RF Industries, Ltd. (NASDAQ:RFIL) Q3 2022 Results Conference Call September 14, 2022 4:30 PM ET Company Participants Jim Byers - MKR IR Rob Dawson - President and CEO Peter Yin - SVP and CFO Conference Call Participants Josh Nichols - B. Riley Orin Hirschman - AIGH Investment Partners Operator Greetings ladies and gentlemen, welcome to the RF Industries Third Quarter Fiscal 2022 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode, and we will open the flo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-13301 RF INDUSTRIES, LTD. (Exact name of registrant as specified in its charter) Nevada 88-0168936 (State or other jurisdiction of incorporation or organization) (I.R.S. Employ ...

Financial Data and Key Metrics - Revenue for Q2 2022 was $21.5 million, a 27% increase sequentially from Q1 and a 94% increase year-over-year [8][9] - GAAP net income was $503,000, non-GAAP net income was $1.3 million, and adjusted EBITDA was $2 million [10] - Gross profit margin improved to 28%, up from 24% in Q1 and 27% in Q2 2021 [39] - Inventory increased by 42% sequentially and 71% year-over-year, with $3.9 million attributed to the Microlab acquisition [42] Business Line Performance - The Microlab acquisition contributed $3.4 million in sales over two months, with an annualized revenue potential exceeding $20 million [11] - The custom cabling segment, including Optiflex hybrid fiber products, received a multi-million dollar order from a new customer, contributing to a backlog of over $34 million [19][21] - Small cell and DAC thermal cooling offerings showed strong potential, with a growing pipeline and backlog [26][27] Market Performance - The company saw organic growth across all divisions, with significant contributions from the Microlab acquisition [9][39] - The North American wireless market, particularly 4G and 5G infrastructure builds, continues to drive demand for hybrid fiber solutions [20][22] Strategic Direction and Industry Competition - The integration of Microlab is complete, and the company is focusing on organic growth and strategic acquisitions to expand its product portfolio and market reach [32][33] - The company aims to achieve gross margins of 30% or higher and adjusted EBITDA of 10% or more of sales in the near term [34][35] - The launch of the TruField small cell concealment solution is expected to enhance market positioning and meet the growing demand for 5G networks [28][29] Management Commentary on Operating Environment and Future Outlook - Management highlighted the positive impact of the Microlab acquisition and the strong performance of the custom cabling segment [10][19] - The company expects continued growth in adjusted EBITDA and profitability, driven by higher sales and improved margins [37][48] - Supply chain challenges and cost pressures are being managed through strategic inventory increases and customer pricing adjustments [41][43] Other Important Information - The company increased its fiscal 2022 revenue guidance from $75 million to $80 million, reflecting the strong performance and contributions from Microlab [37][48] - Cash and cash equivalents stood at $3.8 million, with working capital of $27 million at the end of Q2 [44] Q&A Session Summary Question: Backlog and Revenue Flow - Approximately 50% of the $34 million backlog is expected to be realized in the short term, with the remainder likely to flow into the next fiscal year [52][53] Question: Hybrid Fiber Order from New Customer - The new hybrid fiber order was the result of long-term relationship management and collaboration across sales teams, not directly tied to the Microlab acquisition [56][57] Question: Small Cell and DAC Thermal Cooling Opportunities - Small cell revenue is expected to grow by 30%-50%, with DAC thermal cooling potentially contributing $6 million to $10 million annually [62][64] Question: Microlab's Growth Potential - Microlab's revenue is expected to normalize around $20 million to $22 million annually, with potential upside from venue and small cell projects [67][68] Question: Inventory and Cash Flow - Inventory levels are expected to stabilize, with no significant additional cash required for operations [70][72] Question: R&D Expenses - R&D expenses have increased due to the Microlab acquisition but remain a reasonable percentage of revenue [79][80] Question: TruField and Partnership with Saint-Gobain - The TruField product, developed in partnership with Saint-Gobain, addresses the need for RF-transparent materials in small cell deployments [85][86] Question: SG&A as a Percentage of Revenue - SG&A is expected to stabilize around 25% of revenue, with potential reductions as one-time charges are eliminated [89] Question: Seasonality and Revenue Guidance - The company expects similar revenue performance in the next two quarters, with seasonality impacting Q1 due to slower outdoor builds [98][102] Question: Gross Margin and Cost Pressures - Gross margins improved organically, with further upside expected from Microlab's higher margins [107][108] - Copper price fluctuations impact about 25%-30% of sales, with no immediate significant effect on margins [128][129] Question: DAC Thermal Cooling Product - The company has active tests and deployments of DAC thermal cooling products, with confidence in future growth opportunities [120][122]

