Second Quarter Fiscal Year 2025 Financial Results [Q2 Fiscal 2025 Highlights and Operating Results](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Highlights%20and%20Operating%20Results) The company reported a 17.4% year-over-year net sales increase to $18.9 million and a return to operating profitability Q2 FY2025 Key Financial Metrics | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Sales | $18.9 million | $16.1 million | +17.4% | | Gross Profit Margin | 31.5% | 29.9% | +1.6 p.p. | | Operating Income (Loss) | $106,000 | ($415,000) | Improvement | | Consolidated Net Loss | ($245,000) | ($4.3 million) | Improvement | | Non-GAAP Net Income | $701,000 | $132,000 | +431% | | Adjusted EBITDA | $1.1 million | $572,000 | +92.5% | - The company's backlog was **$15.0 million** at quarter-end and subsequently increased to **$18.4 million**[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted the successful strategic shift to technology-driven solutions and progress towards profitability goals - The company is evolving from a cable and connector supplier to a provider of data and technology-driven solutions[5](index=5&type=chunk) - Strategic execution focuses on operational streamlining, portfolio expansion, and disciplined R&D and capex spending[7](index=7&type=chunk) - Business diversification is progressing with repeat orders from marquee customers and a strong sales pipeline for Wireless DAS buildouts[7](index=7&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to $72.7 million as of April 30, 2025, driven by higher cash and accounts receivable Selected Balance Sheet Data (in thousands) | Account | Apr. 30, 2025 (unaudited) | Oct. 31, 2024 (audited) | | :--- | :--- | :--- | | Cash and cash equivalents | $3,586 | $839 | | Trade accounts receivable, net | $15,000 | $12,119 | | Inventories | $12,574 | $14,725 | | **TOTAL ASSETS** | **$72,679** | **$71,046** | | Accounts payable and accrued expenses | $10,673 | $8,045 | | **TOTAL LIABILITIES** | **$38,509** | **$36,980** | | **TOTAL STOCKHOLDERS' EQUITY** | **$34,170** | **$34,066** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported higher net sales and gross profit, achieving operating income of $106,000 versus a prior-year loss Statement of Operations Highlights - Three Months Ended April 30 (in thousands) | Metric | 2025 (unaudited) | 2024 (unaudited) | | :--- | :--- | :--- | | Net sales | $18,910 | $16,110 | | Gross profit | $5,950 | $4,824 | | Operating income (loss) | $106 | ($415) | | Consolidated net loss | ($245) | ($4,294) | | Loss per share - Diluted | ($0.02) | ($0.41) | Statement of Operations Highlights - Six Months Ended April 30 (in thousands) | Metric | 2025 (unaudited) | 2024 (unaudited) | | :--- | :--- | :--- | | Net sales | $38,110 | $29,568 | | Gross profit | $11,667 | $8,127 | | Operating income (loss) | $162 | ($2,499) | | Consolidated net loss | ($490) | ($5,656) | Non-GAAP Financial Measures [Reconciliation of GAAP to Non-GAAP Net Income (Loss)](index=7&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Loss)) Adjustments to the GAAP net loss resulted in a non-GAAP net income of $701,000 for the second quarter of 2025 Non-GAAP Net Income Reconciliation - Three Months Ended April 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Consolidated net loss (GAAP) | ($245) | | Provision from income taxes | $135 | | Stock-based compensation expense | $226 | | Non-cash and other one-time charges | $123 | | Severance | $51 | | Amortization expense | $411 | | **Non-GAAP net income** | **$701** | [Reconciliation of Net Loss to Adjusted EBITDA](index=7&type=section&id=Unaudited%20Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The company reported Adjusted EBITDA of $1.1 million, a substantial increase from $572,000 in the prior-year quarter Adjusted EBITDA Reconciliation - Three Months Ended April 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Consolidated net loss (GAAP) | ($245) | | Stock-based compensation expense | $226 | | Non-cash and other one-time charges | $123 | | Severance | $51 | | Amortization expense | $411 | | Depreciation expense | $204 | | Other expense | $216 | | Provision from income taxes | $135 | | **Adjusted EBITDA** | **$1,121** | Company Information and Disclosures [About RF Industries](index=2&type=section&id=About%20RF%20Industries) The company designs and manufactures a wide array of interconnect products for diverse telecommunications and industrial markets - The company manufactures interconnect products for growing markets including telecom, data communications, and industrial[9](index=9&type=chunk) - Products include RF components, coaxial and fiber optic cables, custom cabling, cooling systems, and small cell enclosures[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties detailed in the company's SEC filings - The report includes forward-looking statements concerning profitability, revenues, industry trends, and growth opportunities[10](index=10&type=chunk) - Actual results may differ due to various factors, and readers should consult SEC filings for a full list of risks[10](index=10&type=chunk)

