Mon, Sep 16, 8:10 PM (95 days ago)
For the quarter ended July 31, 2024, RF Industries, Ltd. reported a 7.6% increase in net sales to $16.8 million, driven by a 39.2% rise in the Custom Cabling segment, offsetting a 7.6% decline in the RF Connector segment. Gross profit increased to $5.0 million, with gross margins improving to 29.5%. Operating expenses fell to $5.4 million due to cost-saving measures. The company registered a net loss of $0.7 million, an improvement from the $1.6 million loss in the prior year. For the nine months, total revenues decreased by 17.6% to $46.4 million, primarily due to lower sales in the RF Connector segment, leading to a net loss of $6.4 million. Cash flow from operations was positive at $3.4 million, although total cash decreased to $1.8 million from $4.9 million. The company’s current liabilities increased due to a new credit agreement with Eclipse Business Capital, replacing the previous Bank of America facilities. As of July 31, 2024, working capital was $11.0 million, indicating a current ratio of 1.6:1. Future operations may be impacted by ongoing cost-cutting measures and the ability to maintain liquidity amid fluctuating market conditions.