RF Industries Reports Record Second Quarter Revenues of $9.2 Million; Net Income up 96% with Diluted Earnings Per Share of

  RF Industries Reports Record Second Quarter Revenues of $9.2 Million; Net
  Income up 96% with Diluted Earnings Per Share of $0.14

Business Wire

SAN DIEGO -- June 12, 2013

RF Industries, Ltd. (NASDAQ: RFIL) announced results for the second quarter
and six months ended April 30, 2013.

Highlights:

  *Record second quarter revenues increased 37% to $9.2 million; Net income
    increased 96% to $1.2 million or $0.14 per diluted share
  *Growth driven by customized connectivity solutions for wireless
    infrastructure
  *Balance sheet remains robust with $8.5 million in cash and no debt

Howard Hill, Chief Executive Officer, commented, “We are pleased to report
record revenue. Our strength lies in our ability to design and manufacture
complex cable assembly products that meet or surpass the connectivity needs of
our end users and, as a result, we’ve seen continued strong demand for our
offerings. In particular, we have been focused on growing our position as a
leading provider of full service, custom interconnect solutions to the
wireless infrastructure industry. During the quarter, we saw the positive
impact of this long term strategy with particularly strong sales from our
Cables Unlimited division, which realized continued marketplace acceptance of
its OptiFlex™ Hybrid Custom Fiber Optic and DC Power Cabling solution for
wireless towers.”

For the quarter ended April 30, 2013, the Company reported record second
quarter net sales of $9.2 million, an increase of 37%, compared to $6.7
million in the same quarter of fiscal 2012. The Company reported operating
income of $1.6 million, an increase of 81% compared to operating income of
$0.9 million in the second quarter of the previous year. Net income for the
second quarter of fiscal 2013 was $1.2 million, or $0.15 per basic and $0.14
per diluted share, compared to net income of $0.6 million or $0.09 per basic
and $0.08 per diluted share in the second quarter of fiscal 2012.

RF Industries reported record six month net sales of $19.7 million for the
first half of fiscal 2013, an increase of 61% compared to net sales of $12.2
million in the first half of fiscal 2012. Gross profit increased to $9.0
million with gross margin of 46% in the first six months of fiscal 2013 as
compared to gross profit of $5.5 million and gross margin of 45% in the same
prior year period. The Company reported operating income of $3.7 million, a
236% increase compared to operating income of $1.1 million in the first six
months of 2012. Net income for the first six months of fiscal 2013 increased
270% to $2.7 million or $0.36 per basic and $0.32 per diluted share as
compared to net income of $0.7 million or $0.10 per basic and $0.09 per
diluted share in the first half of fiscal 2012.

The Company previously announced that its Board of Directors has declared a
regular quarterly cash dividend of $0.07 per common share, payable July 15,
2013 to stockholders of record on June 30, 2013.

At April 30, 2013, the Company had cash and cash equivalents of $8.5 million
and no debt with a current ratio of 7:1.

Mr. Hill commented, “As expected, revenues at the RF Wireless segment
decreased due to the winding down of the contract with the Los Angeles County
Fire Department, which was entered into in November 2011. Accordingly, the
completion of that contract will result in a decrease in revenues from that
segment in future periods until other, larger contracts are entered into.
Nonetheless, we saw very strong performance on a consolidated basis, with
revenue growth at our remaining business segments. Our balance sheet, with a
strong cash position and no debt, provides us with the ability to return
capital to shareholders through a dividend while also supporting our long term
growth strategy.”

Mr. Hill concluded, “Our Company is part of a dynamic industry where the
demand for wireless connectivity is driving improvements to the wireless
infrastructure and we believe that our customized solutions position us well
to capitalize on new opportunities in this space.”

Conference Call Information

RF Industries will host a conference call on Wednesday, June 12, 2013 at 12:00
noon Eastern Time to discuss its fiscal year 2013 second quarter and six month
results. To participate, callers should dial (877) 407-9210 and international
callers may dial (201) 689-8049. 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 July 12, 2013 and may be accessed
by dialing (877) 660-6853. International callers should call (201) 612-7415.
Callers should use conference i.d. 415329.

