Cables Unlimited sales of $909,000 for the quarter resulted in operating profits of $88,000 for the quarter. Cables Unlimited's gross margin was 37% of sales, due to the peak Summer sales period, compared to its annual average gross margin of approximately 27%.
Bioconnect Medical Cabling Division sales declined 9.5% to $510,000 from $563,000 in the same period last year. Gross margin was 41%, compared to 42% of sales in the same period last year. Operating income was $121,000, compared to $153,000 in the third quarter last year. The sales decline is associated with seasonal inventory adjustments by Bioconnect's major customers.
RF Wireless sales more than doubled to $255,000 from $120,000 in the same period last year due to higher sales and profitable operations at RF Neulink. Operating losses declined to $118,000 from $392,000 in the third quarter last year. Operating results for this segment in the same quarter last year included inventory write-offs of approximately $248,000.
Nine Months ReviewFor the nine months ended July 31, 2011, sales increased 19.1% to $13,480,000 from $11,321,000 in the same period last year. Overall gross margin improved to 51%, compared to 49% of sales in the same period last year. Net income for the nine month period increased 4.8% to $823,000, or 0.12 per diluted share, compared to $785,000, or $0.12 per diluted share, for the first nine months of fiscal 2010. RF Connectors and Cable Assembly segment sales increased 4.4% to $10,144,000 compared to $9,719,000 for the first nine months last year. Gross margin declined to 54%, compared to 55% of sales in the same period last year. Operating income was $1,136,000, after charges totaling approximately $562,000 for legal, accounting, investment banking and administrative expenses associated with the acquisition of Cables Unlimited Inc. and consulting, legal, corporate and administrative expenses incurred in addressing certain stockholder issues and activities. This compares to operating income of $1,700,000 for the first nine months last year.
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