Nevada
|
88-0168936
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
7610 Miramar Road, Building 6000
San Diego, California
|
92126
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company x
|
|
|
January 31,
|
|
October 31,
|
|
||
|
|
2014
|
|
2013
|
|
||
|
|
(Unaudited)
|
|
(Note 1)
|
|
||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
12,777
|
|
$
|
11,881
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $84 and $103
|
|
|
2,521
|
|
|
3,160
|
|
Inventories
|
|
|
6,030
|
|
|
5,995
|
|
Other current assets
|
|
|
960
|
|
|
1,552
|
|
Deferred tax assets
|
|
|
322
|
|
|
322
|
|
TOTAL CURRENT ASSETS
|
|
|
22,610
|
|
|
22,910
|
|
|
|
|
|
|
|
|
|
Property and equipment:
|
|
|
|
|
|
|
|
Equipment and tooling
|
|
|
2,508
|
|
|
2,500
|
|
Furniture and office equipment
|
|
|
761
|
|
|
759
|
|
|
|
|
3,269
|
|
|
3,259
|
|
Less accumulated depreciation
|
|
|
2,300
|
|
|
2,206
|
|
Total property and equipment
|
|
|
969
|
|
|
1,053
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
3,076
|
|
|
3,076
|
|
Amortizable intangible assets, net
|
|
|
1,352
|
|
|
1,407
|
|
Non-amortizable intangible assets
|
|
|
410
|
|
|
410
|
|
Note receivable from stockholder
|
|
|
67
|
|
|
67
|
|
Other assets
|
|
|
23
|
|
|
30
|
|
TOTAL ASSETS
|
|
$
|
28,507
|
|
$
|
28,953
|
|
2 | ||
|
|
January 31,
|
|
October 31,
|
|
||
|
|
2014
|
|
2013
|
|
||
|
|
(Unaudited)
|
|
(Note 1)
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
589
|
|
$
|
792
|
|
Accrued expenses
|
|
|
1,178
|
|
|
1,741
|
|
Customer deposit
|
|
|
51
|
|
|
51
|
|
TOTAL CURRENT LIABILITIES
|
|
|
1,818
|
|
|
2,584
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
950
|
|
|
950
|
|
TOTAL LIABILITIES
|
|
|
2,768
|
|
|
3,534
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Common stock - authorized 20,000,000 shares of $0.01 par value; 8,184,887 and 8,075,124 shares issued and outstanding at January 31, 2014 and October 31, 2013, respectively
|
|
|
82
|
|
|
81
|
|
Additional paid-in capital
|
|
|
16,330
|
|
|
15,706
|
|
Retained earnings
|
|
|
9,327
|
|
|
9,632
|
|
TOTAL STOCKHOLDERS' EQUITY
|
|
|
25,739
|
|
|
25,419
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
28,507
|
|
$
|
28,953
|
|
3 | ||
|
|
Three Months Ended January 31,
|
|
||||
|
|
2014
|
|
2013
|
|
||
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,850
|
|
$
|
9,896
|
|
Cost of sales
|
|
|
3,268
|
|
|
5,331
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2,582
|
|
|
4,565
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Engineering
|
|
|
256
|
|
|
289
|
|
Selling and general
|
|
|
1,987
|
|
|
2,258
|
|
Totals
|
|
|
2,243
|
|
|
2,547
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
339
|
|
|
2,018
|
|
|
|
|
|
|
|
|
|
Other income interest/dividends
|
|
|
7
|
|
|
3
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before provision for income taxes
|
|
|
346
|
|
|
2,021
|
|
Provision for income taxes
|
|
|
82
|
|
|
564
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
264
|
|
|
1,457
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
1
|
|
|
25
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
265
|
|
$
|
1,482
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.03
|
|
$
|
0.21
|
|
Discontinued operations
|
|
|
0.00
|
|
|
0.00
|
|
Net income per share
|
|
$
|
0.03
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.03
|
|
$
|
0.19
|
|
Discontinued operations
|
|
|
0.00
|
|
|
0.00
|
|
Net income per share
|
|
$
