Financial Performance - Net sales for the fiscal 2021 quarter increased by 6%, or $0.7 million, to $11.1 million compared to the fiscal 2020 quarter, driven by a 13% increase in the Custom Cabling segment[99] - For the fiscal 2021 six-month period, net sales decreased by 7%, or $1.7 million, to $21.1 million, primarily due to a weaker first quarter[107] - For the fiscal 2021 quarter, net income was $4.8 million, with fully diluted earnings per share of $0.48, compared to a net loss of $0.2 million and a loss per share of $0.02 in the fiscal 2020 quarter[106] - For the fiscal 2021 six-month period, net income was $4.4 million, with fully diluted income per share of $0.44, compared to a net loss of $0.2 million and a loss per share of $0.02 in the fiscal 2020 six-month period[114] Profitability - Gross profit for the fiscal 2021 quarter rose by $2.2 million to $4.8 million, with gross margins increasing to 43.1% from 24.9% in the fiscal 2020 quarter, primarily due to the ERC[100] - Gross profit for the fiscal 2021 six-month period increased by $1.5 million to $7.4 million, with gross margins rising to 35.0% from 25.6% in the fiscal 2020 six-month period[108] Expenses - Engineering expenses decreased by $0.3 million to $0.2 million in the fiscal 2021 quarter, attributed to the ERC for engineering employees[101] - Selling and general expenses decreased by $0.3 million to $1.9 million, representing 17% of sales, compared to 22% in the fiscal 2020 quarter, also due to the ERC[102] Cash and Liquidity - As of April 30, 2021, the company had cash and cash equivalents of $14.8 million, down from $15.8 million as of October 31, 2020[92] - The company reported a working capital of $29.2 million and a current ratio of approximately 6.7:1 as of April 30, 2021[92] - The backlog as of April 30, 2021, was $15.6 million, significantly up from $6.3 million as of October 31, 2020[93] - During the six months ended April 30, 2021, the company used $1.4 million of cash in operating activities despite a net income of $4.5 million[94] - The company has not used its $5.0 million revolving line of credit, which was closed on December 30, 2020[97] Government Assistance - The company qualified for the Employee Retention Credit (ERC) and recorded an eligible amount of $2.4 million, which will reduce labor costs[91] - The company received approximately $2.8 million in Paycheck Protection Program (PPP) loans, which were fully forgiven in February 2021[90] Future Outlook - The company does not anticipate making material additional capital equipment purchases in the next twelve months[96] - The company may pursue future acquisitions to diversify its product offerings and customer base, which could impact liquidity and capital resources[98] Segment Performance - For the fiscal 2021 six-month period, pretax income for the Custom Cabling segment was $0.1 million, while the RF Connector segment reported $1.9 million, compared to a loss of $1.2 million and income of $1.0 million in the fiscal 2020 six-month period[112] Taxation - The effective tax rate for the fiscal 2021 quarter was 24.2%, compared to (1.4%) for the fiscal 2020 quarter, driven by various permanent book-tax differences[105]

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, 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 o ...

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 For the fiscal year ended October 31, 2020 or | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | | Title of each class | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ Form 10-Q _____________________ For the quarterly period ended July 31, 2020 ☐ 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 other jurisdiction of i ...

