SEC Investigating RF Industries Over Possible Misstatements

RF Industries Ltd., which makes cable connectors, said Tuesday the Securities and Exchange Commission is investigating it for possible misstatements about its financial health, sales and manufacturing status.

The San Diego company said it is cooperating with the investigation, but does not know the reason behind it.

“We wish the SEC would tell us what this is about,” said RF Industries Chief Executive and President Howard Hill.

Last month’s resignation of former Chairman Jack Benz was due to his decision to retire and unrelated to the SEC investigation, Hill added.

RF Industries also said it expects to report fiscal first-quarter net earnings at a level similar to last year’s 6 cents a share.

The results will include a one-time charge for the Dec. 1 acquisition of Bioconnect Inc.

The company said it expects to report a first-quarter sales increase of 25% to more than $2.2 million.

RF Industries shares were down 6 cents to $3.81 on Nasdaq, which had halted trading of the stock at 8:05 a.m. PST after requesting additional information.