-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ru7BVq6uuM6qutdCq+d8KmjIHj8ZhEFV3B4z2q4Ky5PS01VuQ9BXIqjhbvWYhQw+ 2icVeP7xUuNAk4lsQOsKyQ== 0000740664-00-000012.txt : 20000321 0000740664-00-000012.hdr.sgml : 20000321 ACCESSION NUMBER: 0000740664-00-000012 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000131 FILED AS OF DATE: 20000320 FILER: COMPANY DATA: COMPANY CONFORMED NAME: R F INDUSTRIES LTD CENTRAL INDEX KEY: 0000740664 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC CONNECTORS [3678] IRS NUMBER: 880168936 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-13301 FILM NUMBER: 573745 BUSINESS ADDRESS: STREET 1: 7610 MIRAMAR RD STREET 2: BLDG 6000 CITY: SAN DIEGO STATE: CA ZIP: 92126 BUSINESS PHONE: 6195496340 MAIL ADDRESS: STREET 1: 7620 MIRAMAR RD #4100 STREET 2: 7620 MIRAMAR RD #4100 CITY: SAN DIEGO STATE: CA ZIP: 92126-4202 FORMER COMPANY: FORMER CONFORMED NAME: CELLTRONICS INC DATE OF NAME CHANGE: 19910204 10QSB 1 1ST QUARTER REPORT 10QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FOR 10-QSB Quarterly Report Under Section 13 or 15 (d) of Securities Exchange Act of 1934 for Quarter ended January 31, 2000 Commission File Number 0-13301 RF INDUSTRIES, LTD. (Exact name of registrant as specified in its charter) Nevada 88-0168936 (State of Incorporation) (I.R.S. Employer Identification No.) 7610 Miramar Road., Bldg. 6000, San Diego, California 92126-4202 (Address of principal executive offices) (Zip Code) (858) 549-6340 FAX (858) 549-6345 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock at the latest practicable date. As of January 31, 2000, the registrant had 3,148,648 shares of Common Stock, $.01 par value, issued and outstanding. Part I. FINANCIAL INFORMATION Item 1: Financial Statements BALANCE SHEET January 31 October 31 2000 1999 ------------ ------------ (Unaudited) (Audited) ASSETS - -------------- CURRENT ASSETS Cash ................................................ $1,327,454 $1,100,816 Investments in available-for-sale securities ........ 2,058,551 2,043,959 Trade accounts receivable less allowance for doubtful accounts of $27,210 .................... 694,770 757,665 Notes receivable .................................... 12,000 12,000 Inventories - Note 3 ................................ 2,629,184 2,413,123 Prepaid expenses and deposits ....................... 244,781 247,391 Deferred tax assets ................................. 74,000 74,000 ----------- ----------- TOTAL CURRENT ASSETS ........................... 7,040,740 6,648,954 FIXED ASSETS Furniture and office equipment ...................... 201,314 184,002 Equipment and tooling ............................... 512,887 481,768 ---------- ---------- Fixed assets, at cost .......................... 714,201 665,770 Less accumulated depreciation and amortization ...... 545,085 530,935 ----------- ---------- NET FIXED ASSETS ............................... 169,116 134,835 Note receivable from stockholder .................... 70,000 70,000 Deferred tax assets ................................. 78,000 78,000 Other assets ........................................ 4,900 4,900 ----------- ---------- TOTAL ASSETS ................................... $ 7,362,756 $6,936,689 =========== =========== See Notes to Financial Statements 2 BALANCE SHEET January 31 October 31 2000 1999 ------------ ------------ (Unaudited) (Audited) LIABILITIES AND STOCKHOLDERS' EQUITY - -------------------------------------- Accounts payable ................................. $ 182,149 $ 88,496 Accrued expenses ................................. 445,121 357,843 ----------- ----------- TOTAL CURRENT LIABILITIES ................... 627,270 446,339 STOCKHOLDERS' EQUITY Common Stock - $.01 par value Authorized - 10,000,000 shares Issued & outstanding 3,148,648 shares .......... 31,486 31,486 Additional paid-in capital ....................... 4,400,868 4,400,868 Retained earnings ................................ 2,569,974 2,348,351 Unearned compensation ............................ (188,088) (211,602) Receivables from sale of stock ................... (25,900) (25,900) Treasury stock, at cost - 29,400 shares .......... (52,854) (52,853) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY .................. 6,735,486 6,490,350 ----------- ----------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ..................... $ 7,362,756 $ 6,936,689 =========== =========== See Notes to Financial Statements 3 Item 1: Financial Statements (continued) STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended January 31 ------------------------- 2000 1999 ---------- ---------- Net sales ........................................ $ 1,760,526 $ 1,330,798 Cost of Sales .................................... 845,255 661,605 ----------- ----------- Gross profit .................................. 915,271 669,193 Operating expenses: Engineering ................................... 65,481 65,593 Selling and general ........................... 508,726 411,820 ----------- ----------- Total ..................................... 574,207 477,413 ----------- ----------- Income from operations ........................ 341,064 191,780 Interest income, net ............................. 30,559 31,448 ----------- ----------- Income before provision for income tax ....... 371,623 223,228 Provision for income tax ..................... (150,000) (89,000) ----------- ----------- Net income ............................... $ 221,623 $ 134,228 =========== =========== Per share data: Basic earnings per share ................. $ 0.07 $ 0.04 =========== =========== Diluted earnings per share ............... $ 0.06 $ 0.04 =========== =========== Diluted shares outstanding ....................... 3,707,526 3,603,081 =========== =========== See Notes to Financial Statements 4 Item 1: Financial Statements (continued) STATEMENTS OF CASH FLOWS (Unaudited) Three months ended January 31 ------------------------------ 2000 1999 ------------------------------ OPERATING ACTIVITIES Net income.......................................... $ 371,622 $ 134,228 Adjustments to reconcile net income to net cash provided by operations Depreciation and amortization ................... 