|
0.03
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
8,143,640
|
|
|
7,074,095
|
|
Diluted
|
|
|
8,817,351
|
|
|
8,004,166
|
|
4 | ||
|
|
Three Months Ended January 31,
|
|
||||
|
|
2014
|
|
2013
|
|
||
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
265
|
|
$
|
1,482
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Bad debt (recovery) expense
|
|
|
(15)
|
|
|
24
|
|
Accounts receivable write-off
|
|
|
4
|
|
|
-
|
|
Depreciation and amortization
|
|
|
149
|
|
|
159
|
|
Stock-based compensation expense
|
|
|
47
|
|
|
33
|
|
Excess tax benefit from stock-based compensation
|
|
|
(237)
|
|
|
(236)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
650
|
|
|
(636)
|
|
Inventories
|
|
|
(35)
|
|
|
247
|
|
Other current assets
|
|
|
592
|
|
|
(310)
|
|
Other long-term assets
|
|
|
7
|
|
|
-
|
|
Accounts payable
|
|
|
(203)
|
|
|
(373)
|
|
Customer deposit
|
|
|
-
|
|
|
51
|
|
Income taxes prepaid (payable)
|
|
|
237
|
|
|
(41)
|
|
Accrued expenses
|
|
|
(563)
|
|
|
260
|
|
Other long-term liabilities
|
|
|
-
|
|
|
(10)
|
|
Net cash provided by operating activities
|
|
|
898
|
|
|
650
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(10)
|
|
|
(43)
|
|
Net cash used in investing activities
|
|
|
(10)
|
|
|
(43)
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
341
|
|
|
1,314
|
|
Excess tax benefit from exercise of stock options
|
|
|
237
|
|
|
236
|
|
Dividends paid
|
|
|
(570)
|
|
|
(700)
|
|
Net cash provided by financing activities
|
|
|
8
|
|
|
850
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
896
|
|
|
1,457
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
11,881
|
|
|
5,492
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
12,777
|
|
$
|
6,949
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information income taxes paid
|
|
$
|
-
|
|
$
|
603
|
|
5 | ||
6 | ||
|
|
Three Months Ended January 31,
|
|
||||
|
|
2014
|
|
2013
|
|
||
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8
|
|
$
|
613
|
|
Cost of sales
|
|
|
-
|
|
|
242
|
|
Gross profit
|
|
|
8
|
|
|
371
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
6
|
|
|
329
|
|
Operating income
|
|
|
2
|
|
|
42
|
|
Provision for income taxes
|
|
|
1
|
|
|
17
|
|
Income from discontinued operations, net of tax
|
|
$
|
1
|
|
$
|
25
|
|
|
|
January 31,
2014 |
|
October 31,
2013 |
|
||
|
|
|
|
|
|
|
|
Raw materials and supplies
|
|
$
|
2,006
|
|
$
|
1,913
|
|
Work in process
|
|
|
35
|
|
|
15
|
|
Finished goods
|
|
|
3,989
|
|
|
4,067
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
6,030
|
|
$
|
5,995
|
|
|
|
Three Months Ended January 31,
|
|
||
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Weighted average shares outstanding for basic earnings per share
|
|
8,143,640
|
|
7,074,095
|
|
|
|
|
|
|
|
Add effects of potentially dilutive securities-assumed exercise of stock options
|
|
673,711
|
|
930,071
|
|
|
|
|
|
|
|
Weighted average shares for diluted earnings per share
|
|
8,817,351
|
|
8,004,166
|
|
7 | ||
|
|
|
2014
|
|
|
|
2013
|
|
Risk-free interest rate
|
|
|
0.69
|
%
|
|
|
0.36
|
%
|
Dividend yield
|
|
|
4.09
|
%
|
|
|
4.45
|
%
|
Expected life of the option
|
|
|
3.5 years
|
|
|
|
3.5 years
|
|
Volatility factor
|
|
|
49.2
|
%
|
|
|
42.5
|
%
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Average
|
|
|
|
|
Shares
|
|
Exercise Price
|
|
|
Outstanding at November 1, 2013
|
|
988,215
|
|
$
|
2.24
|
|
Options granted
|
|
122,903
|
|
$
|
6.84
|
|
