-Sales and Profits Increase Significantly From Prior Year- WEST
MELBOURNE, Fla., Aug. 10 /PRNewswire-FirstCall/ -- RELM Wireless
Corporation (NYSE:AmexNYSE:-NYSE:RWC) today announced its financial
and operating results for the quarter and six months ended June 30,
2009. For the quarter ended June 30, 2009, sales increased $3.6
million (56.8%) to approximately $9.9 million, compared with $6.3
million for the same quarter last year. Pretax income for the
quarter increased $2.6 million to $2.3 million compared with a
pretax loss of $0.4 million for the same quarter last year. Net
income for the second quarter 2009 approximated $2.0 million, or
$0.15 per diluted share, compared with a net loss of $0.3 million,
or $0.02 per share, for the same quarter last year; an increase of
approximately $2.3 million. Gross profit margin for the second
quarter 2009 was 49.6% of sales, versus 50.8% of sales for the same
quarter last year. Selling, general and administrative expenses
declined $1.0 million (27.6%) to $2.6 million (26.5% of sales) in
the second quarter 2009, from $3.6 million (57.4% of sales) in the
second quarter last year. The Company had approximately $15.8
million in working capital as of June 30, 2009, including cash and
trade receivables of approximately $10.8 million. For the
year-to-date as of June 30, 2009, the Company reduced net
inventories by approximately $2.8 million (28.2%), and long-term
debt by $1.0 million (66.7%). RELM President and Chief Executive
Officer David Storey commented, "We are pleased and encouraged with
the significant improvement in our second quarter operating
results. Sales for the quarter represent a record for RELM within
at least the past decade, as well as a record for quarterly sales
of P-25 digital products. It is particularly significant that these
results were driven by our new KNG products and by new customers.
Our strategy has been to leverage our new industry-leading products
for market-share gains with new customers. In that regard,
previously announced recent orders from the U.S. Department of
Defense are a breakthrough for us. We intend to build upon and
expand that success. During the quarter we also benefited from an
improved flow of orders from legacy customers. Meanwhile, we are
continuing to control expenses and complete engineering initiatives
that should yield more new products later this year and next year."
For the six months ended June 30, 2009, sales increased
approximately $4.0 million (41.2%) to $13.8 million, compared with
$9.8 million for the same period last year. Pretax income for the
six months ended June 30, 2009 increased $3.8 million to
approximately $1.4 million, compared with a pretax loss of $2.4
million for the same period last year. Net income for the six
months ended June 30, 2009 totaled approximately $1.1 million, or
$0.08 per diluted share, compared with a net loss of $1.6 million,
or $0.12 per share, for the same period last year. Gross profit
margin for the six months ended June 30, 2009 was 47.0% of sales,
versus 46.7% of sales for the same period last year. Selling,
general and administrative expenses for the six months ended June
30, 2009 declined $2.0 million (28.6%) to approximately $5.1
million (36.7% of sales), compared with $7.1 million (72.6% of
sales) for the same period last year. Conference Call and Webcast
The Company will host a conference call and webcast for investors
at 9:00 a.m. Eastern Time, Tuesday, August 11, 2009. Shareholders
and other interested parties may participate in the conference call
by dialing 800-860-2442 (international/local participants dial
412-858-4600) and asking to be connected to the "RELM Wireless
Corporation Conference Call" a few minutes before 9:00 a.m. Eastern
Time on August 11, 2009. The call will also be webcast at
http://www.relm.com/. Please allow extra time prior to the call to
visit the site and download any necessary software to listen to the
Internet webcast. An online archive of the webcast will be
available on the Company's website for 30 days following the call
at http://www.relm.com/. A replay of the conference call will be
available one hour after the completion of the call until August
19, 2009, by dialing 877-344-7529 (international/local participants
dial 412-317-0088) and entering the conference ID 432379. About
APCO Project 25 (P25) APCO Project 25 (P25), which requires
interoperability among compliant equipment regardless of the
manufacturer, was established by the Association of Public-Safety
Communications Officials and is approved by the U.S. Department of
Homeland Security. The shift toward interoperability gained
momentum as a result of significant communications failures during
events such as the Oklahoma City bombings, the 9/11 attacks and
Hurricane Katrina. RELM was one of the first manufacturers to
develop P25-compliant technology. About RELM Wireless Corporation
As an American Manufacturer for more than 60 years, RELM Wireless
Corporation has produced highspecification twoway communications
equipment of unsurpassed reliability and value for use by public
safety professionals and government agencies, as well as radios for
use in a wide range of commercial and industrial applications.
