SYS-CON MEDIA Authors: Elizabeth White, Ed Featherston, Kevin Benedict, Adrian Bridgwater, Carmen Gonzalez

News Feed Item

RELM Wireless Reports Third Quarter & Nine Month 2012 Results

-Net Sales Increased 18.8% for Nine Months Ended September 30, 2012-

WEST MELBOURNE, Fla., Nov. 14, 2012 /PRNewswire/ -- RELM Wireless Corporation (NYSE MKT: RWC) today announced its financial and operating results for the quarter and nine months ended September 30, 2012.

For the quarter ended September 30, 2012, sales totaled approximately $8.1 million, compared with approximately $7.0 million for the third quarter last year.  Pretax income for the quarter ended September 30, 2012 was approximately $1.4 million, compared with approximately $939,000 for the third quarter last year.  The Company recognized income tax expense of approximately $508,000 for the third quarter 2012, compared with approximately $25,000 for the same quarter last year.  Income tax expense for the third quarter was largely non-cash due to the Company's deferred tax assets derived primarily from its net operating loss carryforwards.  Net income for the quarter ended September 30, 2012 was approximately $884,000, or $0.07 per diluted share, compared with approximately $914,000, or $0.07 per diluted share, for the same quarter last year.  

Gross profit margin for the third quarter 2012 was 49.7% of sales, versus 50.3% of sales for the same quarter last year.  Selling, general and administrative expenses totaled approximately $2.6 million (32.5% of sales) for the third quarter 2012, compared with $2.5 million (36.4% of sales) for the third quarter last year.

The Company had approximately $21.4 million in working capital as of September 30, 2012, of which $10.8 million was comprised of cash and trade receivables.  This compares with working capital of $19.5 million as of December 31, 2011, of which $6.8 million was comprised of cash and trade receivables. The Company had no balance outstanding under its revolving credit facility at September 30, 2012.

RELM President and Chief Executive Officer David Storey commented, "We were very pleased to follow-up our best second quarter in three years with solid financial and operating results for the third quarter and year-to-date.  Our sales increased for both the third quarter and nine-month periods compared with the same periods last year.  Also, for the nine month period, we realized pretax income of approximately $2.7 million; a noteworthy turnaround from a pretax loss of $603,000 for the same period last year.  We continued to benefit from a larger addressable market, made possible by our expansive KNG product line.  Consequently, we are making sales inroads beyond our federal legacy VHF customers.  A strong sales mix of new digital products enabled us to maintain combined gross profit margins of 49.7% for the third quarter.  Meanwhile, we continued to effectively manage our operating expenses.  These factors combined to yield our largest nine-month pretax income since 2009, and contribute to growing working capital and cash positions."

Mr. Storey continued, "We are encouraged by the momentum of the second and third quarters, which we believe establishes a foundation for consistency and growth moving forward."

For the nine months ended September 30, 2012, sales totaled approximately $21.8 million compared with approximately $18.4 million for the same period last year.  Pretax income for the nine months ended September 30, 2012 was approximately $2.7 million compared with a pretax loss of approximately $506,000 for the same period last year.  For the nine months ended September 30, 2012 the Company recognized income tax expense of approximately $996,000, compared with approximately $25,000 for the same period last year.  Income tax expense for the nine month period was largely non-cash due to the Company's deferred tax assets derived primarily from its net operating loss carryforwards.  Net income for the nine months ended September 30, 2012 totaled approximately $1.7 million, or $0.13 per diluted share, compared with a net loss of approximately $628,000, or $0.05 per share, for the same period last year.

Gross profit margins for the nine months ended September 30, 2012 were 47.4% of sales, versus 42.3% of sales for the same period last year.  Selling, general and administrative expenses for the nine months ended September 30, 2012 totaled approximately $7.6 million compared with approximately $8.3 million for the same period last year.

Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, Thursday, November 15, 2012.  Shareholders and other interested parties may participate in the conference call by dialing 877-317-6789 (international/local participants dial 412-317-6789) and asking to be connected to the "RELM Wireless Corporation Conference Call" a few minutes before 9:00 a.m. Eastern Time on November 15, 2012.  The call will also be webcast at http://www.relm.com.  Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet webcast.  An online archive of the webcast will be available on the Company's website for 30 days following the call at http://www.relm.com.

A replay of the conference call will be available one hour after the completion of the call until November 23, 2012, by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering the conference ID# 10019940. 

About APCO Project 25 (P25)

APCO Project 25 (P25), which requires interoperability among compliant equipment regardless of the manufacturer, was established by the Association of Public-Safety Communications Officials and is approved by the U.S. Department of Homeland Security.  The shift toward interoperability gained momentum as a result of significant communications failures in critical emergency situations.  RELM was one of the first manufacturers to develop P25-compliant technology.

About RELM Wireless Corporation

As an American Manufacturer for more than 60 years, RELM Wireless Corporation has produced high‑specification two‑way communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications.  Advances include a broad new line of leading digital two‑way radios compliant with APCO Project 25 specifications.  RELM's products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.relm.com or directly at 1‑800‑821‑2900.  The Company's common stock trades on the NYSE MKT market under the symbol "RWC".

