RF Industries, a manufacturer of interconnect products and systems, announced its unaudited financial results for the first quarter of fiscal 2022 ending January 31, 2022. This year, they also closed the acquisition of Microlab, from the Wireless Telecom Group, which will help boost their revenue over time.
First Quarter Fiscal 2022 Highlights and Operating Results:
- Net sales increased 69% year over year to $16.9 million.
- Backlog of $27.9 million on January 31, 2022. Currently, backlog stands at $24.9 million, which does not include contribution from the Company's recently completed acquisition of Microlab.
- Gross profit margin was 24%, compared to 26% in the first quarter of fiscal 2021, and was impacted by the current state of the supply chain.
- Operating loss was ($362,000), compared to an operating loss of ($589,000) in the first quarter of fiscal 2021.
- Excluding one-time expenses of $734,000, primarily related to the acquisition of Microlab, operating income was $372,000.
- Net loss was ($277,000), or ($0.03) per diluted share, compared to a net loss of ($403,000), or ($0.04) per diluted share, in the first quarter of fiscal 2021.
- Non-GAAP net income was $596,000, or $0.06 per diluted share, compared to a non-GAAP net loss of ($280,000), or ($0.03) per diluted share, in the first quarter of fiscal 2021.
- Adjusted EBITDA was $691,000, compared to an adjusted EBITDA loss of ($229,000), in the first quarter of fiscal 2021.
- Cash and cash equivalents were $13.5 million.
Fiscal 2022 Financial Guidance
For the fiscal 2022 year ending October 31, 2022, RF Industries expects their full year total revenue to be greater than $75 million, an increase from its previously announced fiscal 2022 revenue guidance of greater than $63 million.
Robert Dawson, President and CEO of RF Industries, commented:
"We are pleased to report our fourth consecutive quarter of strong year-over-year revenue growth for the first quarter, which is seasonally our softest quarter of the year. While our sales have improved significantly from the first quarter of fiscal 2021, our margins and bottom line were impacted by one-time costs associated with the Microlab acquisition, as well as the continued impact of the current state of the supply chain.
"Product mix related to the concentrated business with our large Tier 1 customer continues to have an impact on our gross margins; however, our core business continues to grow year over year with a diverse set of customers and solid gross margins. We believe the first quarter reflects our low point for margins this year as we expect our product mix and the supply chain headwinds to improve as the year goes on.
"We are excited to have closed our acquisition of Microlab earlier this month, which creates significant opportunity to accelerate our product roadmap and provides additional scale and opportunity for overall margin improvement and further revenue growth. As a result of this completed acquisition, we are increasing our annual revenue guidance for fiscal 2022 from greater than $63 million to greater than $75 million, which will include approximately eight months of Microlab revenue we expect to receive this fiscal year. With this expected 31% increase in full year revenue versus fiscal year 2021, we also expect significant growth in our Adjusted EBITDA as our profitability increases throughout the year."