In This Article:
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Net Sales: $16.8 million, up 4.5% sequentially and 7.6% year over year.
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Gross Profit Margin: 29.5%, a 510-basis-point improvement year over year.
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Operating Loss: $419,000, improved from a $2 million loss year over year.
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Consolidated Net Loss: $705,000, or $0.07 per diluted share, compared to a loss of $1.6 million, or $0.16 per diluted share, in the prior year.
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Non-GAAP Net Loss: $95,000, or $0.01 per diluted share, improved from a non-GAAP net loss of $1.3 million, or $0.12 per diluted share, year over year.
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Adjusted EBITDA: Positive $460,000, versus an adjusted EBITDA loss of $940,000 year over year.
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Cash and Cash Equivalents: $1.8 million as of July 31, 2024.
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Working Capital: $11 million with a current ratio of approximately 1.6:1.
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Outstanding Borrowings: $8.7 million as of July 2024, down from $10.5 million as of April 30, 2024.
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Inventory: Approximately $15 million, a decrease of $1.4 million sequentially and $3.4 million from year-end.
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Backlog: $20.1 million as of July 31, 2024, with third-quarter bookings of $18.9 million.
Release Date: September 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net sales increased by 4.5% sequentially and 7.6% year over year, reaching $16.8 million.
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Gross profit margin improved by 510 basis points to 29.5%, reflecting a favorable product mix and increased efficiencies.
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Adjusted EBITDA turned positive for the second consecutive quarter, indicating a reversal from previous losses.
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The company has a strong backlog of $20.1 million, suggesting continued demand and future revenue potential.
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RF Industries Ltd (NASDAQ:RFIL) has successfully reduced operating expenses and improved operating leverage, positioning the company for future growth.
Negative Points
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Operating loss was $419,000, although this is an improvement from a $2 million loss year over year.
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Consolidated net loss was $705,000, or $0.07 per diluted share, indicating ongoing financial challenges.
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Non-GAAP net loss was $95,000, or $0.01 per diluted share, showing that profitability has not yet been achieved.
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The company remains reliant on customer-supplied materials, which can impact the timing of order fulfillment.
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Microlab product line experienced volatility and was negatively impacted by carrier spending pauses, affecting overall performance.
Q & A Highlights
Q: It's good to see the margins bumping up against that 30% level. Do you expect margins to stay at or around this 29%-plus level, or could they continue to expand? A: (Robert Dawson, CEO) We feel comfortable at the current margin level and aim to reach our 30% target. The mix of higher-margin products in our backlog supports this, and we expect sequential sales growth in Q4 to further aid margin expansion.