WEST MELBOURNE, Florida — May 6, 2015 — RELM Wireless Corporation (NYSE MKT: RWC) today announced its financial and operating results for the first quarter ended March 31, 2015.
For the first quarter ended March 31, 2015, sales increased 9.6% to approximately $8.6 million, compared with $7.8 million for the first quarter of 2014. Net income for the first quarter 2015 increased approximately 13.3% to $538,000, or $0.04 per diluted share, compared with net income of approximately $475,000, or $0.03 per diluted share, for the same quarter last year.
Gross profit margin for the first quarter 2015 improved to 42.9% of sales, compared with 40.2% of sales for the same quarter last year. Selling, general and administrative expenses totaled approximately $2.9 million (34.3% of sales) for the first quarter 2015, compared with approximately $2.5 million (32.5% of sales) for the first quarter of 2014.
The Company had approximately $29.7 million in working capital as of March 31, 2015, of which $16.4 million was comprised of cash and trade receivables. This compares with working capital of $28.9 million as of December 31, 2014, of which $14.6 million was comprised of cash and trade receivables. As of March 31, 2015, the Company had no borrowings outstanding under its revolving credit facility.
RELM President and Chief Executive Officer David Storey commented, “The first quarter was a positive start to the year. Our sales were a Company record for the first quarter, and almost 10% above last year’s strong first quarter sales. A major contributor to this performance was international sales, which is a key strategic growth objective for us. Importantly, these sales are to new public safety customers. Sales to some of our legacy customers supplemented the new international wins. Gross profit margins were solid, and improved from the first quarter last year. Also, our operating income increased over 23% compared to the first quarter last year. Meanwhile, our working capital position continued to grow and we remain debt-free.”
Mr. Storey continued, “I am encouraged that we realized some success entering new markets and gaining traction with new customers, which are cornerstones of our strategic plans for growth. We are looking forward to capitalizing on our momentum in coming quarters.”
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, Thursday, May 7, 2015. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8031 (international/local participants dial 201-689-8031) and asking to be connected to the “RELM Wireless Corporation Conference Call” a few minutes before 9:00 a.m. Eastern Time on May 7, 2015. 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 May 15, 2015, by dialing 877-660-6853 (international/local participants dial 201-612-7415) and entering the conference ID# 13606939.
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 in critical emergency situations. RELM was one of the first manufacturers to develop P25-compliant technology.
About RELM Wireless Corporation
As an American Manufacturer for 68 years, RELM Wireless Corporation has produced high‑specification two‑way 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 two‑way 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 www.relm.com or directly at 1‑800‑821‑2900. The Company’s common stock trades on the NYSE MKT market under the symbol “RWC”.