RF Industries, Ltd. (NASDAQ:RFIL) stock fell 8.63% (As on September 15, 11:24:45 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 22.  Microlab exceeded expectations delivering $6.5 million in sales in the quarter. Backlog of $30.6 million at July 31, 2022 on third quarter bookings of $26.8 million. As of today, backlog stands at $31.0 million. Gross profit margin was 30%, compared to 28% in the preceding second quarter, and 28% in the third quarter of fiscal 2021 (which excluded the impact of the Employee Retention Tax Credits (“ERC”)). Consolidated net income was $771,000, or $0.08 per diluted share, compared to consolidated net income of $926,000, or $0.09 per diluted share, in the third quarter of fiscal 2021(which included the impact of the ERC). Adjusted EBITDA was $2.1 million, compared to adjusted EBITDA of $1.0 million in the third quarter of fiscal 2021. Cash and cash equivalents were $5.1 million as of the end of the third quarter, and the Company’s full $3.0 million revolver remains available.

Meanwhile, Q3 was another strong quarter of revenue growth and continued gross margin improvement that reflects both an organic increase in the overall business and higher margin revenue contribution from our successful acquisition of Microlab, which performed extremely well in the quarter. The hybrid fiber business also remained strong, and the company was pleased to announce last week another order from our newest North American Tier 1 wireless carrier customer to support their infrastructure build. The company plans to pursue additional projects in strategic higher margin product areas.

RFIL in the third quarter of FY 22 has reported the adjusted earnings per share of 12 cents, missing the analysts’ estimates for the adjusted earnings per share of 13 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 56 percent to $23.84 million in the third quarter of FY 22, beating the analysts’ estimates for revenue by 9.07%.

For the fiscal 2022 year ending October 31, 2022, RF Industries expects full year net sales of between $83 million to $85 million, which would represent growth of at least 45% year over year. Gross margin improvement for the full year as the company continues to drive margin improvement opportunities and a better product mix.