RF Industries Reports Third Quarter Fiscal Year 2024 Financial Results
RF Industries (NASDAQ:RFIL) reported Q3 fiscal 2024 financial results, showing improvements in several key areas. Net sales increased to $16.8 million, up 4.5% from Q2 and 7.6% year-over-year. The company's gross profit margin rose to 29.5%, a significant improvement from 24.4% in the prior year. While still reporting a net loss of $705,000 or $0.07 per diluted share, this represents an improvement from the $1.6 million loss in the same period last year. Adjusted EBITDA turned positive at $460,000, compared to a loss of $940,000 year-over-year.
CEO Robert Dawson highlighted the company's progress, noting two consecutive quarters of positive Adjusted EBITDA and gross margins nearing their 30% target. He emphasized RFIL's strategic positioning to meet current and future customer needs, particularly in the telecom sector, despite ongoing cautious spending in large capex projects.
RF Industries (NASDAQ:RFIL) ha riportato i risultati finanziari del terzo trimestre del 2024, evidenziando miglioramenti in diverse aree chiave. Le vendite nette sono aumentate a 16,8 milioni di dollari, con un incremento del 4,5% rispetto al secondo trimestre e del 7,6% rispetto all'anno precedente. La margine di profitto lordo dell'azienda è salita al 29,5%, un significativo miglioramento rispetto al 24,4% dello scorso anno. Anche se l'azienda ha riportato una perdita netta di 705.000 dollari, ovvero 0,07 dollari per azione diluita, questo rappresenta un miglioramento rispetto alla perdita di 1,6 milioni di dollari dello stesso periodo dell'anno scorso. L'EBITDA rettificato è diventato positivo con 460.000 dollari, rispetto a una perdita di 940.000 dollari rispetto all'anno precedente.
Il CEO Robert Dawson ha messo in evidenza i progressi dell'azienda, notando due trimestri consecutivi di EBITDA rettificato positivo e margini lordi vicini al loro obiettivo del 30%. Ha enfatizzato il posizionamento strategico di RFIL per soddisfare le esigenze attuali e future dei clienti, in particolare nel settore delle telecomunicazioni, nonostante la continua cautela nella spesa per grandi progetti di capitale.
RF Industries (NASDAQ:RFIL) reportó los resultados financieros del tercer trimestre de 2024, mostrando mejoras en varias áreas clave. Las ventas netas aumentaron a 16,8 millones de dólares, lo que representa un incremento del 4,5% con respecto al segundo trimestre y del 7,6% en comparación con el año anterior. El margen de beneficio bruto de la empresa subió al 29,5%, una mejora significativa frente al 24,4% del año pasado. Aunque la empresa reportó una pérdida neta de 705.000 dólares o 0,07 dólares por acción diluida, esto representa una mejora respecto a la pérdida de 1,6 millones de dólares en el mismo período del año pasado. El EBITDA ajustado se volvió positivo con 460.000 dólares, en comparación con una pérdida de 940.000 dólares interanualmente.
El CEO Robert Dawson destacó el progreso de la empresa, señalando dos trimestres consecutivos de EBITDA ajustado positivo y márgenes brutos que se acercan a su objetivo del 30%. Enfatizó el posicionamiento estratégico de RFIL para satisfacer las necesidades actuales y futuras de los clientes, especialmente en el sector de telecomunicaciones, a pesar del gasto cauteloso en proyectos de capital intensivo.
RF Industries (NASDAQ:RFIL)는 2024 회계연도 3분기 재무 실적을 보고하며 몇 가지 주요 분야에서 개선을 보였습니다. 순매출은 1680만 달러로 증가했으며, 2분기 대비 4.5%, 전년 대비 7.6% 증가했습니다. 회사의 총 이익률은 29.5%로 상승했으며, 이는 작년의 24.4%에서 상당한 개선입니다. 70만 5천 달러 또는 희석 주당 0.07달러의 순손실을 보고했지만, 이는 작년 동일 기간에 비해 160만 달러의 손실보다 개선된 것입니다. 조정된 EBITDA는 46만 달러로 긍정적으로 전환되었으며, 전년 대비 94만 달러의 손실과 비교됩니다.