Part I. FINANCIAL INFORMATION [Item 1: Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) Financial statements show decreased net sales and a net loss due to economic slowdown, though the balance sheet grew from an acquisition and operating cash flow improved [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2020 | October 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14,076 | $12,540 | | Trade accounts receivable, net | $4,950 | $12,190 | | Inventories | $9,100 | $8,245 | | Goodwill | $2,697 | $1,340 | | TOTAL ASSETS | $39,412 | $37,700 | | **Liabilities & Equity** | | | | TOTAL CURRENT LIABILITIES | $5,736 | $6,080 | | TOTAL LIABILITIES | $7,719 | $6,167 | | TOTAL STOCKHOLDERS' EQUITY | $31,693 | $31,533 | - Total assets increased to **$39.4 million** from **$37.7 million**, primarily due to increases in Goodwill and Amortizable intangible assets resulting from the Schrofftech acquisition[7](index=7&type=chunk) - Cash and cash equivalents increased by **$1.5 million**, while trade accounts receivable decreased significantly by **$7.2 million**, indicating strong collections[7](index=7&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share amounts) | Metric | Three Months Ended April 30, 2020 | Three Months Ended April 30, 2019 | Six Months Ended April 30, 2020 | Six Months Ended April 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $10,390 | $13,626 | $22,804 | $24,273 | | Gross profit | $2,586 | $4,094 | $5,839 | $7,240 | | Operating (loss) income | ($188) | $1,362 | ($187) | $2,149 | | Consolidated net (loss) income | ($184) | $1,061 | ($158) | $1,701 | | Diluted (loss) earnings per share | ($0.02) | $0.11 | ($0.02) | $0.17 | - For the three months ended April 30, 2020, net sales decreased by **23.7%** year-over-year, leading to a consolidated net loss of **$184,000** compared to a net income of **$1.06 million** in the prior-year period[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Six Months Ended April 30 (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $5,465 | ($1,806) | | Net cash used in investing activities | ($3,964) | ($656) | | Net cash provided by (used in) financing activities | $35 | ($16) | | **Net increase (decrease) in cash** | **$1,536** | **($2,478)** | - Cash from operations was a positive **$5.5 million** for the six months ended April 30, 2020, a significant improvement from a use of **$1.8 million** in the prior year, driven primarily by a **$7.5 million** decrease in trade accounts receivable[19](index=19&type=chunk) - Investing activities used **$4.0 million**, mainly for the purchase of Schrofftech, net of cash acquired[19](index=19&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The COVID-19 pandemic negatively impacted operations, customer demand, and supply chains, though the company was deemed an "essential" business[23](index=23&type=chunk)[24](index=24&type=chunk) - On November 4, 2019, the company acquired Schrofftech for **$4 million** in cash plus a potential earn-out of up to **$2.4 million**, which contributed **$2.3 million** in revenue for the six-month period[36](index=36&type=chunk)[38](index=38&type=chunk) - The company has significant customer concentration, with two distributors accounting for **11%** and **17%** of net sales for the three months ended April 30, 2020[64](index=64&type=chunk) - As a subsequent event, the company received approximately **$2.8 million** in loans under the Paycheck Protection Program (PPP) on May 5, 2020[85](index=85&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 24% Q2 sales decline from reduced carrier spending and lower margins, but confirms liquidity is sufficient for the next year [Overview and COVID-19 Impact](index=29&type=section&id=Overview%20and%20COVID-19%20Impact) - The company operates through two segments: RF Connector and Cable Assembly (**31% of H1 2020 sales**) and Custom Cabling Manufacturing and Assembly (**69% of H1 2020 sales**)[102](index=102&type=chunk)[104](index=104&type=chunk) - The COVID-19 pandemic has negatively impacted operations through partial facility shutdowns, reduced workforce, and decreased customer demand[105](index=105&type=chunk)[106](index=106&type=chunk) - Due to the severe impact of COVID-19, the company applied for and received a **$2.8 million** PPP loan in May 2020 to retain employees and maintain payroll[106](index=106&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Comparison of Results for the Three Months Ended April 30 | Metric | 2020 (Q2) | 2019 (Q2) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $10.4M | $13.6M | -24% | | Gross Profit | $2.6M | $4.1M | -37% | | Gross Margin | 24.9% | 30.0% | -5.1 p.p. | | Net (Loss) Income | ($0.2M) | $1.1M | - | Comparison of Results for the Six Months Ended April 30 | Metric | 2020 (H1) | 2019 (H1) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $22.8M | $24.3M | -6% | | Gross Profit | $5.8M | $7.2M | -19% | | Gross Margin | 25.6% | 29.8% | -4.2 p.p. | | Net (Loss) Income | ($0.2M) | $1.7M | - | - The