Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 30, 2020 | May 29, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | R F INDUSTRIES LTD | |
Entity Central Index Key | 0000740664 | |
Trading Symbol | rfil | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 9,758,062 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 14,076 | $ 12,540 |
Trade accounts receivable, net of allowance for doubtful accounts of $38 and $23, respectively | 4,950 | 12,190 |
Inventories | 9,100 | 8,245 |
Other current assets | 1,121 | 685 |
TOTAL CURRENT ASSETS | 29,247 | 33,660 |
Property and equipment: | ||
Equipment and tooling | 3,654 | 3,602 |
Furniture and office equipment | 1,066 | 998 |
Property, Plant and Equipment, Gross, Ending Balance | 4,720 | 4,600 |
Less accumulated depreciation | 3,923 | 3,761 |
Total property and equipment, net | 797 | 839 |
Operating lease right of use assets, net | 1,901 | |
Goodwill | 2,697 | 1,340 |
Amortizable intangible assets, net | 3,527 | 1,092 |
Non-amortizable intangible assets | 1,174 | 657 |
Other assets | 69 | 112 |
TOTAL ASSETS | 39,412 | 37,700 |
CURRENT LIABILITIES | ||
Accounts payable | 1,454 | 2,406 |
Accrued expenses | 3,305 | 3,653 |
Income taxes payable | 21 | |
Other current liabilities | 977 | |
TOTAL CURRENT LIABILITIES | 5,736 | 6,080 |
Deferred tax liabilities | 91 | |
Operating lease liabilities | 1,023 | |
Other long-term liabilities | 869 | 87 |
TOTAL LIABILITIES | 7,719 | 6,167 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 9,758,062 and 9,462,267 shares issued and outstanding at April 30, 2020 and October 31, 2019, respectively | 98 | 95 |
Additional paid-in capital | 22,652 | 21,949 |
Retained earnings | 8,943 | 9,489 |
TOTAL STOCKHOLDERS' EQUITY | 31,693 | 31,533 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 39,412 | $ 37,700 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Trade accounts receivable, allowance for doubtful accounts | $ 38 | $ 23 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 9,758,062 | 9,462,267 |
Common stock, shares outstanding (in shares) | 9,758,062 | 9,462,267 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Net sales | $ 10,390 | $ 13,626 | $ 22,804 | $ 24,273 |
Cost of sales | 7,804 | 9,532 | 16,965 | 17,033 |
Gross profit | 2,586 | 4,094 | 5,839 | 7,240 |
Operating expenses: | ||||
Engineering | 528 | 332 | 1,124 | 652 |
Selling and general | 2,246 | 2,400 | 4,902 | 4,439 |
Total operating expenses | 2,774 | 2,732 | 6,026 | 5,091 |
Operating (loss) income | (188) | 1,362 | (187) | 2,149 |
Other income | 7 | 14 | 18 | 35 |
(Loss) income before provision (benefit) for income taxes | (181) | 1,376 | (169) | 2,184 |
Provision (benefit) for income taxes | 3 | 315 | (11) | 483 |
Consolidated net (loss) income | $ (184) | $ 1,061 | $ (158) | $ 1,701 |
(Loss) earnings per share | ||||
Basic (in dollars per share) | $ (0.02) | $ 0.11 | $ (0.02) | $ 0.18 |
Diluted (in dollars per share) | $ (0.02) | $ 0.11 | $ (0.02) | $ 0.17 |
Weighted average shares outstanding | ||||
Basic (in shares) | 9,704,880 | 9,356,660 | 9,633,935 | 9,332,665 |
Diluted (in shares) | 9,704,880 | 9,837,964 | 9,633,935 | 9,837,718 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Oct. 31, 2018 | 9,291,201 | |||
Balance at Oct. 31, 2018 | $ 93 | $ 20,974 | $ 6,716 | $ 27,783 |
Exercise of stock options (in shares) | 69,150 | |||
Exercise of stock options | $ 1 | 356 | 357 | |
Stock-based compensation expense | 192 | 192 | ||
Dividends | (373) | (373) | ||
Consolidated net income (loss) | 1,701 | 1,701 | ||
Balance (in shares) at Apr. 30, 2019 | 9,360,351 | |||
Balance at Apr. 30, 2019 | $ 94 | 21,522 | 8,044 | 29,660 |
Balance (in shares) at Jan. 31, 2019 | 9,356,935 | |||
Balance at Jan. 31, 2019 | $ 94 | 21,429 | 7,170 | 28,693 |
Exercise of stock options (in shares) | 3,416 | |||
Exercise of stock options | 15 | 15 | ||
Stock-based compensation expense | 78 | 78 | ||
Dividends | (187) | (187) | ||
Consolidated net income (loss) | 1,061 | 1,061 | ||
Balance (in shares) at Apr. 30, 2019 | 9,360,351 | |||
Balance at Apr. 30, 2019 | $ 94 | 21,522 | 8,044 | 29,660 |
Balance (in shares) at Oct. 31, 2019 | 9,462,267 | |||
Balance at Oct. 31, 2019 | $ 95 | 21,949 | 9,489 | $ 31,533 |
Exercise of stock options (in shares) | 228,870 | 228,870 | ||
Exercise of stock options | $ 2 | 421 | $ 423 | |
Stock-based compensation expense | 206 | 206 | ||
Dividends | (388) | (388) | ||
Consolidated net income (loss) | (158) | (158) | ||
Balance (in shares) at Apr. 30, 2020 | 9,758,062 | |||
Balance at Apr. 30, 2020 | $ 98 | 22,652 | 8,943 | 31,693 |
Issuance of restricted stock (in shares) | 54,850 | |||
Issuance of restricted stock | $ 1 | (1) | ||
Issuance of common shares (in shares) | 12,075 | |||
Issuance of common shares | 77 | 77 | ||
Balance (in shares) at Jan. 31, 2020 | 9,745,135 | |||
Balance at Jan. 31, 2020 | $ 98 | 22,524 | 9,322 | 31,944 |
Exercise of stock options (in shares) | 12,927 | |||
Exercise of stock options | 32 | 32 | ||
Stock-based compensation expense | 96 | 96 | ||
Dividends | (195) | (195) | ||
Consolidated net income (loss) | (184) | (184) | ||
Balance (in shares) at Apr. 30, 2020 | 9,758,062 | |||
Balance at Apr. 30, 2020 | $ 98 | $ 22,652 | $ 8,943 | $ 31,693 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Consolidated net (loss) income | $ (158,000) | $ 1,701,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | 12,000 | 7,000 |
Depreciation and amortization | 508,000 | 278,000 |
Stock-based compensation expense | 283,000 | 192,000 |
Deferred income taxes | 136,000 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 7,499,000 | (2,375,000) |
Inventories | (72,000) | (345,000) |
Other current assets | (420,000) | 167,000 |
Right of use assets | 99,000 | |
Other long-term assets | (2,000) | |
Accounts payable | (1,060,000) | (721,000) |
Accrued expenses | (872,000) | (786,000) |
Income tax payable | (21,000) | |
Other long-term liabilities | (467,000) | 76,000 |
