World News: 21:01 GMT Wednesday 12th June 2019. [RF Industries, LTD via Globe Newswire via SPi World News]
SAN DIEGO, June 12, 2019 (GLOBE NEWSWIRE) -- , a national manufacturer and marketer of interconnect products and systems, today announced its financial results for the second quarter of fiscal 2019 ended April 30, 2019.
"We generated solid sequential growth in sales in the second quarter, reflecting increases in both of our business segments quarter-over-quarter. These results include both organic growth in the low double-digits and inorganic growth from our recent acquisition. In addition, net income grew 66% sequentially, reflecting our progress with improved efficiencies and cost management and highlighting our ability to be profitable at varying levels of revenue. We continue to see opportunities in the Tier-1 wireless carrier ecosystem and increased business from our distribution channels, while also seeing continued expansion in our OEM segments. Looking ahead, as we continue to execute on our long term growth plan we expect to achieve sequential and year-over-year sales increases in the current fiscal third quarter.”
Net sales in the second quarter of fiscal 2019 were $13.6 million, a sequential increase of 28%, or $3.0 million, compared to the preceding first quarter, and compared to $20.5 million in the second quarter of fiscal 2018. The sequential increase in sales was driven by both project work in the OEM and wireless carrier market and increases in traditional run rate business, as well as six weeks of revenue contribution from the Company’s acquisition of C Enterprises during the quarter. The year-over-year decline in sales was a result of the largest series of orders in company history in the year ago second quarter.
Gross profit for the second quarter was $4.1 million, a sequential increase of 30%, or $949,000, compared to the preceding first quarter, and compared to $7.6 million in the second quarter of fiscal 2018. Gross margins were 30%, comparable to the prior sequential quarter.
Selling and general expenses were $2.4 million, compared to $2.0 million in the preceding first quarter and $3.1 million in the second quarter of fiscal 2018. Selling and general expenses as a percentage of sales were 18% of sales, compared to 19% of sales in the preceding first quarter and 15% of sales in the second quarter of fiscal 2018. Selling and general expenses included one-time costs of approximately $100,000 related to the acquisition of C Enterprises in the quarter. Excluding the acquisition related costs, selling and general expenses as a percentage of sales would have been 17%.
Net income for the second quarter was $1.1 million, or $0.11 per diluted share, a sequential increase of 66% compared to $640,000, or $0.07 per diluted share, in the preceding first quarter, and compared to net income of $3.2 million, or $0.34 per diluted share, in the second quarter of fiscal 2018.
Net sales for the first six months of fiscal 2019 were $24.3 million, compared to $28.5 million, which included the largest series of orders in company history in the year ago six months results.
Gross profit for the first six months was $7.2 million, compared to $10.1 million, while gross margins were 30% of sales compared to 36% of sales in the same period last year.
Selling and general expenses were $4.4 million, compared to $4.8 million in the first half last year. Selling and general expenses as a percentage of sales were 18% of sales compared to 17% of sales in the first half last year.
Income from continuing operations for the first six months of fiscal 2019 was $1.7 million, or $0.17 per diluted share, compared to $3.5 million, or $0.38 per diluted share, in the same period last year.
At April 30, 2019, the Company reported working capital of $25.8 million, including cash and cash equivalents of $13.9 million, a current ratio of 6.5-to-1 and no outstanding debt.
At its June 7, 2019 meeting, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per common share, payable on July 15, 2019 to stockholders of record on June 30, 2019.
Cash dividends are made at the discretion of the Board of Directors, subject to applicable laws, and depend on a number of factors, including the Company's financial condition, results of operations, capital requirements, plans for future acquisitions, contractual restrictions, general business conditions and other factors considered relevant by our Board of Directors.
RF Industries will host a conference call and live webcast today at 1:30 p.m. Pacific Daylight Time (4:30 p.m. EDT) to discuss its second quarter 2019 financial results. To access the conference call, dial 800-347-6311 (US and Canada) or 323-794-2094 (International). The conference ID is 9067883. In addition, a live and archived webcast of the conference call will be accessible on the section of the Company’s website at . A phone replay of the conference call will also be available beginning approximately two hours after conclusion of the call and will remain available for two weeks. To access the phone replay, dial 844-512-2921(US and Canada) or 412-317-6671 (International). The replay conference ID is 9067883.
RF Industries designs and manufactures a broad range of interconnect products across diversified, growing markets including wireless/wireline telecom, data communications and industrial. The Company's products include , , , , and . The Company is headquartered in San Diego, California with operations in New York and Connecticut. Please visit the RF Industries website at .
Globe Newswire: 21:01 GMT Wednesday 12th June 2019
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