RF Industries Reports First Fiscal Quarter Results

  RF Industries Reports First Fiscal Quarter Results

 - As Forecasted, Company Remains Profitable on Lower Sales For The Quarter –
                  - Quarterly Dividend of $0.07 Per Share -
   - Balance Sheet Remains Strong with $12.8 Million in Cash and No Debt -

Business Wire

SAN DIEGO -- March 13, 2014

RF Industries, Ltd. (NASDAQ:RFIL) announced results for the first fiscal
quarter ended January 31, 2014.

RF Industries reported net sales of $5.9 million in the first quarter of
fiscal 2014, a decrease of 41% compared to net sales of $9.9 million in the
first quarter of fiscal 2013. The Company saw a significant decrease in
revenues from its Cables Unlimited subsidiary, where first quarter sales
decreased by 61% to $2.1 million. The Company reported operating income of
$0.3 million in the first quarter of fiscal 2014 as compared to operating
income of $2.0 million in the prior year’s period. Income from continuing
operations was $0.3 million or $0.03 per basic and per diluted share in the
first quarter of fiscal 2014 as compared to $1.5 million or $0.21 per basic
and $0.19 per diluted share in the first quarter of 2013.

At January 31, 2014, RF Industries reported cash and cash equivalents of
nearly $13 million, no long term debt, and a current ratio of 12 to 1.

Howard Hill, Chief Executive Officer, commented, “Our reduced first quarter
sales and marginal profitability were in line with the guidance we previously
provided. We were able to proactively adjust our cost structure to maintain
profitability which has been a corporate priority for 20 years. Consolidated
revenues in the first quarter of 2014 were impacted by a significant decline
in revenues in our Cables Unlimited division as a result of the decrease in
demand for its OptiFlex™ fiber optic cabling solution for cell towers. The
OptiFlex™ fiber optic cabling solution was specifically developed for wireless
service providers who are engaged in upgrading their cell towers to handle 4G
technologies. Accordingly, orders for the OptiFlex™ cables will fluctuate as
cell towers are upgraded. However, since Cables Unlimited has a reputation as
an innovative designer and developer of fiber connectivity solutions, we
expect its range of capabilities will result in other leading edge solutions
for our existing and new customers. We also experienced softening demand
during the most recent quarter in our RF Connector and Cable Assembly
division, which resulted in a $0.8 million reduction in net sales as compared
to the 2013 fiscal quarter. We believe that the harsh winter weather
contributed to the sales decrease at both Cables Unlimited and our RF
Connector and Cable Assembly divisions. Sales to date in the second quarter of
fiscal 2014 at Cables Unlimited and our RF Connector and Cable Assembly
division are below the comparable quarter last year. However, we are
optimistic about our long-term prospects from both our existing products as
well as the new products we are developing. Our Medical Cabling segment
reported a 9% increase in revenues as compared to the first quarter of fiscal
2013, primarily due to increased sales to existing customers.”

“As we’ve stated previously, demand for wireless connectivity is rapidly
changing and growing, with consumers expecting full connectivity in almost any
location or situation. Our goal is to continue to develop state-of-the-art,
customized connectivity solutions for new and existing customers that allow
our customers to remain competitive in this space. We have dealt before with
ebbs and flows in our business as new products are developed and rolled out,
and while we’re not pleased with the revenue decline in our first quarter, we
are focusing our efforts to execute on our ability to provide innovative,
customized connectivity solutions to meet the needs of the marketplace.”

Mr. Hill further commented, “Our Company has maintained its strong cash
position and has no debt, so the cash generated from operations allows us to
return capital to our shareholders through dividends such as the one we
recently announced, and/or stock repurchases, while also allowing us to
consider strategic transactions.”

Conference Call Information

RF Industries will host a conference call today, March 13 at 12:00 noon
Eastern Time to discuss its fiscal first quarter 2014 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 April 13, 2014 and may be
accessed by dialing (877) 660-6853. International callers should call (201)
612-7415. Callers should use conference i.d. 13577047.

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 and medical wiring. The
Company’s leading edge connectivity solutions are used throughout the growing
and evolving wireless infrastructure. The Company has reported 20 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; 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 BALANCE SHEETS
(In thousands, except share and per share amounts)

                                                 January 31,   October 31,
                                                   2014            2013
                                                   (Unaudited)
ASSETS
                                                                   
CURRENT ASSETS
Cash and cash equivalents                          $   12,777      $   11,881
Trade accounts receivable, net                         2,521           3,160
Inventories                                            6,030           5,995
Other current assets                                   960             1,552
Deferred tax assets                                   322            322
TOTAL CURRENT ASSETS                                  22,610         22,910
                                                                   
Property and equipment, net                            969             1,053
Goodwill                                               3,076           3,076
Amortizable intangible assets, net                     1,352           1,407
Non-amortizable intangible assets                      410             410
Note receivable from stockholder                       67              67
Other assets                                          23             30
TOTAL ASSETS                                       $   28,507      $   28,953
                                                                   
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                   
CURRENT LIABILITIES
Accounts payable                                   $   589         $   792
Accrued expenses                                       1,178           1,741
Customer deposit                                      51             51
TOTAL CURRENT LIABILITIES                              1,818           2,584
                                                                   
Deferred tax liabilities                              950            950
TOTAL LIABILITIES                                     2,768          3,534
                                                                   
COMMITMENTS AND CONTINGENCIES
                                                                   
STOCKHOLDERS’ EQUITY
Common stock - authorized 20,000,000 shares of
$0.01 par value; 8,184,887 and 8,075,124               82              81
shares issued and outstanding at January 31,
2014 and October 31, 2013, respectively
Additional paid-in capital                             16,330          15,706
Retained earnings                                     9,327          9,632
TOTAL STOCKHOLDERS' EQUITY                            25,739         25,419
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $   28,507      $   28,953



RF INDUSTRIES, LTD. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except share and per share amounts)

                                              Three Months Ended January 31,
                                                  2014           2013
                                                                   
Net sales                                       $  5,850           $ 9,896
Cost of sales                                     3,268            5,331
                                                                   
Gross profit                                      2,582            4,565
                                                                   
Operating expenses:
Engineering                                        256               289
Selling and general                               1,987            2,258
Totals                                            2,243            2,547
                                                                   
Operating income                                   339               2,018
                                                                   
Other income – interest/dividends                 7                3
                                                                   
Income from continuing operations before           346               2,021
provision for income taxes
Provision for income taxes                        82               564
                                                                   
Income from continuing operations                  264               1,457
                                                                   
Income from discontinued operations, net of       1                25
tax
                                                                   
Net income                                      $  265             $ 1,482
                                                                   
Earnings per share
Basic
Continuing operations                           $  0.03            $ 0.21
Discontinued operations                           0.00             0.00
Net income per share                            $  0.03            $ 0.21
                                                                   
Earnings per share
Diluted
Continuing operations                           $  0.03            $ 0.19
Discontinued operations                           0.00             0.00
Net income per share                            $  0.03            $ 0.19
                                                                   
Weighted average shares outstanding
Basic                                             8,143,640        7,074,095
Diluted                                           8,817,351        8,004,166


Contact:

Investor:
Institutional Marketing Services (IMS)
John Nesbett, 203-972-9200
jnesbett@institutionalms.com
or
Jennifer Belodeau, 203-972-9200
or
Company:
RF Industries, Ltd.
Howard Hill, 858-549-6340
Chief Executive Officer
rfi@rfindustries.com
 
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