RF Industries, Ltd. (NASDAQ:RFIL)
today announced preliminary results for the second quarter ended April 30, 2012. Net income increased 48% to a second quarter record $602,000, or $0.08 per diluted share, compared to net income of $407,000, or $0.06 per diluted share, in the same period last year. Net sales increased 52% to a record $6,672,000 compared to $4,392,000 in the same period last year, reflecting additional sales of $1,836,000 from Cables Unlimited, Inc., which was acquired in June, 2011.
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.05 per common share, payable July 16, 2012 to shareholders of record on June 30, 2012.
Second Quarter Review
"Preliminary second quarter results reflect additional sales from Cables Unlimited, Inc., acquired in the third quarter last year, record sales at Bioconnect, RFI's Medical Cabling and Interconnector segment, and a significant improvement in RF Wireless sales and profitability. We anticipate that growing sales at RF Wireless, better pricing at RF Connector & Cable Assembly and the introduction of new products will lead to improved results for the remainder of fiscal 2012," said Howard Hill, RFI's CEO.
Sales at the RF Connector and Cable Assembly segment were off 1% to $3,416,000 compared to $3,463,000 in the same period last year. Connector and Cable division sales increased 4% compared to the second quarter last year, while sales at Aviel and Oddcables declined by over 30% from the same period last year. Segment profitability was primarily affected by lower margins at the Connector and Cable Assembly division. Pre-tax income for this segment was $382,000 compared to $609,000 in the second quarter last year.
Bioconnect sales increased 11% to a record $768,000 compared to $691,000 in the second quarter last year. Improvements in manufacturing and productivity for this business resulted in a reduced cost of goods sold, raising gross margin to 46%, compared to 39% of sales in the same period last year. Pre-tax income increased 49% to $257,000 compared to $172,000 in the second quarter last year.