Net cash provided by (used in) operating activities | 5,465,000 | (1,806,000) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (63,000) | (199,000) |
Net cash used in investing activities | (3,964,000) | (656,000) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 423,000 | 357,000 |
Dividends paid | (388,000) | (373,000) |
Net cash provided by (used in) financing activities | 35,000 | (16,000) |
Net increase (decrease) in cash and cash equivalents | 1,536,000 | (2,478,000) |
Cash and cash equivalents of continuing operations, beginning of period | 12,540,000 | 16,334,000 |
Cash and cash equivalents, end of period | 14,076,000 | 13,856,000 |
Supplemental cash flow information – income taxes paid | 395,000 | 255,000 |
C Enterprises [Member] | ||
INVESTING ACTIVITIES: | ||
Purchase of company, net of cash acquired | (457,000) | |
Schrofftech [Member] | ||
INVESTING ACTIVITIES: | ||
Purchase of company, net of cash acquired | $ (3,901,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) $ in Thousands | 6 Months Ended |
Apr. 30, 2020USD ($) | |
C Enterprises [Member] | |
Purchase of Schrofftech, cash acquired | $ 143 |
Schrofftech [Member] | |
Purchase of Schrofftech, cash acquired | $ 99 |
Note 1 - Unaudited Interim Cond
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Unaudited interim condensed consolidated financial statements Our accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 not not October 31, 2019 October 31, 2019 10 10 October 31, 2019 six April 30, 2020 not may October 31, 2020. 10 October 31, 2019. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of RF Industries, Ltd. and our four March 15, 2019. January 31, 2019, January 31, 2019 October 31, 2019, November 1, 2019. October 31, 2019, Risks and uncertainties In March 2020, 19 19 may 19 The extent of the impact of the COVID- 19 three six April 30, 2020. 2020. 19 May 2020 $2.8 not two 1%, six Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two Level 1 Level 2 not Level 3 one As of April 30, 2020 October 31, 2019, 5 Revenue recognition In accordance with Accounting Standards Update ASU No. 2014 09, 606 606” five 1 2 3 4 5 no Leases In accordance with ASU No. 2016 02, not may Recent accounting standards Recently issued accounting pronouncements not In January 2017, No. 2017 04, 2 December 15, 2019. In June 2016, 2016 13, December 15, 2019. Recently issued accounting pronouncements adopted: In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 $2.3 $2.4 November 1, 2019, not |
Note 2 - Business Acquisition
Note 2 - Business Acquisition | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2 s iness Acquisition C Enterprises, Inc. On March 15, 2019, $600,000 not 805, no The results of C Enterprises’ operations subsequent to March 15, 2019 $100,000 The following table summarizes the components of the purchase price at fair value at March 15, 2019: Cash consideration paid $ 600,000 Total purchase price $ 600,000 The following table summarizes the allocation of the estimated purchase price at fair value at March 15, 2019: Current assets $ 2,008,000 Fixed assets 30,000 Other assets 18,000 Non-interest bearing liabilities (1,456,000 ) Net assets $ 600,000 Schroff Technologies International, Inc. On November 4, 2019, $4 two $2.4 The acquisition was accounted for as an acquisition of a business in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities have been recorded at their estimated fair values. We determined the estimated fair values with the assistance of appraisals or valuations performed by an independent third Although the closing occurred on November 4, 2019, November 1, 2019. three six April 30, 2020 $151,000, $108,000 2019 $43,000 six April 30, 2020. three April 30, 2020, $1.1 $95,000, six April 30, 2020, $2.3 $13,000, The following table summarizes the components of the purchase price at fair values at November 1, 2019: Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 The following table summarizes the allocation of the purchase price at fair value at November 1, 2019: Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,356,000 Non-interest bearing liabilities (632,000 ) Net assets $ 5,249,000 The following unaudited pro forma financial information presents the combined operating results of the Company, C Enterprises, and Schrofftech as if both acquisitions had occurred as of the beginning of the earliest period presented. Pro forma data is subject to various assumptions and estimates and is presented for informational purposes only. This pro forma data does not not Unaudited pro forma financial information assuming the acquisition of C Enterprises and Schrofftech as of November 1, 2018 Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 Revenue $ 10,390 $ 18,901 $ 22,804 $ 35,100 Net (loss) income (184 ) 1,371 (158 ) 2,744 (Loss) earnings per share Basic $ (0.02 ) $ 0.15 $ (0.02 ) $ 0.29 Diluted $ (0.02 ) $ 0.14 $ (0.02 ) $ 0.28 |
Note 3 - Inventories and Major
Note 3 - Inventories and Major Vendors | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 3 – Inventories and major vendors Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or net realizable value. Cost has been determined using the weighted average cost method. Inventories consist of the following (in thousands): April 30, 2020 October 31, 2019 Raw materials and supplies $ 4,289 $ 3,576 Work in process 434 791 Finished goods 4,377 3,878 Totals $ 9,100 $ 8,245 No 10% three six April 30, 2020. three April 30, 2019, two 11% 10% 14% six April 30, 2019, 13% |
Note 4 - Other Current Assets
Note 4 - Other Current Assets | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | Note 4 – Other current assets Other current assets consist of the following (in thousands): April 30, 2020 October 31, 2019 Prepaid taxes $ 522 $ - Prepaid expense 436 346 Other 163 339 Totals $ 1,121 $ 685 |
Note 5 - Accrued Expenses and O
