RF INDUSTRIES, LTD. (NASDAQ:RFIL)
today announced that net income for the first quarter ended January 31, 2011 increased 145% to a first quarter record $351,000, or $0.10 per diluted share, compared to $143,000, or $0.05 per diluted share in the same quarter last year. Sales, for the seasonally slowest quarter of the fiscal year, increased 25% to a first quarter record $4,140,000 compared to $3,313,000 in the first quarter last year.
"Record first quarter sales at RF Connector & Cable Assembly and Bioconnect raised the Company's overall gross margin to 52% of sales, compared to 49% of sales in the same quarter last year. The strong sales gains increased RFI's operating income 141% to $528,000 compared to $218,000 in the first quarter last year," said Howard Hill, RFI's president and CEO.
"RF Connector & Cable Assembly Division sales increased 13% on continuing strong demand in the wireless telecommunications industry. The Aviel Division completed and shipped a large military-related contract in the first quarter, significantly contributing to this segment's operating income. Total segment sales increased 17% to $3,407,000 and operating profit increased 83% to $626,000, each of which exceeded total Company-wide sales and operating profit in the first quarter last year.
"Medical Cabling and Interconnect product sales advanced 70% to a first quarter record $608,000. Operating income jumped to $134,000 from $48,000 due to the sales gains and increased efficiencies associated with a higher utilization rate for the new manufacturing equipment this Division has acquired in recent years. Bioconnect continues to receive increasing order levels from existing and new customers.
"RF Wireless sales increased to $125,000 from $53,000 in the first quarter last year, but higher engineering and product development expenses widened the operating loss to $231,000 compared to an operating loss of $173,000 in the same period last year. RF Wireless' market continues to be affected by the slowdown in public safety wireless capital goods expenditures," said Hill.