decrease in sales and gross margin was primarily due to a slowdown in project-based business from carrier spending and a less favorable product mix[115](index=115&type=chunk)[116](index=116&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - As of April 30, 2020, the company had **$14.1 million** in cash and cash equivalents, an increase from **$12.5 million** at October 31, 2019, due to strong collection of accounts receivables[108](index=108&type=chunk) - Working capital stood at **$23.5 million** with a current ratio of **5.1:1** as of April 30, 2020[108](index=108&type=chunk) - The company secured a **$5.0 million** revolving line of credit in November 2019, which remained unused as of the report date[113](index=113&type=chunk) - Management believes existing cash, anticipated cash from operations, and funds from the PPP loan will be sufficient to meet liquidity needs for at least the next twelve months[108](index=108&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective while noting the ongoing integration of the recently acquired Schrofftech subsidiary - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[133](index=133&type=chunk) - The company is in the process of integrating the policies, processes, and internal controls of Schrofftech, which was acquired during the quarter ended January 31, 2020[134](index=134&type=chunk) Part II. OTHER INFORMATION [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company identifies the COVID-19 pandemic as a significant risk factor, citing potential disruptions to its workforce, customer demand, and financial results - The COVID-19 pandemic is identified as a major risk factor that has adversely impacted and poses ongoing, highly uncertain risks to the business[139](index=139&type=chunk) - Specific risks include workforce inability to work effectively, volatility in customer demand, rising costs, and potential declines in accounts receivable collections[139](index=139&type=chunk) - The pandemic could lead to an extended disruption of economic activity, which could materially impact the company's stock price, access to capital, and overall financial results[139](index=139&type=chunk)

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, 2020 Commission file number: 000-13301 RF INDUSTRIES, LTD. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 7610 Miramar Road, Building 6000 San Diego, California 92126 (Address of principal ex ...

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 x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Nevada 88-0168936 (State or other jurisdiction (I.R.S. Employer Identification No.) 7610 Miramar Roa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q 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. Employer Identification No.) 7610 Miramar Road, Building 6000 San Diego, California 92126 (Address of principal executive offices) (Zip Code) (858) 549-6340 (Registrant's telephone number, including area code) Securities registered ...

[Part I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) The company's unaudited statements show decreased sales and net income, driven by lower Custom Cabling segment performance [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $34.4 million, driven by increased trade accounts receivable, while stockholders' equity also increased Balance Sheet Summary (in thousands) | Account | April 30, 2019 (Unaudited) | October 31, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | **$30,462** | **$28,530** | | Cash and cash equivalents | $13,856 | $16,334 | | Trade accounts receivable, net | $7,938 | $4,255 | | Inventories | $7,932 | $7,113 | | **Total Assets** | **$34,405** | **$32,502** | | **Total Current Liabilities** | **$4,658** | **$4,719** | | **Total Liabilities** | **$4,745** | **$4,719** | | **Total Stockholders' Equity** | **$29,660** | **$27,783** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company experienced a significant year-over-year decline in net sales and net income for both three and six-month periods Three Months Ended April 30, (in thousands, except per share data) | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Net sales | $13,626 | $20,515 | -33.6% | | Gross profit | $4,094 | $7,648 | -46.5% | | Operating income | $1,362 | $3,960 | -65.6% | | Consolidated net income | $1,061 | $3,204 | -66.9% | | Diluted EPS | $0.11 | $0.34 | -67.6% | Six Months Ended April 30, (in thousands, except per share data) | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Net sales | $24,273 | $28,482 | -14.8% | | Gross profit | $7,240 | $10,112 | -28.4% | | Operating income | $2,149 | $4,318 | -50.2% | | Consolidated net income | $1,701 | $3,658 | -53.5% | | Diluted EPS | $0.17 | $0.40 | -57.5% | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased by $1.9 million to $29.7 million, driven by net income and stock option exercises - Stockholders' equity grew from **$27.8 million** on November 1, 2018, to **$29.7 million** on April 30, 2019[13](index=13&type=chunk) Changes