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 firstname.lastname@example.org or Jennifer Belodeau, 203-972-9200 or Company: RF Industries, Ltd. Howard Hill, 858-549-6340 Chief Executive Officer email@example.com
RF Industries Reports First Fiscal Quarter Results
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