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content


Relm scores profit for quarter, full year

Relm scores profit for quarter, full year

Relm Wireless, West Melbourne, FL, has reported revenue increases, gross margin improvements and expense reductions in its financial statement for the
  • Written by Urgent Communications Administrator
  • 16th January 2002

Relm Wireless

, West Melbourne, FL, has reported revenue increases, gross margin improvements and expense reductions in its financial statement for the 2001 fourth quarter and full year.

Revenue for the fourth quarter of 2001 increased 6.3% to $5.7 million, from $5.3 million for the same period last year. Net income for the fourth quarter of 2001 was about $51,000, compared to a loss of $947,000 for the fourth quarter of the prior year.

Fourth-quarter revenues for Relm’s land mobile radio products increased 10.6% to $5.7 million, from $5.1 million for the same period in 2000. The company cited increased Uniden-branded product sales to the business and industrial market segments and BK Radio product sales primarily to the Communications Electronics Command of the U.S. Army.

Gross profit margins for the fourth quarter of 2001 improved to 29.9% from 23.2% in the same period of 2000, reflecting the effects of manufacturing cost reductions and increased sales volumes. Revenue for 2001 increased 8.3% to $22.8 million, from $21.1 million in 2000. Net income for 2001 was about $122,000, compared to a loss of $1.4 million for the prior year. For 2001, revenues from land mobile radio products increased 12.8% to $22.8 million from $20.2 million for last year. The company attributed the increase to sales of the GMH mobile radios that were introduced in the fourth quarter of 2000 and the growth of the Uniden product line, which was acquired in March of 2000.

For 2001, gross profit margins improved to 29.0% compared to 25.6% in 2000 because of manufacturing cost reductions and higher sales volumes.

David P. Storey, Relm’s president, said in a prepared statement: “We are very pleased with our progress during 2001, closing with three consecutive profitable quarters. Improvements have been realized in every corner of the company. Revenues have grown and manufacturing operations have improved, yielding dramatically higher gross margins. Sales, general, administrative and interest expenses have been reduced significantly.”

The statement continued: “More importantly, we are executing initiatives that will help secure our future success. New products have been developed and introduced that improve our competitive position in business and industrial markets. The designs of additional new products, including APCO Project 25-compliant digital radios, are already well under way. We have forged alliances with strong technology and manufacturing partners. These alliances are already helping to drive lower product costs, and are enabling us to explore new technologies and market opportunities.”

Relm manufactures and markets two-way FM business band radios and high-specification public safety mobile and portable radios, repeaters and accessories, base station components and subsystems. The company’s products are manufactured and distributed worldwide under the RELM Communications, Uniden PRC and BK Radio brand names.

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