RF Monolithics Reports 4Q Results

Oct 30, 2009 (Close-Up Media via COMTEX) -- RFMI | Quote | Chart | News | PowerRating -- RF Monolithics reported sales for the fourth quarter ended August 31, of $7.5 million, representing a 15 percent increase from $6.5 million in sales for the third quarter and a 40 percent decrease from $12.4 million in sales for the fourth quarter of the prior year, according to the company.

In a release dated October 27, the company stated:

- The company reported net income of $62,000 or $0.01 per share, compared to a net loss for the fourth quarter ended August 31, 2008 of $19.5 million or $1.99 per share.

- Sales for the fiscal year ended August 31, were $32.0 million, compared to sales for the year ended August 31, 2008 of $54.7 million. Net loss for fiscal 2009 was $3.5 million or $0.35 per share, compared to a net loss of $20.9 million or $2.17 per share for fiscal 2008. The fiscal 2009 net loss was primarily due to $2.0 million in net restructuring and impairments expenses and $0.2 million in loss from discontinued operations, as well as the effects of the economic downturn.

- The prior year's fourth quarter net loss was primarily due to unusual expenses, including $16.2 million in net restructuring and impairment expenses and $3.2 million in loss from discontinued operations. The prior year's net loss was primarily due to $16.5 million in net restructuring and impairment expenses and $4.7 million in loss from discontinued operations.

RFM's President and CEO David M. Kirk said, "Last December, we announced a series of cost reduction and cash preservation measures in response to economic conditions that had caused a sudden drop in sales to customers in many of our markets. Since then, we have implemented these actions and taken others to improve profitability and cash flow. This quarter, we see the clear results of those measures, along with some economic recovery in our markets. The economy is still affecting us, as sales are down substantially from last year. However, we think returning to profitability, achieving EBITDA of $637,000 and positive operating cash flow of $1.3 million are important milestones in "right sizing" our company at our current level of sales. In the current quarter, we improved our gross margins 320 basis points from our second quarter ended in February and reduced quarterly operating expenses (disregarding restructuring and impairment expenses) by $1.5 million from our first quarter. The aggressive implementation of our cost reduction measures and our relentless focus on cost control by our management team and employees have positioned the company well for the future.

"Our focus on Wireless Solutions products for the medical and industrial markets resulted in an overall 15 percent increase in sales from our previous quarter, despite further weakness in automotive and telecommunications markets. We saw improved order activity and a positive book-to-bill ratio with greater visibility due to lead times. We saw strength in our point of sales reports from our distribution network. We have launched three new products in recent months. As a result, while our markets are still facing significant challenges and there is uncertainty about the timing and strength of a recovery; we are encouraged by the trends that we are seeing and the results of our efforts, which we believe validate our business model.

"We have also made substantial progress in improving our liquidity and debt reduction. We generated $1.3 million in operating cash flow in the fourth quarter and reduced our debt, to our senior lender, by over $1.0 million. Total operating cash flow for fiscal 2009 was $4.2 million. Our improved operating performance and determined effort to reduce inventory has allowed us to cut our total bank debt by $4.9 million (52 percent) and other current liabilities by $3.9 million this year. The outstanding balance of our debt to our senior lender was reduced from $9.4 million at the end of last year to $3.6 million this year-end, and we continued to meet all of our current financial covenants. As a result, we extended our Forbearance Agreement for another six months, and at the expiration of the agreement, we expect to enter into an agreement with new financial covenants."

RF Monolithics is a provider of solutions-driven, technology-enabled wireless connectivity for a broad range of wireless applications, from individual standard and custom components to modules for comprehensive industrial wireless sensor networks and machine-to-machine (M2M) technology.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index