RF Industries Announces Second Quarter Fiscal 2023 Results

SAN DIEGO, CA / ACCESSWIRE / June 14, 2023 / RF Industries, Ltd. (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, today announced results for its second fiscal quarter ended April 30, 2023.

Second Quarter Fiscal 2023 Highlights and Operating Results:

• Net sales increased 3.7% to $22.3 million compared to the second quarter of fiscal 2022.
• Backlog was $18.9 million at the end of the second quarter on bookings of $16.7 million. As of today, backlog stands at $17.6 million.
• Gross profit margin was 27.4%, down 90 basis points from 28.3% in the second quarter of fiscal 2022, primarily related to lower revenue contribution from our small cell solutions.
• Operating income was $489,000 compared to operating income of $746,000 in the second quarter of fiscal 2022, primarily related to lower gross profit from our small cell solutions.
• Consolidated net income was $581,000, or $0.06 per diluted share, compared to net income of $503,000, or $0.05 per diluted share in the second quarter of fiscal 2022. This is primarily due to an income tax benefit of $164,000 compared to an income tax provision of $136,000.
• Non-GAAP net income was $1.3 million or $0.13 per diluted share compared to non-GAAP net income of $1.6 million, or $0.16 per diluted share in the second quarter of fiscal 2022.
• Adjusted EBITDA was $1.4 million compared to $2.0 million in the second quarter of fiscal 2022.

See "Note Regarding Use of Non-GAAP Financial Measures," "Unaudited Reconciliation of GAAP to non-GAAP Net Income" and "Unaudited Reconciliation of Net Income to Adjusted EBITDA" below for additional information.

Management Commentary

"We delivered a solid second quarter with revenue growing 4% year-over-year and 22% sequentially. During the quarter, we shipped a large quantity of Optiflex hybrid fiber cables and saw steady growth in our core interconnect products. Additionally, we worked through the inventory of delayed orders from the first quarter and reduced our total inventory by almost 3%. Topline growth and inventory management generated positive cash flow in the quarter. While the market for our core interconnect products remained solid in the quarter, we continued to experience cautious carrier capex spending, which we believe is creating short-term headwinds for our new small cell and Direct Air Cooling (DAC) solutions where we have been making considerable investments. These short-term headwinds dampened consolidated gross margins and EBITDA in the quarter," said Robert Dawson, President and Chief Executive Officer of RF Industries.