This press release contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act Of 1995.  These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations.  These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors and risks include, among others, the following: changes or advances in technology; the success of our LMR product line; competition in the land mobile radio industry; general economic and business conditions, including federal, state and local government budget deficits and spending limitations; the availability, terms and deployment of capital; reliance on contract manufacturers and suppliers; heavy reliance on sales to agencies of the U.S. government; our ability to utilize deferred tax assets; retention of executive officers and key personnel; our ability to manage our growth; government regulation; business with manufacturers located in other countries; our inventory and debt levels; protection of our intellectual property rights; acts of war or terrorism; and any infringement claims. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in the Company's subsequent filings with the SEC.  These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 

RELM WIRELESS CORPORATION

Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Amounts)










Three Months Ended

Nine Months Ended


(Unaudited)

(Unaudited)


9/30/2012

9/30/2011

9/30/2012

9/30/2011






Sales, net

$     8,112

$     6,976

$    21,809

$    18,361






Expenses:





Cost of products

4,084

3,467

11,473

10,594

Selling, general and administrative expenses

2,633

2,541

7,598

8,273

Total expenses

6,717

6,008

19,071

18,867






Operating income (loss)

1,395

968

2,738

(506)






Other expense:





Net interest expense

0

(27)

(3)

(89)

Other expense

(3)

(2)

(10)

(8)






Income (loss) before income taxes

1,392

939

2,725

(603)






Income tax expense

(508)

(25)

(996)

(25)






Net income (loss)

$        884

$        914

$     1,729

$       (628)











Net earnings (loss) per share - basic

$       0.07

$       0.07

$       0.13

$      (0.05)

Net earnings (loss) per share - diluted

$       0.07

$       0.07

$       0.13

$      (0.05)






Weighted average common shares outstanding, basic

13,545

13,490

13,541

13,512

Weighted average common shares outstanding, diluted

13,549

13,736

13,544

13,512

 

RELM WIRELESS CORPORATION

Condensed Consolidated Balance Sheets

(In Thousands, Except Share Data) (Unaudited)







 September 30, 

 December 31, 



2012

2011





ASSETS



Current assets:




Cash & cash equivalents

$              6,232

$           2,693


Trade accounts receivable, net

4,609

4,155


Inventories, net

12,316

12,148


Deferred tax assets, net

2,520

3,458


Prepaid expenses & other current assets

937

526

Total current assets

26,614

22,980





Property, plant and equipment, net

1,193

1,158

Deferred tax assets, net

4,712

4,712

Capitalized software, net

2,277

2,778

Other assets

338

219





Total assets

$            35,134

$          31,847





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:




Accounts payable

$              2,551

$           1,756


Accrued compensation and related taxes

1,546

807


Accrued warranty expense

223

247


Accrued other expenses and other current liabilities

231

318


Note payable

35

-


Deferred revenue

593

385

Total current liabilities

5,179

3,513





Deferred revenue

112

265

Long-term debt

-

-





Commitments and contingencies







Stockholders' equity:




Preferred stock; $1.00 par value; 1,000,000 authorized




shares, none issued or outstanding.

-

-


Common stock; $0.60 par value; 20,000,000 authorized




shares; 13,545,482 and 13,519,323 issued and outstanding shares




at September 30, 2012 and December 31, 2011, respectively.

8,127

8,111


Additional paid-in capital

24,599

24,570


Accumulated deficit

(2,883)

(4,612)

Total stockholders' equity

29,843

28,069





Total liabilities and stockholders' equity

$            35,134

$          31,847

 

 

SOURCE RELM Wireless Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Zerto has announced the general availability of Zerto Virtual Replication 4.0 (ZVR 4.0). The company’s enterprise-class business continuity/disaster recovery (BC/DR) software is the first to protect, replicate, and migrate data between VMware vSphere and Microsoft Hyper-V hypervisors, as well as across private, hybrid and public cloud environments including Amazon Web Services (AWS). ZVR 4.0 also allows channel partners and cloud service providers to expand their offerings to grow revenues by pr...
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
This talk focuses on the application of DevOps fundamentals to include network infrastructure. It draws from real deployment case studies on the extension of today's paradigms to address the challenges of the network infrastructures' ability to seamlessly and cohesively integrate into agile workflows. In this session at DevOps Summit, Arista Networks will focus on configuration management using automation with a nod to future work necessary to include telemetry and ephemeral state information....
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
It's time to put the "Thing" back in IoT. Whether it’s drones, robots, self-driving cars, ... There are multiple incredible examples of the power of IoT nowadays that are shadowed by announcements of yet another twist on statistics, databases, .... Sorry, I meant, Big Data(TM), tiered storage(TM), complex systems(TM), smart nations(TM), .... In his session at WebRTC Summit, Dr Alex Gouaillard, CTO and Co-Founder of Temasys, will discuss the concrete, cool, examples of IoT already happening tod...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
SYS-CON Events announced today that CenturyLink, Inc., a leader in the network services market, has been named “Platinum Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. CenturyLink is the third largest telecommunications company in the United States and is recognized as a leader in the network services market by technology industry analyst firms. The company is a global leader in cloud infrastructure and ...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...