RF Monolithics reports increase in revenue and net income for first quarter of fiscal 1995.

DALLAS--(BUSINESS WIRE)--Dec. 22, 1994--RF Monolithics Inc. (NASDAQ:RFMI) Thursday reported net income for its first quarter ended Nov. 30, 1994, of $574,000, compared to $392,000 for the first quarter of the prior year, a 46 percent increase.

Earnings per share of common stock for this first quarter of fiscal 1995 were 11 cents, compared to 11 cents of earnings per share of common stock for the first quarter of fiscal 1994. First quarter 1995 earnings per share are based on weighted average shares outstanding of 5,317,000 as compared to 3,663,000 weighted average shares outstanding in 1994.

The increase in weighted average shares outstanding is primarily from issuance and sale of 1.6 million additional shares of common stock in connection with RFM's IPO in July 1994. First quarter 1994 earnings included an income tax benefit of $212,000, or 6 cents per share, as a result of decreases in the valuation allowance, which was provided upon adoption of SFAS 109 in fiscal 1993.

Revenues for the first quarter ended Nov. 30, 1994, increased 50 percent to $7,816,000, compared to $5,208,000 for the first quarter of the prior year. The increase in revenues was due primarily to increased deliveries in both the low-power wireless and high-frequency timing market areas.

Commenting on the first quarter results, Gary Andersen, president and chief executive officer, said, "We are pleased with our continued revenue and earnings growth and the acceptance our products are receiving in the marketplace. During the quarter we continued to focus our attention on further automation of our new Surface Mount facility as well as new product development in the low-power wireless and high-frequency timing products."

Additionally, during the quarter, the company received a United States patent on its new amplifier-sequenced hybrid (ASH) receiver. Although, the ASH receiver product line will cover a broad range of operating frequencies, the frequencies of the first receivers developed by RFM are 303.825 MHz and 433.92 MHz.

These frequencies are the Japanese and European standards for automotive keyless entry systems and other low-power wireless applications.

Typical wireless alarm and remote control applications for the new RFM receiver products include automotive keyless entry systems, home security systems, and garage door and gate openers. In data-link applications, the receiver typically will be used in wireless bar code readers, wireless identification tags, and wireless computer peripherals.

RFM's patented ASH receiver architecture offers several key advantages in low-power wireless applications. The receiver's small size, low power consumption and performance make it inherently very stable and easy to integrate into an application.

The ASH receiver contains all the RF electronics needed to amplify, filter and detect a pulse amplitude modulated (PAM) signal, converting it to a CMOS-compatible data stream. Customers do not need to have extensive experience in RF design to use the new receiver.

Volume production of the ASH receiver will begin in April. The receiver costs $25 each in quantities of 100 units.

RFM, headquartered in Dallas, is a leading developer, manufacturer and supplier of a broad range of radio frequency components and modules based on surface acoustic wave technology for the low-power wireless, high-frequency timing and telecommunications market.

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                          RF Monolithics, Inc.
                    Condensed Statements of Income
                (in thousands, except per share amounts)

                                         Three Months Ended
                                              Nov. 30,
                                           1994      1993
                                            (unaudited)

Product sales                            $7,713    $5,088
Technology development revenues             103       120
 Total revenues                           7,816     5,208
Cost of product sales                     4,689     3,127
Research, development and engineering       735       495
Sales and marketing                         999       796
General and administrative                  493       436
  Total costs and expenses                6,916     4,854
  Income from operations                    900       354
Other income (expense), net                  56       (43)
  Income before income taxes                956       311
Income tax (benefit) expense (a)            382       (81)
  Net income                             $  574    $  392
Earnings per share (pro forma in 1993)     $.11      $.11
Weighted average common and common
 equivalent shares outstanding (pro
 forma in 1993) (b)                       5,317     3,663

(a)  Income tax (benefit) expense includes the benefit of
reductions, in the valuation allowance for deferred tax assets, of
zero and $212 in the three months ended Nov. 30, 1994 and 1993,
respectively.

(b)  Weighted average common and common equivalent shares
outstanding in 1994 includes the effect of an initial
public offering of 1.6 million shares on July 28, 1994.
Pro forma shares outstanding in 1993 are computed in accordance with
SEC Staff Accounting Bulletin No. 83 as to stock options
outstanding during the 12 month period prior to the IPO.


                         RF Monolithics, Inc.
                       Condensed Balance Sheets
                           (in thousands)

                                          Nov. 30,    Aug. 31,
                                            1994        1994
                                         (unaudited)

ASSETS
Cash, cash equivalents and short-term
 investments                              $ 5,570     $ 6,555
Accounts receivable, net                    5,190       4,874
Inventories                                 2,968       1,988
Deferred taxes and prepaid expenses           787         796
  Total current assets                     14,515      14,213
Net property and equipment                  6,965       6,285
Deferred taxes and other assets             3,041       3,237
  Total                                   $24,521     $23,735

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                       $ 4,928     $ 5,112
Long-term debt                                550         153
  Total liabilities                         5,478       5,265
Stockholders' equity                       19,043      18,470
  Total                                   $24,521     $23,735

CONTACT: RF Monolithics, Inc.

              Sam Densmore, 214/233-2903
                     or
              Shelton Associates
              Jodi Shelton, 214/239-5119