RF INDUSTRIES, LTD. For Immediate Release
RF Connectors/Neulink/Bioconnect
Investor Contact: Company Contact:
Neil Berkman Associates Howard F. Hill
(310) 277 - 5162 President/CEO
info@berkmanassociates.com (858) 549-6340
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RF Industries' First Quarter Net Income
Increases 73% to $0.08 per share
RF Connector Coax and Cable Sales Increase 19%
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SAN DIEGO, CALIFORNIA, March 3, 2004 . . . RF INDUSTRIES, LTD.,
(NASDAQ:RFIL) today announced that net income for the three months ended
January 31, 2004 increased 73% to $234,000, or $0.08 per diluted share,
compared to $135,000, or $0.04 per diluted share, in the first quarter of
fiscal 2003. Net sales increased 5% to $2,450,000 compared to $2,327,000
for the same period last year.
"Sales of RF Connector and coaxial cable products increased 19% to
$2,146,000, an extremely encouraging performance for what is typically
RFI's seasonally weakest quarter. This growth was led by higher shipments
of new coax connectors and cable assemblies for Wi-Fi and telecom
applications. A favorable product mix and the benefit of high margin new
products helped increase the Company's gross margin to 51% of sales,
compared to 49% of sales in the first quarter last year," said Howard Hill,
president of RF Industries.
Hill noted that increased sales of Bioconnect products helped offset
lower sales for the Neulink product line. "Bioconnect sales growth and
benefits from consolidating the business with RF Connector significantly
reduced the operating loss associated with the sales of Bioconnect products
to only $17,000 for the quarter, compared to a loss of $107,000 on this
product line in the first quarter last year." he said.
At January 31, 2004, RFI reported cash and cash equivalents exceeding
$4,120,000, working capital of $8,597,000, an 18 to 1 current ratio and
stockholders' equity of $8,979,000, or $3.11 per share.
RF Industries' Connector operation designs and distributes radio
frequency (RF) coaxial connectors and cable assemblies used for Wi-Fi, PCS,
radio, test instruments, computer networks and antenna devices. Neulink
designs and markets wireless digital data transmission products for
industrial monitoring, wide area networks, GPS tracking and locations
systems. RFI's Bioconnect operation designs, manufactures and distributes
specialized electrical cabling and interconnect products to the medical
monitoring market.
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.
* * * * *
#3534
RF INDUSTRIES, LTD.
SUMMARY STATEMENTS OF INCOME
(unaudited)
Three Months Ended
January 31,
----------------------
2004 2003
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Net Sales ........................................ $2,449,359 $2,326,876
Cost of Sales .................................... 1,204,475 1,192,158
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Gross Profit ................................ 1,244,884 1,134,718
Operating Expenses:
Engineering .................................... 115,382 198,580
Selling, General & Administrative .............. 759,365 723,839
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Total Operating Expenses .................... 874,747 922,419
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Operating Income ................................. 370,137 212,299
Interest income .................................. 5,733 11,497
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Income Before Provision for Income Tax ........... 375,870 223,796
Provision for Income Tax ......................... 142,000 89,000
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Net Income ....................................... $ 233,870 $ 134,796
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Basic Earnings per Share ......................... $ 0.08 $ 0.04
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Diluted Earnings per Share ....................... $ 0.08 $ 0.04
========== ==========
Basic Weighted Average Shares Outstanding ........ 2,757,542 3,400,254
Diluted Weighted Average Shares Outstanding ...... 2,943,398 3,650,571
Summary Balance Sheet
January 31, October 31,
2004 2003
------------ -----------
(Unaudited) (Audited)
Cash and Cash Equivalents ............................ $4,124,568 $2,683,896
Trade Accounts Receivable, Net ....................... 1,114,008 1,701,618
Inventories, net ..................................... 3,540,615 3,455,018
Other Current Assets ................................. 315,933 305,679
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Total Current Assets ....................... 9,095,124 8,146,211
Property, Plant & Equipment, Net ..................... 310,161 328,124
Other Assets ......................................... 111,401 133,755
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Total Assets ............................... $9,516,686 $8,608,090
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Total Current Liabilities ............................ $ 497,435 $ 509,992
Other Liabilities .................................... 40,000 40,000
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Total Liabilities .......................... 537,435 549,992
Total Stockholders' Equity ........................... 8,979,251 8,058,098
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Total Liabilities & Stockholders' Equity ... $9,516,686 $8,608,090
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