CEO 로버트 도슨은 회사의 진행 상황을 강조하며, 두 분기 연속으로 긍정적인 조정 EBITDA와 30% 목표에 가까운 총 이익률을 언급했습니다. 그는 RFIL이 현재 및 미래 고객의 요구를 충족하기 위한 전략적 위치에 있음을 강조하며, 대규모 자본 지출 프로젝트에 대한 지속적인 신중한 지출에도 불구하고 통신 분야에서 특히 그러하다고 언급했습니다.
RF Industries (NASDAQ:RFIL) a rapporté les résultats financiers du troisième trimestre 2024, montrant des améliorations dans plusieurs domaines clés. Les ventes nettes ont augmenté à 16,8 millions de dollars, en hausse de 4,5% par rapport au deuxième trimestre et de 7,6% par rapport à l'année précédente. La marge brute de l'entreprise a grimpé à 29,5%, une amélioration significative par rapport à 24,4% l'année précédente. Bien que l'entreprise ait encore enregistré une perte nette de 705 000 dollars, soit 0,07 dollar par action diluée, cela représente une amélioration par rapport à la perte de 1,6 million de dollars au cours de la même période l'année dernière. EBITDA ajusté est devenu positif avec 460 000 dollars, par rapport à une perte de 940 000 dollars d'une année à l'autre.
Le PDG Robert Dawson a souligné les progrès de l'entreprise, notant deux trimestres consécutifs d'EBITDA ajusté positif et des marges brutes s'approchant de leur objectif de 30%. Il a souligné le positionnement stratégique de RFIL pour répondre aux besoins actuels et futurs des clients, en particulier dans le secteur des télécommunications, malgré une prudence continue dans les dépenses liées à de grands projets d'investissement.
RF Industries (NASDAQ:RFIL) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, die in mehreren Schlüsselbereichen Verbesserungen zeigen. Nettoverkaufszahlen stiegen auf 16,8 Millionen Dollar, was einem Anstieg von 4,5% gegenüber dem zweiten Quartal und 7,6% im Vergleich zum Vorjahr entspricht. Die Bruttomarge des Unternehmens stieg auf 29,5%, was eine signifikante Verbesserung gegenüber 24,4% im Vorjahr darstellt. Obwohl ein Nettoverlust von 705.000 Dollar oder 0,07 Dollar pro verwässerter Aktie berichtet wurde, stellt dies eine Verbesserung gegenüber dem Verlust von 1,6 Millionen Dollar im gleichen Zeitraum des Vorjahres dar. Das bereinigte EBITDA wurde mit 460.000 Dollar positiv, verglichen mit einem Verlust von 940.000 Dollar im Vorjahr.
CEO Robert Dawson hob den Fortschritt des Unternehmens hervor und wies auf zwei aufeinanderfolgende Quartale mit positivem bereinigtem EBITDA und Bruttomargen hin, die sich ihrem Ziel von 30% nähern. Er betonte die strategische Positionierung von RFIL, um die aktuellen und zukünftigen Bedürfnisse der Kunden zu erfüllen, insbesondere im Telekommunikationssektor, trotz der anhaltenden zurückhaltenden Ausgaben bei großen Investitionsprojekten.