in Stockholders' Equity (Six Months Ended April 30, 2019, in thousands) | Description | Amount | | :--- | :--- | | Beginning Balance (Nov 1, 2018) | $27,783 | | Consolidated net income | $1,701 | | Exercise of stock options | $357 | | Stock-based compensation | $192 | | Dividends | ($373) | | **Ending Balance (Apr 30, 2019)** | **$29,660** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $2.5 million, with a notable shift to negative cash flow from operations due to increased receivables Cash Flow Summary (Six Months Ended April 30, in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash from operating activities | ($1,806) | $1,895 | | Net cash from investing activities | ($656) | ($44) | | Net cash from financing activities | ($16) | $53 | | **Net (decrease) increase in cash** | **($2,478)** | **$2,449** | - The **negative operating cash flow** in 2019 was largely driven by a **$2.4 million increase in trade accounts receivable**[16](index=16&type=chunk) [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the adoption of ASC 606, the acquisition of C Enterprises, and significant customer concentration - On November 1, 2018, the Company adopted the new revenue recognition standard **ASC 606**, which did not have a material impact on revenue reporting[20](index=20&type=chunk)[24](index=24&type=chunk) - On March 15, 2019, the Company acquired the business and assets of C Enterprises L.P. for **$600,000 in cash**, which contributed **$1.7 million in revenue** for the period[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company sold its subsidiary Comnet Telecom Supply, Inc. on October 31, 2018, and its prior period results are now classified as **discontinued operations**[27](index=27&type=chunk) - For the six months ended April 30, 2019, two customers accounted for approximately **32% and 10% of net sales**, compared to one customer accounting for **68%** in the prior year period[43](index=43&type=chunk)[44](index=44&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the sales decline, margin compression, strong liquidity, and the impact of the C Enterprises acquisition [Business Overview](index=23&type=section&id=Overview) The company operates through two segments, with the Custom Cabling segment accounting for 73% of total sales Sales Contribution by Segment (Six Months Ended April 30, 2019) | Segment | Percentage of Total Sales | | :--- | :--- | | Custom Cabling | 73% | | RF Connector | 27% | - The company provides interconnect products to telecommunications carriers, equipment manufacturers, and various OEMs[76](index=76&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $13.9 million in cash, no debt, and a $10 million backlog - The company had **$13.9 million in cash and cash equivalents** and **$25.8 million in working capital** as of April 30, 2019[80](index=80&type=chunk) - The company maintained a strong backlog of **$10 million** as of April 30, 2019, which is expected to support liquidity[81](index=81&type=chunk) - The company has **no outstanding indebtedness** for borrowed funds[88](index=88&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Operational results were impacted by the Comnet sale and C Enterprises acquisition, with a sales decline from a non-recurring record order in the prior year - The sale of Comnet Telecom Supply, Inc. on October 31, 2018, has led to its results being reported as **discontinued operations** in prior period comparisons[87](index=87&type=chunk) - The acquisition of C Enterprises on March 15, 2019, contributed to the results of operations for the second quarter of 2019[90](index=90&type=chunk) - The year-over-year decline in sales was primarily due to an **exceptionally large series of orders** received in the 2018 fiscal quarter that did not recur[91](index=91&type=chunk) [Part II. OTHER INFORMATION](index=31&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings outside the ordinary course of business - As of the report date, the company is **not involved in any material legal proceeding** outside the ordinary course of business[114](index=114&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been made to the risk factors disclosed in the company's most recent Form 10-K - **No material changes** have occurred from the risk factors previously disclosed in the company's Form 10-K for the fiscal year ended October 31, 2018[115](index=115&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=31&type=section&id=Other%20Items) The company reports no unregistered sales of equity securities or defaults and lists filed exhibits, including officer certifications - The company had **nothing to report** for Items 2, 3, 4, and 5[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - Item 6 lists the exhibits filed, including **CEO and CFO certifications** under Sarbanes-Oxley Sections 302 and 906[120](index=120&type=chunk)

