8-K 1 press012004.txt PRESS RELEASE - 1ST QTR 2004 EARNINGS RF INDUSTRIES, LTD. For Immediate Release RF Connectors/Neulink/Bioconnect Investor Contact: Company Contact: Neil Berkman Associates Howard F. Hill (310) 277 - 5162 President/CEO info@berkmanassociates.com (858) 549-6340 -------------------------- RF Industries' First Quarter Net Income Increases 73% to $0.08 per share RF Connector Coax and Cable Sales Increase 19% --------------------------------------------------- SAN DIEGO, CALIFORNIA, March 3, 2004 . . . RF INDUSTRIES, LTD., (NASDAQ:RFIL) today announced that net income for the three months ended January 31, 2004 increased 73% to $234,000, or $0.08 per diluted share, compared to $135,000, or $0.04 per diluted share, in the first quarter of fiscal 2003. Net sales increased 5% to $2,450,000 compared to $2,327,000 for the same period last year. "Sales of RF Connector and coaxial cable products increased 19% to $2,146,000, an extremely encouraging performance for what is typically RFI's seasonally weakest quarter. This growth was led by higher shipments of new coax connectors and cable assemblies for Wi-Fi and telecom applications. A favorable product mix and the benefit of high margin new products helped increase the Company's gross margin to 51% of sales, compared to 49% of sales in the first quarter last year," said Howard Hill, president of RF Industries. Hill noted that increased sales of Bioconnect products helped offset lower sales for the Neulink product line. "Bioconnect sales growth and benefits from consolidating the business with RF Connector significantly reduced the operating loss associated with the sales of Bioconnect products to only $17,000 for the quarter, compared to a loss of $107,000 on this product line in the first quarter last year." he said. At January 31, 2004, RFI reported cash and cash equivalents exceeding $4,120,000, working capital of $8,597,000, an 18 to 1 current ratio and stockholders' equity of $8,979,000, or $3.11 per share. RF Industries' Connector operation designs and distributes radio frequency (RF) coaxial connectors and cable assemblies used for Wi-Fi, PCS, radio, test instruments, computer networks and antenna devices. Neulink designs and markets wireless digital data transmission products for industrial monitoring, wide area networks, GPS tracking and locations systems. RFI's Bioconnect operation designs, manufactures and distributes specialized electrical cabling and interconnect products to the medical monitoring market. The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, uncertainties detailed in the Company's Securities and Exchange Commission filings. * * * * * #3534 RF INDUSTRIES, LTD. SUMMARY STATEMENTS OF INCOME (unaudited) Three Months Ended January 31, ---------------------- 2004 2003 ------ ------- Net Sales ........................................ $2,449,359 $2,326,876 Cost of Sales .................................... 1,204,475 1,192,158 --------- --------- Gross Profit ................................ 1,244,884 1,134,718 Operating Expenses: Engineering .................................... 115,382 198,580 Selling, General & Administrative .............. 759,365 723,839 --------- -------- Total Operating Expenses .................... 874,747 922,419 --------- -------- Operating Income ................................. 370,137 212,299 Interest income .................................. 5,733 11,497 --------- -------- Income Before Provision for Income Tax ........... 375,870 223,796 Provision for Income Tax ......................... 142,000 89,000 --------- -------- Net Income ....................................... $ 233,870 $ 134,796 ========== ========== Basic Earnings per Share ......................... $ 0.08 $ 0.04 ========== ========== Diluted Earnings per Share ....................... $ 0.08 $ 0.04 ========== ========== Basic Weighted Average Shares Outstanding ........ 2,757,542 3,400,254 Diluted Weighted Average Shares Outstanding ...... 2,943,398 3,650,571 Summary Balance Sheet January 31, October 31, 2004 2003 ------------ ----------- (Unaudited) (Audited) Cash and Cash Equivalents ............................ $4,124,568 $2,683,896 Trade Accounts Receivable, Net ....................... 1,114,008 1,701,618 Inventories, net ..................................... 3,540,615 3,455,018 Other Current Assets ................................. 315,933 305,679 ---------- ---------- Total Current Assets ....................... 9,095,124 8,146,211 Property, Plant & Equipment, Net ..................... 310,161 328,124 Other Assets ......................................... 111,401 133,755 ---------- ---------- Total Assets ............................... $9,516,686 $8,608,090 ========== ========== Total Current Liabilities ............................ $ 497,435 $ 509,992 Other Liabilities .................................... 40,000 40,000 ---------- ---------- Total Liabilities .......................... 537,435 549,992 Total Stockholders' Equity ........................... 8,979,251 8,058,098 ---------- ---------- Total Liabilities & Stockholders' Equity ... $9,516,686 $8,608,090 ========== ==========