RF Industries Clocks 69% Sales Growth In Q1; Margin Shrinks Due To Acquisition Cost

RF Industries Ltd RFIL reported first-quarter FY22 net sales growth of 69% year-on-year to $16.9 million, beating the consensus of $15.8 million. The backlog was $27.9 million as of January 31.
Non-GAAP EPS of $0.06 beat the consensus of $0.04.
Gross profit margin contracted 200 bps to 24% due to the supply chain crisis. The operating loss improved 38.5% Y/Y to $(0.36) million.
RF Industries posted a positive adjusted EBITDA of $0.69 million and held $13.5 million in cash and equivalents.
CEO Robert Dawson commented: "While our sales have improved significantly from the first quarter of fiscal 2021, our margins and bottom line were impacted by one-time costs associated with the Microlab acquisition, as well as the continued impact of the current state of the supply chain."
Outlook: RF Industries raised the FY22 sales guidance from $63 million to $75 million.
Price Action: RFIL shares traded higher by 3.02% at $7.36 on the last check Thursday.

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