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.