RF Industries First Quarter: Record Quarterly Net Income; Revenues Increase 89% with Diluted Earnings Per Share of $0.19

  RF Industries First Quarter: Record Quarterly Net Income; Revenues Increase
  89% with Diluted Earnings Per Share of $0.19

Business Wire

SAN DIEGO -- March 12, 2013

RF Industries Ltd. (NASDAQ: RFIL) announced quarterly sales and consolidated
net income for the first quarter ended January 31, 2013.

For the first quarter ended January 31, 2013, the Company reported net sales
of $10,509,000, an increase of $4,950,000, or 89%, as compared to $5,559,000
in the same quarter of fiscal 2012. Consolidated net income for the quarter
was a record $1,482,000, or $0.21 per basic and $0.19 per diluted share,
compared to consolidated net income of $115,000 or $0.02 per basic and diluted
share in the first quarter of 2012.

First Quarter Fiscal 2013 Results

“Our significant growth in revenues and profitability during the first quarter
was a result of improved revenues and increased gross margins in each of the
four segments of our business. In particular, our Cables Unlimited division
continued to see strong demand for its OptiFlex™ Hybrid Custom Fiber Optic and
DC Power Cabling solution for wireless towers, which resulted in improved
gross margins as increased orders and production outpaced fixed manufacturing
costs. Our RF Wireless segment also experienced continued growth related to
the fulfillment of its previously reported $2.6 million order from the Los
Angeles County Fire Department. Finally, selling and general expenses
decreased significantly in 2013 as a percentage of sales in spite of $368,000
in charges that were not incurred during the first quarter of 2012. We are
optimistic that the second quarter will see growth in both sales and earnings
over the second quarter of last year even though RF Wireless sales will
decrease from last quarter as we deliver the last installment of the Los
Angeles County Fire Department order,” said Howard Hill, RFI’s CEO.

Sales at Cables Unlimited were $5,392,000 for the first quarter, an increase
of $3,948,000, or 273% compared to $1,444,000 in the first quarter of fiscal
2012. Most of the increase in net sales was the result of the recently
introduced Optiflex cabling solution, sales of which represented approximately
$3,600,000 in the 2013 fiscal quarter. Cables Unlimited did not offer the
Optiflex cable products during the first quarter last year. Cables Unlimited
reported gross margin of 41% compared to 37% in the same quarter last year.
Operating income for Cables Unlimited in the first quarter was $1,495,000, or
28% of sales, compared to operating income of $23,000 in the first quarter of
last year.

RF Connector and Cable Assembly segment sales increased by $713,000, or 23% to
$3,817,000 in the quarter with gross margin of 54% compared to sales of
$3,104,000 with gross margin of 51% in the same quarter last year. Operating
income in the first quarter of fiscal 2013 increased to $287,000, or 8% of
sales, from $104,000, or 3% of sales in the first quarter of last year. All of
the Company’s corporate overhead is allocated to the RF Connector and Cable
Assembly segment.

First quarter sales at our Medical Cabling and Interconnector segment
increased to $686,000 with gross margin of 43% as compared to fiscal 2012
first quarter sales of $674,000. Higher gross margin and lower SG&A drove
operating income to $193,000 or 28% of sales, compared to $182,000 in the
first quarter of last year.

Our RF Wireless segment sales for the quarter grew 82% to $614,000 compared to
$337,000 in the first quarter of fiscal 2012. Gross margin for the first
quarter was 61% of sales, compared to 35% of sales last year. Operating income
at RF Wireless for the quarter was $86,000, compared to a loss of $108,000 in
the first quarter of last year.

Conference Call Information

RF Industries will host a conference call on Tuesday, March 12, 2013 at 11:00
AM Eastern Time to discuss its fiscal year 2013 first quarter results. To
participate, callers should dial (877) 407-9210 and international callers may
dial (201) 689-8049 and reference conference i.d. 409829. A simultaneous
webcast of the conference call can be accessed from the Investor Information
page at www.rfindustries.com.

