SAN DIEGO, March 15, 2017 /PRNewswire/ -- RF
Industries, Ltd. (NASDAQ: RFIL) today announced results for the
fiscal first quarter ended January 31,
2017.
First Quarter Results
Sales for the first quarter of
fiscal 2017 were $6.6 million
compared to sales of $6.8 million for
the same quarter last year. The net loss for the first
quarter was $194,000, or $0.02 per share, compared to a net loss of
$353,000, or $0.04 per share, in the same quarter last
year. Custom Cabling Manufacturing and Assembly (Custom
Cabling) segment net sales declined 15% to $4.1 million from $4.8
million in the same quarter last year, due to continuing
weak demand for wireless cabling, telecom equipment and competition
from offshore manufacturing. RF Connector and Cable Assembly
(RF Connector) segment net sales increased $579,000, or 30%, to $2.5
million from $2.0 million in
the first quarter of fiscal 2017, primarily associated with
improved sales to the Distributed Antenna Systems (DAS)
marketplace. Excluding sales in last year's first quarter
from the Aviel Division, which was sold in December 2015, RF Connector's first quarter
fiscal 2017 sales increased $665,000,
or 36%, compared to sales in the same quarter last year.
Gross profit for the first quarter of fiscal 2017 was
$1.9 million, or 28% of sales,
compared to gross profit of $2.0
million, or 30% of sales, in the same quarter last
year. Gross margin declined due to continuing weakness in
demand from the wireless market combined with lower overall sales
at the Custom Cabling segment.
The first quarter fiscal 2017 selling and general expenses
declined by $441,000, or 18%, to
$2.0 million, or 30% of sales, from
$2.4 million, or 36% of sales in the
first quarter last year. Lower costs were primarily due to
Company-wide cost control efforts, lower executive salaries and
expense reductions at the Cables Unlimited division. Overall,
Custom Cabling segment expenses declined to 22% of sales, compared
to 23% of sales in the same quarter of fiscal 2016.
CEO Comments
Howard
Hill, Interim President and CEO said, "The first quarter is
typically our weakest quarter, so we are pleased with the 36%
increase in net sales from the RF Connector division. Higher
sales of DAS products and a modest firming in demand for RF
Connector products is encouraging for the remainder of fiscal
2017. While the Custom Cabling segment is being affected by
weakness in the telecom industry, the data center market and
increased off-shore competition, we are working to improve sales
and control expenses for this segment. We are cautiously
optimistic that these efforts, combined with reducing annual
Company-wide expenses by our goal of approximately $750,000 in the current fiscal year, can lead to
improved results for the remainder of fiscal 2017."
Financial Data; Dividends
At January 31, 2017, the Company reported working
capital of $12.8 million, including
cash and cash equivalents of $4.4
million, a current ratio of approximately 4.8-to-1, no
long-term debt and stockholders' equity of $21.1 million. During the first quarter,
the Company paid out cash dividends of $0.02 per share, or $176,000, to common stock shareholders.
At its March 9, 2017 meeting, the
Company's Board of Directors declared a quarterly cash dividend of
$0.02 per common share, payable
April 15, 2017 to shareholders of
record on March 31, 2017. All
cash dividends are made at the discretion of our board of
directors, subject to applicable laws, and depend on a number of
factors, including our financial condition, results of operations,
capital requirements, plans for future acquisitions, contractual
restrictions, general business conditions and other factors that
our board of directors may deem relevant.
About RF Industries
RF Industries is a leading
designer and manufacturer of innovative interconnect products and
complex cable assemblies across diversified, growing markets
including wireless carriers & infrastructure, and industrial.
The Company's products include RF connectors, coaxial and custom
cable assemblies, fiber optic cables, and wiring harnesses. The
Company's connectivity products are used throughout the growing and
evolving wireless infrastructure. Through its Rel-Tech
Electronics, Inc. and Comnet Telecom Supply, Inc. subsidiaries, the
Company also manufactures and sells other cabling technologies and
data center equipment solutions. The Company is headquartered in
San Diego, California with
operations in Yaphank, New York,
East Brunswick, New Jersey and
Milford, Connecticut. Please visit
the RF Industries website at www.rfindustries.com.
Forward-Looking Statements
This press release
contains forward-looking statements with respect to future events
which are subject to a number of factors that could cause actual
results to differ materially, including the Company's ability to
improve sales, reduce expenses, and attain profitability.
