RF Industries Provides Business Update Including New Orders

Increased demand for small cell solutions and DAC products

SAN DIEGO, CA / ACCESSWIRE / May 21, 2024 / RF Industries, Ltd. (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, today announced several recent new large orders totaling approximately $4 million across multiple product areas including a nearly $2 million win for small cell solutions from one key customer in the Tier 1 wireless carrier ecosystem. With these orders the Company's backlog now stands at approximately $21.1 million, a 30% increase from $16.2 million at the end of the fiscal first quarter.

"While these orders will not all immediately impact our short-term results, they are providing momentum and visibility that we haven't seen over the last several quarters. While many telecom companies have been on the sidelines for the last year, based on what we have been seeing with these recent orders, they seem to be moving forward on upgrading their infrastructure with cost-effective and technology-forward products. In addition to RFI's standard and custom interconnect offer, our small cell solutions and DAC thermal cooling systems provide quality and flexibility in key customer applications," said Robert Dawson, Chief Executive Officer of RF Industries.

Business Update

The Company also announced today that for the Fiscal Second Quarter ended April 30, 2024 Net Sales are expected to be $16.1 million, roughly in-line with estimates, and a 19% sequential increase from the first quarter. Based on the increased sales, favorable product mix and cost reduction efforts, the Company expects improved gross margins compared to the prior quarter.

"While we are pleased to see early signs of a recovery in our core markets, we also appreciate that our customers trust us to deliver critical solutions for their key applications. We have worked hard to transform into a growth company by offering a broader mix of technologically advanced, next-generation, higher-value products and solutions. Now we finally feel some momentum building in these areas and see this as another significant step in our long-term transformation. Our work is not done, but we are excited to see the first real indication of what our business could look like with some wind to our back. We look forward to sharing more details when we release our full second quarter results in June," concluded Dawson.

About RF Industries

RF Industries designs and manufactures a broad range of interconnect products across diversified, growing markets, including wireless/wireline telecom, data communications and industrial. The Company's products include high-performance components used in commercial applications such as RF connectors and adapters, RF passives including dividers, directional couplers and filters, coaxial cables, data cables, wire harnesses, fiber optic cables, custom cabling, energy-efficient cooling systems and integrated small cell enclosures. The Company is headquartered in San Diego, California with additional operations in New York, Connecticut, and New Jersey. Please visit the RF Industries website at www.rfindustries.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to future events. Forward looking statements include, among others, statements concerning our expectations about profitability, revenues, industry trends, markets and demand for our products, current and future purchase orders and backlogs, and the expected benefits and desirability of our products, in each case which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: the Company's cash and liquidity needs, ability to continue as a going concern, non-compliance with terms and covenants in our credit facility, changes in the telecommunications industry and materialization and timing of expected network buildouts; timing and breadth of new products; our ability to realize increased sales; successfully integrating new products and teams; our ability to execute on its go-to-market strategies and channel models; our reliance on certain distributors and customers for a significant portion of anticipated revenues; the impact of existing and additional future tariffs imposed by U.S. and foreign nations; our ability to expand our OEM relationships; our ability to continue to deliver newly designed and custom fiber optic and cabling products to principal customers; our ability to maintain strong margins and diversify our customer base; our ability to initiate operating efficiencies, cost savings and expense reductions; our ability to address the changing needs of the market and capitalize on new market opportunities; our ability to add value to our customer's needs; the success of any product launches; and our ability to increase revenue, gross margins or obtain profitability in a timely manner. Further discussion of these and other potential risks and uncertainties may be found in the Company's public filings with the Securities and Exchange Commission (www.sec.gov) including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements are based upon information available to the Company on the date they are published, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.

RF Industries Contact:
Peter Yin
SVP and CFO
(858) 549-6340
[email protected]

IR Contact:
Margaret Boyce
Financial Profiles, Inc.
(310) 622-8247
[email protected]

SOURCE: RF Industries, Ltd.