Part I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and disclosures regarding market risk and internal controls [Item 1: Financial Statements](index=2&type=section&id=Item%201%3A%20Financial%20Statements) For the quarter ended January 31, 2019, RF Industries, Ltd. reported total assets of $32.5 million, a slight increase from October 31, 2018. Net sales grew 34% year-over-year to $10.6 million, driving consolidated net income to $640,000, up from $454,000 in the prior-year period. Cash and cash equivalents decreased to $14.0 million from $16.3 million, primarily due to increased working capital needs to support sales growth [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight increase in total assets to $32.5 million, with notable shifts in cash, receivables, and inventories, and an increase in stockholders' equity | | January 31, 2019 (Unaudited, in thousands) | October 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $28,599 | $28,530 | | **Total Assets** | $32,507 | $32,502 | | **Total Current Liabilities** | $3,803 | $4,719 | | **Total Liabilities** | $3,814 | $4,719 | | **Total Stockholders' Equity** | $28,693 | $27,783 | - Key changes from October 31, 2018 to January 31, 2019 include a decrease in cash and cash equivalents from **$16.3 million** to **$14.0 million**, an increase in trade accounts receivable from **$4.3 million** to **$5.6 million**, and an increase in inventories from **$7.1 million** to **$8.2 million**[6](index=6&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased 34% year-over-year to $10.6 million, driving significant growth in operating income and consolidated net income for the quarter | | Three Months Ended January 31, 2019 (in thousands) | Three Months Ended January 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Net sales** | $10,647 | $7,966 | | **Gross profit** | $3,145 | $2,463 | | **Operating income** | $786 | $358 | | **Consolidated net income** | $640 | $454 | | **Diluted EPS (Net income)** | $0.07 | $0.05 | - Net sales increased by **34%** year-over-year, leading to a **120%** increase in operating income and a **41%** increase in consolidated net income for the first quarter of fiscal 2019 compared to the same period in 2018[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to $28.7 million, primarily due to net income and stock option exercises, partially offset by dividends - Total stockholders' equity increased from **$27.8 million** at the beginning of the period to **$28.7 million** at January 31, 2019. The increase was primarily driven by net income of **$640,000** and proceeds from the exercise of stock options of **$342,000**, partially offset by dividends paid of **$186,000**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net cash outflow of $2.4 million from operating activities, mainly due to increased working capital to support sales growth | | Three Months Ended January 31, 2019 (in thousands) | Three Months Ended January 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($2,401) | ($220) | | **Net cash used in investing activities** | ($73) | $12 | | **Net cash provided by financing activities** | $156 | ($19) | | **Net decrease in cash** | ($2,318) | ($159) | | **Cash at end of period** | $14,016 | $5,880 | - The company experienced a net cash outflow from operating activities of **$2.4 million**, primarily due to increases in trade accounts receivable (**$1.4 million**) and inventories (**$1.1 million**) to support higher sales volumes[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes include the adoption of ASC 606, the sale of a subsidiary, significant customer concentration, and a post-quarter acquisition announcement - On November 1, 2018, the Company adopted the new revenue recognition standard ASC 606, which did not have a material impact on its revenue recognition policies or financial statements[20](index=20&type=chunk)[23](index=23&type=chunk) - On October 31, 2018, the Company sold its subsidiary, Comnet Telecom Supply. The results of Comnet are reported as discontinued operations. For the three months ended January 31, 2018, Comnet generated **$2.4 million** in net sales and **$150,000** in net income[24](index=24&type=chunk) - For Q1 2019, two customers accounted for **38%** and **14%** of net sales, respectively. In the prior year's quarter, one customer accounted for **47%** of net sales, indicating significant customer concentration[38](index=38&type=chunk) - Subsequent to the quarter end, the company announced a binding agreement to purchase the assets of C Enterprises, L.P., a manufacturer of custom cables, and declared a quarterly cash dividend of **$0.02 per share**[54](index=54&type=chunk)[55](index=55&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 34% year-over-year sales growth in Q1 2019 to increased demand in both the Custom Cabling and RF Connector segments, particularly from project work in OEM and wireless carrier markets. Gross margin slightly decreased from 31% to 30% due to higher outsourcing costs. Despite higher selling and general expenses in absolute terms, they declined as a percentage of sales from 22% to 