August 2, 2006
Relm's profit jumps on orders
BY DAVE BERMAN
FLORIDA TODAY
West Melbourne-based Relm Wireless Corp. announced Tuesday that its sales and profit jumped in the second quarter. But its stock price fell on a generally down day on Wall Street. Relm makes two-way radios for public-safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications, including disaster recovery. The company has 91 employees. Sales rose 34.1 percent to $8.60 million, up from $6.41 million for the same quarter last year. Profit for the second quarter doubled to $1.07 million, or 8 cents a share, compared with profit of $511,000, or 4 cents a share, for the same quarter last year.Profit matched the analyst estimate, while sales exceeded the analyst estimate of $8.10 million. "The theme for the second quarter was execution, whereby we worked diligently to create and support growing demand for our products," Relm President and Chief Executive Officer David Storey said in a statement accompanying the report. "Demand for our digital products continues to increase, exemplified by two large orders we closed during the quarter with a combined value of $3.7 million in digital radio sales to federal and state government agencies, as well as our recent exclusive participation in a contract with the Department of Homeland Security." Storey said Relm also wants to expand its relationships with current customers, citing the recent extension of our exclusive supply agreement with the U.S. Postal Service. For the six months ended June 30: Sales increased 32.1 percent to $15.78 million, compared with about $11.95 million for the same period last year. Profit more than doubled to $1.94 million, or 14 cents a share, compared with $843,000, 6 cents a share, for the same period last year.Relm stock closed Tuesday at $7.22, down 33 cents from Monday's close, in American Stock Exchange trading. The stock opened the trading day 25 cents higher just after the release of the earnings report, but fell later in the day. Contact Berman at 242-3654 or dberman@flatoday.net.
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