- Net sales increased by 7.6% year-over-year to $16.8 million
- Gross profit margin improved to 29.5% from 24.4% in the prior year
- Adjusted EBITDA turned positive at $460,000, up from a loss of $940,000 year-over-year
- Operating loss improved to $419,000 from $2.0 million year-over-year
- Backlog of $20.1 million at the end of Q3, with current backlog at $19.5 million
- Consolidated net loss of $705,000 or $0.07 per diluted share
- Non-GAAP net loss of $95,000 or $0.01 per diluted share
- Ongoing cautious spending by major telecom companies on large capex projects
Insights
RF Industries' Q3 FY2024 results show signs of improvement, but challenges remain. Net sales increased by
While the company still reported a net loss, it has significantly narrowed compared to the previous year. The Adjusted EBITDA of
Investors should monitor the company's progress in diversifying end markets and its ability to capitalize on potential national programs for DAC products. The backlog of
RF Industries' latest results reflect the ongoing challenges in the telecom infrastructure sector. The cautious spending by Tier 1 wireless carriers has significantly impacted downstream vendors like RFI. However, the company's focus on high-efficiency, climate-durable cooling solutions for DAC products is a strategic move, targeting the operations and maintenance needs of major telecom companies.
The potential transition of regional programs to national ones could be a game-changer for RFI. As 4G and 5G network buildouts continue, albeit at a slower pace, RFI's enhanced solutions offering may position it well for future opportunities. The ongoing issues of densification and bandwidth in wireless coverage suggest that demand for RFI's products could rebound, especially if large venue deployments pick up in 2025.
Investors should keep an eye on RFI's ability to diversify its end markets and applications, which could reduce its reliance on telecom capex spending and provide more stable revenue streams in the future.
SAN DIEGO, CA / ACCESSWIRE / September 16, 2024 / RF Industries, Ltd, (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, today announced third quarter fiscal year 2024 financial results for the quarter ended July 31, 2024.
Third Quarter Fiscal Year 2024 Highlights and Operating Results:
Net sales were
$16.8 million ; up4.5% from$16.1 million in the second quarter of fiscal 2024 and up7.6% from$15.7 million in the prior-year third quarter.Backlog of
$20.1 million at the end of the third quarter on bookings of$18.9 million . As of today, the backlog stands at$19.5 million .Gross profit margin was
29.5% , up from24.4% in the prior year period.Operating loss was
$419,000 , an improvement from a loss of$2.0 million year-over-year.Consolidated net loss was
$705,000 or$0.07 per diluted share, an improvement from a loss of$1.6 million or$0.16 per diluted share year-over-year.Non-GAAP net loss was
$95,000 or$0.01 per diluted share, compared to non-GAAP net loss of$132,000 or a loss of$0.01 per diluted share in the second quarter of fiscal 2024, up from a non-GAAP net loss of$1.3 million or a loss of$0.12 per share year-over-year.Adjusted EBITDA was
$460,000 , up from an Adjusted EBITDA loss of$940,000 year-over-year.
See "Note Regarding Use of Non-GAAP Financial Measures," "Unaudited Reconciliation of GAAP to non-GAAP Net Income (Loss)" and "Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA" below for additional information.
Management Commentary
"We are pleased that our third-quarter results continued to build on the momentum that we reported in the second quarter. Net sales were up almost
"I believe our business is at an inflection point where we can continue to deliver meaningful progress now and tap into even greater future potential. The Tier 1 wireless carrier ecosystem had major cutbacks in their capital spending over the last several quarters, and this created considerable hardship for RFI and other downstream vendors. We continue to see major telecom companies being cautious about spending for large capex projects but they will still allocate significant resources to operations and maintenance needs. Fortunately, our DAC product line offers high-efficiency, climate-durable cooling that meets the required standards for their replacements and upgrades. We have several regional programs underway that we believe have a strong probability of becoming national programs. Our team continues to work hard on the major evolution of our business and, over the long run, we will be more diverse in our end markets and applications and therefore less reliant on capex spend. When capex spending does return for the continued buildouts of 4G and 5G networks, I believe our enhanced solutions offering will give us an additional level of opportunity. Densification and bandwidth continue to be real issues in wireless coverage, and while the lower spend on deployments like large venues has impacted product areas including our Microlab RF passives offering, we are hopeful that 2025 will be a better year for these kinds of applications.
"Looking ahead, I believe RFI is competitively positioned to answer our customers' current and future needs. We are a leaner, more efficient company with a strong and relevant product and solution offering, and we have a talented team totally focused on execution to deliver improved results and value creation for our shareholders," concluded Dawson.
