EX-99.1 2 v20200_ex99-1.htm Unassociated Document

 
RF INDUSTRIES, LTD.
For Immediate Release
 
RF Connectors/Aviel/Neulink/Bioconnect
 
Investor Contact:
Neil Berkman Associates
(310) 277 - 5162
 info@berkmanassociates.com
  
Company Contact:
Howard F. Hill
President/CEO
(858) 549-6340
 
RF Industries' Second Quarter Sales Increase 27%
To a Record $3,578,000; Net Income is $0.04 Per Share

SAN DIEGO, CA., -- June 14, 2005 -- RF INDUSTRIES, LTD., (NASDAQ:RFIL) announced today that net sales for the three months ended April 30, 2005 increased 27% to a quarterly record $3,578,000, compared to net sales of $2,821,000 in the same quarter last year. Net income was $163,000, or $0.04 per diluted share, compared to $351,000, or $0.10 per diluted share, in the same period last year.

For the six months ended April 30, 2005, net sales increased 22% to $6,446,000, compared to net sales of $5,271,000 in the first half of fiscal 2004. Net income was $370,000, or $0.10 per diluted share, compared to net income of $585,000, or $0.16 per diluted share in the same period last year.

Howard Hill, president and CEO of RF Industries, said, "Record second quarter sales reflect an 18% increase in RF Connector and cable assembly sales to $2,993,000, an 11% increase in Neulink sales to $197,000 and a 69% increase in Bioconnect sales to $165,000. Aviel sales are on track and are meeting expectations. We are extremely pleased with these strong sales gains from RFI’s business units.”

Hill noted that increases in materials and labor expenses at RF Connector, combined with inventory adjustments at the Neulink Division, reduced overall second quarter gross margins. “Operating profitability for the second quarter and first six months of fiscal 2005 primarily has been affected by expenses of $240,000 and $340,000, respectively, for compliance with the Sarbanes-Oxley act. We anticipate Sarbanes-Oxley compliance expenses will decline in the coming quarter,” said Hill.

At April 30, 2005, RFI reported cash and cash equivalents of $4,565,000, working capital of $10,263,000, a 14 to 1 current ratio, no long-term debt and stockholders' equity of $10,963,000, or $3.59 per share.

RFI's RF Connectors division designs and distributes radio frequency (RF) coaxial connectors and cable assemblies used for Wi-Fi, PCS, radio, test instruments, computer networks and antenna devices. Aviel Electronics provides custom microwave, and RF Connector solutions to aerospace, OEM and Government agencies. 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.
 
 

 

 
 
 
RF INDUSTRIES, LTD.
 
  
Condensed Statements of Income
 
  
(in thousands except share and per share amounts)(unaudited)
 
 
  
 
Three Months Ended
  
Six Months Ended
  
   
April  30,
  
April  30,
  
     
2005
    
2004
    
2005
    
2004
  
Net sales
  
$
3,578
  
$
2,821
  
$
6,446
  
$
5,271
  
Cost of sales
    
1,983
   
1,396
   
3,385
   
2,601
 
     Gross profit
    
1,595
   
1,425
   
3,061
   
2,670
 
                           
Operating expenses:
                          
  Engineering
    
135
   
102
   
289
   
217
 
  Selling and general
    
1,194
   
726
   
2,184
   
1,486
 
     Total expenses
    
1,329
   
828
   
2,473
   
1,703
 
 
Operating income
    
266
    
597
   
588
   
967
 
Interest income
    
22
   
1
   
38
   
7
 
Income before provision for income taxes
    
288
   
598
   
626
   
974
 
Provision for state & federal income taxes
    
125
   
247
   
256
   
389
 
 
     Net income
  
$
163
  
$
351
  
$
370
  
$
585
  
 
Earnings per share - basic
  
$
0.05
  
$
0.12
  
$
0.12
  
$
0.21
  
 
Earnings per share - diluted
  
$
0.04
  
$
0.10
  
$
0.10
  
$
0.16
  
 
Weighted average shares outstanding - basic 
    
3,046,960
   
2,882,408
   
3,027,543
   
2,835,294
 
 
Weighted average shares outstanding - diluted
    
3,807,905
   
3,656,887
   
3,813,817
   
3,595,492
 





Condensed Balance Sheets
  
           
   
April 30,
  
October 31,
  
   
2005
  
2004
  
 
  
 (Unaudited)
        
               
Cash and Cash Equivalents
  
$
4,564,823
  
$
4,497,322
  
Trade Accounts Receivable, net
    
2,044,027
   
1,516,035
 
Inventories, net
    
3,932,877
   
3,789,958
 
Other Current Assets
    
496,169
   
456,138
 
          Total Current Assets
    
11,037,896
   
10,259,453
 
               
Equipment and Furnishings, net
    
497,062
   
563,040
 
Other Assets
    
256,149
   
248,229
 
 
          Total Assets
  
$
11,791,107
  
$
11,070,722
  
               
Total Current Liabilities
  
$
774,612
  
$
563,056
  
Deferred Tax Liabilities
    
53,000
   
53,000
 
          Total Liabilities
    
827,612
   
616,056
 
               
Total Stockholders' Equity
    
10,963,495
   
10,454,666
 
          Total Liabilities & Stockholders' Equity
  
$
11,791,107
  
$
11,070,722