EX-99.1 6 v176814_ex99-1.htm Unassociated Document
 
RF INDUSTRIES, LTD.
For Immediate Release
   
RF Connectors/Aviel/Worswick/Neulink/Bioconnect/RadioMobile
    
     
Investor Contact:
 Neil Berkman Associates
 (310) 826 - 5051
 info@berkmanassociates.com
  
Company Contact:
 Howard Hill, President
 (858) 549-6340
 rfi@rfindustries.com

RF Industries Reports First Quarter Results

Operating Income Increases 55% on an 8% Sales Decline
Net Income is $0.05 per share vs $0.05 per share

SAN DIEGO, CA, March 11, 2010 . . . RF INDUSTRIES, LTD. (NASDAQ:RFIL) today announced that sales for the first quarter ended January 31, 2010 declined 8% to $3,313,000, compared to $3,583,000 in the same quarter last year.  Operating income increased to $218,000 compared $141,000 in the first quarter last year and net income was $143,000, or $0.05 per diluted share, compared to net income of $162,000, or $0.05 per diluted share, in  the first quarter last year.
"RFI's improved first quarter profitability benefitted from reductions in general and administrative expenses and higher gross margins for both RF Connector and Cable Assembly and the Bioconnect Divisions.  Although the first quarter is typically the Company's seasonally weakest period, operating income increased 55% and RFI continues to benefit from policies instituted last year to lower operating costs and improve productivity.  With our second quarter off to a good start, we are hopeful that wireless industry spending will continue to accelerate throughout the remainder of the year," said Howard Hill, RFI's president and CEO.

First Quarter Review
Total sales of $3,313,000 were down 8% from $3,583,00 in the first quarter last year.  The improvement in gross margin to 49% of sales from 46% of sales in the comparable quarter last year, combined with a decline in operating expenses, resulted in a 55% increase in operating income to $218,000 compared to $141,000 in the same quarter last year.  Reduced interest income, combined with a higher, normalized tax rate of 41%, produced net income of $143,000, or $0.05 per diluted share, compared to $162,000, or $0.05 per share, in the first quarter last year.
Sales at the RF Connector and Cable Assembly division declined 7% to $2,902,000 compared to $3,128,000 in the first quarter last year.  Strong cable assembly sales improved the product mix, raising gross margin to 52% of sales, compared to 50% of sales in the first quarter last year.  Reduced selling and general expenses further contributed to a 14% increase in operating income to $343,000, compared to $300,000 in the first quarter last year.
Bioconnect sales jumped 31% to $358,000, compared to $273,000 the first quarter last year, raising gross margin to 32% of sales from only 10% of sales in the same quarter last year.  Bioconnect's operating income was $48,000, or 14% of sales, compared to a loss of $16,000 in the first quarter last year.

(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 First Quarter Results
March 11, 2010
Page Two

RF Wireless Division sales were $53,000, compared to $181,000 in the first quarter last year.  The operating loss was $173,000 compared to a loss of $143,000 in the first quarter last year.
"Our RF Wireless segment continues to be affected by the downturn in capital goods expenditures for wireless infrastructure and private networks.  However, RF Neulink recently finished FCC qualifying and is commencing sales of its NL900S wireless highs-speed Ethernet Transceiver, a Software Defined Radio incorporating field programmable gate array (FPGA) technology to enable wireless hardware and software upgrades in any environment.  The transceiver's sophisticated error correction enables wireless Wide Area Networking in mobile or stationary applications at speeds up to 500 kbs, supporting VoIP, data and streaming video transmission exceeding 5 miles.  We are encouraged by strong interest in this product from industrial, public services and private wireless networks," said Robert White, Director of the RF Neulink Division.
As of January 31, 2010, RFI reported cash and cash equivalents of $1,196,000 and certificates of deposits of $6,674,000 for a total of $7,871,000 in liquid and short-term near-liquid resources, working capital of $15,012,000, a 16 to 1 current ratio, no long-term debt and stockholders' equity of $15,479,000, or $5.43 per share.

About RF Industries
RF Industries conducts operations through six related divisions.  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.

(tables attached)
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RF INDUSTRIES, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
 
   
Three Months Ended
  
   
January 31,
  
   
2010
    
2009
  
Net sales
   $ 3,313     $ 3,583  
Cost of sales
     1,683       1,937  
Gross profit
     1,630       1,646  
Operating expenses:
                
Engineering
     194       256  
Selling and general
     1,218       1,249  
Total operating expenses
     1,412       1,505  
Operating income
     218       141  
Interest income
     26       82  
Income before taxes
     244       223  
Provision for income taxes
     101       61  
                 
Net income
   $ 143     $ 162  
                 
Earnings per share:
                
Basic
   $ 0.05     $ 0.05  
Diluted
   $ 0.05     $ 0.05  
                 
Weighted average shares outstanding
                
Basic
     2,848,773       3,122,700  
Diluted
     3,179,413       3,447,665  

 
 
 

RF INDUSTRIES, LTD.
CONDENSED BALANCE SHEETS
(in thousands, except per share and share amounts)
 
   
January 31,
    
October 31,
  
   
2010
    
2009
  
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 1,196     $ 1,226  
Investments in available-for-sale securities
     6,674       6,477  
Trade accounts receivable, net
     1,986       2,263  
Inventories
     5,192       4,985  
Other current assets
     513       341  
Deferred tax assets
     478       478  
TOTAL CURRENT ASSETS
     16,039       15,770  
Property and equipment, net
     599       566  
Goodwill
     137       137  
Amortizable intangible assets, net
     20       27  
Note receivable from stockholder
     67       67  
Other assets
     31       31  
TOTAL ASSETS
   $ 16,893     $ 16,598  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 297     $ 225  
Accrued expenses
     643       673  
Income taxes payable
     86       75  
TOTAL CURRENT LIABILITIES
     1,026       973  
                 
Deferred tax liabilities
     51       51  
Other long-term liabilities
     337       321  
TOTAL LIABILITIES
     1,414       1,345  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
STOCKHOLDERS' EQUITY:
                
Common stock - authorized 10,000,000 shares of $0.01 par value; 2,850,928 and 2,848,313 shares issued and outstanding
     29       28  
Additional paid-in capital
     6,584       6,502  
Retained earnings
     8,866       8,723  
TOTAL STOCKHOLDERS' EQUITY
     15,479       15,253  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 16,893     $ 16,598