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' Fourth Quarter Net Jumps 45% to $0.12
Per Share On 10% Sales Gain
Fiscal 2004 Net Increases 81% on 15% Sales Gain
SAN DIEGO, CA, January 7, 2004 . . . RF INDUSTRIES, LTD.
(NASDAQ:RFIL) today announced that for the fourth quarter ended October
31, 2004, net income increased 45% to $437,000, or $0.12 per diluted
share, compared to $301,000, or $0.09 per diluted share, in the same
quarter last year. Sales increased 10% to a record $3,335,000, compared to
$3,045,000, in same quarter last year. The fourth quarter acquisition of
Aviel Electronics added approximately $190,000 and $36,000 to sales and
operating profits, respectively, for the period.
For the fiscal year ended October 31, 2004, net income increased 81%
to $1,288,000, or $0.34 per diluted share, compared to $711,000, or $0.19
per diluted share, for fiscal 2003. Sales increased 15% to a record
$11,333,000, compared to sales of $9,875,000 last year.
"RF Connector and cable assembly sales increased 18%, to $9,805,000,
and set the pace for our record fourth quarter and fiscal 2004 results.
Connector's performance reflects strong growth for primary wireless,
telecommunications and Wi-Fi markets. We are particularly pleased that
connector and cable sales to Aerospace, Government and Military customers,
ex-Aviel, increased 152%. This improved market penetration will help
support our cross-selling efforts between RF Connector and Aviel's
customer bases. Contributing to these record results, Bioconnect's sales
doubled to $686,000, and this business turned profitable in the fiscal
fourth quarter," said Howard Hill, president of RF Industries.
RFI's operating income, which improved to 19% of sales, compared to
12% of sales in fiscal 2003, benefited from a strong product mix at RF
Connector and improved profitability at Bioconnect. "With the integration
of Aviel Electronics' profitable line of specialized connector products
and opportunities for Neulink's NL6000 high-speed narrow band modem
products, we anticipate another record year in fiscal 2005," said Hill.
At October 31, 2004, RFI reported cash and cash equivalents of
$4,497,000, working capital of $9,760,000, a 18 to 1 current ratio, no
long-term debt and stockholders' equity of $10,519,000, or $3.51 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.
* * * * *
#3762
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
Three Months Ended Fiscal Year Ended
October 31, October 31,
------------------------------- -----------------------------------
2004 2003 2004 2003
--------------- -------------- ----------------- ---------------
(unaudited)
Net sales $ 3,335,090 $ 3,045,189 $ 11,333,266 $ 9,875,499
Cost of sales 1,562,040 1,664,516 5,539,945 5,079,307
--------------- --------------- ----------------- ---------------
Gross profit 1,773,050 1,380,673 5,793,321 4,796,192
--------------- --------------- ----------------- ---------------
Operating expenses:
Engineering 148,612 188,331 486,202 753,562
Selling and general 873,407 666,231 3,154,074 2,849,506
--------------- --------------- ----------------- ---------------
Total expenses 1,022,019 854,562 3,640,276 3,603,068
--------------- --------------- ----------------- ---------------
Operating income 751,031 526,111 2,153,045 1,193,124
Interest income 7,697 5,094 17,110 22,321
--------------- --------------- ----------------- ---------------
Income before provision for income taxes 758,728 531,205 2,170,155 1,215,445
Provision for income taxes 322,000 230,050 882,000 504,700
--------------- --------------- ----------------- ---------------
Net Income $ 436,728 $ 301,155 $ 1,288,155 $ 710,745
=============== =============== ================= ===============
Earnings per share - basic $ .15 $ .11 $ .44 $ .23
=============== =============== ================= ===============
Earnings per share - diluted $ .12 $ .09 $ .34 $ .19
=============== =============== ================= ===============
Basic weighted average shares outstanding 2,964,362 2,661,384 2,906,806 3,053,352
=============== =============== ================= ===============
Diluted weighted average shares outstanding 3,805,263 3,329,159 3,751,281 3,670,625
=============== =============== ================= ===============
Condensed Balance Sheets
October 31, October 31,
2004 2003
--------------- ---------------
Cash and investments $ 4,497,322 $ 2,683,896
Accounts receivable, net 1,622,059 1,701,618
Inventories 3,789,958 3,455,018
Other current assets 414,138 305,679
--------------- ----------------
Total current assets 10,323,477 8,146,211
Property plant & equipment, net 563,040 328,124
Other assets 248,229 133,755
--------------- ----------------
Total assets $11,134,746 $ 8,608,090
=============== ================
Current liabilities $ 563,056 $ 509,992
Deferred tax liabilities 53,000 40,000
Stockholders' equity 10,518,690 8,058,098
---------------- ----------------
Total liabilities & stockholders' equity $11,134,746 $ 8,608,090
=============== ================