By a News Reporter-Staff News Editor at Telecommunications Weekly -- RF Industries, Ltd. (NASDAQ: RFIL) announced results for the second fiscal quarter and six months ended April 30, 2014.
RF Industries reported net sales of $5.8 million in the second quarter of fiscal 2014, a decrease of 35% compared to net sales of $8.8 million in the second quarter of fiscal 2013. The Company saw a significant decrease in revenues from its Cables Unlimited subsidiary, where second quarter sales decreased by 61% to $1.7 million. Gross profit was $2.8 million in the second quarter of 2014 with gross margin of 48% as compared to gross profit of $4.0 million with gross margin of 45% in the second quarter of 2013. The Company reported operating income of $0.8 million in the second quarter of fiscal 2014 as compared to operating income of $1.8 million in the comparable prior year period. Income from continuing operations was $0.5 million or $0.06 per basic and $0.05 per diluted share in the second quarter of fiscal 2014 as compared to $1.3 million or $0.17 per basic and $0.15 per diluted share in the second quarter of 2013.
RF Industries reported six month net sales of $11.6 million for the first half of fiscal 2014, a decrease of 38% compared to net sales of $18.7 million in the first half of fiscal 2013. Gross profit decreased to $5.3 million with gross margin of 46% in the first six months of fiscal 2014 as compared to gross profit of $8.5 million and gross margin of 45% in the same prior year period. The Company reported operating income of $1.1 million in the first six months of fiscal 2014 as compared to operating income of $3.8 million in the first six months of 2013. Income from continuing operations for the first six months of fiscal 2014 was $0.7 million or $0.09 per basic and $0.08 per diluted share as compared to $2.7 million or $0.37 per basic and $0.33 per diluted share in the first half of fiscal 2013.
At April 30, 2014, RF Industries reported cash and cash equivalents of $13.4 million, no long term debt, and a current ratio of 15 to 1.
Howard Hill, Chief Executive Officer, commented, "As we anticipated and previously forecasted, we experienced a decrease in second quarter revenues, as compared to the prior year, largely related to a continued decline in revenues from Cables Unlimited as demand for the OptiFlex™ fiber optic cabling solution showed continued weakness. Because OptiFlex™ cables were specifically developed for wireless providers engaged in upgrading cell towers to 4G technologies, as those upgrades are completed, demand lessens. However, Cables Unlimited has a wide range of capabilities and is engaged in the development of innovative fiber connectivity solutions for existing and new customers and we are optimistic about the future contributions from that division.
"While second quarter revenue at our RF Connector and Cable Assembly division declined as compared to the second quarter of 2013, sequentially, revenues increased by approximately $0.3 million as compared to the first quarter of 2014. Gross margin improved year over year and sequentially, and we were able to decrease operating expenses by 7.4% compared to the second quarter of 2013. We are also pleased to have maintained profitability, which has been a corporate priority for 20 years. We remain enthusiastic about our long-term growth potential from both our existing business as well as new products in development.
"Consumer expectations for wireless connectivity continue to grow, with consumers expecting full connectivity in almost any location. Our focus on developing state-of-the-art, customized connectivity solutions allows our customers to address these demands and remain competitive in this space. It takes time to design and rollout new products, which can impact revenue growth but we are confident that we can capitalize on this rapidly growing market with our continued ability to provide innovative, customized connectivity solutions to the marketplace."
Mr. Hill further commented, "Our Company has continued to grow its strong cash position and has no debt, so 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 transactions." Conference Call Information RF Industries will host a conference call today, June 12 at 12:00 noon Eastern Time to discuss its fiscal second quarter and first six months of 2014 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.
Keywords for this news article include: RF Industries.
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