SAN DIEGO, March 13, 2018 /PRNewswire/ -- RF Industries,
Ltd. (NASDAQ: RFIL) today announced results for the fiscal
first quarter ended January 31,
2018.
- First quarter sales increased 56% compared to the first quarter
last year
- Net income of $0.5 million
compared to $0.4 million for the full
fiscal year 2017
- Diluted EPS of $0.05 vs. loss of
$0.02 in the first quarter last
year
- Gross profit increased to 30% from 28% of sales in the first
quarter last year
- Declared $.02/share dividend, the
31st consecutive quarterly dividend
|
Q1
2018
|
|
Q1
2017
|
|
|
Q4
2017
|
|
Q3
2017
|
|
Q2
2017
|
|
Q1
2017
|
Net sales
|
$ 10.3M
|
|
$ 6.6M
|
|
|
$ 8.9M
|
|
$ 7.8M
|
|
$ 7.6M
|
|
$ 6.6M
|
Diluted
EPS
|
$
0.05
|
|
$
(0.02)
|
|
|
$
0.03
|
|
$
0.02
|
|
$
0.01
|
|
$
(0.02)
|
Operating
margin
|
5.4%
|
|
(5.4)%
|
|
|
5.4%
|
|
2.4%
|
|
0.1%
|
|
(5.4)%
|
Cash
balance
|
$ 5.9M
|
|
$ 4.4M
|
|
|
$
6.0M
|
|
$ 5.5M
|
|
$
4.3M
|
|
$
4.4M
|
Message from Robert Dawson,
President and CEO:
"In the first quarter we executed well on our long-term growth
initiatives which provided a strong start to Fiscal 2018. We
drove increased sales at all divisions over Q1 last year and
controlled costs, allowing us to deliver improved margins and
profitability.
"As I discussed at the end of Q4, we are building a culture of
positive energy and accountability where we leverage the correct
channels and invest in the necessary resources to address the needs
of the market. These new go-to-market strategies and channel
models are working with higher sales and bookings across all
divisions in Q1. These increases helped us raise our
January 31, 2018 backlog to
$20.2 million, compared to
$4.0 million at October 31, 2017.
"We continue to build momentum and while we are cautiously
optimistic about the rest of year, we do expect our current backlog
to power significant growth in net sales for the fiscal second
quarter ending April 30, 2018,
compared to the same quarter last year."
First Quarter Results
Net sales for the first quarter of fiscal 2018, typically the
Company's seasonally weakest quarter, increased 56% to $10.3 million compared to $6.6 million in the first quarter last
year. Net sales at the Custom Cabling Manufacturing and
Assembly (Custom Cabling) segment increased 89% to $7.7 million from $4.1
million in the first quarter last year. Custom Cabling
accounted for 75% of total sales in the quarter and benefited from
higher sales of various types of custom cabling, fiber optic cable,
copper cabling, custom patch cord assemblies, wiring harnesses,
transceivers/converters, and other data center equipment. The
RF Connector and Cable Assembly (RF Connector) segment sales, which
accounted for 25% of first quarter sales, increased 4% to
$2.6 million from $2.5 million in the first quarter last year.
Gross profit for the first quarter of fiscal 2018 increased 65%
to $3.1 million from $1.9 million and improved to 30% of sales from
28% of sales in the same quarter last year due primarily to the
increased revenues at the Custom Cabling segment.
Engineering expenses increased $0.1
million for the first quarter to $0.3
million, compared to $0.2
million in the same quarter last year, to support higher
salaries related to the ongoing development of new products
particularly at the Custom Cabling segment.
Selling and general expenses increased by $0.2 million, or 10%, but declined to only 21% of
sales compared to 30% of sales in the first quarter last year.
The increase in expenses was related to higher commissions
and accrued bonuses.
First quarter operating income improved by $0.9 million, resulting in an operating profit of
$0.5 million compared to an operating
loss of $0.4 million in the first
quarter last year.
Net income for the quarter was $0.5
million, or $0.05 per diluted
share, compared to a net loss of $0.2
million, or $0.02 net loss per
share, in the first quarter of fiscal 2017.
Balance Sheet Data
At January 31, 2018, the Company
reported working capital of $13.9
million, including cash and cash equivalents of $5.9 million, a current ratio of 3.8-to-1, no
outstanding debt, and stockholders' equity of $21.9 million. During the first quarter of
fiscal 2018, the Company paid out cash dividends of $0.02 per share, or $0.2
million.
