RF Industries Ltd (NASDAQ:RFIL) stock rose 2.50% (As on June 14, 11:22:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24. Backlog of $18.0 million at the end of the second quarter on bookings of $17.9 million. As of today, the backlog stands at $20.0 million. Gross profit margin was 29.9%, an improvement from 24.5% in the first quarter of fiscal 2024, and up from 27.4% year-over-year. Operating loss was $415,000, an improvement from a loss of $2.1 million in the first quarter of 2024 and down from income of $489,000 year-over-year. The consolidated net loss was $4.3 million or $0.41 per diluted share, a sequential decline from a loss of $1.4 million in the first quarter of fiscal 2024 and down from income of $581,000 year-over-year. Adjusted EBITDA was $572,000, up from an Adjusted EBITDA loss of $1.1 million in the first quarter of fiscal 2024 and down from Adjusted EBITDA of $1.4 million year-over-year.

RFIL in the second quarter of FY 24 has reported the adjusted earnings per share of 1 cents, beating the analysts’ estimates for the adjusted loss per share of 3 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 19.7 percent to $16.11 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by 1.04%.

Meanwhile, the company has expanded the product offering both organically and through acquisitions and are now in a better position to benefit from heightened activity in the telecom industry. The company is seeing increased demand for the higher-value products like the Optiflex hybrid fiber, Direct-Air Cooling solutions and integrated small cell solutions. In May, the company had received several large orders totaling approximately $4 million across multiple product areas including a $2 million win for small cell solutions from one key customer in the Tier 1 wireless carrier ecosystem. With these orders, the company saw a material increase to the backlog from the end of the fiscal first quarter of 2024. The company’s ongoing focus on operational and cost efficiencies, as well as a shift to higher value products, can have meaningful impact on profitability as sales recover. In addition, the consolidation of the two West Coast facilities into a single San Diego location will be completed in early Summer and the company is accelerating the plan to consolidate some of the East Coast operations in New Jersey.