Sales Performance - For the six months ended April 30, 2022, 70% of total sales were generated from the Custom Cabling segment, while the RF Connector segment accounted for 30%[90]. - Net sales for the fiscal 2022 quarter increased by 94%, or $10.4 million, to $21.5 million compared to the fiscal 2021 quarter[99]. - Net sales for the six months ended April 30, 2022, were $38.4 million, an increase of 82% or $17.4 million compared to the same period in 2021, driven by the Custom Cabling segment's growth[106]. Profitability - Gross profit for the fiscal 2022 quarter increased by $1.3 million to $6.1 million, with gross margins decreasing to 28.3% of sales compared to 43.1% in the fiscal 2021 quarter[100]. - Gross profit for the fiscal 2022 six-month period increased by $2.8 million to $10.2 million, while gross margins decreased to 26.5% from 35.0% in the fiscal 2021 six-month period[107]. - For the fiscal 2022 quarter, net income was $0.5 million, down from $4.8 million in the fiscal 2021 quarter, with fully diluted earnings per share at $0.05 compared to $0.48[105]. - For the fiscal 2022 six-month period, net income was $0.2 million, a decrease from $4.4 million in the fiscal 2021 six-month period, with fully diluted earnings per share at $0.02 compared to $0.44[113]. Expenses - Engineering expenses increased by $0.7 million to $0.9 million in the fiscal 2022 quarter compared to $0.2 million in the fiscal 2021 quarter, primarily due to additional expenses from Microlab and ERC claims[101]. - Selling and general expenses rose by $2.6 million to $4.5 million (21% of sales) in the fiscal 2022 quarter, compared to $1.9 million (17% of sales) in the prior year, with Microlab accounting for $0.6 million of the increase[102]. - Selling and general expenses for the fiscal 2022 six-month period increased by $3.9 million to $8.5 million (22% of sales), with Microlab contributing $0.6 million to the increase[109]. - Engineering expenses for the fiscal 2022 six-month period rose to $1.3 million from $0.6 million in the fiscal 2021 six-month period, primarily due to the Microlab acquisition[108]. Cash Flow and Financial Position - As of April 30, 2022, the company had a total of $3.8 million in cash and cash equivalents and working capital of $27 million[93]. - The company recorded a $1.7 million receivable for the Employee Retention Credit (ERC) as of April 30, 2022[92]. - The company experienced a net cash outflow of $1.7 million in operating activities during the six months ended April 30, 2022, despite a net income of $0.2 million[95]. - The company spent $24.2 million on the purchase of Microlab, offset by $17 million from a Term Loan[96]. Acquisition and Future Plans - The acquisition of Microlab in March 2022 required $7.3 million in cash and resulted in a $3.4 million increase in net sales due to consolidation[99]. - The company plans to continue expanding operations through acquisitions, which may require additional capital resources[98]. Backlog and Segment Performance - The backlog as of April 30, 2022, was $27.6 million, down from $33.3 million as of October 31, 2021[94]. - Pretax income for the Custom Cabling segment was $1.1 million and $0.6 million for the RF Connector segment in the fiscal 2022 six-month period, compared to $0.1 million and $1.9 million, respectively, in the prior year[111]. Taxation - The effective tax rate for the fiscal 2022 quarter was 21%, down from 24.2% in the fiscal 2021 quarter, influenced by various permanent book-tax differences[104].

