RF Industries Reports Second Quarter Fiscal Year 2024 Earnings

• RF Industries, Ltd. reported an earnings per share (EPS) of -$0.41, missing the anticipated -$0.03 EPS.
• Revenue for the quarter was $16.11 million, slightly below the estimated $16.28 million.
• The company highlighted a significant backlog increase to $20.0 million, indicating potential future revenue growth.

On Thursday, June 13, 2024, RF Industries, Ltd. (NASDAQ:RFIL), a key player in the manufacturing and marketing of interconnect products and systems, reported its earnings for the second quarter of the fiscal year 2024. The company revealed earnings per share (EPS) of -$0.41, falling significantly short of the anticipated -$0.03 EPS. Additionally, RFIL's revenue for the period was $16.11 million, narrowly missing the estimated revenue target of $16.28 million. This financial performance indicates a challenging quarter for RF Industries, despite its efforts to navigate the complexities of the market.

The earnings conference call, led by Chief Executive Officer Rob Dawson, President and Chief Operating Officer Ray Bibisi, and Chief Financial Officer Peter Yin, provided a platform for the company's executives to discuss the financial outcomes, strategic directions, and operational performance for the quarter. The involvement of these high-level executives underscores the importance of the earnings call in conveying the company's current financial health and future outlook to investors. The detailed insights from the call, available on Seeking Alpha, offer a deeper understanding of the factors contributing to RFIL's financial results.

RF Industries reported a notable increase in net sales, reaching $16.1 million for the quarter, which represents a 19.7% rise from the first quarter's $13.5 million. However, this figure also marks a decrease from the $22.3 million recorded in the same quarter of the previous year. The company's financial highlights further include a significant backlog, which stood at $18.0 million at the quarter's end, indicating potential future revenue. This backlog has since increased to $20.0 million, suggesting a positive trajectory in order bookings.

Despite these gains, RFIL experienced an operating loss of $415,000 for the quarter. This loss, however, shows an improvement from the $2.1 million loss in the first quarter of 2024 and is a decrease from the operating income of $489,000 reported in the same quarter of the previous year. The company's gross profit margin also improved to 29.9%, up from 24.5% in the first quarter of 2024 and a year-over-year increase from 27.4%. These financial metrics highlight the company's efforts to improve its profitability and operational efficiency amidst challenging market conditions.

RFIL's financial ratios, such as the price-to-sales ratio (TTM) of approximately 0.55 and the enterprise value-to-sales ratio (TTM) of about 1.05, provide insights into how investors currently value the company in relation to its sales. The enterprise value to operating cash flow ratio (TTM) of approximately 22.94 further highlights the market's valuation of the company in relation to its operating cash flow. Additionally, the debt-to-equity ratio (TTM) of roughly 0.89 indicates that debt is a significant component of RFIL's capital structure, which could impact its financial flexibility moving forward.