Note 5 - Accrued Expenses and Other Long-term Liabilities | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | Note 5 – Accrued expenses and other long-term liabilities Accrued expenses consist of the following (in thousands): April 30, 2020 October 31, 2019 Wages payable $ 1,069 $ 1,591 Accrued receipts 1,562 1,683 Warranty liability 210 - Deferred revenue 258 - Other accrued expenses 206 379 Totals $ 3,305 $ 3,653 Accrued receipts represent purchased inventory for which invoices have not We recognize an accrued warranty liability for the estimated claims to remedy potential deficiencies of quality or performance of our products in the Schrofftech division within the Custom Cabling segment. The product warranties extend over various periods, depending upon the product subject to the warranty. We record a provision for estimated future warranty claims based upon the historical relationship of warranty claims to sales, any specifically identified warranty issues and current trends and knowledge. We base our estimates in part on historical experience and on assumptions that are believed to be reasonable under the circumstances and revise our estimates, as appropriate, when events or changes in circumstances indicate that revisions may may not not three six April 30, 2020. $210,000 April 30, 2020. The purchase agreement for the Schrofftech acquisition provides for earn-out payments of up to $2,400,000, October 31, 2022. The contingent consideration liability represents future earn-out liability that we may 3 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2020 ( Description Level 1 Level 2 Level 3 Earn-out liability $ - $ - $ 869 no October 31, 2019. The following table summarizes the Level 3 three April 30, 2020 January 31, 2020 ( Level 3 April 30, 2020 January 31, 2020 October 31, 2019 Beginning balance $ 1,215 $ 1,249 $ - Payments - - - Change in value (346 ) (34 ) - Ending Balance $ 869 $ 1,215 $ - As of April 30, 2020, $0.9 |
Note 6 - Earnings (Loss) Per Sh
Note 6 - Earnings (Loss) Per Share | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 6 – Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially issuable securities totaling 392,838 121,015 three April 30, 2020 2019, 392,838 121,015 six April 30, 2020 2019, The following table summarizes the computation of basic and diluted weighted average shares outstanding: Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 Weighted average shares outstanding for basic (loss) earnings per share 9,704,880 9,356,660 9,633,935 9,332,665 Add effects of potentially dilutive securities-assumed exercise of stock options - 481,304 - 505,053 Weighted average shares outstanding for diluted (loss) earnings per share 9,704,880 9,837,964 9,633,935 9,837,718 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation and Equity Transactions | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 7 – Stock-based compensation and equity transactions On December 3, 2018, two 25,000 5,000 5,000 four December 3, 2018, ten December 3, 2018, one 10,000 2,000 2,000 four December 3, 2018, ten On March 8, 2019, one 25,000 5,000 5,000 four March 8, 2019, ten On December 6, 2019, one 50,000 10,000 10,000 four December 6, 2019, ten On January 9, 2020, ● Stock grants for a total of 12,075 three $77,000; ● A total of 3,241 two ● A total of 38,500 77,000 five four one January 9, 2021; twelve three first January 9, 2021. ten No three six April 30, 2020 2019. The weighted average fair value of employee stock options that were granted during the six April 30, 2020 2019 $3.13 $4.00, Six Months Ended April 30, 2020 2019 Risk-free interest rate 1.57 % 2.88 % Dividend yield 1.23 % 0.98 % Expected life of the option (in years) 6.47 5.96 Volatility factor 49.14 % 55.25 % Expected volatilities are based on historical volatility of our stock price and other factors. We used the historical method to calculate the expected life of the 2020 2019 Company stock option plans Descriptions of our stock option plans are included in Note 10 10 October 31, 2019. April 30, 2020 six Weighted Average Shares Exercise Price Outstanding at November 1, 2019 890,147 $ 3.62 Options granted 130,241 $ 6.53 Options exercised (228,870 ) $ 1.85 Options outstanding at April 30, 2020 791,518 $ 4.61 Options exercisable at April 30, 2020 419,352 $ 4.37 Options vested and expected to vest at April 30, 2020 790,482 $ 4.62 Weighted average remaining contractual life of options outstanding as of April 30, 2020: 5.53 Weighted average remaining contractual life of options exercisable as of April 30, 2020: 3.58 Weighted average remaining contractual life of options vested and expected to vest as of April 30, 2020: 5.52 Aggregate intrinsic value of options outstanding at April 30, 2020: $1,224,000 Aggregate intrinsic value of options exercisable at April 30, 2020: $719,000 Aggregate intrinsic value of options vested and expected to vest at April 30, 2020: $1,216,000 As of April 30, 2020, $713,000 $284,000 4.42 1.40 Non-employee directors receive a compensation package of $50,000 one one 2020, November 1, 2019 August 31, 2020. November 4, 2019, five 3,270 $25,000 10 August 31, 2020 20 $6.36 August 31, 2020. Stock option expense During the three April 30, 2020 2019, $96,000 $78,000, six April 30, 2020 2019, $283,000 $192,000, |
Note 8 - Concentrations of Cred
Note 8 - Concentrations of Credit Risk | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 8 – Con centrations of credit r isk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At April 30, 2020, $12.5 For the three April 30, 2020, two 11% 17% two 11% 14%, six April 30, 2020, six 11% two 14% 19%, April 30, 2020. three April 30, 2019, one 28% 14%, 32% 10%, six April 30, 2019. April 30, 2019, two 10% 21% two 18% 15% not |
Note 9 - Segment Information