Conference Call and Webcast
RF Industries will host a conference call and live webcast today, September 16, 2024, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its fiscal 2024 third quarter results. To access the live call, dial 888-506-0062 (US and Canada) or 973-528-0011 (International) and give the participant access code 640662.
A live and archived webcast of the conference call will be accessible on the investor relations section of the Company's website at www.rfindustries.com.
About RF Industries
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 high-performance components used in commercial applications such as RF connectors and adapters, RF passives including dividers, directional couplers and filters, coaxial cables, data cables, wire harnesses, fiber optic cables, custom cabling, energy-efficient cooling systems and integrated small cell enclosures. The Company is headquartered in San Diego, California with additional operations in New York, Connecticut, Rhode Island and New Jersey. Please visit the RF Industries website at www.rfindustries.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to future events. Forward looking statements include, among others, statements concerning our expectations about profitability, revenues, industry trends, markets, increasing shareholder value, current and future purchase orders, and the expected benefits and desirability of our products, in each case which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: the Company's cash and liquidity needs, ability to continue as a going concern, non-compliance with terms and covenants in our credit facility, changes in the telecommunications industry and materialization and timing of expected network buildouts; timing and breadth of new products; our ability to realize increased sales; successfully integrating new products and teams; our ability to execute on its go-to-market strategies and channel models; our reliance on certain distributors and customers for a significant portion of anticipated revenues; the impact of existing and additional future tariffs imposed by U.S. and foreign nations; our ability to expand our OEM relationships; our ability to continue to deliver newly designed and custom fiber optic and cabling products to principal customers; our ability to maintain strong margins and diversify our customer base; our ability to initiate operating efficiencies, cost savings and expense reductions; our ability to address the changing needs of the market and capitalize on new market opportunities; our ability to add value to our customer's needs; the success of any product launches; and our ability to increase revenue, gross margins or obtain profitability in a timely manner. Further discussion of these and other potential risks and uncertainties may be found in the Company's public filings with the Securities and Exchange Commission (www.sec.gov) including our Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. All forward-looking statements are based upon information available to the Company on the date they are published, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.
Note Regarding Use of Non-GAAP Financial Measures
To supplement our unaudited condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation, amortization (Adjusted EBITDA), non-GAAP net income, non-GAAP net loss and non-GAAP earnings per share, basic and diluted (non-GAAP EPS).
We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance by excluding certain non-cash and other one-time expenses that we believe are not indicative of our operating results.
In computing Adjusted EBITDA, non-GAAP net income, non-GAAP net loss and non-GAAP EPS, we exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock options and other non-cash awards granted to employees, non-cash and other lease charges, and severance. For Adjusted EBITDA, we also exclude depreciation, amortization, interest expense and provision for income taxes. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expense and non-recurring costs and expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision-making and for evaluating our own core business operating results over different periods of time.
Our Adjusted EBITDA, non-GAAP net income, non-GAAP net loss and non-GAAP EPS measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net income, non-GAAP net loss and non-GAAP EPS are not measurements of financial performance under GAAP and should not be considered as an alternative to operating or net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP measures to be a substitute for, or superior to, the information provided by GAAP financial results. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with the Company's consolidated financial statements pre-pared in accordance with GAAP. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance. A reconciliation of specific adjustments to GAAP results is provided in the last two tables at the end of this press release.
In addition, we have included order bookings and backlogs in this earnings release. Bookings represent new orders that have been received inclusive of any modification or cancellation of previous orders. Backlog represents orders that have been received where revenue has not been recognized as of the specified date. We believe both Bookings and Backlog are indicators of future revenues that the Company expects to generate based on orders that management believes to be firm.
RF Industries Contact:
Peter Yin
SVP and CFO
(858) 549-6340
rfi@rfindustries.com
IR Contact:
Margaret Boyce
Financial Profiles, Inc.
(310) 622-8247
RFIL@finprofiles.com
SOURCE: RF Industries
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