Relm Wireless announced financial and operating results for the quarter and year ended Dec. 31.CCW 2017 Expected to Draw 3,000 Mission-Critical Professionals
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For full-year 2016, revenues increased 70.5 percent to about $50.7 million, compared with about $29.7 million for 2015. Operating income for the year increased 199.7 percent to about $4.3 million, compared with approximately $1.4 million last year, while net income increased 158.3 percent to about $2.7 million compared with about $1 million for the prior year.
Gross profit margin for 2016 was 33.7 percent of sales, versus 41.3 percent of sales in the previous year.
For the fourth quarter ended Dec. 31, revenues increased 4 percent to about $7.2 million, compared with approximately $7 million for the fourth quarter of 2015. Operating income for the quarter increased 21.2 percent to approximately $343,000, compared with $283,000 for the same quarter last year. Net income for the fourth quarter was about $92,000 compared with approximately $213,000 for the same quarter in 2015.
Gross profit margin for the fourth quarter 2016 was 41.9 percent of sales, compared with 39.3 percent of sales for the fourth quarter 2015.
The company had about $23.4 million in working capital at the end of the year of which $14.4 million was comprised of cash and trade receivables. This compares with working capital of about $23.9 million as of Dec. 31, 2015, of which $8.8 million was comprised of cash and trade receivables. The company had no borrowings outstanding under its revolving credit facility at year-end.
"With sales exceeding $50 million, 2016 was a record year for Relm,” said Relm President Tim Vitou. “Our contract with the U.S. Transportation Security Administration (TSA) was a significant contributor to a year-over-year growth rate exceeding 70 percent. With over 19,000 radios deployed to 406 airports, the TSA program demonstrates our ability to successfully handle large projects, which should enhance our reputation and brand recognition, and foster confidence with potential new customers.
"Moving forward we are very excited about the future of our core business and the prospects for expanding our reach beyond Relm’s historical niche in the LMR market."
Last month, David Storey, who had served as president and CEO of the company for years, left. Vitou was named president, and Gray Payne was added to the board of directors.
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