Note 9 - Segment Information | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 9 – Segment i nformation We aggregate operating divisions into two 1 2 3 4 5 April 30, 2020, two The RF Connector segment consisted of one four five Management identifies segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment. As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole. Substantially all of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the three six April 30, 2020 2019 Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 United States $ 9,982 $ 13,451 $ 22,155 $ 23,921 Foreign Countries: Canada 290 113 407 278 Mexico 7 - 12 - All Other 111 62 230 74 408 175 649 352 Totals $ 10,390 $ 13,626 $ 22,804 $ 24,273 Net sales, income (loss) before provision for income taxes and other related segment information for the three April 30, 2020 2019 RF Connector and Cable Assembly Custom Cabling Manufacturing and Assembly Corporate Total 2020 Net sales $ 3,768 $ 6,622 $ - $ 10,390 Income (loss) before provision for income taxes 697 (885 ) 7 (181 ) Depreciation and amortization 41 212 - 253 Total assets 8,126 16,021 15,265 39,412 2019 Net sales $ 3,341 $ 10,285 $ - $ 13,626 Income before provision for income taxes 257 1,105 14 1,376 Depreciation and amortization 45 96 - 141 Total assets 6,972 12,773 14,660 34,405 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the six April 30, 2020 2019 RF Connector and Cable Assembly Custom Cabling Manufacturing and Assembly Corporate Total 2020 Net sales $ 6,957 $ 15,847 $ - $ 22,804 Income (loss) before benefit for income taxes 979 (1,166 ) 18 (169 ) Depreciation and amortization 83 425 - 508 Total assets 8,126 16,021 15,265 39,412 2019 Net sales $ 6,599 $ 17,674 $ - $ 24,273 Income before provision for income taxes 537 1,611 36 2,184 Depreciation and amortization 90 188 - 278 Total assets 6,972 12,773 14,660 34,405 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 1 0 – Income tax es On March 27, 2020, 19 not three six April 30, 2020. We use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The provision (benefit) for income taxes was 1% 23% three April 30, 2020 ( 2020 2019 2019 7% 22% six April 30, 2020 2019, 2019 2020 We had $118,000 $80,000 April 30, 2020 October 31, 2019, $30,000 April 30, 2020. |
Note 11 - Intangible Assets
Note 11 - Intangible Assets | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 1 1 – Intangible assets Intangible assets consist of the following (in thousands): April 30, 2020 October 31, 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (222 ) (200 ) 201 - Customer relationships (estimated lives 7 - 15 years) $ 5,058 $ 2,879 Accumulated amortization (2,126 ) (1,884 ) 2,932 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (200 ) (134 ) 87 - Patents (estimated life 10 - 14 years) 368 142 Accumulated amortization (61 ) (45 ) 307 97 Totals $ 3,527 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 Amortization expense for the six April 30, 2020 October 31, 2019 $346,000 $275,000, April 30, 2020, 8.39 |
Note 12 - Commitments
Note 12 - Commitments | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 1 2 – Commitments We adopted ASU 2016 02 November 1, 2019, 840. November 1, 2019, We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of 1 3 5 $14,000 We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the period ending April 30, 2020 Three Months Ended Six Months Ended April 30, 2020 April 30, 2020 Operating lease cost $ 250 $ 504 Other information related to leases was as follows (in thousands): April 30, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,904 Weighted Average Remaining Lease Term Operating leases (in months) 30.31 Weighted Average Discount Rate Operating leases 3.54 % Future minimum lease payments under non-cancellable leases as of April 30, 2020 Year ended October 31, Operating Leases 2020 (excluding six months ended April 30, 2020) $ 507 2021 919 2022 532 2023 166 2024 - Thereafter - Total future minimum lease payments 2,124 Less imputed interest (124 ) Total $ 2,000 Reported as of April 30, 2020 Operating Leases Other current liabilities $ 977 Operating lease liabilities 1,023 Finance lease liabilities - Total $ 2,000 As of April 30, 2020, $1.9 $2.0 $977,000 no April 30, 2020. |
Note 13 - Line of Credit
Note 13 - Line of Credit | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 13 In November 2019, $5.0 2.0% first may December 1, 2021. April 30, 2020, April 30, 2020, no |
Note 14 - Cash Dividend and Dec
Note 14 - Cash Dividend and Declared Dividends | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Cash Dividend and Declared Dividends [Text Block] | Note 1 4 – Cash dividend and declared dividends During the three April 30, 2020 2019, $0.02 $195,000 $187,000, six April 30, 2020 2019, $0.02 $388,000 $373,000, |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 6 Months Ended |
Apr. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 5 – Subsequent event On May 5, 2020, $2.8 eight not two 1%, six |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Our accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 not not October 31, 2019 October 31, 2019 10 10 October 31, 2019 six April 30, 2020 not may October 31, 2020. 10 October 31, 2019. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of RF Industries, Ltd. and our four March 15, 2019. January 31, 2019, January 31, 2019 October 31, 2019, November 1, 2019. October 31, 2019, |
Risks and Uncertainties [Policy Text Block] | Risks and uncertainties In March 2020, 19 19 may 19 The extent of the impact of the COVID- 19 three six April 30, 2020. 2020. 19 May 2020 $2.8 not two 1%, six |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two Level 1 Level 2 not Level 3 one As of April 30, 2020 October 31, 2019, 5 |
Revenue from Contract with Customer [Policy Text Block] | Revenue recognition In accordance with Accounting Standards Update ASU No. 2014 09, 606 606” five 1 2 3 4 5 no |
Lessee, Leases [Policy Text Block] | Leases In accordance with ASU No. 2016 02, not may |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards Recently issued accounting pronouncements not In January 2017, No. 2017 04, 2 December 15, 2019. In June 2016, 2016 13, December 15, 2019. Recently issued accounting pronouncements adopted: In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 $2.3 $2.4 November 1, 2019, not |
