RF Industries Ltd (RFIL, Financial) released its 8-K filing on January 16, 2025, detailing its financial performance for the fourth quarter and fiscal year 2024. The company, a key player in the design, manufacture, and marketing of interconnect products and systems, operates through two segments: RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly, with operations in the United States, Canada, Israel, and Mexico.
Fourth Quarter Performance Highlights
In the fourth quarter of fiscal 2024, RF Industries Ltd (RFIL, Financial) reported net sales of $18.5 million, marking a 16% increase from $15.9 million in the same quarter of the previous year. This figure also exceeded the analyst estimate of $17.85 million. The company's gross profit margin improved to 31.3%, up from 28.4% year-over-year, reflecting enhanced operational efficiency.
The company achieved an operating income of $96,000, a significant turnaround from an operating loss of $1.1 million in the prior year. Despite a consolidated net loss of $238,000, or $0.02 per diluted share, this was an improvement from a net loss of $851,000, or $0.08 per diluted share, year-over-year. Notably, the non-GAAP net income was $394,000, or $0.04 per diluted share, compared to a non-GAAP net loss of $434,000 in the fourth quarter of fiscal 2023.
Fiscal Year 2024 Overview
For the full fiscal year 2024, RF Industries Ltd (RFIL, Financial) reported net sales of $64.9 million, a 10% decrease from $72.2 million in the previous year, exceeding the annual revenue estimate of $64.25 million. However, the gross profit margin improved by 200 basis points to 29.1%. The operating loss narrowed to $2.8 million from $3.8 million in fiscal 2023, and Adjusted EBITDA increased to $838,000 from $460,000 in the prior year.
Inventory levels were reduced by 21% year-over-year, attributed to strategic improvements in procurement and supply chain processes. Cash and cash equivalents at year-end stood at $839,000, reflecting a decrease from $4.9 million the previous year.
Management Commentary and Strategic Outlook
"Our team put us on solid ground at year end by delivering improving performance throughout a challenging market environment in fiscal year 2024," stated Robert Dawson, Chief Executive Officer of RF Industries. "We ended the year with a strong balance sheet after paying down our debt to $8.2 million versus $14.1 million at the end of last fiscal year."
Looking ahead, RF Industries Ltd (RFIL, Financial) is focused on sales growth and profit improvement, aiming for a 10% Adjusted EBITDA margin. The company plans to redesign its operations infrastructure to enhance competitiveness and scalability, with a goal of achieving sustainable profitability.
Financial Metrics and Analysis
Key financial metrics from the income statement include a gross profit of $5.8 million for the fourth quarter, up from $4.5 million year-over-year. Operating expenses were slightly reduced to $5.7 million from $5.6 million in the previous year. The balance sheet showed total assets of $71 million, down from $82.3 million, with a notable reduction in inventories and cash reserves.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $18.5M | $15.9M | $64.9M | $72.2M |
| Gross Profit Margin | 31.3% | 28.4% | 29.1% | 27.1% |
| Operating Income (Loss) | $96K | $(1.1M) | $(2.8M) | $(3.8M) |
| Net Loss | $(238K) | $(851K) | $(6.6M) | $(3.1M) |
| Adjusted EBITDA | $908K | $(108K) | $838K | $460K |
RF Industries Ltd (RFIL, Financial) has demonstrated resilience in a challenging market, with strategic initiatives aimed at enhancing profitability and operational efficiency. The company's focus on transforming into a full solutions provider positions it well for future growth in the industrial products sector.
Explore the complete 8-K earnings release (here) from RF Industries Ltd for further details.
