RF INDUSTRIES, LTD. For Immediate Release
RF Connectors/Aviel/Neulink/Bioconnect
Investor Contact: Company Contact:
Neil Berkman Associates Howard Hill, President
(310) 277 - 5162 (858) 549-6340
info@berkmanassociates.com rfi@rfindustries.com
RF Industries' First Quarter Sales Increase 17%
SAN DIEGO, CA, March 17, 2005 . . . RF INDUSTRIES, LTD. (NASDAQ:RFIL)
today announced that sales for the first quarter ended January 31, 2005
increased 17% to $2,868,000, compared to sales of $2,449,000 in the same
quarter last year. Net income was $206,000, or $0.05 per diluted share,
compared to net income of $234,000, or $0.07 per diluted share in the
first quarter last year. For the first quarter of fiscal 2005, there were
3,823,195 diluted weighted average common shares outstanding, compared to
3,520,397 diluted weighted average common shares outstanding in the same
period last year.
"Sales of RF Coaxial and cable products increased 13% to $2,434,000,
a very good performance for our seasonally weakest quarter. Despite
seasonal weakness at Neulink, Bioconnect and Aviel, gross profits
increased 18%, a faster rate of increase than the overall 17% gain in
sales," said Howard Hill, RFI's president.
"Net income for the quarter was affected by approximately $80,000 of
additional expenses for compliance with the Sarbanes-Oxley Act. These
compliance costs, which will peak in the current quarter ending April 30,
2005, are anticipated to reach approximately $300,000 in fiscal 2005 and
then decline somewhat in future years. We also incurred approximately
$40,000 in design and engineering expenses for the redesign of Neulink's
NL6000 wireless modem to reduce manufacturing costs and improve component
availability," said Hill.
At January 31, 2005, RFI reported cash and cash equivalents of
$4,371,000, working capital of $10,056,000, a 15 to 1 current ratio, no
long-term debt and stockholders' equity of $10,785,000, or $3.55 per
share.
RFI's RF Connectors 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. Aviel Electronics
provides custom microwave, and RF Connector solutions to aerospace, OEM
and Government agencies. Neulink designs and markets wireless digital data
transmission products for industrial monitoring, wide area networks, GPS
tracking and locations systems. RFI's Bioconnect operation 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, uncertainties detailed in the Company's
Securities and Exchange Commission filings.
* * * * *
#3826
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.
SUMMARY STATEMENTS OF INCOME
(unaudited)
Three Months Ended
January 31,
--------------------------
2005 2004
------------ ------------
Net Sales ......................................... $2,868,102 $2,449,359
Cost of Sales ..................................... 1,401,590 1,204,475
---------- ----------
Gross Profit ................................. 1,466,512 1,244,884
Operating Expenses:
Engineering ..................................... 153,823 115,382
Selling, General & Administrative ............... 991,072 759,365
---------- ----------
Total Operating Expenses ..................... 1,144,895 874,747
---------- ----------
Operating Income .................................. 321,617 370,137
Interest income ................................... 16,468 5,733
---------- ----------
Income Before Provision for Income Taxes .......... 338,085 375,870
Provision for Income Taxes ........................ 131,600 142,000
---------- ----------
Net Income ........................................ $ 206,485 $ 233,870
========== ==========
Basic Earnings per Share .......................... $ 0.07 $ 0.08
========== ==========
Diluted Earnings per Share ........................ $ 0.05 $ 0.07
========== ==========
Basic Weighted Average Shares Outstanding ......... 3,008,765 2,757,542
Diluted Weighted Average Shares Outstanding ....... 3,823,195 3,520,397
.
Summary Balance Sheet
January 31, October 31,
2005 2004
------------ -----------
(Unaudited)
Cash and Cash Equivalents ........................ $ 4,370,511 $ 4,497,322
Trade Accounts Receivable, net ................... 1,529,136 1,516,035
Inventories, net ................................. 4,278,952 3,789,958
Other Current Assets ............................. 608,580 456,138
----------- -----------
Total Current Assets ................... 10,787,179 10,259,453
Equipment and Furnishings, net ................... 525,600 563,040
Other Assets ..................................... 256,149 248,229
----------- -----------
Total Assets ........................... $11,568,928 $11,070,722
=========== ===========
Total Current Liabilities ........................ $ 731,344 $ 563,056
Deferred Tax Liabilities ......................... 53,000 53,000
----------- -----------
Total Liabilities ...................... 784,344 616,056
Total Stockholders' Equity ....................... 10,784,584 10,454,666
----------- -----------
Total Liabilities & Stockholders' Equity $11,568,928 $11,070,722
=========== ===========