Note 2 - Business Acquisition (
Note 2 - Business Acquisition (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 Revenue $ 10,390 $ 18,901 $ 22,804 $ 35,100 Net (loss) income (184 ) 1,371 (158 ) 2,744 (Loss) earnings per share Basic $ (0.02 ) $ 0.15 $ (0.02 ) $ 0.29 Diluted $ (0.02 ) $ 0.14 $ (0.02 ) $ 0.28 |
Schrofftech [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,356,000 Non-interest bearing liabilities (632,000 ) Net assets $ 5,249,000 |
C Enterprises [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid $ 600,000 Total purchase price $ 600,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 2,008,000 Fixed assets 30,000 Other assets 18,000 Non-interest bearing liabilities (1,456,000 ) Net assets $ 600,000 |
Note 3 - Inventories and Majo_2
Note 3 - Inventories and Major Vendors (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | April 30, 2020 October 31, 2019 Raw materials and supplies $ 4,289 $ 3,576 Work in process 434 791 Finished goods 4,377 3,878 Totals $ 9,100 $ 8,245 |
Note 4 - Other Current Assets (
Note 4 - Other Current Assets (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | April 30, 2020 October 31, 2019 Prepaid taxes $ 522 $ - Prepaid expense 436 346 Other 163 339 Totals $ 1,121 $ 685 |
Note 5 - Accrued Expenses and_2
Note 5 - Accrued Expenses and Other Long-term Liabilities (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | April 30, 2020 October 31, 2019 Wages payable $ 1,069 $ 1,591 Accrued receipts 1,562 1,683 Warranty liability 210 - Deferred revenue 258 - Other accrued expenses 206 379 Totals $ 3,305 $ 3,653 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Description Level 1 Level 2 Level 3 Earn-out liability $ - $ - $ 869 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Level 3 April 30, 2020 January 31, 2020 October 31, 2019 Beginning balance $ 1,215 $ 1,249 $ - Payments - - - Change in value (346 ) (34 ) - Ending Balance $ 869 $ 1,215 $ - |
Note 6 - Earnings (Loss) Per _2
Note 6 - Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 Weighted average shares outstanding for basic (loss) earnings per share 9,704,880 9,356,660 9,633,935 9,332,665 Add effects of potentially dilutive securities-assumed exercise of stock options - 481,304 - 505,053 Weighted average shares outstanding for diluted (loss) earnings per share 9,704,880 9,837,964 9,633,935 9,837,718 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation and Equity Transactions (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended April 30, 2020 2019 Risk-free interest rate 1.57 % 2.88 % Dividend yield 1.23 % 0.98 % Expected life of the option (in years) 6.47 5.96 Volatility factor 49.14 % 55.25 % |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Shares Exercise Price Outstanding at November 1, 2019 890,147 $ 3.62 Options granted 130,241 $ 6.53 Options exercised (228,870 ) $ 1.85 Options outstanding at April 30, 2020 791,518 $ 4.61 Options exercisable at April 30, 2020 419,352 $ 4.37 Options vested and expected to vest at April 30, 2020 790,482 $ 4.62 |
Note 9 - Segment Information (T
Note 9 - Segment Information (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, 2020 2019 2020 2019 United States $ 9,982 $ 13,451 $ 22,155 $ 23,921 Foreign Countries: Canada 290 113 407 278 Mexico 7 - 12 - All Other 111 62 230 74 408 175 649 352 Totals $ 10,390 $ 13,626 $ 22,804 $ 24,273 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | RF Connector and Cable Assembly Custom Cabling Manufacturing and Assembly Corporate Total 2020 Net sales $ 3,768 $ 6,622 $ - $ 10,390 Income (loss) before provision for income taxes 697 (885 ) 7 (181 ) Depreciation and amortization 41 212 - 253 Total assets 8,126 16,021 15,265 39,412 2019 Net sales $ 3,341 $ 10,285 $ - $ 13,626 Income before provision for income taxes 257 1,105 14 1,376 Depreciation and amortization 45 96 - 141 Total assets 6,972 12,773 14,660 34,405 RF Connector and Cable Assembly Custom Cabling Manufacturing and Assembly Corporate Total 2020 Net sales $ 6,957 $ 15,847 $ - $ 22,804 Income (loss) before benefit for income taxes 979 (1,166 ) 18 (169 ) Depreciation and amortization 83 425 - 508 Total assets 8,126 16,021 15,265 39,412 2019 Net sales $ 6,599 $ 17,674 $ - $ 24,273 Income before provision for income taxes 537 1,611 36 2,184 Depreciation and amortization 90 188 - 278 Total assets 6,972 12,773 14,660 34,405 |
Note 11 - Intangible Assets (Ta
Note 11 - Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Table Text Block] | April 30, 2020 October 31, 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (222 ) (200 ) 201 - Customer relationships (estimated lives 7 - 15 years) $ 5,058 $ 2,879 Accumulated amortization (2,126 ) (1,884 ) 2,932 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (200 ) (134 ) 87 - Patents (estimated life 10 - 14 years) 368 142 Accumulated amortization (61 ) (45 ) 307 97 Totals $ 3,527 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 |
Note 12 - Commitments (Tables)
Note 12 - Commitments (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended Six Months Ended April 30, 2020 April 30, 2020 Operating lease cost $ 250 $ 504 |
Lessee, Leases, Other Information [Table Text Block] | April 30, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,904 Weighted Average Remaining Lease Term Operating leases (in months) 30.31 Weighted Average Discount Rate Operating leases 3.54 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ended October 31, Operating Leases 2020 (excluding six months ended April 30, 2020) $ 507 2021 919 2022 532 2023 166 2024 - Thereafter - Total future minimum lease payments 2,124 Less imputed interest (124 ) Total $ 2,000 Reported as of April 30, 2020 Operating Leases Other current liabilities $ 977 Operating lease liabilities 1,023 Finance lease liabilities - Total $ 2,000 |
Note 1 - Unaudited Interim Co_2
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements (Details Textual) - USD ($) | May 05, 2020 | May 31, 2020 | Apr. 30, 2020 | Nov. 01, 2019 | Oct. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,901,000 | ||||
