RF Industries Second Quarter Net Income Jumps 54%
to $0.10 Per Share; Net Sales Increase 7%
SAN DIEGO, CA, June 8, 2010 . . . RF INDUSTRIES, LTD. (NASDAQ:RFIL) today
announced results for the fiscal second quarter and six months ended April 30, 2010.
Second Quarter Review
Net income increased 54% to $330,000, or $0.10 per diluted share, compared to $215,000, or $0.07
per diluted share, in the second quarter last year. Net sales increased 7% to $3,778,000 compared to
$3,525,000 in the same period last year.
"RFI's gross profit improved to 52% of sales, from 49% of sales in second quarter last year, on the
back of improved profitability at the Bioconnect and RF Connector and Cable Assembly operations. Total
engineering, general and administrative expenses actually declined, compared to the same quarter last year,
and represented 36% of sales, compared to 41% of sales in the same period last year. Higher margins and
lower operating expenses combined to double RFI's operating income to $579,000 from $281,000 in the
same period last year," said Howard Hill, RFI's president and CEO.
Connector and Cable Assembly segment sales increased 11% for the quarter, raising segment gross
profit by 18% and improving gross margin to 55% of sales from 52% of sales in the same period last
year. Gross margin improvements primarily were driven by increased profitability at RFI's Aviel and
Oddcables.com business operations, which helped raise segment gross margin to 55% of sales from 52%
of sales in the same quarter last year. Tight cost controls and lower operating expenses helped improve
segment operating income by 53%, to $675,000 compared to $442,000 in the same period last year.
Sales increased 40% at Bioconnect to $425,000 from $303,000 in the second quarter last year, raising
gross margin to 39% of sales from 22% of sales and increasing operating income to $95,000, compared to
an operating loss in the same period last year. "We believe that Bioconnect's new products and sales gains