RF Industries, Ltd. (NASDAQ: RFIL) said that fourth quarter net sales for the fourth quarter of fiscal 2015 increased USD3.0 million, or 50 percent, to USD8.9 million compared to net sales of USD5.9 million for the same quarter last year.
Despite the increase in net sales, net income decreased in the 2015 quarter to USD270,000, or USD0.03 per diluted share, compared to USD325,000, or USD0.04 per diluted share, in the same period last year due in part to weaker sales in the company´s core Connector and Cable Assembly segment.
Gross profit for the fourth quarter of fiscal 2015 increased to USD2.9 million from USD2.6 million, but declined as a percentage of net sales to 32 percent from 44 percent in the same period last year, primarily due to strong sales contributions from the typically lower margin businesses comprising the Custom Cabling and Manufacturing segment.
Net sales for the fiscal year ended October 31, 2015 increased USD9.7 million, or 42 percent, to USD32.8 million compared to net sales of USD23.1 million for fiscal 2014.
Net income decreased to USD1.0 million, or USD0.11 per diluted share, compared to USD1.4 million, or USD0.16 per diluted share, in fiscal 2014. Comnet and Rel-Tech together contributed USD13.4 million to Custom Cabling and Manufacturing segment sales, which increased 165 percent to USD19.2 million compared to USD7.2 million in fiscal 2014.
Net sales for the company´s other business segments declined by USD2.3 million to USD13.6 million, compared to USD15.9 million in fiscal 2014.
Fiscal 2015 gross profit declined to 34 percent from 45 percent of sales in fiscal 2014 primarily due to strong sales contributions from the typically lower margin businesses comprising the Custom Cabling and Manufacturing segment.
RF Industries designs and makes innovative interconnect products and complex cable assemblies across diversified, high growth markets including wireless carriers and infrastructure, medical and industrial. The company is headquartered in San Diego, California with operations in Yaphank, New York, East Brunswick, New Jersey and Milford, Connecticut.