RF Industries, Ltd. (NASDAQ:RFIL) Q3 2019 Earnings Conference Call Transcript
Sep 12, 2019 • 04:30 pm ET
achieving $100 million in sales in the next couple of years. I'll talk more about that later in the call. Through the first-three quarters this year, we're almost flat to last year through three quarters, even with last year's huge Q2. If I were to summarize simply how we're performing this year, is that our core business has experienced nice organic growth, our acquisition has performed well, and our concentrated Tier 1 Wireless Carrier business is still delivering nice results, though as expected, they're at a lower pace so far compared to last year and the timing of sales can be inconsistent.
We feel good about our potential to continue organic growth in our core business, and accept the carrier related spending can cause wild swings for us. But we love that business and the opportunities that it presents us. Our strategy of getting to the end user customers and then making it easy for them to purchase in whatever way they prefer is no more apparent than in a wireless carrier ecosystem and we're working hard to leverage those successes into new relationships and projects. In the third quarter, we also delivered net income of over $1 million. We did see a little pressure on our margins, which Mark will explain and talk more about in a few minutes. As we've said many times previously, we're proud that we can make money and be profitable at varying revenue levels. So even as revenues and margins move around a little bit as we transform the company and grow, we have a cost structure that's flexible and allows us to be very profitable.
As I talked about on prior calls, the macro headwinds of wage pressures and our relationship with tariffs can affect our margins sometimes here, since the costs associated with our production teams is built into our gross margin line and material delays can obviously slow us down. We've taken the opportunity to invest in our people and operations to allow for increased production capacity at multiple of our locations. Rewarding and retaining our production talent is crucial for us and I'm thankful to be able to provide increases, so these loyal team members can share in our success. We're planning for our future and [Technical Issues] should allow us to support much higher revenue levels as we work to grow the business.
Our backlog at quarter end was $8 million on third quarter bookings of $13.4 million. Subsequent to the end of the quarter, we've seen backlog increase further and it currently stands at just above $10 million. This again illustrates the nature of our business where the significant volume of potential orders in our pipeline, and the timing of those orders can affect frequent changes to our backlog when a snapshot is taken at quarter-end. In other words, with sales volumes like ours, 1 million or 2 million purchase order can cause wild swings in a few days.
As I've said several times in the past, this