RF Industries Announces Financial Results
Monday, June 11, 2018 | Comments

RF Industries announced results for the fiscal second quarter and first six months ended April 30. Second quarter sales were $22.4 million, nearly tripled compared with sales in the same quarter last year.

Second quarter operating income increased $3.9 million to $4 million, or 17.9 percent of sales, compared with $100,000 in the second quarter last year. Net income was $3.2 million compared with $100,000 in the second quarter last year. Gross profit increased to 36 percent from 26 percent of sales in the second quarter last year.

Net sales for the first six months of fiscal 2018 increased $18.4 million to $32.7 million compared to $14.3 million in the same period last year. RF Connector sales increased to $5.3 million from $5.2 million in the same period last year.

The improvement in gross margins was primarily because of a revenue increase at Custom Cabling, which spread certain fixed manufacturing costs over a larger revenue base. First half operating income improved by $4.9 million, resulting in an operating profit of $4.6 million, or 14 percent of sales, compared with an operating loss of $300,000 or 1.9 percent of sales, in the same period last year.

Net income for the first six months of fiscal 2018 was $3.7 million compared with a net loss of $100,000 in the same period last year.

"During the quarter we were asked to hit some aggressive production milestones on behalf of our customers, and we did so in a flexible way without major increases in fixed operating costs,” said Robert Dawson, president and CEO. "While the strong efforts of the team helped us to deliver a large portion of the $20 million backlog that we had entering the second quarter, we were able to generate new orders of $12 million during the quarter. This enabled us to start the third quarter with a solid $10 million backlog, although down from the beginning of the second quarter, is still substantially higher than the $4 million backlog we started with at the beginning of the fiscal year.”

At April 30, 2018, RF Industries reported working capital of $17.5 million, including cash and cash equivalents of $8.5 million, a current ratio of 2.7-to-1, no outstanding debt, and stockholders' equity of $25.2 million. During the first half of fiscal 2018, the company paid out cash dividends of $400,000.

Dawson said he is optimistic about the rest of the fiscal year as the company continues to build momentum. He expects new bookings, in combination with current backlog, to result in growth in net sales and net income for the current fiscal third quarter ending July 31 compared with the third quarter last year.

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