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RF Industries Second Quarter Net Income Increases 23% To $0.06 Per Share; Net Sales Increase 16%

Stocks in this article: RFIL

RF Wireless segment sales increased 168% to $363,000 from $135,000 for the same period last year. Higher engineering expenses for the development of new products increased operating expenses, resulting in an operating loss of $391,000, compared to a loss of $363,000 for the same period last year.

As of April 30, 2011, RFI reported cash and cash equivalents of $3,387,000, investments in certificates of deposits of $5,573,000 and long-term investments in certificates of deposit of $1,696,000 for a total of $10,656,000 in liquid, short-term and long-term capital resources, working capital of $16,006,000, a 11 to 1 current ratio, no long-term debt and stockholders' equity of $18,044,000, or $2.99 per share. The company expects to use approximately $2,800,000 of its cash and cash equivalents to fund the cash portion of the purchase price and other closing costs related to the pending acquisition of Cables Unlimited, which is scheduled to close on June 15, 2011.

About RF Industries

RF Industries conducts operations through six related divisions. The RF Connectors and Cable Assembly segment designs and distributes radio frequency (RF) coaxial connectors and cable assemblies used for Wi-Fi, PCS, radio, test instruments, computer networks and antenna devices. This business segment includes Aviel Electronics, which provides custom microwave and RF Connector solutions to aerospace, OEM and Government agencies and Oddcables.com, formerly known as Worswick, which provides coaxial connectors and cable assemblies primarily to retail and local multi-media and communications systems customers. Bioconnect, which constitutes the Medical Cabling and Interconnector segment, designs, manufactures and distributes specialized electrical cabling and interconnect products to the medical monitoring market. The RF Wireless segment includes Neulink, which designs and markets wireless digital data transmission products for industrial monitoring, wide area networks, GPS tracking and locations systems and RadioMobile, an OEM provider of end-to-end mobile wireless network solutions for public safety, emergency medical, transportation and industrial customers.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995.

The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to future events, the occurrence of which involve risks and uncertainties, including, without limitation, increased competition, and other uncertainties detailed in the Company's Securities and Exchange Commission filings. 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 STATEMENTS OF INCOME

(in thousands, except per share and share amounts) (unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

April 30,

 

April 30,

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

Net sales

$

4,392

 

$

3,778

 

$

8,532

 

$

7,091

Cost of sales

 

2,155

 

 

1,821

 

 

4,125

 

 

3,504

 

 

 

 

 

 

 

 

Gross profit

2,237

 

1,957

 

4,407

 

3,587

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Engineering

333

 

212

 

629

 

406

Selling and general

 

1,282

 

 

1,166

 

 

2,627

 

 

2,384

 

 

 

 

 

 

 

 

Total operating expenses

 

1,615

 

 

1,378

 

 

3,257

 

 

2,790

 

 

 

 

 

 

 

 

Operating income

622

 

579

 

1,150

 

797

 

 

 

 

 

 

 

 

Interest income

 

11

 

 

14

 

 

21

 

 

40

 

 

 

 

 

 

 

 

Income before provision for income taxes

632

 

593

 

1,171

 

837

 

 

 

 

 

 

 

 

Provision for income taxes

 

226

 

 

263

 

 

413

 

 

364

 

 

 

 

 

 

 

 

Net income

$

407

 

$

330

 

$

758

 

$

473

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

0.07

 

$

0.06

 

$

0.13

 

$

0.08

Diluted

$

0.06

 

$

0.05

 

$

0.11

 

$

0.07

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

6,009,849

 

 

5,701,856

 

 

5,954,628

 

 

5,699,700

Diluted

 

7,050,310

 

 

6,420,624

 

 

6,914,030

 

 

6,389,724

 

 

 

 

 

 

 

 

Dividends paid

 

130,511

 

 

--

 

 

215,320

 

 

--

 
 

RF INDUSTRIES, LTD.

CONDENSED BALANCE SHEETS

(in thousands, except per share and share amounts)

 

 

 

 

 

Apr. 30,

 

Oct. 31,

2011

 

2010

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

3,387

 

$

4,729

Certificates of deposit

5,573

 

4,578

Trade accounts receivable, net

2,129

 

2,558

Inventories

5,310

 

4,608

Other current assets

636

 

448

Deferred tax assets

 

613

 

 

613

 

 

 

 

TOTAL CURRENT ASSETS

17,648

 

17,534

 

 

 

 

Property and equipment, net

547

 

530

Long term certificates of deposit

1,696

 

946

Note receivable from stockholder

67

 

67

Other assets

 

32

 

 

32

 

 

 

 

TOTAL ASSETS

$

19,991

 

$

19,109

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

284

 

$

538

Accrued expenses

1,358

 

1,217

Income taxes payable

 

--

 

 

124

 

 

 

 

TOTAL CURRENT LIABILITIES

1,642

 

1,879

 

 

 

 

Deferred tax liabilities

19

 

19

Other long-term liabilities

 

285

 

 

297

 

 

 

 

TOTAL LIABILITIES

1,946

 

2,195

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

Common stock - authorized 200,000,000 shares of $0.01 par value; 6,030,916 and 5,861,764 shares issued and outstanding

60

 

 

 

59

 

Additional paid-in capital

7,583

 

6,996

Retained earnings

 

10,401

 

 

9,859

 

 

 

 

TOTAL STOCKHOLDERS' EQUITY

 

18,044

 

 

16,914

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

19,991

 

$

19,109

 




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