RF Industries, Ltd. (NASDAQ:RFIL) Q1 2023 Earnings Call Transcript

Rob Dawson: Yes. Maybe I’ll tackle that first and let Peter add some specifics. So, I think the taking 2 million out in total, there’s already a chunk not quite half of that. I think we’ve been able to get in place earlier in this year. So, we’ll start to recognize that in the current quarter and go forward. I think the remaining amount of that we’re taking out, kind of as we speak over the next quarter and a half or a little more. So, all of fiscal 2024 should have the benefit of those savings. And maybe more, if we can . I mean, we’re getting really, really specific at certain line items where there’s money to be saved. The remaining million that we call out for fiscal 2024 will be once we fully consolidated locations, we think there’s room to get even better technology wise and just efficiencies of doing production.

So, some of what we’re going to see right away and start to print through, but the big impact of that I think as we get late in the year, it should really start to show through and we’re expecting sales to go up as well. So, that’s really the win on both ends as we get a little better. Peter, do you want to add anything to that?

Peter Yin: Yes, Josh. So, related to the 500,000 that you mentioned we add back, we should see that depending on the timing of the move on the East Coast, there’ll be some of that still going and there may be items related to €“ are cost initiative that may show up at the one-time charge here, but we wouldn’t expect to see that whether it’s heavy in Q2 and some into Q3, but it’s by Q4’s time, a lot of that should have gone away.

Josh Nichols: Thanks Rob and Peter. I’ll pass the mike. Thanks.

Rob Dawson: Thank you.

Operator: The next question comes from David Wright with Henry Investment Trust. Please proceed.

David Wright: Hey, Rob. Hey, Peter. Good afternoon.

Rob Dawson: Hi, David.

David Wright: Excuse me. You mentioned getting going in the New San Diego facility, what’s going on with New Jersey? For example, is Microlab out of the legacy Microlab facility and kind of what’s the timeline for the new combined New Jersey ?

Rob Dawson: Yes. Thanks, David. Good question. So, still in the same facility where they’ve been or we’ve been operating for about a year since we made that acquisition. That change and move to a new location is in the July timeframe for us. So, it will have Microlab and some other product lines moving there, but that will all take place in July.

David Wright: And then does that have you completely consolidated with what you want to move into the new, New Jersey facility?

Rob Dawson: I think it does in the near term. Yes, I mean, we’re €“ the great thing about that location is, we do a lot of small cell business and thermal cooling business frankly in the Mid-Atlantic and Northeast. The Greater New York area is one of the largest CapEx markets there is in the United States for obvious reasons. So, it’s centrally located and allows us to not only do a good job on a Microlab offer, but start to handle some of the other product lines like small cells and related in that location as well to service those more localized customers. I think there’ll be more over time, more opportunities for us to get even better, but the way we’ve allocated it today, it gives us some space for growth and to balance some inventory, East Coast, West Coast, as well as we get better at that.

David Wright: Right, right. So, you’re €“ does that €“ quite you have presently contemplated as you hope to have done by July?

Rob Dawson: Yes, I would say, as we get into August, we expect to have the majority if not all of that completed. That’s right.