RF Industries Reports Mixed Financial Results for Q3 and Nine Months Ended July 31, 2024

RF Industries, Ltd. reported its financial results for the three and nine months ended July 31, 2024, showing mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended July 31, 2024, net sales increased to $16.8 million, a 7.6% rise from $15.7 million in the same period of 2023. However, for the nine months ended July 31, 2024, net sales decreased by 17.6% to $46.4 million, down from $56.3 million in the prior year. The decline was attributed to a significant drop in the RF Connector segment, which saw sales decrease by 18.6% to $28.4 million, while the Custom Cabling segment also experienced a 15.9% decrease to $18.0 million.

Gross profit for the three months ended July 31, 2024, rose to $5.0 million, up from $3.9 million in the same quarter of 2023, with gross margins improving to 29.5% from 24.4%. For the nine-month period, gross profit fell to $13.1 million from $15.0 million, although gross margins increased to 28.2% from 26.7%. Operating losses were reported at $(419,000) for the three months, a significant improvement from $(2.0 million) in the same quarter of 2023. However, for the nine months, the operating loss widened to $(2.9 million) from $(2.7 million) year-over-year.

The consolidated net loss for the three months ended July 31, 2024, was $(705,000), an improvement from $(1.6 million) in the same period of 2023. Conversely, the nine-month consolidated net loss increased to $(6.4 million) from $(2.2 million) in the prior year, with basic loss per share for the nine months at $(0.61), compared to $(0.22) in 2023.

Strategically, RF Industries has implemented cost-cutting measures to reduce operating expenses and improve cash flow, including consolidating facilities for operational efficiencies. The company entered into a new loan agreement with Eclipse Business Capital on March 15, 2024, to replace its previous credit facility with Bank of America, which was terminated. As of July 31, 2024, total current liabilities increased to $18.4 million from $12.5 million at the end of October 2023, while total liabilities decreased to $37.7 million from $42.5 million. Total stockholders' equity also declined to $34.1 million from $39.8 million.

Cash and cash equivalents decreased to $1.8 million as of July 31, 2024, down from $4.1 million a year earlier, reflecting a net decrease in cash and cash equivalents of $(3.1 million) for the nine months. The company reported a backlog of $20.1 million as of July 31, 2024, an increase from $16.1 million at the end of October 2023.