RF Industries, Ltd. (NASDAQ:RFIL) Q1 2022 Earnings Conference Call March 17, 2022 8:30 AM ET Company Participants Rob Dawson – President and Chief Executive Officer Peter Yin – Senior Vice President and Chief Financial Officer Todd Kehrli – MKR Investor Relations Conference Call Participants Aman Gulani – B. Riley Securities Hal Granger – Great Quarter Research Operator Greetings, welcome to the RF Industries First Quarter Fiscal 2022, Financial Results Conference Call. At this time all participants are in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-13301 RF INDUSTRIES, LTD. (Exact name of registrant as specified in its charter) Nevada 88-0168936 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Nevada 88-0168936 of incorporation or organization) (State or other jurisdiction (I.R.S. Employer Identification No.) 7610 Miramar Road, Bldg. 6000, San Diego, California 92126-4202 (Address of principal executive offices) (Zip Code) (85 ...

RF Industries, Ltd. (NASDAQ:RFIL) Q4 2021 Earnings Conference Call December 22, 2021 8:30 AM ET Company Participants Todd Kehrli - MKR Investor Relations Rob Dawson - President and Chief Executive Officer Peter Yin - Senior Vice President and Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Hal Granger - Great Quarter Research Steven Kohl - Mangrove Capital Operator Good day, ladies and gentlemen, and welcome to the RF Industries' Fourth Quarter and Fiscal 2021 Financial Result ...

Financial Data and Key Metrics Changes - Sales for Q3 2021 reached just above $15 million, representing a sequential increase of 38% and a year-over-year increase of 60% [6][19] - Gross profit margin was reported at 33%, including the impact of approximately $800,000 in Employee Retention Credit (ERC); excluding ERC, the margin was 28%, up from 27% in the previous quarter [20][21] - Operating income for the quarter was $1.2 million, excluding the impact of ERC [21] Business Line Data and Key Metrics Changes - The core distribution business remains healthy and diverse, contributing to the overall revenue growth [10][16] - Sales in the OEM and industrial markets showed growth, returning to more normalized levels [11] - Small cell and DAC thermal cooling offerings are expected to increase sales, with a strong backlog of orders [12][13] Market Data and Key Metrics Changes - The company experienced increased spending from the wireless carrier ecosystem, evidenced by multi-million-dollar orders for OptiFlex hybrid fiber solutions [7][16] - The backlog at the end of Q3 reached a record $31.5 million, up from $15.6 million in the previous quarter [23] Company Strategy and Development Direction - The company is focused on expanding its product offerings and enhancing its sales and business development organization [9][17] - There is a commitment to pursuing mergers and acquisitions (M&A) to drive growth, with a pipeline of potential candidates being developed [14][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong finish to the fiscal year, with fourth-quarter sales expected to exceed those of Q3 [18][23] - The company is optimistic about the long-term growth potential associated with 5G infrastructure spending [13][16] Other Important Information - The company has a strong balance sheet, with cash and cash equivalents of $12.6 million and working capital of $30.6 million at the end of the quarter [22] - The company is actively managing supply chain challenges and wage pressures in the labor market [41][46] Q&A Session Summary Question: Gross margin differences between product lines - Management indicated that achieving a gross margin above 30% is attainable, with product mix playing a significant role [26][29] Question: SG&A expenses outlook - Management noted that the current SG&A expenses include stock compensation and increased sales-related compensation, but these levels are not expected to be sustained [30][32] Question: Timeline for larger M&A deals - Management expressed optimism about completing a larger deal by the end of the calendar year, although timing is uncertain [33][34] Question: Supply chain issues - Management reported that they have managed supply chain challenges well, having pre-purchased materials to mitigate potential disruptions [41][42] Question: Employee recruitment challenges - Management acknowledged wage pressures and difficulties in finding skilled labor, which are consistent with broader industry trends [46][48] Question: COVID restrictions and project access - Management noted that while access to venues has improved, not all projects have returned to pre-pandemic levels [50][51] Question: Backlog management and expectations - Management clarified that backlog growth is primarily driven by customer demand, and they expect it to draw down over time [58][60] Question: Future growth drivers - Management indicated that growth will come from a more diverse customer base and higher-ticket items like DAC and small cell products [64][66] Question: Earnings per share outlook - Management emphasized the importance of profitable revenue growth and improving product mix to enhance earnings per share [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended July 31, 2021 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________. Commission file number: 000-13301 RF INDUSTRIES, LTD. (Exact name of registrant as specified in its charter) Nevada 88-0168936 (State or ot ...