiber optic cables, and wiring harnesses. The Company's
connectivity products are used throughout the growing and evolving wireless infrastructure. Through its Rel-Tech Electronics, Inc. and Comnet Telecom Supply, Inc. subsidiaries, the Company also
manufactures and sells other cabling technologies and data center equipment solutions. The Company is headquartered in
San Diego, California with operations in Yaphank, New York,
East Brunswick, New Jersey and Milford, Connecticut. 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, including the Company's ability to improve sales, reduce
expenses, and attain profitability. Factors that could cause or contribute to such differences include, but are not limited
to: changes in the telecommunications industry; the Company's reliance on certain distributors for a significant portion of
anticipated revenues, the Company's ability to penetrate the Distributed Antenna Systems (DAS) market; its ability to expand its
OEM relationships; the success it has with newly designed solutions for fiber optics, cable assemblies and DAS components, and
its ability to successfully reduce its operating expenses as planned. 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.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED) (in thousands, except share and per share amounts)
|
|
|
|
Three Months Ended
|
January 31,
|
2017
|
|
2016
|
|
|
|
|
Net sales
|
$ 6,617
|
|
$ 6,784
|
Cost of sales
|
4,760
|
|
4,761
|
Gross profit
|
1,857
|
|
2,023
|
|
|
|
|
Operating expenses:
|
|
|
|
Engineering
|
224
|
|
161
|
Selling and general
|
1,992
|
|
2,433
|
|
|
|
|
Total Operating Expenses
|
2,216
|
|
2,594
|
|
|
|
|
Operating loss
|
(359)
|
|
(571)
|
|
|
|
|
Other income
|
20
|
|
--
|
Loss
from continuing operations before benefit for income taxes
|
(339)
|
|
(571)
|
|
|
|
|
Benefit for income taxes
|
(101)
|
|
(256)
|
Loss from continuing operations
|
(238)
|
|
(315)
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
44
|
|
(38)
|
|
|
|
|
Net loss
|
$ (194)
|
|
$ (353)
|
|
|
|
|
Earnings (loss) per basic share:
|
|
|
|
Continuing operations
|
$ (0.03)
|
|
$ (0.04)
|
Discontinued operations
|
0.01
|
|
0.00
|
|
|
|
|
Net loss per basic share
|
$ (0.02)
|
|
$ (0.04)
|
|
|
|
|
Earnings (loss) per diluted share:
|
|
|
|
Continuing operations
|
$ (0.03)
|
|
$ (0.04)
|
Discontinued operations
|
0.01
|
|
0.00
|
|
|
|
|
Net loss per diluted
share
|
$ (0.02)
|
|
$ (0.04)
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
Basic
|
8,834,747
|
|
8,716,712
|
Diluted
|
8,834,747
|
|
8,716,712
|
RF INDUSTRIES, LTD.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share and per share amounts)
|
|
|
Jan. 31,
2017
|
|
Oct. 31,
2016
|
|
|
|
(audited)
|
ASSETS
|
|
|
|
CURRENT ASSETS
|
|
|
|
Cash and cash equivalents
|
$ 4,354
|
|
$ 5,258
|
Trade accounts receivable, net
|
3,692
|
|
4,077
|
Inventories, net
|
6,554
|
|
6,022
|
Other current assets
|
1,543
|
|
1,436
|
|
|
|
|
TOTAL CURRENT ASSETS
|
16,143
|
|
16,793
|
|
|
|
|
Property and equipment, net
|
761
|
|
828
|
Goodwill
|
3,219
|
|
3,219
|
Amortizable intangible assets, net
|
3,472
|
|
3,619
|
Non-amortizable intangible assets
|
1,237
|
|
1,237
|
Other assets
|
121
|
|
141
|
|
|
|
|
TOTAL ASSETS
|
$ 24,953
|
|
$ 25,837
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Accounts payable
|
$ 1,373
|
|
$ 1,138
|
Accrued expenses
|
2,009
|
|
2,770
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
3,382
|
|
3,908
|
|
|
|
|
Deferred tax liabilities
|
433
|
|
409
|
Other long-term liabilities
|
88
|
|
128
|
|
|
|
|
TOTAL LIABILITIES
|
3,903
|
|
4,445
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
Common stock, authorized 20,000,000 shares of
$0.01par value; 8,835,483 issued and outstanding at January 31, 2017 and October 31,
2016
|
88
|
|
88
|
Additional paid-in capital
|
19,407
|
|
19,379
|
Retained earnings
|
1,555
|
|
1,925
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY
|
21,050
|
|
21,392
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ 24,953
|
|
$ 25,837
|
|
|
|
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rf-industries-reports-first-quarter-results-300423637.html
SOURCE RF Industries, Ltd.