WEST MELBOURNE, Fla., May 6 /PRNewswire-FirstCall/ -- RELM Wireless
Corporation (NYSE Amex: RWC) today announced its financial and
operating results for the quarter ended March 31, 2009. For the
quarter ended March 31, 2009, sales increased 13.2% ($463,000) to
approximately $4.0 million, compared with $3.5 million for the same
quarter last year. Pretax loss for the quarter declined 57.9% ($1.2
million) to $867,000 compared with a pretax loss of $2.1 million
for the same period last year. For the first quarter 2009 the
Company did not recognize an income tax benefit or expense. Income
tax benefit of approximately $699,000 was recorded in the first
quarter last year and was largely non-cash as a result of the
Company's deferred tax assets, which are derived primarily from its
net operating loss (NOL) carry-forwards. Net loss for the first
quarter 2009 was approximately $867,000, or $0.06 per basic share,
compared with net loss of $1.4 million, or $0.10 per basic share,
for the same quarter last year. Gross profit margin for the first
quarter 2009 improved to 40.6% of sales, versus 39.4% of sales in
the same quarter last year. Selling, general and administrative
expenses declined 29.6% ($1.0 million) to $2.5 million (62.1% of
sales) in the first quarter 2009, from $3.5 million (99.8% of
sales) in the first quarter last year. The Company had cash and
cash equivalents at March 31, 2009 totaling approximately $4.6
million, compared with $5.5 million at the end of 2008. The Company
had $1.5 million in long-term debt outstanding at March 31, 2009,
which was unchanged from the amount outstanding at the end of 2008.
RELM President and Chief Executive Officer David Storey commented,
"Customer purchases continued to be soft in the first quarter 2009,
although we did realize a 13.2% improvement in sales from the first
quarter last year and an 11.1% improvement from last quarter. While
the current business climate remains uncertain, there have been
some indications of stabilization and improved prospects for
purchasing activity later this year from government and public
safety agencies. Additionally, our new KNG line of P25 digital
radios has come on-line with expanded features and frequency
ranges, including UHF and 800MHz models, which should open to us
more opportunities for sales growth. Until we gain some sales
momentum, however, and in the face of today's slow and difficult
business climate, we have taken steps to adjust our operations and
reduce expenses. Our SG&A expenses in the first quarter 2009
declined almost 30% compared to the first quarter last year.
Importantly, we are continuing to forge ahead with our development
initiatives and do not believe these reductions will adversely
impact the execution of our business plan." 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, 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 May 7, 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
May 15, 2009, by dialing 877-344-7529 (international/local
participants dial 412-317-0088) and entering the conference ID
430129. 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 ------------------ (Unaudited) ----------- 3/31/2009
3/31/2008 --------- --------- Sales, net $3,973 $3,510 Expenses:
Cost of products 2,358 2,126 Selling, general and administrative
expenses 2,467 3,504 ----- ----- Total expenses 4,825 5,630
Operating loss (852) (2,120) Other income (expense): Interest
expense (19) (1) Interest income 3 66 Other (expense) income 1 (3)
----- ----- Pretax loss (867) (2,058) Income tax benefit 0 (699)
----- ----- Net loss $(867) $(1,359) ===== ======= Loss per share -
basic $(0.06) $(0.10) ====== ====== Weighted average common shares
outstanding, basic 13,411 13,396 RELM WIRELESS CORPORATION
Condensed Consolidated Balance Sheets (In Thousands, Except Share
Data) March 31, December 31, 2009 2008 ----------- ---------
(Unaudited) (Audited) ----------- --------- ASSETS ------ Current
assets: Cash & cash equivalents $4,647 $5,475 Trade accounts
receivable, net 2,364 1,769 Inventories, net 9,041 9,774 Deferred
tax assets, net 1,562 1,562 Prepaid expenses & other current
assets 593 931 ------ ------ Total current assets 18,207 19,511
Property, plant and equipment, net 1,599 1,386 Deferred tax assets,
net 7,638 7,638 Capitalized software, net 2,163 1,732 Other assets
429 355 ------ ------ Total assets $30,036 $30,622 ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY --------------------- Current
liabilities: Accounts payable $1,998 $1,849 Accrued compensation
and related taxes 699 617 Accrued warranty expense 275 302 Accrued
other expenses and other current liabilities 172 110 ------ ------
Total current liabilities 3,144 2,878 Long-term debt 1,500 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
March 31, 2009 and December 31, 2008, respectively. 8,046 8,046
Additional paid-in capital 24,035 24,020 Accumulated deficit
(6,689) (5,822) ------ ------ Total stockholders' equity 25,392
26,244 ------ ------ Total liabilities and stockholders' equity
$30,036 $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, 1-800-377-9893, R J Falkner & Company, Inc. Web
Site: http://www.relm.com/
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