About RF Industries

RF Industries is a leading designer and manufacturer of innovative
interconnect products and complex cable assemblies across diversified, high
growth markets including wireless carriers & infrastructure, medical and
industrial.The Company’s products include RF connectors, coaxial and custom
cable assemblies, fiber optic cables, wiring harnesses, medical wiring as well
as mobile public safety communications systems. The Company’s leading edge
connectivity solutions are used throughout the growing and evolving wireless
infrastructure. The Company has reported 19 consecutive years of profitability
and is headquartered in San Diego, California with operations in Las Vegas,
Nevada and Yaphank, New York.Please visit the RF Industries website at
www.rfindustries.com.

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.

                                                        
RF INDUSTRIES, LTD. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In thousands, except share and per share amounts)
                                                                 
                             Three Months Ended April 30,        Six Months Ended April 30,
                             2013           2012              2013           2012
                                                                                   
Net sales                    $ 9,162           $ 6,672           $ 19,671          $ 12,231
                                                                                   
Cost of sales                 5,103            3,650            10,675           6,707
                                                                                   
Gross profit                  4,059            3,022            8,996            5,524
                                                                                   
Operating
expenses:
Engineering                    292               284               581               574
Selling and                   2,136            1,839            4,723            3,851
general
                                                                                   
Totals                        2,428            2,123            5,304            4,425
                                                                                   
Operating income               1,631             899               3,692             1,099
                                                                                   
Other income –                6                6                8                25
interest/dividends
                                                                                   
Income before
provision for                  1,637             905               3,700             1,124
income taxes
                                                                                   
Provision for                 459              303              1,040            406
income taxes
                                                                                   
Net income
attributable to RF             1,178             602               2,660             718
Industries, Ltd.
and Subsidiary
                                                                                   
Net income
attributable to               -                -                -                2
noncontrolling
interest
                                                                                   
Consolidated net             $ 1,178           $ 602             $ 2,660           $ 720
income
                                                                                   
Earnings per share
Basic                        $ 0.15            $ 0.09            $ 0.36            $ 0.10
Diluted                      $ 0.14            $ 0.08            $ 0.32            $ 0.09
                                                                                   
Weighted average
shares outstanding
Basic                         7,610,309        6,872,439        7,337,101        6,938,395
Diluted                       8,461,544        7,623,805        8,249,455        7,673,266
                                                                                   

                                                          
RF INDUSTRIES, LTD. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)
                                                                   
                                                 April 30,         October 31,
                                                 2013              2012
                                                 (Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents                        $   8,486         $   5,492
Trade accounts receivable, net                       4,990             5,167
Inventories                                          7,311             6,984
Other current assets                                 646               640
Deferred tax assets                                 761              761
TOTAL CURRENT ASSETS                                22,194           19,044
Property and equipment, net                          1,057             1,204
Goodwill                                             3,076             3,076
Amortizable intangible assets, net                   1,517             1,627
Non-amortizable intangible assets                    410               410
Note receivable from stockholder                     67                67
Other assets                                        32               35
TOTAL ASSETS                                     $   28,353        $   25,463
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                   
CURRENT LIABILITIES
Accounts payable                                 $   682           $   1,429
Accrued expenses                                     2,225             2,102
Customer deposit                                     51                -
Income taxes payable                                8                610
TOTAL CURRENT LIABILITIES                            2,966             4,141
                                                                   
Deferred tax liabilities                             1,077             1,077
Other long-term liabilities                         5                15
TOTAL LIABILITIES                                   4,048            5,233
COMMITMENTS AND CONTINGENCIES
                                                                   
STOCKHOLDERS’ EQUITY
Common stock - authorized 20,000,000
shares of $0.01 par value; 7,779,451
and
6,978,374 shares issued and                          78                70
outstanding at April 30, 2013 and
October 31, 2012,
respectively
Additional paid-in capital                           14,658            12,007
Retained earnings                                   9,569            8,153
TOTAL STOCKHOLDERS' EQUITY                          24,305           20,230
TOTAL LIABILITIES AND STOCKHOLDERS'              $   28,353        $   25,463
EQUITY
                                                                   

Contact:

Investor:
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau, 203-972-9200
jnesbett@institutionalms.com
or
Company:
RF Industries, Ltd.
James Doss, 858-549-6340
President
rfi@rfindustries.com
 
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