Operating Lease, Liability, Total | $ 2,000,000 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Operating Lease, Right-of-Use Asset | $ 2,300,000 | ||||
Operating Lease, Liability, Total | $ 2,400,000 | ||||
Subsequent Event [Member] | |||||
Proceeds from Paycheck Protection Program Under CARES Act | $ 2,800,000 | $ 2,800,000 |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisition (Details Textual) - USD ($) | Nov. 04, 2019 | Nov. 01, 2019 | Mar. 15, 2019 | Apr. 30, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Apr. 30, 2020 |
C Enterprises [Member] | |||||||
Payments to Acquire Businesses, Gross | $ 600,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 0 | ||||||
C Enterprises [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Business Combination, Acquisition Related Costs | $ 100,000 | ||||||
Schrofftech [Member] | |||||||
Payments to Acquire Businesses, Gross | $ 4,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 3,299,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Target Period (Year) | 2 years | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 1,100,000 | $ 2,300,000 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (95,000) | (13,000) | |||||
Schrofftech [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Business Combination, Acquisition Related Costs | $ 43,000 | $ 108,000 | $ 151,000 |
Note 2 - Business Acquisition -
Note 2 - Business Acquisition - Components of the Purchase Price of C Enterprises, Inc. (Details) - C Enterprises [Member] | Mar. 15, 2019USD ($) |
Cash consideration paid | $ 600,000 |
Total purchase price | $ 600,000 |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price of C Enterprises, Inc. (Details) - C Enterprises [Member] | Mar. 15, 2019USD ($) |
Current assets | $ 2,008,000 |
Fixed assets | 30,000 |
Other assets | 18,000 |
Non-interest bearing liabilities | (1,456,000) |
Net assets | $ 600,000 |
Note 2 - Business Acquisition_4
Note 2 - Business Acquisition - Components of the Purchase Price of Schroff Technologies International, Inc. (Details) - Schrofftech [Member] | Nov. 01, 2019USD ($) |
Cash consideration paid | $ 4,000,000 |
Earn-out liability | 1,249,000 |
Total purchase price | $ 5,249,000 |
Note 2 - Business Acquisition_5
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price of Schroff Technologies International, Inc. (Details) - USD ($) | Apr. 30, 2020 | Nov. 01, 2019 | Oct. 31, 2019 |
Goodwill | $ 2,697,000 | $ 1,340,000 | |
Schrofftech [Member] | |||
Current assets | $ 1,168,000 | ||
Fixed assets | 58,000 | ||
Intangible assets | 3,299,000 | ||
Goodwill | 1,356,000 | ||
Non-interest bearing liabilities | (632,000) | ||
Net assets | $ 5,249,000 |
Note 2 - Business Acquisition_6
Note 2 - Business Acquisition - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue | $ 10,390 | $ 18,901 | $ 22,804 | $ 35,100 |
Net (loss) income | $ (184) | $ 1,371 | $ (158) | $ 2,744 |
Basic (in dollars per share) | $ (0.02) | $ 0.15 | $ (0.02) | $ 0.29 |
Diluted (in dollars per share) | $ (0.02) | $ 0.14 | $ (0.02) | $ 0.28 |
Note 3 - Inventories and Majo_3
Note 3 - Inventories and Major Vendors (Details Textual) - Cost of Goods and Service Benchmark [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | 6 Months Ended |
Apr. 30, 2019 | Apr. 30, 2019 | |
Vendors One [Member] | ||
Concentration Risk, Percentage | 11.00% | 14.00% |
Vendors Two [Member] | ||
Concentration Risk, Percentage | 10.00% | |
Vendors Three [Member] | ||
Concentration Risk, Percentage | 13.00% |
Note 3 - - Inventories and Majo
Note 3 - - Inventories and Major Vendors - Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Raw materials and supplies | $ 4,289 | $ 3,576 |
Work in process | 434 | 791 |
Finished goods | 4,377 | 3,878 |
Totals | $ 9,100 | $ 8,245 |
Note 4 - Other Current Assets -
Note 4 - Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Prepaid taxes | $ 522 | |
Prepaid expense | 436 | 346 |
Other | 163 | 339 |
Totals | $ 1,121 | $ 685 |
Note 5 - Accrued Expenses and_3
Note 5 - Accrued Expenses and Other Long-term Liabilities (Details Textual) - USD ($) | Apr. 30, 2020 | Nov. 04, 2019 | Oct. 31, 2019 |
Product Warranty Accrual, Current | $ 210,000 | ||
Financial Liabilities Fair Value Disclosure, Total | 0 | ||
Assets, Fair Value Disclosure | $ 0 | ||
Other Noncurrent Liabilities [Member] | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 900,000 | ||
Schrofftech [Member] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 |
Note 5 - Accrued Expenses and_4
Note 5 - Accrued Expenses and Other Long-term Liabilities - Accrued Expenses (Details) - USD ($) | Apr. 30, 2020 | Oct. 31, 2019 |
Wages payable | $ 1,069,000 | $ 1,591,000 |
Accrued receipts | 1,562,000 | 1,683,000 |
Warranty liability | 210,000 | |
Deferred revenue | 258,000 | |
Other accrued expenses | 206,000 | 379,000 |
Totals | $ 3,305,000 | $ 3,653,000 |
Note 5 - Accrued Expenses and_5
Note 5 - Accrued Expenses and Other Long-term Liabilities - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] $ in Thousands | Apr. 30, 2020USD ($) |
Fair Value, Inputs, Level 1 [Member] | |
Earn-out liability | |
Fair Value, Inputs, Level 2 [Member] | |
Earn-out liability | |
Fair Value, Inputs, Level 3 [Member] | |
Earn-out liability | $ 869 |
Note 5 - Accrued Expenses and_6
Note 5 - Accrued Expenses and Other Long-term Liabilities - Level 3 Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | |
Beginning balance | $ 1,215 | $ 1,249 | |
Payments | |||
Change in value | (346) | (34) | |
Ending Balance | $ 869 | $ 1,215 |
Note 6 - Earnings (Loss) Per _3
Note 6 - Earnings (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 392,838 | 121,015 | 392,838 | 121,015 |
Note 6 - Earnings (Loss) Per _4
Note 6 - Earnings (Loss) Per Share - Computation of Basic and Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Basic (in shares) | 9,704,880 | 9,356,660 | 9,633,935 | 9,332,665 |