Advances include a broad new line of leading digital twoway radios
compliant with APCO Project 25 specifications. RELM's products are
manufactured and distributed worldwide under BK Radio and RELM
brand names. The Company maintains its headquarters in West
Melbourne, Florida and can be contacted through its web site at
http://www.relm.com/ or directly at 18008212900. The Company's
common stock trades on the NYSE Amex market under the symbol "RWC".
This press release contains certain forward-looking statements that
are made pursuant to the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act Of 1995. These forward-looking
statements concern the Company's operations, economic performance
and financial condition and are based largely on the Company's
beliefs and expectations. These statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks include, among
others, the following: risks relating to the current financial
crisis and adverse economic conditions; reliance on contract
manufacturers; heavy reliance on sales to the U.S. Government;
federal, state and local budget deficits and spending limitations;
limitations in available radio spectrum for use by land mobile
radios; general economic and business conditions amid the financial
crisis; changes in customer preferences; competition; changes in
technology; changes in business strategy; the debt and inventory
levels of the Company; quality of management, business abilities
and judgment of the Company's personnel; and the availability,
terms and deployment of capital. Certain of these factors and
risks, as well as other risks and uncertainties, are stated in more
detail in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2008 and in the Company's subsequent
filings with the SEC. These forward-looking statements are made as
of the date of this press release, and the Company assumes no
obligation to update the forward-looking statements or to update
the reasons why actual results could differ from those projected in
the forward-looking statements. (Financial Tables to Follow) RELM
WIRELESS CORPORATION Condensed Consolidated Statements of
Operations (In Thousands, Except Per Share Amounts) Three Months
Ended Six Months Ended ------------------ ----------------
(Unaudited) (Unaudited) ----------- ----------- 6/30/2009 6/30/2008
6/30/2009 6/30/2008 --------- --------- --------- --------- Sales,
net $9,876 $6,299 $13,849 $9,808 Expenses: Cost of products 4,982
3,099 7,341 5,226 Selling, general and administrative expenses
2,618 3,618 5,085 7,122 ----- ----- ----- ----- Total expenses
7,600 6,717 12,426 12,348 Operating income (loss) 2,276 (418) 1,423
(2,540) Other income (expense): Interest (expense) income (20) 39
(36) 105 Other (expense) income 1 (4) 3 (7) --- --- --- --- Pretax
income (loss) 2,257 (383) 1,390 (2,442) Income tax (expense)
benefit (303) 124 (303) 824 ---- --- ---- --- Net income (loss)
$1,954 $(259) $1,087 $(1,618) ====== ===== ====== ======= Income
(loss) per share - basic $0.15 $(0.02) $0.08 $(0.12) ===== ======
===== ====== Income (loss) per share - diluted $0.15 $0.08 =====
===== Weighted average common shares outstanding, basic 13,411
13,399 13,411 13,397 Weighted average common shares outstanding,
diluted 13,431 13,399 13,414 13,397 RELM WIRELESS CORPORATION
Condensed Consolidated Balance Sheets (In Thousands, Except Share
Data) (Unaudited) June 30, December 31, 2009 2008 ---- ---- ASSETS
------ Current assets: Cash & cash equivalents $5,193 $5,475
Trade accounts receivable, net 5,606 1,769 Inventories, net 7,018
9,774 Deferred tax assets, net 1,233 1,562 Prepaid expenses &
other current assets 362 931 --- --- Total current assets 19,412
19,511 Property, plant and equipment, net 1,490 1,386 Deferred tax
assets, net 7,638 7,638 Capitalized software, net 2,554 1,732 Other
assets 404 355 --- --- Total assets $31,498 $30,622 ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY --------------------- Current
liabilities: Accounts payable $2,125 $1,849 Accrued compensation
and related taxes 1,062 617 Accrued warranty expense 242 302
Accrued other expenses and other current liabilities 207 110 ---
--- Total current liabilities 3,636 2,878 Long-term debt 500 1,500
Commitments and contingencies Stockholders' equity: Preferred
stock; $1.00 par value; 1,000,000 authorized shares, none issued or
outstanding. - - Common stock; $0.60 par value; 20,000,000
authorized shares, 13,410,871 issued and outstanding shares at June
30, 2009 and December 31, 2008, respectively. 8,046 8,046
Additional paid-in capital 24,051 24,020 Accumulated deficit
(4,735) (5,822) ------ ------ Total stockholders' equity 27,362
26,244 ------ ------ Total liabilities and stockholders' equity
$31,498 $30,622 ======= ======= DATASOURCE: RELM Wireless
Corporation CONTACT: William Kelly, EVP & CFO, RELM Wireless
Corporation, +1-321-984-1414; or Investor Relations, R Jerry
Falkner, CFA, R J Falkner & Company, Inc., 800-377-9893 Web
Site: http://www.relm.com/
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