RF INDUSTRIES, LTD. (NASDAQ:RFIL) today announced that for the period ended April 30, 2011, net income increased 23% to $407,000, or $0.06 per diluted share, compared to $330,000, or $0.05 per diluted share, in the second quarter last year. Net sales increased 16% to $4,392,000, compared to $3,778,000 in the same period last year.
RFI also announced today that its Board of Directors declared a 25% increase in the Company's quarterly cash dividend, from $0.02 per share to $0.025 per share, payable July 15, 2011 to shareholders of record on June 30, 2011.
"The continuing strength of the Company led the Board to raise RFI's quarterly dividend, increasing the annualized equivalent common stock dividend to $0.10 per share. Our Board will continue to monitor the Company's business and dividend policy in light of corporate cash requirements and with regard to RFI's ongoing acquisition strategy," said Howard Hill, President and CEO of RF Industries.
Second Quarter Review"Our second quarter benefited from a strong performance at Bioconnect, where sales increased 63%. RF Connector and Cable Assembly sales gained 6% and the RF Wireless Division posted a 188% increase in sales for the quarter. Net income gained 23% despite a 57% increase in engineering expenses, primarily associated with RF Wireless product development, and significant expenses related to the pending acquisition of Cables Unlimited, Inc. announced earlier today, for our ongoing merger and acquisition efforts," said Hill. RF Connector and Cable Assembly Division sales increased 6% to $3,463,000 compared to $3,271,000 in the second quarter last year. Operating income for this business segment benefited from a 64% sales gain at the Aviel Electronics connector manufacturing Division. Medical Cabling and Interconnect product sales increased 62% to a quarterly record $691,000 compared to $425,000 in the same quarter last year. Improved productivity and a reduction in sales and administrative expenses to 14%, compared to 17% of sales in the same quarter last year, raised operating income 81% to $172,000 from $95,000 in the second quarter last year.