RF Industries Ltd. second-quarter net is 3 cents per share
on a 38 percent increase in sales
Six-months net income is 11 cents per share vs. 8 cents on a 69 percent sales gain
SAN DIEGO--(BUSINESS WIRE)--June 4, 1997--RF Industries Ltd. (OTC:RFIL) Wednesday announced that net sales for the second quarter ended April 30, 1997, increased 38 percent to $1,751,000 from $1,270,000 in the same quarter last year.
Net income was $103,000, or 3 cents per share, compared with $177,000, or 6 cents per share, last year.
For the six-month period ended April 30, 1997, net income increased 40 percent to $344,000, or 11 cents per share, compared with $245,000, or 8 cents per share, in the first half of fiscal 1996. Sales increased 69 percent to $3,679,000 from $2,180,000 last year.
Howard Hill, RFI's president and chief executive officer, noted that sales at RF Connectors increased 33 percent in the quarter and said, ``Connectors has received an excellent response to its introduction of 7/16 DIN connectors and adaptor kits.
``We believe that these high-performance, low-loss and long service-life connectors, combined with new 1-5/8-inch, 1-1/4-inch, 7/8-inch and 1/2-inch corrugated cable connectors for the large
PCS market, should sustain strong second-half sales and an overall 50 percent growth in RF Connectors' sales this fiscal year.''
``RFI second-quarter earnings were affected by a poor product mix and higher up-front expenses for sales and marketing to support training for our large new distributors. We view these expenses as a necessary investment which enables our customers to become familiar with our full product line,'' he said.
Hill added that RF Neulink has designed new wireless modem products for the communications market. ``Our paging exciter, designed for the large Chinese and Asian market, is in the final stages of acceptance testing, and we anticipate that Neulink will soon commence initial shipments of this product,'' he said.
Delays in customer approval of new wireless modems designed for environmental water control applications affected RF Neulink's second-quarter sales. ``With Neulink's recent successful test and demonstration of this system's data transmission capabilities, this product should begin to ship in significant volume in the current quarter,'' Hill said.
Hill observed that Neulink has also experienced delays in the receipt of new orders for its Emergency Alert System (EAS) wireless receivers, pending the FCC's determination of requirements for Cable and Public Service broadcasters, and added, ``The EAS market is still very large and holds significant promise for increased sales once regulatory ecisions are finalized.''
At April 30, 1997, RFI reported cash and short-term investments of $1,458,000, working capital of $4,222,000, a 9-to-1 current ratio, no debt and stockholders' equity of $4,382,000, or $1.40 per share. Backlog at April 30, 1997, was $3,300,000, compared with backlog of $3,600,000 last year. RFI has applied for relisting on the NASDAQ exchange an has responded to NASDAQ's request for additional information.
RFI's Connectors division manufactures, distributes and designs radio frequency (RF) coaxial connectors used in personal communication systems (PCS), radio communications, test instruments, PC LANs and antenna devices. The RF Neulink division designs and manufactures
wireless digital data transmission products for industrial monitoring, linking wide area networks, GPS tracking and locations systems.
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, uncertainties detailed in the company's Securities and Exchange Commission filings.
RF INDUSTRIES LTD.
STATEMENTS OF INCOME
Three months ended
April 30,
1997 1996
Net sales $1,751,000 $1,269,600
Cost of sales 1,051,000 510,800
Gross profit 700,000 758,800
Operating expenses:
Research and development 110,000 130,600
Selling and general 458,000 362,000
Total expenses 568,000 492,600
Operating income 132,000 266,200
Interest income 16,000 10,900
Income before provision
(credit) for income taxes 148,000 277,100
Provision (credit) for
income taxes 45,000 100,000
Net Income $ 103,000 $ 177,100
Net income per share $ .03 $ .06
Weighted average common
and common equivalent
shares outstanding 3,163,291 2,988,235
Six Months Ended
April 30,
1997 1996
Net sales $3,679,000 $2,179,600
Cost of sales 2,121,000 961,800
Gross profit 1,558,000 1,217,800
Operating expenses:
Research and development 222,000 235,200
Selling and general 795,000 642,400
Total expenses 1,017,000 877,600
Operating income 541,000 340,200
Interest income 31,000 24,900
Income before provision
(credit) for income taxes 572,000 365,100
Provision (credit) for
income taxes 228,000 120,000
Net Income $ 344,000 $ 245,100
Net income per share $ .11 $ .08
Weighted average common
and common equivalent
shares outstanding 3,125,872 2,921,202
-0-
SUMMARY BALANCE SHEET
April 30, Oct. 31,
1997 1996
Cash and cash investments $1,458,000 $1,008,000
Accounts Receivable 761,000 703,000
Inventories 1,959,000 1,862,000
Prepaid expenses and deposits 513,000 276,000
Other current assets -- 60,000
Total current assets 4,751,000 3,909,000
Property Plant & Equipment, net 117,000 112,000
Other Assets 5,000 43,000
Total Assets $4,910,000 $4,064,000
Current Liabilities $ 528,000 $ 454,000
Stockholders' Equity 4,382,000 3,609,000
Total Liabilities &
Shareholders' Equity $4,910,000 $4,064,000 |
