Boston, MA 08/14/2014 (wallstreetpr) – RELM Wireless Corporation (NYSEMKT:RWC) reported the second quarter financial result for the period ended June 30, 2014.
Higher Sales Drive Growth Trend
During 2Q2014, RELM Wireless Corporation (NYSEMKT:RWC) registered sales of $9.1 million, up by 46.3% from $6.2 million in 2Q2013. The increase was due to higher sales resulted from the addition of new customers across federal, state and local agencies. APCO P25 Digital Products primarily drove the sale growth for the Company. The product revenues increased 82% to $6.6 million from $3.6 million in 2Q2013.
Gross margin during the period was 42.8% versus 43.9% in 2Q2013 but improved by 2.6% compared to the previous quarter of 2014. The improvement in margin was due to positive growth in overall sales as a result of favorable product mix with high margin digital products.
The positive growth in sales and gross margin improved the Company’s net earnings. During the period, RELM Wireless Corporation (NYSEMKT:RWC) reported net earnings of $672,000 or $0.05 per share versus $197,000 or $0.01 per share in same period 2013.
As of June 30, 2014, RELM has a working capital of $27.3 million including cash and cash equivalents of $9.2 million and trade receivables of $6.3 million and had no outstanding balance under the credit revolving facility.
Strong Position In Legacy Business
Stronghold over the legacy customers, new federal customers and expansion over state and local market will further strengthen the Company’s progress in the coming years. RELM Wireless Corporation (NYSEMKT:RWC)’s CEO David Storey said that the Company will continue to pursue opportunities both in the domestic and international market by delivering APCO products in the digital segment.
The legacy business remains a major contributor to the growth, but, the KNG product will stimulate the future growth and enhance the competitive position. Moreover, strong balance sheet and progress on working capital position will further support the future growth.
