RF Wireless Segment sales increased 188% to $238,000 from $82,000 in the second quarter last year. Operating losses for this business segment narrowed to $159,000 from $191,000 in the second quarter last year.
"During the second quarter, our RF Neulink Division finalized engineering and development expenses for its NL900S wireless transceiver, which received FCC Certification and has commenced initial production. While the RF Wireless segment continues to lose money, we are encouraged by new orders at Neulink and a significant increase in requests for product and system installation pricing from a number of domestic and international firms. We will continue to evaluate the future of this operation on a quarterly basis," said Hill.
First Half Review
For the six months ended April 30, 2011, net sales increased 20% to $8,532,000 compared to $7,091,000 for the first half of fiscal 2010. Net income increased 60% to $758,000, or $0.11 per diluted share, compared to $473,000, or $0.07 per diluted share, in the same period last year.RFI's gross profit increased 23% to $4,407,000, or 52% of sales, from $3,587,000, or 51% of sales in the second half last year. Operating income advanced 44% to $1,150,000 from $797,000 for the first half last year. Operating expenses declined to 38%, from 39%, as a percent of sales, despite a 55% increase in engineering expenses to $629,000 from $406,000 for the first half last year and higher expenses for ongoing merger and acquisition efforts. RF Connector and Cable Assembly sales increased 11% to $6,870,000 in the first half of fiscal 2011 compared to $6,173,000 in the same period last year. A 71% increase in sales at the Company's Aviel connector manufacturing division supported improved gross margins and a 12% increase in operating profits for this segment. Medical Cabling and Interconnect product sales increased 66% to $1,298,000 from $783,000 in the first six months last year, raising gross margin to 38% from 36% of sales in the same period last year. The improvement in gross margin, combined with lower general and administrative expenses, as a percent of sales, increased operating income 113% to $306,000 compared to $143,000 in the same period last year.