Core Viewpoint - The article highlights RF Industries, Ltd. (RFIL) as a promising growth stock, supported by its strong earnings growth, efficient asset utilization, and positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. Earnings Growth - RF Industries has a historical EPS growth rate of 79.7%, with projected EPS growth of 355.6% this year, significantly outperforming the industry average of 4.2% [5]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 0.99, indicating it generates $0.99 in sales for every dollar in assets, compared to the industry average of 0.49, showcasing superior efficiency [6]. Sales Growth - RF Industries is expected to achieve a sales growth of 13.9% this year, while the industry average is projected at -0.1%, indicating strong sales performance [7]. Earnings Estimate Revisions - The current-year earnings estimates for RF Industries have been revised upward, with the Zacks Consensus Estimate increasing by 18.2% over the past month, reflecting positive sentiment [8]. Overall Assessment - RF Industries has earned a Growth Score of B and a Zacks Rank 1 (Strong Buy), indicating its potential as an outperformer in the growth stock category [10].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - RF Industries, Ltd. (RFIL) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 46%, with projected EPS growth of 355.6% this year, significantly outperforming the industry average of -14% [4] Group 2: Financial Metrics - The asset utilization ratio for RF Industries is 0.99, indicating that the company generates $0.99 in sales for every dollar in assets, compared to the industry average of 0.49 [6] - RF Industries is expected to achieve a sales growth of 13.9% this year, while the industry average is projected at -0.9% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for RF Industries, with the Zacks Consensus Estimate for the current year increasing by 18.2% over the past month [8] - The combination of strong earnings estimate revisions and a Growth Score of A positions RF Industries favorably for potential outperformance [10]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $19.2 million, a significant increase of 42.7% compared to $13.5 million in Q1 2024 [8] - Gross profit margin for Q1 2025 was 29.8%, up from 24.5% year-over-year, reflecting a 530 basis points improvement [29] - Adjusted EBITDA for Q1 2025 was $867,000, a significant improvement from an adjusted EBITDA loss of $1.1 million in Q1 2024 [30] Business Line Data and Key Metrics Changes - The sales mix in Q1 2025 skewed towards higher value offerings, including increased shipments of DAC thermal cooling systems and integrated small cell solutions [11] - Custom cables, wire harnesses, and core distribution-centric RF products also contributed solidly to the quarter [11] Market Data and Key Metrics Changes - Approximately 6% of revenue in Q1 2025 came from export sales, with all production facilities based in the United States [19] - The company is seeing a growing portion of product revenue coming from customers outside of the large Tier 1 wireless carriers [12] Company Strategy and Development Direction - The company is transitioning from a product-centric model to a solutions provider, focusing on comprehensive solutions that address customer needs [24][26] - There is a strategic emphasis on diversifying the customer base and increasing exposure to new end markets, such as aerospace [13][15] - The company anticipates increased spending on wireless network densification and stadium projects throughout 2025 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum and visibility for future sales, expecting fiscal 2025 revenue to be significantly higher than fiscal 2024 [21][22] - The company is closely monitoring tariff impacts but does not anticipate significant effects on procurement and supply chain activities [19][20] Other Important Information - The company ended Q1 2025 with a backlog of $15.2 million, with bookings of $14.9 million [33] - The current inventory level was $13.5 million, down from $18 million last year, reflecting improvements in procurement and supply chain processes [32] Q&A Session Summary Question: Update on lower margin hybrid product - Management noted that the backlog has maintained around $15 million, with older hybrid fiber products being replaced by newer product lines [38][39] Question: Reason for sequential increase during a slow quarter - The increase was attributed to new product lines and some contribution from operating expenditures, particularly in DAC thermal cooling [44][46] Question: Insights on gross margin changes throughout the year - Management is targeting a gross margin around 30% but sees potential for improvement as production optimization continues [48][50] Question: Impact of new sales team on growth - The performance is partly credited to the new sales team, with expectations for minimal additional spending while capitalizing on recent wins [56][57] Question: Cash flow and debt paydown expectations - Management indicated that cash flow is positive, and they expect to take a chunk out of debt this year as performance improves [76][77] Question: Status of Microlab products - Microlab products have experienced variable performance but are positioned well within the carrier market, contributing positively to the overall strategy [80][82]

RF Industries, Ltd. (NASDAQ:RFIL) Q1 2025 Results Conference Call March 17, 2025 4:30 PM ET Company Participants Donni Case - Investor Relations Rob Dawson - CEO Ray Bibisi - President & COO Peter Yin - CFO Conference Call Participants Steven Kohl - Mangrove Operator Greetings, and welcome to RF Industries First Quarter Fiscal 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruct ...

