CORRECTING and REPLACING RF Industries Reports Record 31% Increase in Third Quarter Revenues

  CORRECTING and REPLACING RF Industries Reports Record 31% Increase in Third
  Quarter Revenues

Correction...by RF Industries, Ltd.

Business Wire

SAN DIEGO -- September 12, 2013

Fifth graph, second sentence of release should read:Most of the increase in
net sales is due to $15.4 million of sales for the nine months ended July 31,
2013 from Cables Unlimited (sted $10.9 million of sales).

The corrected release reads:

     RF INDUSTRIES REPORTS RECORD 31% INCREASE IN THIRD QUARTER REVENUES

RF Industries, Ltd. (NASDAQ:RFIL) announced results for the third quarter and
nine months ended July 31, 2013.

Highlights:

  *Third quarter revenues increased 31% to a third quarter record $9.6
    million
  *Operating income for the quarter increased 34% compared to the 2012 third
    quarter
  *Growth driven by customized connectivity solutions for wireless
    infrastructure
  *Balance sheet remains robust with $10.8 million in cash and no debt

Howard Hill, Chief Executive Officer, commented, “We are pleased to report
record revenue for the fourth consecutive quarter and continued strong demand
for our offerings across all end markets. In particular, we have been focused
on growing our custom interconnect solutions to the wireless infrastructure
industry. During the quarter, we continued to see the positive impact of this
long term strategy with strong sales and profitability in our Cables Unlimited
division. Our aim is to continue to provide customized solutions, such as our
custom cable product, to new and existing customers that allow them to remain
competitive in this space.”

For the quarter ended July 31, 2013, the Company reported record third quarter
net sales of $9.6 million, an increase of 31%, compared to $7.3 million in the
same quarter of fiscal 2012. The Company reported operating income of $1.6
million, an increase of 34% compared to operating income of $1.2 million in
the third quarter of the previous year. Income from continuing operations for
the third quarter of fiscal 2013 was $1.2 million, or $0.15 per basic and
$0.13 per diluted share, compared to $0.8 million or $0.11 per basic and $0.10
per diluted share in the third quarter of fiscal 2012.

During the third quarter, the Company sold its RF Neulink division and
reported a loss from discontinued operations, net of tax, of $238,000 compared
to a net loss of $40,000 in the third quarter of fiscal 2012. Net income for
the third quarter fiscal 2013, after accounting for the net loss from
discontinued operations was $0.9 million or $0.12 per basic and $0.11 per
diluted share, compared to $0.7 million, or $0.11 per basic and $0.10 per
diluted share in the third quarter of 2012.

Mr. Hill commented, “The divestiture of the RF Neulink division is part of our
ongoing strategy to evaluate the performance of our divisions in order to
better concentrate our energy and resources on the higher growth and higher
margin core components of our business.”

RF Industries reported record net sales of $29.1 million for the first nine
months of fiscal 2013, an increase of 52% compared to net sales of $19.2
million in the first nine months of fiscal 2012. Most of the increase in net
sales is due to $15.4 million of sales for the nine months ended July 31, 2013
from Cables Unlimited. Additionally, net sales in 2013 in each of the
Company’s other segments also increased compared to 2012. For the first nine
months of fiscal 2013, the Company reported operating income of $5.4 million,
a 138% increase compared to operating income of $2.3 million in the first nine
months of fiscal 2012. Income from continuing operations for the first nine
months of fiscal 2013 increased 161% to a record $3.9 million or $0.52 per
basic and $0.47 per diluted share as compared to income from continuing
operations of $1.5 million or $0.22 per basic and $0.20 per diluted share in
the prior year period. Loss from discontinued operations for the nine months
ended July 31, 2013, net of tax, was $354,000 compared to a loss, net of tax,
of $52,000 in the prior year period. Net income for the nine months ended July
31, 2013 after accounting for the net loss from discontinued operations was
$3.6 million, or $0.48 per basic and $0.43 per diluted share, compared to $1.5
million or $0.21 per basic and $0.19 per diluted share in the first nine
months of 2012.

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

At July 31, 2013, the Company had cash and cash equivalents of $10.8 million
and no debt, with a current ratio of 8:1.

Mr. Hill commented, “Our balance sheet, with a strong cash position and no
debt, provides us with the ability to support our long term growth objectives
while also returning capital to shareholders through a dividend.”

