Click here to close now.

SYS-CON MEDIA Authors: Elizabeth White, XebiaLabs Blog, Liz McMillan, David Sprott, Carmen Gonzalez

News Feed Item

RF Industries Reports Fourth Quarter and Year End Results; Reiterates Guidance for First Quarter of Fiscal 2014

RF Industries, Ltd. (NASDAQ:RFIL) announced results for the fourth quarter and fiscal year ended October 31, 2013.

Highlights:

  • Annual revenues increased 32% to $36.6 million
  • Divested unprofitable RF Neulink and RadioMobile divisions
  • Balance sheet remains strong with $11.9 million in cash and no debt

RF Industries reported net sales of $36.6 million for fiscal 2013, an increase of 32% compared to net sales of $27.7 million in fiscal 2012. Most of the increase in net sales is due to $19.3 million in sales from Cables Unlimited for the year ended October 31, 2013. Additionally, the Company recorded increased sales for fiscal 2013 at its Medical Cabling and Interconnector segment as compared to fiscal 2012. In fiscal 2013, the Company reported operating income of $6.8 million, a 67% increase compared to operating income of $4.1 million in fiscal 2012. Income from continuing operations in fiscal 2013 increased 90% to $5.0 million or $0.65 per basic and $0.59 per diluted share as compared to income from continuing operations of $2.6 million or $0.38 per basic and $0.34 per diluted share in the prior year period.

During fiscal 2013, the Company sold its RF Neulink and RadioMobile divisions and the operating results of these divisions are reported as discontinued operations for all periods presented. Loss from discontinued operations for the year ended October 31, 2013, net of tax, was $1.1 million compared to income from discontinued operations, net of tax, of $4,000 in the prior year period. Net income for the year ended October 31, 2013 after accounting for the $1.1 million net loss from discontinued operations was $3.8 million, or $0.50 per basic and $0.46 per diluted share, compared to $2.6 million or $0.38 per basic and $0.34 per diluted share in fiscal 2012.

For the fourth quarter ended October 31, 2013, the Company reported net sales of $8.4 million, a decrease of 9%, compared to $9.3 million in the same quarter of fiscal 2012. The Company reported operating income of $1.2 million, a decrease of 28% compared to operating income of $1.7 million in the fourth quarter of the previous year. Income from continuing operations for the fourth quarter of fiscal 2013 was $0.9 million or $0.12 per basic and $0.11 per diluted share, as compared to $0.9 million or $0.13 per basic and $0.12 per diluted share in the fourth quarter of fiscal 2012.

During the fourth quarter of fiscal 2013 the Company sold its RadioMobile division, resulting in a reported loss from discontinued operations, net of tax, of $0.7 million. In the fourth quarter of fiscal 2012, the Company reported income from discontinued operations, net of tax, of $0.2 million. Net income for the fourth quarter fiscal 2013, after accounting for the $0.7 million net loss from discontinued operations, was $0.3 million or $0.03 per basic and diluted share, compared to $1.2 million, or $0.17 per basic and $0.15 per diluted share in the fourth quarter of 2012.

Howard Hill, Chief Executive Officer, commented, “2013 was a year of growth and change for our company. We are pleased to have achieved solid revenue growth in fiscal 2013, which reflected increased demand for our offerings in each of our continuing segments throughout most of the year. We saw particularly strong performance in fiscal 2013 from our Cables Unlimited segment due to the strong demand for its OptiFlex™ fiber optic cabling solution for cell towers. Cables Unlimited contributed 90% of our overall revenue growth. As we announced on January 3, 2014, since mid-October 2013, sales for OptiFlex™ have substantially slowed primarily due to a decline in the demand for cabling systems and increased competitive pressure. Although we expect that consolidated revenues for the first quarter of fiscal 2014 will be in the range of $5.5 million to $6.5 million compared to our record first quarter fiscal 2013 revenues of $9.9 million, we nevertheless expect that the company will continue to achieve moderate profitability in the first quarter of 2014. The success of the OptiFlex™ solution has further established the division as a prominent designer and developer of fiber connectivity solutions, and has led our customers to seek additional connectivity solutions from that division.”

“Our focus is on growing our custom interconnect solutions to the wireless infrastructure industry and during the last twelve months, we sold RF Neulink and RadioMobile, the businesses which comprised our RF Wireless division. Neither business had performed to our expectations during the past few years and in general, the wireless segment operated at a loss. The divestiture of the RF Wireless segment allows us to concentrate our efforts and put our full resources behind our core competencies. Demand for wireless connectivity is growing at a rapid pace and our goal is to develop state-of-the-art, customized connectivity solutions for new and existing customers that position them to remain competitive in this space.”

Mr. Hill further commented, “The Company has a strong cash position and no debt, and the cash generated from operations allows us to return capital to our shareholders through dividends such as the one we recently announced, and/or stock repurchases, while also allowing us to consider strategic acquisitions.”

Conference Call Information

RF Industries will host a conference call today, January 17 at 12:00 noon Eastern Time to discuss its fiscal fourth quarter and 2013 year end results. To participate, callers should dial (877) 407-9210 and international callers may dial (201) 689-8049. A simultaneous webcast of the conference call can be accessed from the Investor Information page at www.rfindustries.com.