分组1 - RF Industries, Ltd. reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to a loss of $0.06 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $19.2 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 4.07%, and compared to year-ago revenues of $13.46 million [2] - Over the last four quarters, RF Industries has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $16.92 million, and for the current fiscal year, it is $0.21 on revenues of $72.46 million [7] - The estimate revisions trend for RF Industries is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The Semiconductors - Radio Frequency industry, to which RF Industries belongs, is currently in the bottom 25% of the Zacks Industry Rank, which may impact stock performance [8]

Financial Performance - For the three months ended January 31, 2025, net sales increased by 42.2%, or $5.7 million, to $19.2 million compared to the same period in 2024[79]. - Gross profit for the fiscal 2025 quarter increased by $2.4 million to $5.7 million, with gross margins rising to 29.8% from 24.5% in the fiscal 2024 quarter[80]. - The company reported a net loss of $0.2 million for the fiscal 2025 quarter, an improvement from a net loss of $1.4 million in the fiscal 2024 quarter[85]. Segment Performance - The Custom Cabling segment's net sales rose by 123.4%, or $5.8 million, to $10.5 million, driven by tier one carrier applications for direct air cooling[79]. - The Custom Cabling segment achieved pretax income of $1.6 million, while the RF Connector segment reported a pretax loss of $1.5 million for the fiscal 2025 quarter[83]. Cash and Backlog - As of January 31, 2025, the company had a total of $1.3 million in cash and cash equivalents, up from $0.8 million as of October 31, 2024[73]. - As of January 31, 2025, the company had a backlog of $15.2 million, down from $19.5 million as of October 31, 2024[74]. Expenses - Engineering expenses decreased by $0.1 million to $0.7 million in the fiscal 2025 quarter, reflecting cost savings initiatives[81]. - Selling and general expenses increased by $0.4 million to $5.0 million, primarily due to higher variable compensation related to increased sales[82]. Taxation - The effective tax rate for the fiscal 2025 quarter was (17.2%), compared to 37.9% for the fiscal 2024 quarter, driven by a valuation allowance[84].

Financial Performance - Net sales increased by 42.7% to $19.2 million year-over-year, and by 4.0% sequentially from $18.5 million[8] - Gross profit margin was 29.8%, up from 24.5% in the prior year quarter[8] - Operating income improved to $56,000 from an operating loss of $2.1 million year-over-year[8] - Consolidated net loss was $245,000, or $0.02 per diluted share, an improvement from a net loss of $1.4 million, or $0.13 per diluted share year-over-year[8] - Non-GAAP net income was $397,000, or $0.04 per diluted share, compared to a non-GAAP net loss of $1.4 million, or a loss of $0.14 per diluted share in the first quarter of fiscal 2024[8] - Adjusted EBITDA was $867,000, up from an Adjusted EBITDA loss of $1.1 million year-over-year[8] - Consolidated net loss for the three months ended January 31, 2025, was $245,000, a significant improvement from a loss of $1,362,000 in the same period of 2024[24] - Non-GAAP net income for the same period was $397,000, compared to a loss of $1,421,000 in the prior year[24] - Adjusted EBITDA for the three months ended January 31, 2025, was $867,000, recovering from a negative $1,102,000 in the same quarter of 2024[26] Cost Management - Stock-based compensation expense decreased to $195,000 from $255,000 year-over-year[26] - Amortization expense remained relatively stable at $411,000 compared to $422,000 in the previous year[26] - The provision for income taxes showed a benefit of $36,000 in 2025, contrasting with a benefit of $831,000 in 2024[26] - Depreciation expense slightly decreased to $205,000 from $211,000 year-over-year[26] - Other expenses increased to $265,000 from $108,000 in the same quarter of the previous year[26] - The company is focusing on improving its financial performance and reducing losses through strategic cost management and operational efficiencies[24] Business Strategy - Backlog at quarter end was $15.2 million, with first quarter bookings of $14.9 million[8] - The company aims to achieve 10% Adjusted EBITDA margins in the future[9] - The performance was driven by a favorable product mix, particularly in higher margin interconnect products[7] - The company is exploring new market segments outside of the wireless carrier space for growth opportunities[9] - The weighted average shares outstanding for basic shares increased to 10,560,922 from 10,410,580 year-over-year[24]

Core Viewpoint - RF Industries, Ltd. (NASDAQ: RFIL) is positioned in a growth sector focused on physical internet solutions, which includes wireless phones, Wi-Fi areas, and other wireless products [1] Company Summary - RF Industries is described as a small provider of physical internet solutions, indicating a niche market focus [1] - The company operates within a sector that is expected to experience strong growth potential, highlighting its strategic positioning [1] Industry Summary - The article emphasizes the importance of considering various internet solutions in today's technology-driven world, particularly wireless products [1]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum. Group 1: Stock Performance - RF Industries, Ltd. (RFIL) has shown a solid price increase of 31.5% over the past 12 weeks, indicating strong investor interest in the stock's potential upside [4] - The stock has also increased by 28.9% over the last four weeks, suggesting that the upward trend is still intact [5] - RFIL is currently trading at 85.6% of its 52-week high-low range, indicating a potential breakout [5] Group 2: Fundamental Strength - RFIL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like RFIL that are on an uptrend supported by strong fundamentals [3] - There are over 45 Zacks Premium Screens available for investors to find stocks that align with their personal investing styles [8]