Add effects of potentially dilutive securities-assumed exercise of stock options (in shares) | 481,304 | 505,053 | ||
Weighted average shares outstanding for diluted (loss) earnings per share (in shares) | 9,704,880 | 9,837,964 | 9,633,935 | 9,837,718 |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation and Equity Transactions (Details Textual) - USD ($) | Jan. 09, 2020 | Dec. 06, 2019 | Nov. 04, 2019 | Mar. 08, 2019 | Dec. 03, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 5 years 193 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year) | 3 years 211 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term (Year) | 5 years 189 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,224,000 | $ 1,224,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 719,000 | 719,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 1,216,000 | 1,216,000 | |||||||
Selling, General and Administrative Expenses [Member] | |||||||||
Share-based Payment Arrangement, Expense | 96,000 | $ 78,000 | 283,000 | $ 192,000 | |||||
Share-based Payment Arrangement, Nonemployee [Member] | |||||||||
Nonemployee Director, Annual Compensation | 50,000 | $ 50,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ 25,000 | ||||||||
Share Price, 20 Day Average (in dollars per share) | $ 6.36 | ||||||||
Incentive Stock Options [Member] | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 3.13 | $ 4 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 713,000 | $ 713,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years 153 days | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 284,000 | $ 284,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 146 days | ||||||||
Restricted Stock [Member] | Share-based Payment Arrangement, Nonemployee [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 3,270 | ||||||||
Two Employees [Member] | Incentive Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 3,241 | 25,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 5,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number to Vest Each Year (in shares) | 5,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||||
One Employee [Member] | Incentive Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 50,000 | 25,000 | 10,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 10,000 | 5,000 | 2,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number to Vest Each Year (in shares) | 10,000 | 5,000 | 2,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | 4 years | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | 10 years | 10 years | ||||||
Three Employees [Member] | |||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 12,075 | ||||||||
Share-based Payment Arrangement, Expense | $ 77,000 | ||||||||
Five Employees [Member] | Incentive Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 77,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||||
Five Employees [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 38,500 | ||||||||
Five Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||
Five Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 9, 2021 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation and Equity Transactions - Assumptions (Details) | 6 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Risk-free interest rate | 1.57% | 2.88% |
Dividend yield | 1.23% | 0.98% |
Expected life of the option (in years) (Year) | 6 years 171 days | 5 years 350 days |
Volatility factor | 49.14% | 55.25% |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation and Equity Transactions - Options Outstanding (Details) - $ / shares | 6 Months Ended |
Apr. 30, 2020 | |
Outstanding, shares (in shares) | 890,147 |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.62 |
Options granted, shares (in shares) | 130,241 |
Options granted, weighted average exercise price (in dollars per share) | $ 6.53 |
Options exercised, shares (in shares) | (228,870) |
Options exercised, weighted average exercise price (in dollars per share) | $ 1.85 |
Options outstanding, shares (in shares) | 791,518 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.61 |
Options exercisable, shares (in shares) | 419,352 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.37 |
Options vested and expected to vest, shares (in shares) | 790,482 |
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 4.62 |
Note 8 - Concentrations of Cr_2
Note 8 - Concentrations of Credit Risk (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Cash, Uninsured Amount | $ 12.5 | $ 12.5 | ||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributors One [Member] | ||||
Concentration Risk, Percentage | 11.00% | 28.00% | 11.00% | 32.00% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributors Two [Member] | ||||
Concentration Risk, Percentage | 17.00% | 14.00% | ||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Carrier One [Member] | ||||
Concentration Risk, Percentage | 14.00% | 11.00% | ||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Carrier [Member] | ||||
Concentration Risk, Percentage | 10.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributors One [Member] | ||||
Concentration Risk, Percentage | 14.00% | 18.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributors Two [Member] | ||||
Concentration Risk, Percentage | 19.00% | 15.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Wireless Carrier One [Member] | ||||
Concentration Risk, Percentage | 10.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Wireless Carrier Two [Member] | ||||
Concentration Risk, Percentage | 21.00% |
Note 9 - Segment Information (D
Note 9 - Segment Information (Details Textual) | 6 Months Ended |
Apr. 30, 2020 | |
Number of Reportable Segments | 2 |
Note 9 - Segment Information -
Note 9 - Segment Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Net sales | $ 10,390 | $ 13,626 | $ 22,804 | $ 24,273 |
UNITED STATES | ||||
Net sales | 9,982 | 13,451 | 22,155 | 23,921 |
CANADA | ||||
Net sales | 290 | 113 | 407 | 278 |
MEXICO | ||||
