RF INDUSTRIES, LTD. For Immediate Release
RF Connectors/Neulink Telemetry/Bioconnect Medical
Investor Contact: Company Contact:
Neil Berkman Associates Howard Hill, President
310) 277 - 5162 (858) 549-6340
info@berkmanassociates.com rfi@rfindustries.com
RF Industries' Third Quarter Net Income Jumps 34%
to $0.07 Per Share On 17% Sales Gain
Nine Months Net Income More Than Doubles On 17% Increase in Sales
SAN DIEGO, CALIFORNIA, September 1, 2004 . . . RF INDUSTRIES, LTD.,
(NASDAQ:RFIL) today announced that net income for the third quarter of
fiscal 2004 ended July 31, 2004 increased 34% to $266,116, or $0.07 per
diluted share, compared to $198,278, or 0.06 per diluted share, in the
same quarter last year. Sales increased 17% to $2,727,000 from $2,337,000
in the same quarter last year.
For the nine months ended July 31, 2004, net income increased 108% to
$851,437, or $0.23 per diluted share, compared to $409,590, or $0.11 per
diluted share, in same period last year. Sales increased 17% to $7,998,000
compared to $6,830,000 in the same period last year.
"Continuing strong demand for Wi-Fi related connectors and cable
products contributed to RFI's 17% sales gains for the quarter and
year-to-date. Connector sales of nearly $8,000,000 for the nine
months-to-date benefited from Bioconnect product sales, which increased to
$371,000 during the same period. The acquisition of Aviel Electronics, in
the fourth quarter of fiscal 2004, combined with higher Bioconnect,
coaxial connector and cable product sales, should lead to record revenue
in the current fiscal year," said Howard Hill, president of RF Industries.
Hill noted that the Company's recently announced acquisition of Aviel
Electronics, a privately held Las Vegas, Nevada-based manufacturer and
marketer of microwave and radio frequency (RF) connectors, is expected to
enhance RFI's growing line of custom RF coaxial connectors. Aviel's annual
sales of connector and RF products are approximately $1,000,000.
"Neulink continues to meet with and demonstrate its NL6000
narrow-band high-speed wireless modems to customers with industrial data
collection and national defense applications. Despite lower sales at
Neulink, we believe this product, designed to meet new FCC regulations in
the coming year, will contribute to increasing sales at Neulink in fiscal
2005," he said.
At July 31, 2004, RFI reported cash and cash equivalents of
$4,518,012, working capital of $9,470,818, a 22 to 1 current ratio, no
long-term debt and stockholders' equity of $9,905,238, or $3.31 per share.
About RF Industries
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.
Connector's Bioconnect Medical cable operation designs, manufactures and
distributes specialized electrical cabling and interconnect products to
the medical monitoring market. The Company's Neulink business designs and
markets wireless digital data transmission products for industrial
monitoring, wide area networks, GPS tracking and locations systems.
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.
(tables attached)
#3659
7610 Miramar Road, San Diego, CA 92126-4202 (858) 549-6340 (800) 233-1728
FAX (858) 549-6345
E-mail: rfi@rfindustries.com Internet: www.rfindustries.com
RF INDUSTRIES, LTD.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
----------------------- ------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Net sales ............................ $2,727,386 $2,337,410 $7,998,176 $6,830,310
Cost of sales ........................ 1,377,367 1,151,146 3,977,895 3,414,791
---------- ---------- ---------- ----------
Gross profit .................... 1,350,019 1,186,264 4,020,281 3,415,519
---------- ---------- ---------- ----------
Operating expenses:
Engineering ........................ 120,556 178,933 337,590 565,231
Selling and general ................ 794,953 684,425 2,280,667 2,183,275
---------- ---------- ---------- ----------
Total operating expense ......... 915,509 863,358 2,618,257 2,748,506
---------- ---------- ---------- ----------
Operating income ..................... 434,510 322,906 1,402,024 667,013
Other income -- interest ............. 2,606 1,122 9,413 17,227
---------- ---------- ---------- ----------
Income before provision for income tax 437,116 324,028 1,411,437 684,240
Provision for income tax ............. 171,000 125,750 560,000 274,650
---------- ---------- ---------- ----------
Net income ........................... $ 266,116 $ 198,278 $ 851,437 $ 409,590
========== ========== ========== ==========
Basic earnings per share ............. $ 0.09 $ 0.07 $ 0.30 $ 0.13
========== ========== ========== ==========
Diluted earnings per share ........... $ 0.07 $ 0.06 $ 0.23 $ 0.11
========== ========== ========== ==========
Weighted average shares outstanding
Basic .............................. 2,970,714 2,768,571 2,881,118 3,185,864
========== ========== ========== ==========
Diluted ............................ 3,779,692 3,326,677 3,655,984 3,580,094
========== ========== ========== ==========
RF INDUSTRIES, LTD.
CONDENSED BALANCE SHEETS
July 31, October 31,
2004 2003
------------ -----------
ASSETS (Unaudited)
--------
Current Assets
Cash and cash equivalents ............................... $ 4,518,012 $ 2,683,896
Trade accounts receivable, net .......................... 1,277,385 1,701,618
Notes receivable ........................................ 12,000 12,000
Inventories ............................................. 3,791,983 3,455,018
Other current assets .................................... 182,736 158,079
Deferred tax assets ..................................... 135,600 135,600
---------- ----------
Total Current Assets ................................. 9,917,716 8,146,211
Property, Equipment and tooling, net ...................... 363,519 328,124
Notes receivable from related parties ..................... 26,730 49,584
Note receivable from stockholder .......................... 70,000 70,000
Other assets .............................................. 14,171 14,171
---------- ----------
Total Assets ......................................... $10,392,136 $ 8,608,090
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
Current liabilities
Accounts payable ....................................... $ 184,511 $ 181,637
Accrued expenses ....................................... 262,387 328,355
---------- ----------
Total current liabilities ........................... 446,898 509,992
Deferred tax liabilities ................................. 40,000 40,000
---------- ----------
Total Liabilities ................................... 486,898 549,992
---------- ----------
Commitments and Contingencies
Stockholders' Equity
Common stock, authorized 10,000,000 shares of
$0.01 par value; 3,002,607 and 2,692,683 shares issued 30,026 26,927
Additional paid-in capital ............................. 3,410,637 2,418,033
Retained earnings ...................................... 6,485,242 5,633,805
Treasury stock, at cost 6,000 shares ................... (20,667) (20,667)
----------- ----------
Total stockholders' equity .......................... 9,905,238 8,058,098
----------- ----------
Total liabilities and stockholders' equity .......... $ 10,392,136 $ 8,608,090
=========== ===========