RF Industries announced results for the fiscal first quarter ended Jan. 31, 2017.DHS Awards $200,000 to sUAS Resilience Firm
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Sales for the first quarter of fiscal 2017 were $6.6 million compared with sales of $6.8 million for the same quarter last year. The net loss for the first quarter was $194,000 compared with a net loss of $353,000 in the same quarter last year.
Custom cabling manufacturing and assembly segment net sales declined 15 percent to $4.1 million from $4.8 million in the same quarter last year, because of continued weak demand for wireless cabling, telecom equipment and competition from offshore manufacturing. RF connector and cable assembly segment net sales increased $579,000, or 30 percent, to $2.5 million from $2 million in the first quarter of fiscal 2017, primarily associated with improved sales to the distributed antenna systems (DAS) marketplace.
Excluding sales in last year's first quarter from the Aviel Division, which was sold in December 2015, RF Connector's first quarter fiscal 2017 sales increased $665,000, or 36 percent, compared to sales in the same quarter last year.
Gross profit for the first quarter of fiscal 2017 was $1.9 million, or 28 percent of sales, compared with gross profit of $2 million, or 30 percent of sales, in the same quarter last year. Gross margin declined because of continuing weakness in demand from the wireless market combined with lower overall sales at the custom-cabling segment.
"The first quarter is typically our weakest quarter, so we are pleased with the 36 percent increase in net sales from the RF connector division,” said Howard Hill, interim president and CEO. “Higher sales of DAS products and a modest firming in demand for RF connector products are encouraging for the remainder of fiscal 2017. While the custom cabling segment is being affected by weakness in the telecom industry, the data center market and increased offshore competition, we are working to improve sales and control expenses for this segment. We are cautiously optimistic that these efforts, combined with reducing annual company-wide expenses by our goal of approximately $750,000 in the current fiscal year, can lead to improved results for the remainder of fiscal 2017."
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