Net sales | 7 | 12 | ||
All Other Foreign Countries [Member] | ||||
Net sales | 111 | 62 | 230 | 74 |
Non-US [Member] | ||||
Net sales | $ 408 | $ 175 | $ 649 | $ 352 |
Note 9 - Segment Information _2
Note 9 - Segment Information - Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Net sales | $ 10,390 | $ 13,626 | $ 22,804 | $ 24,273 | |
Income (loss) before provision for income taxes | (181) | 1,376 | (169) | 2,184 | |
Depreciation and amortization | 253 | 141 | 508 | 278 | |
Total assets | 39,412 | 34,405 | 39,412 | 34,405 | $ 37,700 |
Corporate, Non-Segment [Member] | |||||
Net sales | |||||
Income (loss) before provision for income taxes | 7 | 14 | 18 | 36 | |
Depreciation and amortization | |||||
Total assets | 15,265 | 14,660 | 15,265 | 14,660 | |
RF Connector and Cable Assembly [Member] | Operating Segments [Member] | |||||
Net sales | 3,768 | 3,341 | 6,957 | 6,599 | |
Income (loss) before provision for income taxes | 697 | 257 | 979 | 537 | |
Depreciation and amortization | 41 | 45 | 83 | 90 | |
Total assets | 8,126 | 6,972 | 8,126 | 6,972 | |
Custom Cabling Manufacturing and Assembly [Member] | Operating Segments [Member] | |||||
Net sales | 6,622 | 10,285 | 15,847 | 17,674 | |
Income (loss) before provision for income taxes | (885) | 1,105 | (1,166) | 1,611 | |
Depreciation and amortization | 212 | 96 | 425 | 188 | |
Total assets | $ 16,021 | $ 12,773 | $ 16,021 | $ 12,773 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 1.00% | 23.00% | (7.00%) | 22.00% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 118,000 | $ 118,000 | $ 80,000 | ||
Unrecognized Tax Benefits, Ending Balance | $ 30,000 | $ 30,000 |
Note 11 - Intangible Assets (De
Note 11 - Intangible Assets (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Oct. 31, 2019 | |
Amortization of Intangible Assets, Total | $ 346,000 | $ 275,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 8 years 142 days |
Note 11 - Intangible Assets - I
Note 11 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Amortizable intangible assets, net | $ 3,527 | $ 1,092 |
Non-amortizable intangible assets, trademarks | 1,174 | 657 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, gross | 423 | 200 |
Accumulated amortization | (222) | (200) |
Amortizable intangible assets, net | 201 | |
Customer Relationships [Member] | ||
Amortizable intangible assets, gross | 5,058 | 2,879 |
Accumulated amortization | (2,126) | (1,884) |
Amortizable intangible assets, net | 2,932 | 995 |
Order or Production Backlog [Member] | ||
Amortizable intangible assets, gross | 287 | 134 |
Accumulated amortization | (200) | (134) |
Amortizable intangible assets, net | 87 | |
Patents [Member] | ||
Amortizable intangible assets, gross | 368 | 142 |
Accumulated amortization | (61) | (45) |
Amortizable intangible assets, net | $ 307 | $ 97 |
Note 11 - Intangible Assets -_2
Note 11 - Intangible Assets - Intangible Assets (Details) (Parentheticals) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Oct. 31, 2019 | |
Noncompete Agreements [Member] | ||
Estimated life (Year) | 5 years | 5 years |
Customer Relationships [Member] | Minimum [Member] | ||
Estimated life (Year) | 7 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Estimated life (Year) | 15 years | 15 years |
Order or Production Backlog [Member] | Minimum [Member] | ||
Estimated life (Year) | 1 year | 1 year |
Order or Production Backlog [Member] | Maximum [Member] | ||
Estimated life (Year) | 2 years | 2 years |
Patents [Member] | Minimum [Member] | ||
Estimated life (Year) | 10 years | 10 years |
Patents [Member] | Maximum [Member] | ||
Estimated life (Year) | 14 years | 14 years |
Note 12 - Commitments (Details
Note 12 - Commitments (Details Textual) - USD ($) | Apr. 30, 2020 | Oct. 31, 2019 |
Lessee, Operating Lease, Renewal Term (Year) | 5 years | |
Operating Lease, Right-of-Use Asset | $ 1,901,000 | |
Operating Lease, Liability, Total | 2,000,000 | |
Operating Lease, Liability, Current | 977,000 | |
K and K Unlimited [Member] | ||
Lessee, Operating Lease, Monthly Rent | $ 14,000 | |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 3 years |
Note 12 - Commitments - Operati
Note 12 - Commitments - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Apr. 30, 2020 | Apr. 30, 2020 | |
Operating lease cost | $ 250 | $ 504 |
Note 12 - Commitments - Other I
Note 12 - Commitments - Other Information Related to Leases (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2020USD ($) | |
Right of use assets obtained in exchange for lease obligations operating leases | $ 1,904 |
Weighted Average Remaining Lease Term, Operating leases (months) (Month) | 2 years 189 days |
Weighted Average Discount Rate, Operating leases | 3.54% |
Note 12 - Commitments - Future
Note 12 - Commitments - Future Minimum Lease Payments (Details) - USD ($) | Apr. 30, 2020 | Oct. 31, 2019 |
2020 (excluding six months ended April 30, 2020) | $ 507,000 | |
2021 | 919,000 | |
2022 | 532,000 | |
2023 | 166,000 | |
2024 | ||
Thereafter | ||
Total future minimum lease payments | 2,124,000 | |
Less imputed interest | (124,000) | |
Total | 2,000,000 | |
Other current liabilities | 977,000 | |
Operating lease liabilities | 1,023,000 | |
Finance lease liabilities | ||
Total | $ 2,000,000 |
Note 13 - Line of Credit (Detai
Note 13 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Nov. 30, 2019 | Apr. 30, 2020 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |
Long-term Line of Credit, Total | $ 0 | |
LIBOR Daily Floating Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Note 14 - Cash Dividend and D_2
Note 14 - Cash Dividend and Declared Dividends (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 |
Payments of Ordinary Dividends, Common Stock | $ 195,000 | $ 187,000 | $ 388,000 | $ 373,000 |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details Textual) - USD ($) $ in Millions | May 05, 2020 | May 31, 2020 |
Subsequent Event [Member] | ||
Proceeds from Paycheck Protection Program Under CARES Act | $ 2.8 | $ 2.8 |