Conference Call Information

RF Industries will host a conference call on September 12 at 12:00 noon
Eastern Time to discuss its fiscal year 2013 third quarter and nine 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 October 12, 2013 and may be
accessed by dialing (877) 660-6853. International callers should call (201)
612-7415. Callers should use conference i.d. 420001.

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 July 31,                 Nine Months Ended July 31,
                            2013           2012                  2013           2012      
                                                                                           
Net sales                  $ 9,585             $ 7,316                 $ 29,146            $ 19,229
Cost of sales               5,609             3,982                 16,163            10,521    
                                                                                           
Gross profit                3,976             3,334                 12,983            8,708     
                                                                                           
Operating
expenses:
Engineering                  313                 261                     894                 835
Selling and                 2,107             1,912                 6,655             5,592     
general
Totals                      2,420             2,173                 7,549             6,427     
                                                                                           
Operating income             1,556               1,161                   5,434               2,281
                                                                                           
Other income –              6                 11                    14                36        
interest/dividends
                                                                                           
Income from
continuing
operations before            1,562               1,172                   5,448               2,317
provision for
income taxes
Provision for               407               397                   1,517             810       
income taxes
                                                                                           
Income from
continuing                   1,155               775                     3,931               1,507
operations
                                                                                           
Loss from
discontinued                (238      )        (40       )            (354      )        (52       )
operations, net of
tax
                                                                                           
Consolidated net             917                 735                     3,577               1,455
income
                                                                                           
Net income
attributable to             -                 -                     -                 2         
noncontrolling
interest
                                                                                           
Net income
attributable to RF         $ 917              $ 735                  $ 3,577            $ 1,453     
Industries, Ltd.
and Subsidiary
                                                                                           
Earnings per share
Basic
Continuing                 $ 0.15              $ 0.11                  $ 0.52              $ 0.22
operations
Discontinued                (0.03     )        -                     (0.04     )        (0.01     )
operations
Net income per             $ 0.12             $ 0.11                 $ 0.48             $ 0.21      
share
                                                                                           
Earnings per share
Diluted
Continuing                 $ 0.13              $ 0.10                  $ 0.47              $ 0.20
operations
Discontinued                (0.02     )        -                     (0.04     )        (0.01     )
operations
Net income per             $ 0.11             $ 0.10                 $ 0.43             $ 0.19      
share
                                                                                           
Weighted average
shares outstanding
Basic                       7,798,608         6,867,073             7,492,137         6,914,450 
Diluted                     8,559,635         7,625,085             8,362,978         7,657,546 
                                                                                           

                                                         
RF INDUSTRIES, LTD. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)


                                                                   
                                             July 31,              October 31,
                                             2013                  2012
                                             (Unaudited)
ASSETS
                                                                   
CURRENT ASSETS
Cash and cash equivalents                    $   10,782            $   5,492
Trade accounts receivable, net                   3,542                 5,167
Inventories                                      7,310                 6,984
Other current assets                             505                   640
Deferred tax assets                             761                  761
TOTAL CURRENT ASSETS                            22,900               19,044
                                                                   
Property and equipment, net                      1,033                 1,204
Goodwill                                         3,076                 3,076
Amortizable intangible assets, net               1,462                 1,627
Non-amortizable intangible assets                410                   410
Note receivable from stockholder                 67                    67
Other assets                                    30                   35
TOTAL ASSETS                                 $   28,978            $   25,463
                                                                   
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                   
CURRENT LIABILITIES
Accounts payable                             $   933               $   1,429
Accrued expenses                                 1,929                 2,102
Customer deposit                                 51                    -
Income taxes payable                            103                  610
TOTAL CURRENT LIABILITIES                        3,016                 4,141
                                                                   
Deferred tax liabilities                         1,077                 1,077
Other long-term liabilities                     -                    15
TOTAL LIABILITIES                               4,093                5,233
                                                                   
COMMITMENTS AND CONTINGENCIES
                                                                   
STOCKHOLDERS’ EQUITY
Common stock - authorized 20,000,000
shares of $0.01 par value; 7,856,102
and 6,978,374
shares issued and outstanding at
July 31, 2013 and October 31, 2012,              79                    70
respectively
Additional paid-in capital                       14,866                12,007
Retained earnings                               9,940                8,153
TOTAL STOCKHOLDERS' EQUITY                      24,885               20,230
TOTAL LIABILITIES AND STOCKHOLDERS'          $   28,978            $   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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