UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended January 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File No. 1-8061 FREQUENCY ELECTRONICS, INC. (Exact name of Registrant as specified in its charter) Delaware 11-1986657 ...

Financial Data and Key Metrics Changes - For the nine months ended January 31, 2019, consolidated revenue increased to $36.3 million from $31.9 million in the same period last year, representing a growth of approximately 13.8% [3] - Gross margin rate improved significantly to 34.1% from 12.1% for the same period in fiscal 2018, primarily due to higher revenues and reduced costs [4] - The operating loss was reduced to $539,000 compared to a loss of $8.9 million for the same period last year [6][7] - The company recorded a tax provision of $38,000, resulting in a net loss of $168,000 or $0.02 per share, compared to a loss of $11.3 million or $1.27 per share in the prior year [7] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs increased to $17.2 million from $11.4 million, accounting for approximately 48% of consolidated revenues [3] - Revenue from non-space U.S. government DOD customers rose to $17.1 million from $13.9 million, representing about 47% of consolidated revenues [3] - Other commercial and industrial revenues declined to $2 million from $6.7 million, now accounting for approximately 5% of consolidated revenues [4] Market Data and Key Metrics Changes - The fully-funded backlog at the end of January 2019 was $39 million, up from $30 million at the end of the previous fiscal year [8] - The company has a strong working capital position of $47 million and a current ratio of over 11:1, indicating adequate liquidity for operational needs [8] Company Strategy and Development Direction - The company is focusing on improving profitability in its Elcom and Asia subsidiaries while continuing investments in research and development [11] - The announcement of a contract with Lockheed Martin for the GPS IIIF program is seen as a significant opportunity, with potential revenues of approximately $15 million per satellite [12][14] - The company aims to address new large opportunities in secure communications and next-generation satellite payload products [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth for fiscal 2019 and highlighted the importance of precision timing in addressing jamming and spoofing threats [10][41] - The company is encouraged by the number of bids outstanding, which exceeds $200 million, indicating strong demand for its products [18] - Management emphasized the need for precision timing solutions in various sectors, including military and commercial applications, due to increasing threats [39] Other Important Information - Research and development expenditures were maintained at $5.1 million for both the nine-month periods ending January 31, 2019, and 2018, with R&D expenses representing 14% of sales [5] - The company has supplied timing systems for over 1,000 satellites, showcasing its long-standing expertise in the field [15] Q&A Session Summary Question: Update on spoofing and jamming opportunities - The company is addressing a large market for secure communication and positioning due to increasing threats from adversaries [18] Question: Clarification on funded backlog - The $39 million funded backlog does not include a $5.9 million contract, which will be recorded over approximately 18 months [19] Question: Comparison of current quarter to previous quarter - Sales increased by about $1 million from the previous quarter, but losses were similar [20][21] Question: Market potential for DOD opportunities - The company is actively participating in funded programs and sees promising prospects in the $1 billion market [32][35] Question: Digital rubidium atomic clock market size - The clock can be used in various applications beyond GPS IIIF, indicating a significant market potential [42]