R F INDUSTRIES LTD Segments Disclosure

Note 6 – Segment information

 

We previously managed our business as two reportable segments, the RF Connector segment and the Custom Cabling segment. During the fourth quarter of fiscal year 2025, we completed changes to the structure of our organization in connection with broader restructuring initiatives, including consolidation of manufacturing operations, headcount reductions, and the transition of our sales organization to a unified, customer‑centric model. As a result of these changes, we now operate as a single reportable segment. Comparative prior‑period segment disclosures that reflected the previous two segments have been revised to conform to this change in our reportable segment.

 

Our chief operating decision maker (“CODM”), which is our Chief Executive Officer, evaluates our financial information such as revenue, margins, operating expenses, net income or loss, and other non- generally accepted accounting principles (“GAAP”) financial measures on a consolidated basis to allocate resources and assess performance. However, while the Company’s CODM uses more than one measure to assess performance, the Company’s segment disclosures do not include non-GAAP disclosures. The Company has determined that the disclosures below correspond with the amounts in the consolidated financial statements and are most consistent with GAAP.

 

The following table presents our single segment revenue, gross profit, significant expenses, and net income (loss) for the years ended October 31, 2025 and 2024 (in thousands):

 

		2025				2024
Net sales		$	80,586			$	64,857
Cost of goods sold:
Material cost			36,233				29,601
Salaries and benefits			13,441				12,730
Depreciation			528				557
Other costs of sales			3,648				3,098
Total cost of goods sold			53,850				45,986
Gross profit			26,736				18,871
Operating expenses:
Salaries and benefits			8,841				8,152
Engineering expense			2,982				2,782
Stock-based compensation expense			872				924
Commission and bonus			3,121				1,599
Depreciation			292				292
Amortization			1,643				1,687
Corporate and public company fees			1,615				1,513
Selling and general			4,556				4,544
Non-cash and one-time charges			1,029				201
Total operating expenses			24,951				21,694
Operating income (loss)			1,785				(2,823	)
Other expense			(972	)			(980	)
Income (loss) before provision for income taxes			813				(3,803	)
Provision for income taxes			738				2,796
Consolidated net income (loss)		$	75			$	(6,599	)
Total assets		$	73,046			$	71,046
Expenditures for Segment Assets		$	235			$	738

 

The Company’s single reportable segment total assets equal consolidated total assets.

 

The following table presents revenue for the products and solutions that we offer as of October 31, 2025 and 2024 (in thousands):

 

		2025								2024
Interconnect		$	24,958				31	%		$	25,883				40	%
Custom Cabling			26,062				32	%			17,986				28	%
Integrated Solutions			29,566				37	%			21,006				32	%
Total net sales		$	80,586				100	%		$	64,875				100	%

 

All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the years ended October 31, 2025 and 2024 (in thousands):

 

		2025				2024
United States		$	73,836			$	58,843
Foreign Countries:
Canada			4,814				3,825
Germany			626				166
China			368				531
All Other			942				1,492
			6,750				6,014
Totals		$	80,586			$	64,857