EX-99.1 2 v035479_ex99-1.htm
 
RF INDUSTRIES, LTD.
RF Connectors/Aviel/Neulink/Bioconnect
Investor Contact:
Neil Berkman Associates
(310) 277 - 5162
info@berkmanassociates.com
For Immediate Release
 
Company Contact:
Howard Hill, CEO
(858) 549-6340
 rfi@rfindustries.com
 
RF Industries' Fiscal 2005 Sales Increase 17%
to a Record $13,152,000

SAN DIEGO, CA, February 13, 2006 . . . RF INDUSTRIES, LTD. (NASDAQ:RFIL) today announced record sales for the quarter and fiscal year ended October 31, 2005.
 
For the fourth quarter ended October 31, 2005, sales increased 6% to a record $3,429,000, compared to sales of $3,229,000 in the fourth quarter of fiscal 2004. The net loss for the quarter was $101,000, or $0.04 per share, compared to net income of $373,000, or $0.10 per diluted share, in the same period last year. The fourth quarter net loss resulted from additional selling and general expenses of $551,000 related to the purchase and retirement of options to purchase 100,000 shares of common stock held by Howard Hill, RFI's Chief Executive Officer. The net effect of this stock option purchase reduced fourth quarter after-tax income by approximately $0.08 per share. The acquisition of Worswick Industries in the fourth quarter increased sales approximately $74,000 for the period.
 
For the fiscal year ended October 31, 2005, sales increased 17% to a record $13,152,000, compared to sales of $11,227,000 in fiscal 2004. Net income was $445,000, or $0.12 per diluted share, compared to $1,224,000, or $0.33 per diluted share, for fiscal 2004. Results for fiscal 2005 include expenses of $551,000 for the purchase of stock options and expenses of approximately $400,000 for the implementation of controls and procedures for compliance with the Sarbanes-Oxley Act. Since the majority of the investment in Sarbanes Oxley compliance has been made, RFI does not anticipate significant compliance expenditures in the future.
 
"RF Connector and Cable Assembly sales increased 11%, to $10,857,000, benefitting from a 56% increase in cable assembly sales to approximately $2,600,000. Neulink increased sales 27% to $726,000. Bioconnect and Aviel together contributed approximately $1,500,000 to fiscal 2005 sales", said Howard Hill, Chief Executive Officer of RF Industries.
 
"Fourth quarter and fiscal 2005 profitability was affected by lower gross margins from RF Connector and higher overhead expenses. RF Connector has increased prices on selected products and has taken steps to reduce expenses and cost of goods across all product lines. These changes, combined with tighter cost controls and targeted reductions in corporate overhead expenses, should improve RFI's profitability in the first quarter of the current fiscal year.
 
"Looking forward, fiscal 2006 is off to a great start, with sales for the first three months of our first quarter, typically the seasonally weakest quarter of the year, advancing by nearly 17%. We believe that RFI is well on the road to another year of record sales and improved profitability in fiscal 2006," said Hill.
 
At October 31, 2005, RFI reported cash and cash equivalents of $4,507,000, working capital of $10,408,000, a 16 to 1 current ratio, no long-term debt and stockholders' equity of $11,206,000, or $3.64 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.

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
  
Twelve Months Ended
  
   
October 31,
  
October 31,
  
   
2005
  
2004
  
2005
  
2004
  
   
(unaudited)
          
                   
Net sales
  
$
3,428,971
  
$
3,229,066
  
$
13,151,576
  
$
11,227,242
  
Cost of sales
    
1,857,795
   
1,562,050
   
6,966,101
   
5,539,945
 
                           
   Gross profit
    
1,571,176
   
1,667,016
   
6,185,475
   
5,687,297
 
                           
Operating expenses:
                          
  Engineering
    
133,260
   
148,612
   
553,542
   
486,202
 
  Selling and general
   
1,595,171
   
873,407
   
4,890,002
   
3,154,074
 
                           
     Total expenses
   
1,728,431
   
1,022,019
   
5,443,544
   
3,640,276
 
           
             
Operating income (loss)
    
(157,255
)
  
644,997
   
741,931
   
2,047,021
 
                           
Other income
   
39,931
   
7,697
   
96,729
   
17,110
 
                           
Income (loss) before 
                          
  provision for income taxes
   
(117,324
)
  
652,694
   
838,660
   
2,064,131
 
Income tax provision
    
1,960
    
280,000
   
394,000
   
840,000
 
                           
     Net Income
 
$
(119,284
)
$
372,694
  
$
444,660
  
$
1,224,131
  
                           
Earnings (loss) per share - basic
  
$
(0.04
)
$
0.13
  
$
0.15
  
$
0.42
  
Earnings (loss) per share - diluted
  
$
(0.04
)
$
0.10
  
$
0.12
  
$
0.33
  
                           
Weighted average shares outstanding
                          
  Basic
    
3,079,803
   
2,964,362
   
3,049,215
   
2,906,806
 
  Diluted
    
3,079,803
   
3,805,136
   
3,793,488
   
3,751,281
 

 
 
 

RF INDUSTRIES, LTD.
CONDENSED BALANCE SHEETS


   
October 31,
  
   
2005
  
2004
  
ASSETS
          
           
Current Assets:
              
  Cash and cash equivalents
  
$
4,507,219
  
$
4,497,322
  
  Trade accounts receivable, net
    
1,890,700
   
1,516,035
 
  Notes receivable
    
2,500
   
12,000
 
  Inventories
    
4,180,500
   
3,789,958
 
Income tax refund receivable
    
306,131
   
200,131
 
  Other current assets
    
97,356
   
103,007
 
  Deferred tax assets
    
136,000
   
141,000
 
               
     Total current assets
    
11,120,406
   
10,259,453
 
               
Property and equipment, net
    
465,735
   
563,040
 
Goodwill
    
200,848
   
137,328
 
Amortizable intangible asset
    
113,333
   
--
 
Notes receivable from related parties
    
29,750
   
26,730
 
Note receivable from stockholder
    
66,980
   
70,000
 
Other assets
    
28,087
   
14,171
 
               
     Total Assets
  
$
12,025,139
  
$
11,070,722
  
               
               
LIABILITIES AND STOCKHOLDERS' EQUITY
              
               
Current Liabilities:
              
  Accounts payable
  
$
334,749
  
$
209,956
  
  Accrued expenses
    
337,986
   
353,100
 
               
     Total current liabilities
    
712,735
   
563,056
 
               
Deferred tax liabilities
    
106,000
   
53,000
 
               
     Total liabilities
    
818,735
   
616,056
 
               
Commitments and contingencies
              
               
Stockholders' equity:
              
               
  Common stock - authorized 10,000,000 shares of $0.01 par
              
     value; 3,082,521 and 2,996,937 shares issued and outstanding
    
30,825
   
29,970
 
  Additional paid-in capital
    
3,872,983
   
3,566,760
 
  Retained earnings
    
7,302,596
   
6,857,936
 
               
     Total stockholders' equity
    
11,206,404
   
10,454,666
 
               
     Total Liabilities and Stockholders' Equity
  
$
12,025,139
  
$
11,070,722