RF Industries Ltd. announced record quarterly sales and consolidated net income for the fourth quarter and fiscal year ended October 31, 2012. For the fourth quarter ended October 31, 2012, the company reported revenues of $10,529,000, an increase of $4,575,000, or 77%, as compared to $5,954,000 in the same quarter of fiscal 2011. Consolidated net income for the quarter was $1,158,000, or $0.17 per basic and $0.15 per diluted share, compared to a consolidated net loss of $50 thousand, or $0.01 net loss per basic and diluted share in the fourth quarter of 2011.
Fourth Quarter Fiscal 2012 Results
“Growth in the quarter was led by our Cables Unlimited division and by the RadioMobile division of our RF Wireless segment. During 2012, Cables Unlimited introduced its newly designed OptiFlex™ Hybrid Custom Fiber Optic and DC Power Cabling solution for wireless towers and this new product line has been very well received in the market. As we begin 2013, we continue to see strong demand for this product. Furthermore, our RF Wireless segment saw particularly strong growth in the fourth quarter due to deliveries related to a previously reported $2.6 million order from the Los Angeles County Fire Department. Deliveries on this order are expected to continue into the first two quarters of fiscal 2013,” said Howard Hill, RFI’s CEO.
Sales at Cables Unlimited were $4,905,000 for the fourth quarter compared to $1,734,000 in the fourth quarter of fiscal 2011. Cables Unlimited reported gross margin of 33% compared to 22% in the same quarter last year. Operating income for Cables Unlimited in the fourth quarter was $1,069,000, or 22% of sales, compared to an operating loss of $66,000 in the fourth quarter of last year.
RF Connector and Cable Assembly segment sales increased 2% to $3,785,000 in the quarter with gross margin of 52% as compared to sales of $3,724,000 with gross margin of 53% in the same quarter last year. Operating income increased to $445,000, or 12% of sales, from $181,000, or 5% of sales.
Fourth quarter sales at Bioconnect increased 70% to a record $586,000 with gross margin of 35% as compared to fiscal 2011 fourth quarter sales of $345,000. Higher gross margin and lower SG&A drove operating income to $97,000 or 17% of sales, compared to $12,000 in the fourth quarter last year.
As a result of its $2.6 million order with the Los Angeles County Fire Department, RF Wireless sales for the quarter grew 829% to $1,253,000 compared to $151,000 in the fourth quarter of fiscal 2011. Gross margin for the fourth quarter was 45% of sales, compared to 39% of sales last year. Operating income at RF Wireless for the quarter was $269,000 compared to a loss of $160,000 in the fourth quarter last year.
Fiscal 2012 Results
Mr. Hill stated, “2012 was an exceptional year for the Company, with strong performance from all of our divisions, with each division growing and contributing to our 19th consecutive year of profitability.”
For the fiscal year ended October 31, 2012, revenues increased 56% to $30,233,000 as compared to revenues of $19,434,000 in fiscal 2011. Consolidated net income was $2,612,000 or $0.38 per basic and $0.34 per diluted share as compared to consolidated net income of $773,000 or $0.12 per basic and $0.11 per diluted share in the prior year.
Sales at Cables Unlimited were $10,913,000 for fiscal 2012 compared to $2,644,000 in the four and one half month period after the acquisition of Cables Unlimited on June 15, 2011. Cables Unlimited reported gross margin of 33% compared to 27% last year. Operating income for Cables Unlimited in fiscal 2012 was $1,720,000, or 16% of sales, compared to $22,000, or 1% of sales last year.
RF Connector and Cable Assembly sales increased 2% to $14,176,000 for the year with gross margin of 52% as compared to sales of $13,868,000 in fiscal 2011. Operating income increased to $1,599,000, or 11% of sales, from $1,317,000, or 10% of sales last year.
Fiscal 2012 sales at Bioconnect increased 21% to a record $2,598,000 with gross margin of 41% as compared to fiscal 2011 sales of $2,154,000 and gross margin of 37%. Higher gross margin and lower SG&A drove operating income to $653,000, or 25% of sales, compared to $439,000, or 20% of sales last year.
RF Wireless sales more than tripled to $2,545,000 compared to $769,000 in fiscal 2011. RF Wireless reported its first profitable year with $127,000 in operating income compared to an operating loss of $669,000 last year.
At October 31, 2012 the Company reported cash and cash equivalents of $5,492,000 and working capital of $14,904,000. Stockholders’ equity was $20,230,000, or $2.90 per outstanding share.
“We believe our solid balance sheet provides a firm foundation for future growth, and we are particularly encouraged by the first two months of Q1 2013 which point to strong growth and profitability for the quarter,” concluded Mr.Hill.
Conference Call Information
A webcast of the conference call can be accessed from the Investor Information page at http://www.rfindustries.com .
