RF INDUSTRIES, LTD. For Immediate Release
RF Connectors/Neulink
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' Second Quarter Sales Increase 30%;
Net Income is $0.10 Per Share Vs $0.02 Per Share
SAN DIEGO, CA., -- June 7, 2004 -- RF INDUSTRIES, LTD., (NASDAQ:RFIL)
announced today that net income for the three months ended April 30, 2004
increased 344% to $351,000, or $0.10 per diluted share, compared to $79,000, or
$0.02 per diluted share, in the same quarter last year. Net sales increased 30%
to a second quarter record $2,821,000, compared to $2,166,000 in the same period
last year.
For the first six months ended April 30, 2004, net income increased 174% to
$585,000, or $0.16 per diluted share, compared to $214,000, or $.06 per diluted
share, in the first half of fiscal 2003. Net sales for the first half increased
17% to $5,271,000 compared to $4,493,000, in the same period year.
Howard Hill, president and CEO of RF Industries, said, "Record second
quarter sales reflect a 30% sales increase in coaxial connectors and cable
assembly products, driven by the continuing recovery of the telecom industry,
rapidly expanding Wi-Fi applications and increased penetration of military and
defense markets."
"Operating expenses continued to decline, in-line with tighter cost
controls and reduced overhead expenses associated with the Bioconnect cable
products. Consequently, operating income for the second quarter and first half
of fiscal 2004 increased 344% and 179%, respectively. We believe that increased
sales of coaxial connectors and cables, combined with Bioconnect's new products
and expanded distribution, will lead to improved sales and profitability in the
second half of fiscal 2004."
At April 30, 2004, RFI reported cash and cash equivalents $4,348,000,
working capital of $9,081,000, a 11 to 1 current ratio, no long-term debt and
stockholders' equity of $9,541,000, or $3.23 per share.
RF Industries' Connector division 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. Bioconnect 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, a decline in the demand for wireless products, increased
competition, the loss of any major clients, a disruption in the Company's
manufacturing and supply arrangements, or other uncertainties detailed in the
Company's Securities and Exchange Commission filings.
* * * * *
RF INDUSTRIES, LTD.
Condensed Statements of Income
(in thousands except share and per share amounts)(unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
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2004 2003 2004 2003
-------- -------- -------- -------
Net sales ........................................ $ 2,821 $ 2,166 $ 5,271 $ 4,493
Cost of sales .................................... 1,396 1,072 2,601 2,264
------- -------- -------- --------
Gross profit ................................ 1,425 1,094 2,670 2,229
Operating expenses:
Engineering .................................... 102 188 217 386
Selling and general ............................ 726 772 1,486 1,496
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Total expenses .............................. 828 960 1,703 1,882
Operating income ................................. 597 134 967 347
------- -------- -------- --------
Interest income .................................. 1 5 7 16
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Income before provision for income tax ........... 598 139 974 363
Provision for state & federal income tax ......... 247 60 389 149
------- -------- -------- --------
Net income .................................. $ 351 $ 79 $ 585 $ 214
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Earnings per share -Basic ....................... $ 0.12 $ 0.02 $ 0.21 $ 0.06
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Earnings per share - Diluted ..................... $ 0.10 $ 0.02 $ 0.16 $ 0.06
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Weighted average shares outstanding - Basic ...... 2,882,408 3,398,014 2,815,294 3,399,146
Weighted average shares outstanding - Diluted .... 3,656,887 3,709,455 3,595,492 3,680,993
Summary Balance Sheet
April 30, October 31,
2004 2003
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(Unaudited) (Audited)
Cash and Cash Equivalents ........................ $ 4,348,221 $ 2,683,896
Trade Accounts Receivable, Net ................... 1,528,813 1,701,618
Inventories, net ................................. 3,780,701 3,455,018
Other Current Assets ............................. 330,010 305,679
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Total Current Assets ...................... 9,990,745 8,146,211
Property, Plant & Equipment, Net ................. 389,032 328,124
Other Assets ..................................... 110,901 133,755
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Total Assets .............................. $10,490,678 $ 8,608,090
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Total Current Liabilities ........................ $ 909,402 $ 509,992
Other Liabilities ................................ 40,000 40,000
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Total Liabilities ......................... 949,402 549,992
Total Stockholders' Equity ....................... 9,541,276 8,058,098
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Total Liabilities & Stockholders' Equity... $10,490,678 $ 8,608,090
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