EX-99.1 6 v160126_ex99-1.htm
 
Exhibit 99.1
RF INDUSTRIES, LTD.
For Immediate Release
 
RF Connector & Cable Assembly / RF Wireless
     
Investor Contact:
 
Company Contact:
Neil Berkman Associates
 
Howard Hill, President
(310) 826 - 5051
 
(858) 549-6340
info@berkmanassociates.com
 
rfi@rfindustries.com

RF Industries Reports Third Quarter Results

SAN DIEGO, CA — September 14, 2009 — RF INDUSTRIES, LTD., (NASDAQ:RFIL) today announced that for the third quarter of fiscal 2009 ended July 31, 2009, revenue was $3,294,000 compared to $4,668,000 in the same quarter last year.  After a $210,000 non-cash expense for the write-off of goodwill primarily associated with the acquisition of RadioMobile, net earnings for the quarter were $10,000, or $0.00 per diluted share, compared to net income of $400,000, or $0.11 per diluted share, in the third quarter of 2008.
"Our cash, cash equivalents and investments in available-for-sale securities increased $273,000 in the third quarter to $6,994,000, compared to $6,721,000 at the end of our previous second quarter.  Despite break-even net income for the third quarter, RFI's third quarter cash flow from operations was $469,000," said Howard Hill, RFI's President and CEO.
"Continuing weakness in the wireless industry resulted in lower revenue for all business segments.  Although third quarter sales declined for our largest business segment, RF Connector and Cable Assembly, long-term contracts from two large customers for new cable assembly products commenced shipping in the quarter, resulting in higher third quarter gross and operating margins for this business segment.
"With the current recession and decline in capital goods spending continuing to significantly affect our RF Wireless segment, we recorded a third quarter non-cash $210,000 write-down of goodwill.  Neulink and RadioMobile are scheduled to introduce new, low cost, high performance wireless solutions later this year and we are hopeful that these products, combined with improved software and hardware accessories, should lead to improved  future RF Wireless segment sales " said Hill.
For the nine months ended July 31, 2009, revenue was $10,401,000, compared to $13,002,000 in the same period last year.  Net income for the nine month period was $388,000, or $0.12 per diluted share, compared to $1,114,000, or $0.30 per diluted share, in the same period last year.  Cash flow from operations for the first nine months of fiscal 2009 was $932,000.
At July 31, 2009, RFI reported cash and cash equivalents and investments in available-for-sale-securities of $6,994,000, working capital of $14,531,000, a 20 to 1 current ratio, no long-term debt and stockholders' equity of $14,964,000, or $5.25 book value per share.  During fiscal 2009, RFI has repurchased over 380,000 shares of common stock at an average cost of approximately $4.20 per share.

(more)

7610 Miramar Road, San Diego, CA  92126-4202  ●  (858) 549-6340  ●  (800) 233-1728  ●  FAX (858) 549-6345
E-mail: rfi@rfindustries.com  ●  Internet: www.rfindustries.com

 
 

 

RF Industries Reports Third Quarter Results
September 14, 2009
Page Two

About RF Industries
The RF Connectors and Cable Assembly segment designs and distributes radio frequency (RF) coaxial connectors and cable assemblies used for Wi-Fi, PCS, radio, test instruments, computer networks and antenna devices.  This business segment includes Aviel Electronics, which provides custom microwave and RF Connector solutions to aerospace, OEM and Government agencies and Worswick, which provides coaxial connectors and cable assemblies primarily to retail and local multi-media and communications systems customers.  Bioconnect, constituting the Medical Cabling and Interconnector segment, designs, manufactures and distributes specialized electrical cabling and interconnect products to the medical monitoring market.  The RF Wireless segment includes Neulink, which designs and markets wireless digital data transmission products for industrial monitoring, wide area networks, GPS tracking and locations systems and RadioMobile, an OEM provider of end-to-end mobile wireless network solutions for public safety, emergency medical, transportation and industrial customers.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995.
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to future events, the occurrence of which involve risks and uncertainties, including, without limitation, increased competition, and other uncertainties detailed in the Company's Securities and Exchange Commission filings.  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. 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.

(tables attached)
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RF INDUSTRIES, LTD.
CONDENSED STATEMENTS OF INCOME
(in thousands, except per share and share amounts) (unaudited)

   
Three Months Ended
   
Nine months Ended
 
   
July 31,
   
July 31,
 
   
2009
   
2008
   
2009
   
2008
 
                         
Net sales
  $ 3,294     $ 4,668     $ 10,401     $ 13,002  
Cost of sales
    1,670       2,352       5,409       6,454  
                                 
     Gross profit
    1,624       2,316       4,992       6,548  
                                 
Operating expenses:
                               
  Engineering
    256       279       806       776  
  Selling and general
    1,340       1,381       3,736       4,043  
                                 
     Total operating expenses
    596       1,660       4,542       4,819  
                                 
Operating income
    28       656       450       1,729  
                                 
Interest income
    23       41       149       179  
                                 
Income before provision for income taxes
    51       697       599       1,908  
                                 
Provision for income taxes
    41       297       211       794  
                                 
     Net income
  $ 10     $ 400     $ 388     $ 1,114  
                                 
Earnings per share
                               
  Basic
  $ 0.00     $ 0.12     $ 0.13     $ 0.34  
  Diluted
  $ 0.00     $ 0.11     $ 0.12     $ 0.30  
                                 
Weighted average shares outstanding
                               
  Basic
    2,869,928       3,298,345       2,985,083       3,294,219  
  Diluted
    3,161,904       3,741,111       3,278,509       3,720,346  
                                 
Dividends paid
        $ 99     $ 95     $ 295  

 
 

 

RF INDUSTRIES, LTD.
CONDENSED BALANCE SHEETS
(UNAUDITED)

   
July 31,
   
October 31,
 
   
2009
   
2008
 
ASSETS
           
             
CURRENT ASSETS
           
Cash and cash equivalents
  $ 2,492     $ 1,061  
Certificates of deposits
    4,502       6,316  
Investments in available-for-sale securities
          548  
Trade accounts receivable, net
    1,867       2,071  
Inventories
    5,299       5,950  
Other current assets
    606       217  
Deferred tax assets
    542       542  
                 
TOTAL CURRENT ASSETS
    15,308       16,705  
                 
Property, plant and equipment, net
    546       566  
Goodwill
    137       347  
Amortizable intangible asset, net
    34       54  
Note receivable from stockholder
    67       67  
Other assets
    29       29  
                 
TOTAL ASSETS
  $ 16,121     $ 17,768  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES
               
Accounts payable
  $ 234     $ 329  
Accrued expenses
    543       761  
Income taxes payable
          233  
                 
TOTAL CURRENT LIABILITIES
    777       1,323  
                 
Deferred tax liabilities
    106       106  
Other long-term liabilities
    274       217  
                 
TOTAL LIABILITIES
    1,157       1,646  
                 
COMMITMENTS AND CONTINGENCIES
               
                 
STOCKHOLDERS' EQUITY
               
Common stock - authorized 10,000,000 shares of $0.01 par
               
value; 2,849,253 and 3,226,264 shares issued and outstanding
    28       32  
Additional paid-in capital
    6,474       6,412  
Retained earnings
    8,462       9,678  
                 
TOTAL STOCKHOLDERS' EQUITY
    14,964       16,122  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 16,121     $ 17,768