RF Industries, Ltd. (NASDAQ:RFIL) Q4 2022 Earnings Call Transcript

So I think we’ll continue looking at deals as something great comes along. We can always get creative and figure it out, but I think at the moment. We’ve got a lot on our plate with getting integration of these new facilities and starting to print through the savings that we believe will come out of it over the course of time along with the sales initiatives and the big operational initiatives that we’ve had ongoing for several quarters. So not to say we won’t look and continue to look, but we’re definitely going to be I think conservative about our approach to M&A at least right now.

Hal Granger: Okay, great. Thank you, Rob.

Rob Dawson: Thanks, Hal.

Operator: The next question is from Orin Hirschman with AIGH Investment. Please proceed.

Orin Hirschman: Hi. It’s Orin Hirschman. How are you? Congratulation on the progress. Good. Thanks, guys. So just a few questions. So on (ph), there were some very large trials or decent sized trials going on in the cooling. Did any of those trials mature into sales or they maturing into sales and you have to revamp anything in terms of what the customers wanted? Just give us a quick update on that.

Rob Dawson: Sure. Yes. So trials have all gone well. We expect to see some nice wins this fiscal year from that, both from those trials as well as just kind of the general uptake of our product line. The team — the engineering team did a great job of, I think, reinventing an existing product line. So I’m not going to say we started from scratch, but we certainly added some enhancements and some key things really right in the middle of COVID over the few years to redevelop a product line that had a little more longevity to it and was more future looking. So those enhancements are definitely helping. And I think the general belief and reaction from customers in the market is they are positive on our solution. And as I said, it’s not going to go, I think we expect some meaningful opportunities to come to fruition this fiscal year.

Orin Hirschman: Okay. In terms of the small cell strategy, I know it’s not — it’s upside you’ve mentioned for this coming year, counting on it. Are you still missing any pieces in the puzzle for what you bought for the customer?

Rob Dawson: Yes, it’s a good question. So I don’t think we are. I think the bill of materials there is generally filled out. The two areas that we don’t offer today in that bill of materials that we could or we could review and it’s part of both our openly, publicly stated acquisition strategy, as well as organic development is, we don’t have antennas from a broad based perspective today and there’s a power requirement in small cell applications that could be a nice adder as well. I think finding the right fit there is something we have to be really smart about. And so because of that, we’re pretty pleased with the offer we have today. We have no intention of offering the radios. There’s obviously a big ticket item inside those boxes that is more than one radio and that’s not an area that we intend to go in, but our general belief is, we can design, engineer and build a fully integrated small cell shroud of varying shapes and sizes and types using products of our own and helping integrate those from others.

So I don’t think there’s anything missing from our offer to service what a customer might want.

Orin Hirschman: On that note, are you — let’s say, for the antenna, are you buying from outside vendors on the antenna because the customer wants it to come in one finished box?