RF Industries reported record fiscal third-quarter revenue of $24 million, up 21% from the prior-year period and 16% sequentially, as higher-value integrated systems and custom cabling offerings drove growth and profitability. Gross profit rose 27% year over year to $8.5 million, while gross margin expanded 160 basis points to 35.6% from 34.0%, according to Chief Financial Officer Peter Yin, and the company said it has exceeded its 30% gross-margin objective in six of the past seven quarters. Operating income increased to $1.8 million from $720,000 a year earlier, GAAP net income was $1.4 million, or $0.12 per diluted share, and adjusted EBITDA rose about 71% to $2.7 million, with adjusted EBITDA margin reaching 11.1% and topping the company's long-stated 10% target. Third-quarter bookings were $22.5 million, a book-to-bill ratio of approximately 0.94x, and backlog stood at $18.6 million as of July 31 before rising to $19.8 million as of the call date, while cash rose to $4.5 million and revolver borrowings declined to $5.7 million from $6.1 million at the end of the second quarter. Chief Executive Officer Rob Dawson said the company expects fiscal fourth-quarter sales to be roughly equal to or above the third-quarter level, with momentum in small-cell products and direct air-cooling, and management expects direct air-cooling sales to exceed $10 million as it pursues opportunities in edge data centers, AI infrastructure, aerospace and defense, and other diversified markets.
RF Industries LtdRF Industries reported record Q3 revenue of $24M (up 21%), gross margin expansion to 35.6%, and higher operating income, net income, and adjusted EBITDA.
