RF Industries Ltd. (NASDAQ:RFIL) today announced results for the fiscal year and three months ended October 31, 2011 and reiterated financial guidance for current fiscal year ending October 31, 2012.
Fiscal 2011 Results
For the fiscal year ended October 31, 2011, net sales increased 19% to a record $19,434,000 compared to net sales of $16,322,000 in fiscal 2010. Net income was $776,000, or $0.11 per diluted share, compared to $1,220,000, or $0.19 per diluted share, for fiscal 2010.
"RFI's 19th consecutive year of profitability and our record sales for fiscal 2011 was led by strong performance at Bioconnect and the June 15, 2011 acquisition of Cables Unlimited. Net income was affected by one-time costs of approximately $798,000 associated with the acquisition of Cables Unlimited and the resolution of certain shareholder issues, which significantly increased the Company's general and administrative expenses. We are encouraged that the slowdown in wireless installations and upgrades, which affected RF Connector & Cable Assembly sales in the second half of fiscal 2011, appears to have come to an end in the current first quarter," said Howard Hill, RF Industries' CEO.RF Connector and Cable Assembly sales weakened in the second half, causing sales to decline 2% to $13,868,000 for the year and a gross margin of 54%, compared to 55% for fiscal 2010. Fiscal 2011 sales increased 25% at Bioconnect to a record $2,154,000, raising gross margin to 37% of sales and increasing operating income 43% to $439,000. Sales at Cables Unlimited, during the four and one half month period after its acquisition, were $2,644,000 and the 27% gross margin was within expectations. Cables Unlimited's fiscal 2011 operating profitability of $22,000 was affected by $180,000 in amortization and depreciation expenses. RF Wireless sales improved 53% to $769,000 and the operating loss narrowed to $669,000 compared to an operating loss of $908,000 last year. "We believe that recently announced contract wins by RadioMobile, combined with opportunities for additional wireless business, will significantly increase RF Wireless' sales in fiscal 2012," said Hill.