A replay of the call will be available until February 17, 2014 and may be accessed by dialing (877) 660-6853. International callers should call (201) 612-7415. Callers should use conference i.d. 13574029.

About RF Industries

RF Industries is a leading designer and manufacturer of innovative interconnect products and complex cable assemblies across diversified, high growth markets including wireless carriers & infrastructure, medical and industrial. The Company’s products include RF connectors, coaxial and custom cable assemblies, fiber optic cables, wiring harnesses and medical wiring. The Company’s leading edge connectivity solutions are used throughout the growing and evolving wireless infrastructure. The Company has reported 20 consecutive years of profitability and is headquartered in San Diego, California with operations in Las Vegas, Nevada and Yaphank, New York. Please visit the RF Industries website at www.rfindustries.com.

Forward-Looking Statements

This press release contains forward-looking statements with respect to future events which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: changes in the telecommunications industry; the operations of the Cables Unlimited division; and the Company’s reliance on certain distributors for a significant portion of anticipated revenues. Further discussion of these and other potential risk factors may be found in the Company’s public filings with the Securities and Exchange Commission (www.sec.gov) including its Form 10-K. All forward-looking statements are based upon information available to the Company on the date they are published and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.

       

RF INDUSTRIES, LTD. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

 

Three Months Ended October 31,

Year Ended October 31,

2013 2012 2013 2012
 
Net sales $ 8,405 $ 9,276 $ 36,625 $ 27,687
Cost of sales   4,904     5,481   20,660     15,554
 
Gross profit   3,501     3,795   15,965     12,133
 
Operating expenses:
Engineering 484 298 1,377 1,134
Selling and general   1,821     1,843   7,810     6,930
Totals   2,305     2,141   9,187     8,064
 
Operating income 1,196 1,654 6,778 4,069
 
Other income – interest/dividends   6     2   20     38
 
Income from continuing operations before provision for income taxes 1,202 1,656 6,798 4,107
Provision for income taxes   255     722   1,830     1,499
 
Income from continuing operations 947 934 4,968 2,608
 
Income (loss) from discontinued operations, net of tax   (696 )   225   (1,140 )   4
 
Consolidated net income 251 1,159 3,828 2,612
 
Net income attributable to noncontrolling interest   -     -   -     2
 
Net income attributable to RF Industries, Ltd. and Subsidiary $ 251   $ 1,159 $ 3,828   $ 2,610
 
Earnings per share
Basic
Continuing operations $ 0.12 $ 0.13 $ 0.65 $ 0.38
Discontinued operations   (0.09 )   0.03   (0.15 )   -
Net income per share $ 0.03   $ 0.17 $ 0.50   $ 0.38
 
Earnings per share
Diluted
Continuing operations $ 0.11 $ 0.12 $ 0.59 $ 0.34
Discontinued operations   (0.08 )   0.03   (0.13 )   -
Net income per share $ 0.03   $ 0.15 $ 0.46   $ 0.34
 
Weighted average shares outstanding
Basic   7,920,628     6,936,185   7,600,029     6,908,890
Diluted   8,666,164     7,798,640   8,455,631     7,680,743
 

   

RF INDUSTRIES, LTD. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

OCTOBER 31, 2013 AND 2012

(In thousands, except share and per share amounts)

 

 

2013 2012
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 11,881 $ 5,492
Trade accounts receivable, net of allowance for doubtful accounts of $103 and $96 3,160 5,167
Inventories 5,995 6,984
Other current assets 1,552 640
Deferred tax assets   322   761

TOTAL CURRENT ASSETS

  22,910   19,044
 
Property and equipment:
Equipment and tooling 2,500 2,349

Furniture and office equipment

  759   655
3,259 3,004
Less accumulated depreciation   2,206   1,800
Total property and equipment 1,053 1,204
 
Goodwill 3,076 3,076
Amortizable intangible assets, net 1,407 1,627
Non-amortizable intangible assets 410 410
Note receivable from stockholder 67 67
Other assets   30   35
TOTAL ASSETS $ 28,953 $ 25,463
 
   

RF INDUSTRIES, LTD. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

OCTOBER 31, 2013 AND 2012

(In thousands, except share and per share amounts)

 
2013 2012
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES
Accounts payable $ 792 $ 1,429
Accrued expenses 1,741 2,102
Customer deposit 51 -
Income taxes payable   -   610
TOTAL CURRENT LIABILITIES 2,584 4,141
 
Deferred tax liabilities 950 1,077
Other long-term liabilities   -   15
TOTAL LIABILITIES   3,534   5,233
 
COMMITMENTS AND CONTINGENCIES
 
STOCKHOLDERS’ EQUITY
Common stock - authorized 20,000,000 shares of $0.01 par value; 8,075,124 and 6,978,374 shares issued and outstanding at October 31, 2013 and 2012, respectively 81 70
Additional paid-in capital 15,706 12,007
Retained earnings   9,632   8,153
TOTAL STOCKHOLDERS' EQUITY   25,419   20,230
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,953 $ 25,463
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold 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. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
SYS-CON Events announced today that Aria Systems, the leading innovator in recurring revenue, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Proven by the world’s most demanding enterprises, including AAA NCNU, Constant Contact, Falck, Hootsuite, Pitney Bowes, Telekom Denmark, and VMware, Aria helps enterprises grow their recurring revenue businesses. With Aria’s end-to-end active monetization platform, g...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...