RF Industries, Ltd. (NASDAQ:RFIL), a prominent player in the interconnect products and systems market, recently reported its financial results for the first quarter of fiscal year 2025, which ended on January 31, 2025. Despite missing the estimated earnings per share (EPS) of $0.03 with an actual EPS of -$0.02, RFIL exceeded revenue expectations, reporting $19.2 million compared to the estimated $18.458 million.
During the Q1 2025 earnings call on March 17, 2025, key figures such as CEO Rob Dawson and CFO Peter Yin discussed the company's financial performance. The call, hosted by Donni Case from Investor Relations, highlighted RFIL's significant revenue growth. The company achieved net sales of $19.2 million, a 42.7% increase from $13.5 million in the same quarter the previous year, and a 4.0% rise from $18.5 million in the fourth quarter of fiscal 2024.
RFIL's gross profit margin improved to 29.8%, up from 24.5% in the prior year quarter. This improvement contributed to a positive turnaround in operating income, which reached $56,000, compared to an operating loss of $2.1 million year-over-year. The consolidated net loss was reduced to $245,000, or $0.02 per diluted share, from a net loss of $1.4 million, or $0.13 per diluted share, in the previous year.
Despite a negative price-to-earnings (P/E) ratio of -7.80, RFIL's price-to-sales ratio stands at about 0.60, indicating that investors are paying 60 cents for every dollar of the company's sales. The enterprise value to sales ratio is approximately 0.59, suggesting a relatively low valuation compared to sales. The enterprise value to operating cash flow ratio is around 17.22, reflecting the company's cash flow generation relative to its enterprise value.