14,150 12,903 Amortization of unearned compensation............ 23,514 33,378 Change in assets - (incr) decr: Accounts receivable - trade ...................... 62,895 23,519 Inventories....................................... (216,061) 82,135 Other assets...................................... 2,610 40,504 Change in liabilities - incr (decr): Accounts payable.................................. 99,379 (64,881) Accrued expenses.................................. (68,448) (157,834) ---------- ---------- Net cash provided by operating activities........... 289,661 103,952 ---------- ---------- INVESTING ACTIVITIES Purchase of available-for-sale securities......... 0 (16,847) Capital expenditures.............................. (48,431) (5,125 ---------- ---------- Net cash used in investing activities............... (48,431) (21,972) ---------- ---------- Net increase in cash and cash equivalents............................. 241,230 81,980 Cash and cash equivalents at the beginning of the period......................... 3,144,775 1,209,143 ---------- ----------- Cash and cash equivalents at the end of period.............................. $ 3,386,005 $ 1,291,123 ========== ============ See Notes to Financial Statements 5 NOTES TO FINANCIAL STATEMENTS Note 1 - Management's opinion In the opinion of management, the accompanying financial statements contain all adjustments necessary to present the financial position of RF Industries, Ltd. as of January 31, 2000 and the results of operations for the three month period ended January 31, 2000 and 1999. Note 2 - Interim reporting The results of operation for the three month period ended January 31, 2000 and 1999 are not necessarily indicative of the results to be expected for the remainder of the year. Note 3 - Components of inventory January 31, 2000 ------------------ (Unaudited) Raw material and supplies................ $ 394,078 Finished goods........................... 2,235,106 ------------ TOTAL........................... $ 2,629,184 Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE MONTHS 2000 VS. THREE MONTHS 1999 Net sales increased 32.2%, or $429,728, to $1,760,526 from $1,330,798 in the first three months of fiscal 2000. RF Connectors sales increased 53.7% to $1,614,266, from the same period last year, due to cable assembly sales, new products and new distributors. RF Neulink sales were $146,260, down 48.9% from the same period last year. This decrease can be attributed to some customers delaying their delivery dates. Cost of sales increased 27.7%, or $183,651, to $845,256 from $661,606 last year and as a percentage of sales decreased to 48% from 49.7% last year. The improvement in gross margin is attributable to the sales increase. Engineering expenses decreased $112, to $65,481 from $65,593 last year. Selling and general expenses increased 23.5% or $96,906, to $508,726 from $411,820 last year. The increase is due to increased travel, co-op advertising and insurance expenses. As a percent of sales, selling and administrative expenses declined to 28.9% from 30.9% due to the increase in sales. Net interest income decreased $889 to $30,559 from $31,448 . The provision for income taxes increased $61,000 due to the Company's increased profitability. 6 MATERIAL CHANGES IN FINANCIAL CONDITION: Cash increased $226,638 to $1,327,454 compared to the October 31, 1999 fiscal year balance of $1,100,816. Cash and investments are $3,386,005 at January 31, 2000. Trade accounts receivable decreased $62,985, or 8.3% to $694,770 compared to the October 31, 1999 balance of $757,665, and decreased to 39.4% of sales for the quarter. This decrease is due to increased collection efforts. Inventories increased $216,061 compared to the October 31, 1999 inventory level. This increase is in balance with the current demand. Prepaid expenses and deposits decreased $2,610 from October 31, 1999 due to fewer deposits on inventory. YEAR 2000 ISSUE The Year 2000 issue is the result of computer programs using only two digits to identify a year within date fields. Date-sensitive software may recognize a date using "00" as year 1900 rather than the year 2000. Such an error could result in a system failure causing disruptions of operations. The Company is assessing the readiness of its significant suppliers and large customers to determine the extent to which the Company is vulnerable to those third parties' failure to remediate their own Year 2000 issues. The Company has updated equipment and does not expect any problems resulting from the Year 2000 issue. However, there can be no guarantee that the systems of other companies will be timely converted, or that a failure to convert by another company would not have a material effect on the Company. The Company has determined that it has no exposure to contingencies related to the Year 2000 issue for the products it has sold. PART II. OTHER INFORMATION Items 1-4: Not applicable Item 5: Information required in lieu of Form 8-K None. Item 6: Exhibits and Reports on 8-K (a) None required (b) Reports on Form 8-K No reports on Form 8-K were filed during fiscal quarter ended January 31, 2000. 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RF INDUSTRIES, LTD. Dated: March 15, 2000 By: /s/ Howard F. Hill ------------------------------------- Howard F. Hill, President Chief Executive Officer Dated: March 15, 2000 By: /s/ Terrie A. Gross ------------------------------------- Terrie A. Gross Chief Financial Officer EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-QSB
5 3-MOS OCT-31-1999 NOV-01-1999 JAN-31-2000 1,327,454 2,058,551 721,980 27,210 2,629,184 7,040,740 714,201 512,887 7,362,756 627,270 0 0 0 31,486 6,704,000 7,362,756 1,760,526 1,760,526 845,255 1,419,462 0 0 (30,559) 371,623 150,000 221,623 0 0 0 221,623 .07 .06
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