Subject: [NEXTEL-1] Strong Gains in RELM Wireless First Quarter Results

From: [email-masked]
Date: Fri, 30 Apr 2004 02:55:59 -0400

Strong Gains in RELM Wireless First Quarter Results

WEST MELBOURNE, Fla., April 27 /PRNewswire-FirstCall/ -- RELM Wireless
Corporation (OTC Bulletin Board: RELM) today announced its operating
results for the first quarter ended March 31, 2004.

RELM sales for the first quarter of 2004 increased approximately $1.4
million to $5.0 million, up from $3.6 million for the same quarter last
year, or an increase of 38.9 percent. First quarter net income increased
approximately $0.7 million to $0.3 million, or $0.03 per diluted share,
up from a net loss of ($0.4) million, or ($0.04) per diluted share for
the first quarter of the prior year.

"The first quarter has typically been our slow season," commented RELM
President and Chief Executive Officer Dave Storey. "So we are pleased to
start 2004 with improved sales and earnings. We have now achieved four
consecutive quarters of profitability, and realized first quarter
operating income for the first time in five years. Order volume during
the quarter was driven by a steady overall increase rather than from a
few large orders. The improvement has been broad-based, including new
customers as well as customers that are returning after several years.
We are securing business and sales from Project-25 digital products as
well as from RELM-brand portables for commercial and industrial
applications."

Sales growth during the first quarter was driven by orders for new
products, led by RELM's flagship DPH digital portable radio, featuring
technology compliant with the standard for government and public-safety
two-way radios known as APCO Project 25. The Project 25 standard
represents a growing market opportunity that is currently addressed by
relatively few companies, according to Storey.  "At the same time, in
the first quarter of this year we have also been growing sales of our
new product line of RELM-brand analog portable radios for commercial and
industrial applications.  In both the public safety and commercial
markets, users are recognizing the advantages offered by our quality
products. Even better, there are more new products and major functional
enhancements in the pipeline for later this year and next year. We
believe that our product and technology foundation is sound, and that
RELM Wireless is in position to capitalize on our recent success and
move ahead."
Gross profit margins for the first quarter 2004 increased to $2.1
million (42.2 percent) from $1.1 million (30.0 percent) for the same
period last year.  RELM has continued to successfully reduce
manufacturing support costs while improving manufacturing efficiencies
and inventory management. In addition, RELM's new products incorporate
recent, more cost-efficient product designs.  "As a result of our
rigorous and ongoing cost reductions, along with our demanding,
zero-defects QC program, RELM continues to offer competitive cost
advantages that we believe will win more new customers and increase our
market share," observed Dave Storey.

Selling, general and administrative ("SG&A") expenses consist of
marketing, sales, commissions, sustaining engineering, development, and
various administrative support expenses. SG&A expenses for the first
quarter 2004 were $1.7 million, or 34.0 percent of sales, compared with
$1.4 million, or 38.0 percent of sales, for the same period last year,
an increase of 21.4 percent. Sales commission expenses increased as a
result of sales increases.  Additional expenses were incurred for sales
and marketing initiatives designed to drive revenue growth, particularly
from new digital and commercial products. RELM also increased product
development staff and expenses to speed the completion and introduction
of new products, including additional digital radio products fully
compliant with APCO Project 25 specifications. "As our success grows, we
are investing in strategies to multiply sales in the months ahead,"
Storey said.

"We are expanding our product offerings and customer base, and we
believe there are prospects ahead for growth, both in the near and long
term", Dave Storey continued. More products combined with our proven
track record for producing high-quality products and managing costs,
will sustain our ability to attract more and more new customers, and
they in turn will fuel our growth."

For more than 55 years, RELM Wireless Corp. has manufactured and
marketed high-specification two-way communications equipment for use by
public safety professionals and government agencies, as well as
business-band radios for use in a wide range of commercial and
industrial applications.  Revolutionary advances include new low-cost
digital portable two-way radios compliant with APCO Project 25 technical
specifications. Products are manufactured and distributed worldwide
under BK Radio, RELM and Uniden PRC brand names. The company maintains
its headquarters in West Melbourne, Florida and can be contacted through
its web site at http://www.relm.com or directly at 1-800-821-2900.

This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act Of 1995 and
is subject to the safe-harbor created by such act.  These
forward-looking statements concern the Company's operations, economic
performance and financial condition and are based largely on the
Company's beliefs and expectations.  These statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company, or industry
results, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking
statements.  Such factors and risks include, among others, the
following: substantial losses incurred by the Company prior to 2003;
reliance on overseas manufacturers; heavy reliance on sales to the U.S.
Government; federal, state and local budget deficits and spending
limitations; limitations in available radio spectrum for use by land
mobile radios; general economic and business conditions; changes in
customer preferences; competition; changes in technology; changes in
business strategy; the debt and inventory levels of the Company; quality
of management, business abilities and judgment of the Company's
personnel; and the availability, terms and deployment of capital.
Certain of these factors and risks, as well as other risks and
uncertainties are stated in more detail in the Company's Annual Report
on Form 10-K for the year ended December 31, 2003 and in the Company's
subsequent filings with the SEC.  These forward-looking statements are
made as of the date of this press release, and the Company assumes no
obligation to update the forward-looking statements or to update the
reasons why actual results could differ from those projected in the
forward-looking statements.

RELM WIRELESS CORPORATION
Condensed Consolidated Statements of Operations (In Thousands Except Per
Share Amounts)
Three Months Ended
(Unaudited)
03/31/2004        03/31/2003

Sales                                            4,970             3,596

Costs & Expenses:
Cost Of Sales                                    2,871             2,519

SG&A                                             1,690             1,366

Total Costs & Exp                                4,561             3,885

Operating Income (Loss)                            409
(289)

Other Income (Expense):
Interest Expense                                   (78)
(103)
Other Income (Expense)                               9                15

Pretax Income (Loss)                               340
(377)

Tax Expense (Benefit)                                0                 0

Net Income (Loss)                                $ 340            $
(377)

Earnings (Loss) per share - basic                $0.04
$(0.04)

Earnings (Loss) per share - diluted              $0.03
$(0.04)

Weighted Average Common Shares
Outstanding, Basic                              9,301             8,552
Weighted Average Common Shares
Outstanding, Diluted                           12,115             8,552

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