WEST MELBOURNE, Fla., May 4, 2016 /PRNewswire/ -- RELM Wireless Corporation (NYSE MKT: RWC) today announced its financial and operating results for the first quarter ended March 31, 2016.

For the first quarter ended March 31, 2016, sales increased 40.7% to approximately $12.1 million, compared with $8.6 million for the first quarter of 2015.  Net income for the first quarter 2016 totaled approximately $513,000, or $0.04 per diluted share, compared with net income of approximately $538,000, or $0.04 per diluted share, for the same quarter last year. 

Gross profit margin for the first quarter 2016 was 31.7% of sales, compared with 42.9% of sales for the same quarter last year.  Selling, general and administrative expenses totaled approximately $3.1 million (25.4% of sales) for the first quarter 2016, compared with approximately $2.9 million (34.3% of sales) for the first quarter of 2015.

The Company had approximately $23.9 million in working capital as of March 31, 2016, of which approximately $13.6 million was comprised of cash and trade receivables.  This compares with working capital of approximately $23.9 million as of December 31, 2015, of which approximately $8.8 million was comprised of cash and trade receivables.  As of March 31, 2016, the Company had no borrowings outstanding under its revolving credit facility.

RELM President and Chief Executive Officer David Storey commented, "We are very pleased with our start to the year.  First quarter sales were a Company record for any quarter, and over 40% above last year's strong first quarter sales.  The major contributor to this performance was sales to the U.S. Transportation Security Administration (TSA) derived from our previously announced contract and delivery orders.  We expect TSA to contribute to the second and third quarters as well.  The early reviews of our products and service from TSA personnel have been very positive.  Supplementing sales for the first quarter was a separate order from the TSA for accessories, and solid sales to legacy and international customers."

Mr. Storey continued, "Clearly our reputation is growing and we are gaining critical sales traction in new markets and with new customers.  With sales growth as the prime objective, our investment in sales and engineering is continuing; adding resources and talent to execute plans for exciting new products and technological capabilities, and to improve our speed to market.   Looking to the future, we announced during the quarter that Alberta Health Services exercised all four option years on its contract, plus our pipeline of sales prospects remains promising and our existing backlog of orders remains robust.  We believe these positive factors position the Company for success moving forward."

Conference Call and Webcast

The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, Thursday, May 5, 2016.  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 5, 2016.  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, 2016, by dialing 877-660-6853 (international/local participants dial 201-612-7415) and entering the conference ID# 13634434. 

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.

 

RELM WIRELESS CORPORATION

Condensed Consolidated Statements of Income

(In Thousands, Except Per Share Amounts) (Unaudited)






Three Months Ended


3/31/2016


3/31/2015





Sales, net

$    12,069


$     8,577





Expenses:




Cost of products

8,240


4,894

Selling, general and administrative expenses

3,063


2,943

Total expenses

11,303


7,837





Operating income

766


740





Other income

2


3





Income before income taxes

768


743





Income tax expense

(255)


(205)





Net income

$        513


$        538









Net income per share - basic

$       0.04


$       0.04

Net income per share - diluted

$       0.04


$       0.04





Weighted average common shares outstanding, basic

13,731


13,671

Weighted average common shares outstanding, diluted

13,798


13,857

 

 

RELM WIRELESS CORPORATION

Condensed Consolidated Balance Sheets

(In Thousands, Except Share Data) (Unaudited)








 March 31, 


 December 31, 



2016


2015






ASSETS




Current assets:





Cash & cash equivalents

$              6,345


$           4,669


Trade accounts receivable, net

7,249


4,122


Inventories, net

17,024


16,282


Prepaid expenses & other current assets

3,145


3,081

Total current assets

33,763


28,154






Property, plant and equipment, net

2,134


1,840

Available-for-sale securities

4,338


3,402

Deferred tax assets, net

5,044


5,461

Capitalized software, net

317


370

Other assets

213


222






Total assets

$            45,809


$          39,449






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$              4,145


$           2,285


Accrued compensation and related taxes

1,335


1,136


Accrued warranty expense

518


538


Customer deposits

3,507


-


Accrued other expenses and other current liabilities

188


168


Deferred revenue

139


136

Total current liabilities

9,832


4,263






Deferred revenue

339


366

Total liabilities

10,171


4,629






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; 13,730,562 issued and outstanding shares

8,238


8,238


Additional paid-in capital

24,938


24,926


Unrealized gain on investment securities

690


397


Retained earnings

1,772


1,259

Total stockholders' equity

35,638


34,820






Total liabilities and stockholders' equity

$            45,809


$          39,449

 

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SOURCE RELM Wireless Corporation