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RF Industries shares pop after 2Q sales and profit soar

The San Diego-based company's revenue jumped thanks partly to higher sales of specialized custom cabling
cable connectors
RF Industries' shares are up sharply in early trade

Investors sent shares of RF Industries Ltd (NASDAQ:RFIL) soaring today after the maker of radio frequency connectors reported its sales tripled in the second quarter.

Higher sales of specialized custom cabling, as well as fiber optic cable and other copper-cabling products, sent the San Diego-based company’s net sales to US$22.4mln from US$7.6mln compared with a year earlier.

In response, RF Industries' shares jumped 28% to US$8 in morning trade.

Net income climbed to US$3.2mln, or US$0.34 per diluted share, up from US$0.1mln, or US$0.01 per diluted share, in the year-ago quarter.

"During the quarter, we were asked to hit some aggressive production milestones on behalf of our customers and we did so in a flexible way without major increases in fixed operating costs,” remarked CEO Robert Dawson. "We are optimistic about the rest of the fiscal year as the company continues to build momentum."

The company reported US$12m in new orders during the second quarter and reported cash and equivalents of US$8.5mln and working capital of US$17.5mln as of the close of April. 

 



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