-Sales and Profits Increase Significantly From Prior Year Periods-
WEST MELBOURNE, Fla., Nov. 10 /PRNewswire-FirstCall/ -- RELM
Wireless Corporation (NYSE Amex: RWC) today announced its financial
and operating results for the quarter and nine months ended
September 30, 2009. For the quarter ended September 30, 2009, sales
increased $2.5 million (43.2%) to approximately $8.3 million,
compared with $5.8 million for the same quarter last year. Pretax
income for the quarter increased 265.0%, or $1.1 million, to $1.5
million compared with $0.4 million for the same quarter last year.
Net income for the third quarter 2009 approximated $0.9 million, or
$0.07 per diluted share, compared with $0.3 million, or $0.02 per
share, for the prior year's third quarter. Gross profit margin for
the third quarter 2009 was improved to 51.1% of sales, versus 50.7%
of sales for the same quarter last year. Selling, general and
administrative expenses were $2.7 million (32.8% of sales) in the
third quarter 2009, compared with $2.6 million (44.1% of sales) in
the third quarter 2008. The Company had approximately $16.2 million
in working capital as of September 30, 2009. Cash and trade
receivables increased almost 70% ($5.1 million) to-date in 2009 to
$12.3 million, compared with $7.2 million at the start of the year.
During the nine months ended September 30, 2009, the Company
reduced net inventories by approximately $3.6 million (37.1%), and
repaid in its entirety the $1.5 million balance that was
outstanding at the start of the year on its revolving credit
facility. RELM President and Chief Executive Officer David Storey
commented, "Following our record results for the second quarter, we
are encouraged with the continued strength in sales and profits
relative to the same periods last year. We were particularly
pleased with the sales of our P25 digital products and new KNG
products, which comprised almost 60% of our total sales. This is a
positive indicator for the KNG line and its acceptance among new
customers. Success in aggressively pursuing more sales gains with
KNG products is key to our strategy for profitable growth.
Meanwhile, we are being cautious in maintaining operating expenses
at the reduced levels established late last year, as business
conditions gradually improve." For the nine months ended September
30, 2009, sales increased approximately $6.5 million (41.9%) to
$22.1 million, compared with $15.6 million for the same period last
year. Pretax income for the nine months ended September 30, 2009
increased $4.9 million to approximately $2.9 million, compared with
a pretax loss of $2.0 million for the same period last year. Net
income for the nine months ended September 30, 2009 totaled
approximately $2.0 million, or $0.15 per diluted share, compared
with a net loss of $1.3 million, or $0.10 per share, for the same
period last year. Gross profit margin for the nine months ended
September 30, 2009 was 48.5% of sales, versus 48.2% of sales for
the same period last year. Selling, general and administrative
expenses for the nine months ended September 30, 2009 declined $1.9
million (19.4%) to approximately $7.8 million (35.2% of sales),
compared with $9.7 million (62.0% 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, Thursday, November 12, 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 November 12, 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 November
20, 2009, by dialing 877-344-7529 (international/local participants
dial 412-317-0088) and entering the conference ID 435360. 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 Nine Months Ended ------------------ -----------------
(Unaudited) (Unaudited) ----------- ----------- 9/30/2009 9/30/2008
9/30/2009 9/30/2008 --------- --------- --------- --------- Sales,
net $8,292 $5,790 $22,141 $15,599 Expenses: Cost of products 4,058
2,852 11,398 8,077 Selling, general and administrative expenses
2,718 2,553 7,802 9,676 ----- ----- ----- ----- Total expenses
6,776 5,405 19,200 17,753 Operating income (loss) 1,516 385 2,941
(2,154) Other income (expense): Interest (expense) income (5) 29
(41) 134 Other expense (7) (2) (4) (9) --- --- --- --- Pretax
income (loss) 1,504 412 2,896 (2,029) Income tax (expense) benefit
(577) (75) (881) 749 ---- --- ---- --- Net income (loss) $927 $337
$2,015 $(1,280) ==== ==== ====== ======= Income (loss) per share -
basic $0.07 $0.03 $0.15 $(0.10) ===== ===== ===== ====== Income
(loss) per share - diluted $0.07 $0.02 $0.15 $(0.10) ===== =====
===== ====== Weighted average common shares outstanding, basic
13,411 13,405 13,411 13,400 Weighted average common shares
outstanding, diluted 13,726 13,528 13,520 13,400 RELM WIRELESS
CORPORATION Condensed Consolidated Balance Sheets (In Thousands,
Except Share Data) (Unaudited) Sept. 30, Dec. 31, 2009 2008 ----
---- ASSETS ------ Current assets: Cash & cash equivalents
$8,068 $5,475 Trade accounts receivable, net 4,227 1,769
Inventories, net 6,146 9,774 Deferred tax assets, net 707 1,562
Prepaid expenses & other current assets 476 931 --- --- Total
current assets 19,624 19,511 Property, plant and equipment, net
1,400 1,386 Deferred tax assets, net 7,638 7,638 Capitalized
software, net 2,672 1,732 Other assets 377 355 --- --- Total assets
$31,711 $30,622 ======= ======= LIABILITIES AND STOCKHOLDERS'
EQUITY ------------------------------------ Current liabilities:
Accounts payable $1,748 $1,849 Accrued compensation and related
taxes 1,117 617 Accrued warranty expense 224 302 Accrued other
expenses and other current liabilities 320 110 --- --- Total
current liabilities 3,409 2,878 Long-term debt - 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 September 30, 2009 and
December 31, 2008, respectively. 8,046 8,046 Additional paid-in
capital 24,063 24,020 Accumulated deficit (3,807) (5,822) ------
------ Total stockholders' equity 28,302 26,244 ------ ------ Total
liabilities and stockholders' equity $31,711 $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., +1-800-377-9893 Web Site: http://www.relm.com/
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