RF Industries: Business is good, but SEC investigates
San Diego-based RF Industries expects to report record first-quarter results for the period that ended Jan. 31, 2001, with sales increasing 25% to $2.2 million. First-quarter net earnings are expected to be similar to net earnings for the same quarter last year, which were $222,000 on sales of $1.8 million. One-time acquisition, organization and legal expenses associated with the Dec. 1, 2000, acquisition of Bioconnect account for a lack of earnings growth.
Meanwhile, RF Industries disclosed that the Securities and Exchange Commission issued a formal order of investigation to determine whether the company may be responsible for violations of federal securities laws. The formal order of investigation indicates that the SEC is examining the conduct of persons or entities, including RF Industries, who may have made improper statements regarding the company’s order backlog, manufacturing and design capabilities and ownership of the company’s stock. The SEC is also examining whether the company’s filings with the SEC may have contained improper statements.
A statement from RF Industries says that the SEC has indicated that this investigation “is a fact-finding inquiry and should not be construed as a conclusion by the SEC or its staff that any violation of law has occurred or that the SEC or its staff has a negative opinion of any person, entity or security.”