Relm Releases Quarterly and First-Half Financial Results (8/10/12)
Relm Wireless announced its financial and operating results for the quarter and six months ended June 30. For the quarter, sales totaled about $9.3 million, compared with about $4.7 million for the second quarter last year. Pretax income was about $2 million, compared with a pretax loss of about $855,000 for the second quarter last year.
The company recognized income tax expense of about $765,000 for the second quarter, compared with no income tax expense or benefit for the same quarter last year. Net income for the quarter was approximately $1.2 million compared with a net loss of about $855,000 for the same quarter last year.
Gross profit margin for the second quarter 2012 was 49.7 percent of sales, versus 35.5 percent of sales for the same quarter last year. The company had about $20.7 million in working capital as of June 30, of which $10 million was composed 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 composed of cash and trade receivables. The company had no balance outstanding under its revolving credit facility at June 30.
"The second quarter 2012 was our best quarter in three years,” said Relm President and CEO David Storey. “It represented a sharp rebound from the preceding quarter and the same quarter last year. The improvement in our business was broad based, including sales growth from new KNG products and new customers, combined with resurgent demand for legacy products primarily from long-standing federal customers. Higher overall volumes and a sales mix that was heavily weighted toward Project 25 (P25) digital products yielded strong gross profit margins approaching 50 percent, a significant improvement from recent quarters."
For the six months ended June 30, sales totaled about $13.7 million compared with about $11.4 million for the same period last year. Pretax income for the six months was about $1.3 million compared with a pretax loss of approximately $1.5 million for the same period last year.
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