RF Industries reported record fiscal third-quarter revenue of approximately $24 million as the interconnect products and systems manufacturer benefited from its shift toward higher-value engineered solutions and a broader mix of end markets.
Revenue increased 21% year over year and 16% sequentially to $23.96 million. Gross margin expanded 160 basis points to 35.6%, while operating income increased to $1.8 million from $720,000.
Net income rose 267% to $1.44 million, or $0.12 per diluted share, from $392,000, or $0.04 per share. Non-GAAP net income doubled to $2.2 million, while adjusted EBITDA increased to $2.7 million from $1.6 million.
RF Industries ended the quarter with $18.6 million of backlog on $22.5 million of bookings. Backlog subsequently increased to $19.8 million. Cash totaled $4.5 million and the company reduced outstanding revolver borrowings to $5.7 million.
Management attributed the margin expansion partly to a multi-year move toward custom cabling and integrated systems, which contain more engineering content and typically involve larger projects than conventional component sales.
That strategy has also diversified RF Industries beyond its historical dependence on wireless carrier capital spending. The company now serves applications in aerospace, edge data centers, AI infrastructure, transportation and public safety.
RF Industries’ portfolio includes RF connectors and adapters, coaxial and fiber-optic cables, wire harnesses, custom cabling, energy-efficient cooling systems and integrated small-cell enclosures.
The combination of record revenue, expanding margins and increasing backlog gives the company additional momentum as it scales above a $20 million quarterly revenue run rate.
KEY QUOTES:
“The RFI team delivered another quarter of accelerating topline growth by converting stronger demand into expanding margins and dramatically higher profitability, as well as demonstrating the earnings power of the business as revenue scales above the $20 million quarterly run rate.”
“Our steady margin expansion is a direct result of successfully executing a multi-year mix shift toward higher-value solutions, including our custom cabling and integrated systems offerings.”
Robert Dawson, CEO of RF Industries
