RF Industries Q3 net loss $597,000, net sales down
Staff Writer |
RF Industries announced results for the third quarter and nine months ended July 31, 2016.
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Net sales decreased 8% to $7.6 million compared to $8.3 million in the same quarter last year.
The net loss for the quarter was $597,000, or $0.07 per share, including one-time expenses of $256,000 for an unconsummated strategic transaction to enhance sales growth in the emerging Distributed Antenna Systems (DAS) marketplace.
This compares to net income of $211,000, or $0.02 per diluted share, in the third quarter of fiscal 2015.
Net sales at the RF Connector and Cable Assembly segment declined 11% to $2.6 million compared to $2.9 million in the third quarter last year.
Segment sales in the third quarter last year included sales of $225,000 from the Aviel Electronics division, which was sold in December, 2015. Excluding Aviel, the RF Connector and Cable Assembly segment net sales declined 4% compared to the third quarter last year but increased 24% compared to net sales in the recent fiscal second quarter.
Net sales at the Custom Cabling and Manufacturing segment declined 6% to $5.1 million from $5.4 million in the same quarter last year.
The recently acquired Comnet and Rel-Tech divisions of the Custom Cabling and Manufacturing segment were profitable in the third quarter of fiscal 2016 and contributed net sales of $3.9 million compared to $4.0 million in the third quarter last year.
The company’s third quarter gross profit was 28% of sales, compared to 31% of sales in the same quarter last year, due to a lower margin product mix at the RF Connector and Cable Assembly segment, combined with reduced sales at the Cables Unlimited division.
Selling and general expenses of the company increased $180,000, to $2.6 million, or 34% of sales, from $2.4 million, or 29% of sales, in the third quarter last year.
Expenses increased primarily due to the one-time expenses of $256,000 related to the strategic transaction and additional operating expenses of $77,000 for the Rel-Tech division, which the company did not own for the entire comparable quarter of 2015.
Excluding expenses related to the strategic transaction and Rel-Tech, selling and general expenses decreased $153,000 or 6% compared to the same quarter last year. ■