Factors that could cause or contribute to such differences include,
but are not limited to: changes in the telecommunications industry;
the Company's reliance on certain distributors for a significant
portion of anticipated revenues, the Company's ability to penetrate
the Distributed Antenna Systems (DAS) market; its ability to expand
its OEM relationships; the success it has with newly designed
solutions for fiber optics, cable assemblies and DAS components,
and its ability to successfully reduce its operating expenses as
planned. Further discussion of these and other potential risk
factors may be found in the Company's public filings with the
Securities and Exchange Commission (www.sec.gov)
including its Form 10-K. 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 CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED) (in thousands, except share and per share amounts)
|
|
|
|
Three Months Ended
|
January 31,
|
2017
|
|
2016
|
|
|
|
|
Net sales
|
$
6,617
|
|
$
6,784
|
Cost of sales
|
4,760
|
|
4,761
|
Gross profit
|
1,857
|
|
2,023
|
|
|
|
|
Operating expenses:
|
|
|
|
Engineering
|
224
|
|
161
|
Selling and general
|
1,992
|
|
2,433
|
|
|
|
|
Total Operating Expenses
|
2,216
|
|
2,594
|
|
|
|
|
Operating loss
|
(359)
|
|
(571)
|
|
|
|
|
Other income
|
20
|
|
--
|
Loss
from continuing operations before benefit for income taxes
|
(339)
|
|
(571)
|
|
|
|
|
Benefit for income taxes
|
(101)
|
|
(256)
|
Loss
from continuing operations
|
(238)
|
|
(315)
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
44
|
|
(38)
|
|
|
|
|
Net loss
|
$
(194)
|
|
$
(353)
|
|
|
|
|
Earnings (loss)
per basic share:
|
|
|
|
Continuing operations
|
$
(0.03)
|
|
$
(0.04)
|
Discontinued operations
|
0.01
|
|
0.00
|
|
|
|
|
Net loss per basic
share
|
$
(0.02)
|
|
$
(0.04)
|
|
|
|
|
Earnings (loss)
per diluted share:
|
|
|
|
Continuing operations
|
$
(0.03)
|
|
$
(0.04)
|
Discontinued operations
|
0.01
|
|
0.00
|
|
|
|
|
Net loss per diluted
share
|
$
(0.02)
|
|
$
(0.04)
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
Basic
|
8,834,747
|
|
8,716,712
|
Diluted
|
8,834,747
|
|
8,716,712
|
RF INDUSTRIES, LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share and per share amounts)
|
|
|
Jan. 31,
2017
|
|
Oct. 31,
2016
|
|
|
|
(audited)
|
ASSETS
|
|
|
|
CURRENT ASSETS
|
|
|
|
Cash and cash equivalents
|
$
4,354
|
|
$
5,258
|
Trade accounts receivable, net
|
3,692
|
|
4,077
|
Inventories, net
|
6,554
|
|
6,022
|
Other current assets
|
1,543
|
|
1,436
|
|
|
|
|
TOTAL CURRENT ASSETS
|
16,143
|
|
16,793
|
|
|
|
|
Property and equipment, net
|
761
|
|
828
|
Goodwill
|
3,219
|
|
3,219
|
Amortizable intangible assets, net
|
3,472
|
|
3,619
|
Non-amortizable intangible assets
|
1,237
|
|
1,237
|
Other assets
|
121
|
|
141
|
|
|
|
|
TOTAL ASSETS
|
$ 24,953
|
|
$ 25,837
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Accounts payable
|
$
1,373
|
|
$
1,138
|
Accrued expenses
|
2,009
|
|
2,770
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
3,382
|
|
3,908
|
|
|
|
|
Deferred tax liabilities
|
433
|
|
409
|
Other long-term
liabilities
|
88
|
|
128
|
|
|
|
|
TOTAL LIABILITIES
|
3,903
|
|
4,445
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
Common stock, authorized 20,000,000 shares of
$0.01par value; 8,835,483 issued
and outstanding at January 31, 2017 and October 31,
2016
|
88
|
|
88
|
Additional paid-in capital
|
19,407
|
|
19,379
|
Retained earnings
|
1,555
|
|
1,925
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY
|
21,050
|
|
21,392
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ 24,953
|
|
$ 25,837
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rf-industries-reports-first-quarter-results-300423637.html
SOURCE RF Industries, Ltd.