19%, reflecting improved operational efficiency. The company maintains a strong liquidity position with $14.0 million in cash and no debt, and a stable backlog of $11 million [Critical Accounting Policies](index=19&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant estimates and judgments, including inventory valuation, impairment, income taxes, and the adoption of ASC 606 - The company's critical accounting policies involve significant estimates and judgments, particularly regarding inventory valuation, allowance for doubtful accounts, impairment of long-lived assets including goodwill, income taxes, and stock-based compensation[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The company adopted the new revenue recognition standard ASC 606 on November 1, 2018, using the modified retrospective method. The adoption did not have a material impact on revenue recognition[60](index=60&type=chunk) [Overview](index=21&type=section&id=Overview) The company operates through two segments, Custom Cabling and RF Connector, with Custom Cabling contributing the majority of sales in Q1 2019 - The company operates through two segments: RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly[71](index=71&type=chunk) - For Q1 2019, the Custom Cabling segment accounted for **69%** of total sales, while the RF Connector segment accounted for the remaining **31%**[72](index=72&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $14.0 million in cash and no debt, despite a cash decrease due to increased working capital for sales growth | Metric | As of January 31, 2019 | | :--- | :--- | | Cash and cash equivalents | $14.0 million | | Working capital | $24.8 million | | Current ratio | 7.5:1 | | Outstanding indebtedness | $0 | - The company maintained a consistent backlog of **$11 million** as of January 31, 2019, unchanged from the end of fiscal year 2018[76](index=76&type=chunk) - Cash decreased by **$2.3 million** during the quarter, primarily due to a **$1.4 million** increase in accounts receivable and a **$1.1 million** increase in inventories, driven by higher sales[77](index=77&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Net sales increased significantly across both segments, while gross margin slightly declined due to higher outsourcing costs, and operating efficiency improved | Metric | Q1 2019 | Q1 2018 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $10.6M | $8.0M | +34% | | Custom Cabling Sales | $7.4M | $5.3M | +38% | | RF Connector Sales | $3.3M | $2.6M | +24% | | **Gross Profit** | $3.1M | $2.5M | +28% | | **Gross Margin** | 30% | 31% | -1 ppt | - The decrease in gross margin from **31%** to **30%** was primarily due to higher costs of outsourcing at the Custom Cabling segment[83](index=83&type=chunk) - Selling and general expenses as a percentage of sales declined to **19%** from **22%** in the prior-year quarter, indicating improved operational efficiency[86](index=86&type=chunk) - The effective tax rate increased to **21%** in Q1 2019 from **16%** in Q1 2018, mainly due to the elimination of certain tax benefits following the 2017 Tax Act[88](index=88&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reported no new or material quantitative and qualitative disclosures about market risk for the period - The company had nothing to report regarding quantitative and qualitative disclosures about market risk[92](index=92&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of January 31, 2019. There were no material changes to the company's internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective[95](index=95&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended January 31, 2019, that materially affected, or are reasonably likely to materially affect, these controls[96](index=96&type=chunk) Part II. OTHER INFORMATION This section covers legal proceedings, risk factors, and other miscellaneous items, including exhibits filed with the report [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material legal proceedings outside the ordinary course of business as of the report date - As of the date of this report, the company is not subject to any proceeding that is not in the ordinary course of business or that is material to its financial condition[98](index=98&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended October 31, 2018 - There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended October 31, 2018[99](index=99&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=27&type=section&id=Other%20Items) The company had nothing to report for Item 2 (Unregistered Sales of Equity Securities and Use of Proceeds), Item 3 (Defaults upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information). Item 6 lists the exhibits filed with the report - The company reported nothing for Unregistered Sales of Equity Securities, Defaults upon Senior Securities, Mine Safety Disclosures, and Other Information[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files[104](index=104&type=chunk)