A replay of the call will be available until April 12, 2013 and may be
accessed by dialing (877) 660-6853. International callers should call (201)
612-7415. Callers should use conference i.d. 409829.

About RF Industries

RFI manufactures, designs and distributes Radio Frequency (RF) connectors and
cable assemblies, medical cabling products, RF wireless products and fiber
optic cable products. Coaxial connectors, cable assemblies and custom
microwave RF connectors are used for Wi-Fi, PCS, radio, test instruments,
computer networks, antenna devices, aerospace, OEM and Government agencies.
Medical Cabling and Interconnector products are specialized custom electrical
cabling products for the medical equipment monitoring market. RF Wireless
products include digital data transceivers for industrial monitoring, wide
area networks, GPS tracking and mobile wireless network solutions. Fiber optic
cable, connector and harness products serve computer, aerospace, computer
networking and specialty applications.

Forward-Looking Statements

This press release contains forward-looking statements with respect to future
events which are subject to a number of factors that could cause actual
results to differ materially. Factors that could cause or contribute to such
differences include, but are not limited to: changes in the telecommunications
industry; the operations of the Cables Unlimited division which was acquired
in June 2011; and the Company’s reliance on certain distributors for a
significant portion of anticipated revenues. Further discussion of these and
other potential risk factors may be found in the Company’s public filings with
the Securities and Exchange Commission (www.sec.gov) including its Form 10-K.
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)



(in thousands, except per share and share amounts)
                                               Three Months Ended

                                               January 31,
                                               2013            2012
Net sales                                      $ 10,509            $ 5,559
Cost of sales                                   5,572              3,057
Gross profit                                    4,937              2,502
Operating expenses:
Engineering                                      289                 290
Selling and general                             2,587              2,011
Total operating expense                         2,876              2,301
Operating income                                 2,061               201
Other income                                    2                  18
Income before provision for income               2,063               219
Provision for income taxes                      581                104
Net income attributable to RF                    1,482               115
Industries, Ltd. and Subsidiary
Net income attributable to                      --                 2
noncontrolling interest
Consolidated net income                        $ 1,482             $ 117
Earnings per share:
Basic                                          $ 0.21              $ 0.02
Diluted                                        $ 0.19              $ 0.02
Weighted average shares of common
stock outstanding:
Basic                                           7,074,095          7,002,929
Diluted                                         8,004,166          7,720,534

(in thousands, except share data)
                                              January 31,          October 31,
                                              2013             2012
ASSETS                                        (unaudited)          (audited)
Cash & Cash Equivalents                       $   6,949            $   5,492
Trade Accounts Receivable, net                    5,779                5,167
Inventories                                       6,737                6,984
Other Current Assets                              950                  640
Deferred Tax Assets                              761                 761
TOTAL CURRENT ASSETS                              21,176               19,044
Property and Equipment, net                       1,143                1,204
Goodwill                                          3,076                3,076
Amortizable Intangible Assets, net                1,572                1,627
Non-amortizable Intangible Assets                 410                  410
Note Receivable from Stockholder                  67                   67
Other Assets                                     35                  35
TOTAL ASSETS                                  $   27,479           $   25,463
Accounts Payable                              $   1,056            $   1,429
Accrued Expenses                                  2,361                2,101
Customer Deposit                                  51                   -
Income Taxes Payable                             333                 610
TOTAL CURRENT LIABILITIES                         3,801                4,140
Deferred Tax Liabilities                          1,077                1,077
Other Long-Term Liabilities                      5                   16
TOTAL LIABILITIES                                 4,883                5,233
Common Stock – authorized 20,000,000
shares at $0.01 par value;                        75                   70
7,467,809 and 6,978,374 shares issued
and outstanding, respectively
Additional Paid-in Capital                        13,586               12,007
Retained Earnings                                8,935               8,153
TOTAL STOCKHOLDERS’ EQUITY                       22,596              20,230
TOTAL LIABILITIES AND STOCKHOLDERS’           $   27,479           $   25,463


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