Options exercised
|
|
(109,763)
|
|
$
|
3.12
|
|
Options canceled or expired
|
|
(1,836)
|
|
$
|
4.05
|
|
Options outstanding at January 31, 2014
|
|
999,519
|
|
$
|
2.70
|
|
Options exercisable at January 31, 2014
|
|
658,978
|
|
$
|
1.78
|
|
Options vested and expected to vest at January 31, 2014
|
|
989,331
|
|
$
|
2.67
|
|
8 | ||
9 | ||
|
|
Three Months Ended January 31,
|
|
||||
|
|
2014
|
|
2013
|
|
||
|
|
|
|
|
|
|
|
United States
|
|
$
|
5,448
|
|
$
|
9,436
|
|
Foreign Countries:
|
|
|
|
|
|
|
|
Canada
|
|
|
102
|
|
|
148
|
|
Israel
|
|
|
65
|
|
|
97
|
|
Mexico
|
|
|
122
|
|
|
191
|
|
All Other
|
|
|
113
|
|
|
24
|
|
|
|
|
402
|
|
|
460
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
5,850
|
|
$
|
9,896
|
|
|
|
RF Connector
|
|
|
|
Medical
|
|
|
|
|
|
|
|
|||
|
|
and
|
|
Cables
|
|
Cabling and
|
|
|
|
|
|
|
|
|||
|
|
Cable Assembly
|
|
Unlimited
|
|
Interconnector
|
|
Corporate
|
|
Total
|
|
|||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,972
|
|
$
|
2,127
|
|
$
|
751
|
|
$
|
-
|
|
$
|
5,850
|
|
Income (loss) from continuing operations before provision for income taxes
|
|
|
368
|
|
|
(167)
|
|
|
140
|
|
|
5
|
|
|
346
|
|
Depreciation and amortization
|
|
|
49
|
|
|
92
|
|
|
8
|
|
|
-
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,817
|
|
$
|
5,392
|
|
$
|
687
|
|
$
|
-
|
|
$
|
9,896
|
|
Income from continuing operations before provision for income taxes
|
|
|
551
|
|
|
1,312
|
|
|
157
|
|
|
1
|
|
|
2,021
|
|
Depreciation and amortization
|
|
|
32
|
|
|
86
|
|
|
40
|
|
|
1
|
|
|
159
|
|
10 | ||
|
|
January 31, 2014
|
|
October 31, 2013
|
|
||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
Non-compete agreements (estimated life 5 years)
|
|
$
|
200
|
|
$
|
200
|
|
Accumulated amortization
|
|
|
(105)
|
|
|
(95)
|
|
|
|
|
95
|
|
|
105
|
|
|
|
|
|
|
|
|
|
Customer relationships (estimated life 9.6 years)
|
|
|
1,730
|
|
|
1,730
|
|
Accumulated amortization
|
|
|
(473)
|
|
|
(428)
|
|
|
|
|
1,257
|
|
|
1,302
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
1,352
|
|
$
|
1,407
|
|
|
|
|
|
|
|
|
|
Non-amortizable intangible assets:
|
|
|
|
|
|
|
|
Trademarks
|
|
$
|
410
|
|
$
|
410
|
|
|
|
January 31, 2014
|
|
October 31, 2013
|
|
||
|
|
|
|
|
|
|
|
Wages payable
|
|
$
|
651
|
|
$
|
1,188
|
|
Accrued receipts
|
|
|
426
|
|
|
376
|
|
Other current liabilities
|
|
|
101
|
|
|
177
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
1,178
|
|
$
|
1,741
|
|
11 | ||
· | As of January 31, 2014, the Company had cash and cash equivalents equal to $12.8 million. |
12 | ||
· | As of January 31, 2014, the Company had $22.6 million in current assets and $1.8 million in current liabilities. |
· | As of January 31, 2014, the Company had no outstanding indebtedness (other than accounts payable, accrued expenses and income taxes payable). |
13 | ||
14 | ||
Exhibit
|
|
Number
|
|
31.1:
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2:
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1:
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2:
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
99.1:
|
Press Release dated March 13, 2014 announcing the financial results for the fiscal quarter ended January 31, 2014.
|
|
RF INDUSTRIES, LTD.
|
|
|
|
|
Date: March 13, 2014
|
By:
|
/s/ Howard F. Hill
|
|
|
Howard F. Hill
|
|
|
Chief Executive Officer
|
Date: March 13, 2014
|
By:
|
/s/ Mark Turfler
|
|
|
Mark Turfler
|
|
|
Chief Financial Officer
|
15 | ||