Photo courtesy of RF Industries Inc.
This RF coaxial adapter kit is typical of the electronic components produced by RF Industries. The business had a good year and agreed to buy a New Jersey company.

Photo courtesy of RF Industries Inc. This RF coaxial adapter kit is typical of the electronic components produced by RF Industries. The business had a good year and agreed to buy a New Jersey company.

RF Industries Inc. (Nasdaq: RFIL), the electronic component maker based on Miramar Road, reported net income of $813,000 on net sales of $21.1 million during its fourth quarter, which ended Oct. 31.

Fourth quarter net sales increased 38% from the third quarter. Sales increased 97% from the year-ago quarter.


For fiscal 2021, RF Industries reported net income of $6.2 million on net sales of $57.4 million. The business released the figures on Dec. 22.


The business makes radio frequency connectors, coaxial cables and related interconnect solutions.


$24 Million Purchase


It was an eventful December for RF Industries. On Dec. 17, it announced that it agreed to buy the Microlab LLC radio frequency components business from New Jersey-based Wireless Telecom Group Inc. (NYSE: WTT) for $24.25 million cash. The deal still needs shareholder approval.


photo

Robert Dawson President and CEO RF Industries

It is a good acquisition, said Robert Dawson, RF Industries’ president and CEO. “Microlab is a great find,” he said, noting the two companies sell largely into the same end markets. “There is almost no overlap in our product offering.”


The business plans to pay the purchase price with a combination of cash on hand and borrowings from its credit facility. RF Industries reported having $13 million in cash on Oct. 31, down from $15.8 million on Oct. 31, 2020.


Microlab was founded in 1949 and is based in Parsippany, New Jersey. The business designs and manufactures high-performance components such as dividers, directional couplers and filters.


B. Riley Securities is serving as the financial adviser to RF Industries and DLA Piper is acting as legal adviser.


Dawson said the business is executing on its strategy to grow organically and through acquisitions. RF Industries expects year-over-year revenue growth to be “north of 10%, which should put our total fiscal 2022 sales at greater than $63 million,” Dawson said. The expected growth rate does not include any revenue from the Microlab acquisition.


Gains Over 2020


RF Industries’ most recent quarterly financial results showed improvement over 2020, with a 97% gain in quarterly net sales when compared the fourth quarter of fiscal 2020. In that quarter, the business reported net income of $159,000 on net sales of $10.7 million.


For the entirety of fiscal 2020, the business reported a net loss of $81,000 on net sales of $43 million.


“We are pleased to report our third consecutive quarter of strong sequential and year-over-year revenue growth for the fourth quarter, and significant growth in all our markets and channels for both the quarter and full fiscal year,” Dawson said in a statement released in late December.

 
“The team did a great job to overcome the headwinds presented by the current state of the supply chain and increases in material and shipping costs. Our complete product offering enables us to sell into every wireless Tier-1 carrier’s network, as well as many of the largest tower and neutral host companies. Our investments in our go-to-market strategies are building positive momentum around new business, as evidenced by several multimillion-dollar orders for our hybrid fiber solution received this past year that continue to contribute to our strong backlog.”


Backlog of $30.5M


The business reported a backlog of $33.3 million at Oct. 31 on fourth quarter bookings of $22.9 million. As of Dec. 22, backlog stood at $30.5 million.


RF Industries designs and manufactures a broad range of interconnect products across diversified markets, including wireless/wireline telecom, data communications and industrial. The company’s products include RF connectors, coaxial cables, data cables, wire harnesses, fiber optic cables, custom cabling, energy-efficient cooling systems and integrated small cell enclosures. In addition to its Miramar facility, the business has operations in Vista as well as in Long Island, New York, Milford, Connecticut and North Kingstown, Rhode Island.


RF Industries Inc.
FOUNDED: 1979
CEO: Robert Dawson
HEADQUARTERS: Miramar
BUSINESS: Designer and manufacturer of interconnect products, namely cables, connectors and jumpers
REVENUE: $57.4 million in fiscal 2021; $43 million in fiscal 2020
STOCK: RFIL on Nasdaq
EMPLOYEES: Approximately 300, with 150 in San Diego County
WEBSITE: 
https://rfindustries.com/
NOTABLE: The average worker in the San Diego office has a 15-year tenure
CONTACT: 858-549-6340