RF Industries, Ltd. (NASDAQ:RFIL) Raises Revenue Forecasts

RF Industries, Ltd. (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, stock rose 4.02% (As on June 15, 11:10:55 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 22 has reported 94% increase in the revenue to $21.5 million. Backlog of $27.6 million at April 30, 2022 on second quarter bookings of $18.8 million; excluding Microlab, backlog of $22.8 million and bookings of $13 million. As of today, backlog stands at $34 million. Gross profit margin was 28%, compared to 24% in the preceding first quarter, and 27% in the second quarter of fiscal 2021. Non-GAAP net income was $1.3 million, or $0.13 per diluted share, compared to non-GAAP net income of $5.0 million, or $0.49 per diluted share, in the second quarter of fiscal 2021 (which included the positive impact of the ERC and the forgiveness from the PPP loans). Adjusted EBITDA was $2.0 million, compared to an Adjusted EBITDA of $355,000 in the second quarter of fiscal 2021. Cash and cash equivalents were $3.8 million and the Company’s full $3 million revolver remains available. The company continues to focus on successfully executing our long-term plan to grow both organically and through strategic acquisitions, the company has increased the guidance for fiscal 2022 of annual revenue

Moreover, the gross profit margin was 28%, compared to 24% in the preceding first quarter, and 27% in the second quarter of fiscal 2021 (which excludes the impact of the Employee Retention Tax Credits (“ERC”)). Operating income was $746,000 (which includes $637,000 in acquisition related and other one-time charges), compared to operating income of $42,000 in the second quarter of fiscal 2021 (which excluded the impact of the ERC and forgiveness of loans from the Paycheck Protection Program (“PPP”)).

For the fiscal 2022 year ending October 31, 2022, RF Industries expects full year total revenue of $80 million, up from its previous guidance of $75 million. Gross margins is expected to increase as product mix changes and supply chain impact moderates. Should favorable market conditions persist, the Company expects profitability and liquidity to further improve in the second half of the fiscal year from operational efficiencies, inventory rationalization, and other key initiatives.

Meanwhile, the company has recently announced a significant set of orders for the Optiflex hybrid fiber cabling solution supporting a new wireless carrier customer’s next generation 4G/5G infrastructure build.

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