Conference Call and Webcast
The Company has scheduled a conference call and webcast for
tomorrow, March 14, 2018, at
11:30 a.m. EDT to discuss its results
for the first quarter. To participate, the dial-in numbers
for the call are (800) 263-0877 or (323) 794-2094 and the passcode
is #9976281. A simultaneous webcast can be accessed from the
Investor Information page at www.rfindustries.com. A replay
of the call will be available after 1:00
p.m. EDT at this same Internet address. For a
telephone replay, dial (844) 512-2921 or (412) 317-6671, replay pin
#9976281, after 2:30 p.m. EDT.
About RF Industries
RF Industries designs and manufactures a broad range of
interconnect products across diversified, growing markets including
wireless/wireline telecom, data communications and industrial. The
Company's products include RF connectors, coaxial cables, wire
harnesses, fiber optic cables, custom cabling and data center
equipment. The Company is headquartered in San Diego, California with operations in
New York, Connecticut and New Jersey. 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, including higher sales, increased future
demand for the Company's products, and improved profitability,
which are subject to a number of factors that could cause actual
results to differ materially. 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 execute on its new go-to-market
strategies and channel models; its ability to expand its OEM
relationships; its ability to continue to deliver newly designed
and custom fiber optic and cabling products to principal customers;
and its ability to address the changing needs of the market.
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,
|
|
2018
|
|
2017
|
|
|
|
|
Net sales
|
$
10,341
|
|
$
6,617
|
Cost of sales
|
7,268
|
|
4,760
|
|
|
|
|
Gross profit
|
3,073
|
|
1,857
|
|
|
|
|
Operating expenses:
|
|
|
|
Engineering
|
326
|
|
224
|
Selling and general
|
2,193
|
|
1,992
|
|
|
|
|
Total Operating Expenses
|
2,519
|
|
2,216
|
|
|
|
|
Operating income
(loss)
|
554
|
|
(359)
|
|
|
|
|
Other income
|
3
|
|
20
|
|
|
|
|
Income (loss)
from continuing operations before provision
benefit) for income taxes
|
557
|
|
(339)
|
Provision (benefit)
for income taxes
|
103
|
|
(101)
|
|
|
|
|
Income (loss)
from continuing operations
|
454
|
|
(238)
|
Income from discontinued operations, net of tax
|
--
|
|
44
|
|
|
|
|
Net Income
(loss)
|
$
454
|
|
$
(194)
|
|
|
|
|
Earnings (loss)
per basic and diluted share:
|
|
|
|
Continuing operations
|
$
0.05
|
|
$
(0.03)
|
Discontinued operations
|
0.00
|
|
0.01
|
|
|
|
|
Net income (loss)
per basic and diluted share
|
$
0.05
|
|
$
(0.02)
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
Basic
|
8,880,384
|
|
8,834,747
|
|
|
|
|
Diluted
|
9,099,301
|
|
8,834,747
|
RF INDUSTRIES, LTD. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share and per share amounts)
|
|
|
Jan. 31,
|
|
Oct. 31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
(audited)
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
Cash and cash equivalents
|
$
5,880
|
|
$
6,039
|
Trade accounts receivable, net
|
5,397
|
|
3,901
|
Inventories, net
|
6,797
|
|
6,109
|
Other current assets
|
755
|
|
744
|
|
|
|
|
TOTAL CURRENT ASSETS
|
18,829
|
|
16,793
|
|
|
|
|
Property and equipment, net
|
626
|
|
711
|
Goodwill
|
3,219
|
|
3,219
|
Amortizable intangible assets, net
|
2,891
|
|
3,030
|
Non-amortizable intangible assets
|
1,237
|
|
1,237
|
Other assets
|
49
|
|
70
|
|
|
|
|
TOTAL ASSETS
|
$ 26,851
|
|
$ 25,060
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Accounts payable
|
$
2,101
|
|
$
1,356
|
Accrued expenses
|
2,697
|
|
2,242
|
Income
tax payable
|
96
|
|
--
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
4,894
|
|
3,598
|
|
|
|
|
Deferred tax liabilities,
net
|
104
|
|
119
|
|
|
|
|
TOTAL LIABILITIES
|
4,998
|
|
3,717
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
Common stock, authorized 20,000,000
shares of $0.01 par value; 8,974,297 and 8,872,246 shares
issued and outstanding at January 31, 2018 and October 31, 2017,
respectively
|
90
|
|
89
|
Additional paid-in capital
|
19,885
|
|
19,654
|
Retained earnings
|
1,878
|
|
1,600
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY
|
21,853
|
|
21,343
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ 26,851
|
|
$ 25,060
|
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SOURCE RF Industries, Ltd.