RELM Wireless Savors Strong Third Quarter
By Space Coast Daily // November 22, 2012
Best Figures In Three Years For Local Firm
BREVARD COUNTY • WEST MELBOURNE, FLORIDA – RELM Wireless Corporation of West Melbourne has announced strong financial and operating results for the quarter and nine months ending Sept. 30.
During that period, sales totaled approximately $8.1 million, compared with about $7 million for the third quarter last year.
Pretax income for the quarter was about $1.4 million, compared with $939,000 for the third quarter last year.
The company recognized income tax expense of $508,000 for the third quarter 2012, compared with $25,000 for the same quarter last year. Income tax expense for the third quarter was largely non-cash because of the company’s deferred tax assets derived primarily from its net operating loss carry forwards.
Net income for the quarter ending Sept. 30 was $884,000, or $0.07 per diluted share, compared with approximately $914,000, or $0.07 per diluted share, for the same quarter last year.
Gross profit margin for the third quarter 2012 was 49.7 percent of sales, versus 50.3 percent of sales for the same quarter last year. Selling, general and administrative expenses totaled $2.6 million (32.5 percent of sales) for the third quarter 2012, compared with $2.5 million (36.4 percent of sales) for the third quarter last year.
The company had about $21.4 million in working capital as of Sept. 30, 2012, of which $10.8 million was comprised of cash and trade receivables. This compares with working capital of $19.5 million as of Dec. 31, 2011, of which $6.8 million was comprised of cash and trade receivables.
RELM had no balance outstanding under its revolving credit facility at Sept. 30.
“We were very pleased to follow-up our best second quarter in three years with solid financial and operating results for the third quarter and year-to-date,” said RELM President and Chief Executive Officer David Storey. “Our sales increased for both the third quarter and nine-month periods compared with the same periods last year.”
Storey said RELM benefits from a larger addressable market, made possible by an expansive product line.
“We are encouraged by the momentum of the second and third quarters, which we believe establishes a foundation for consistency and growth moving forward,” Storey said.