RF Industries(RFIL) - 2025 Q2 - Quarterly Results

Second Quarter Fiscal Year 2025 Financial Results Q2 Fiscal 2025 Highlights and Operating Results 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] Management Commentary 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] - Strategic execution focuses on operational streamlining, portfolio expansion, and disciplined R&D and capex spending[7] - Business diversification is progressing with repeat orders from marquee customers and a strong sales pipeline for Wireless DAS buildouts[7] Financial Statements Condensed Consolidated Balance Sheets 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 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) 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 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 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] - Products include RF components, coaxial and fiber optic cables, custom cabling, cooling systems, and small cell enclosures[9] Forward-Looking Statements 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] - Actual results may differ due to various factors, and readers should consult SEC filings for a full list of risks[10]