Company Overview - Frequency Electronics, Inc. (FEI) is a leader in high precision timing, frequency generation, and RF control products for both space and terrestrial applications [4] - The company's products are utilized in satellite payloads and various systems including C4ISR, electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, and energy exploration [4] - FEI has received over 100 awards for excellence in providing high-performance electronic assemblies for more than 150 space and Department of Defense programs [4] Upcoming Events - Frequency Electronics will hold a conference call on March 13, 2025, at 4:30 PM Eastern Time to discuss the results for the third quarter of fiscal year 2025, which ended on January 31, 2025 [1] - The call will be accessible via webcast on the company's Investor Relations website and through a dedicated phone line for both domestic and international callers [2] Financial Information - A telephone replay of the conference call will be available for one week following the call, with specific domestic and international numbers provided for access [3] - The archived call can also be accessed via a link on the company's website until June 13, 2025 [3] Mission Statement - The company's mission is to transform research discoveries into practical products, emphasizing excellence and creating value for customers, employees, and stockholders [4]

Core Viewpoint - Frequency Electronics, Inc. will hold a conference call to discuss its third-quarter results for fiscal year 2025 on March 13, 2025, at 4:30 PM Eastern Time [1]. Company Overview - Frequency Electronics, Inc. (FEI) is a leader in high precision timing, frequency generation, and RF control products for both space and terrestrial applications [4]. - The company's products are utilized in satellite payloads and various systems including C4ISR, electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, and energy exploration [4]. - FEI has received over 100 awards for excellence in providing high-performance electronic assemblies for more than 150 space and Department of Defense programs [4]. - The company emphasizes significant investment in research and development to enhance its capabilities and market reach [4]. - FEI's mission is to transform research discoveries into practical products, maintaining a legacy of delivering unique precision time and frequency generation products [4].

Company Overview - Frequency Electronics, Inc. (FEI) is a leading provider of precision timing and frequency control products for both space and terrestrial applications [2] - The company specializes in high precision timing, frequency generation, and RF control products, which are utilized in satellite payloads and various military and commercial systems [2] - FEI has received over 100 awards for excellence in providing high-performance electronic assemblies for more than 150 space and Department of Defense (DOD) programs [2] Upcoming Events - FEI's management team will participate in the 27th Annual Needham Growth Conference from January 14 to January 17, 2025 [1] - CEO Tom McClelland will present on January 15 at 8:00 AM, followed by one-on-one conferences from 8:45 AM to 6:00 PM on the same day [1] Mission and Vision - The company's mission is to transform research discoveries into practical products, emphasizing excellence and creating value for customers, employees, and stockholders [2]

MITCHEL FIELD, N.Y., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce that it has been awarded several significant contracts to supply specialized precision quartz oscillators, synthesizers, and receivers for aerospace programs. The total value of these contracts is approximately $11 million, with deliveries scheduled through 2026. These contracts highlight FEI’s ...

Financial Performance - Revenues for the three months ended October 31, 2024, increased to $15,820,000, up 16.5% from $13,575,000 for the same period in 2023[15] - Gross margin improved to $7,619,000 for the three months ended October 31, 2024, compared to $4,330,000 in the prior year, reflecting a gross margin percentage increase from 31.9% to 48.2%[15] - Operating income for the six months ended October 31, 2024, was $4,983,000, a significant increase from $2,998,000 for the same period in 2023, representing a 66.1% growth[15] - Net income for the three months ended October 31, 2024, was $2,654,000, compared to $797,000 in the same period last year, marking a 232.4% increase[15] - Total consolidated revenues for the three months ended October 31, 2024, were $15.8 million, an increase of 16.4% compared to $13.6 million for the same period in 2023[42] - Operating income for the three months ended October 31, 2024, was $2.6 million, compared to $0.9 million for the same period in 2023, representing a significant improvement[42] - The significant increase in revenue for the six months ended October 31, 2024, was primarily due to an increase in contract awards from prior periods that moved into production[67] Research and Development - Research and development expenses rose to $1,613,000 for the three months ended October 31, 2024, up from $840,000 in the prior year, indicating a focus on innovation[15] - Research and development expenses represented 10.2% of revenues for the three months ended October 31, 2024, compared to 6.2% in the same period of 2023[66] - R&D expenditures for the three months ended October 31, 2024, were $1.6 million, a 92.0% increase from $840,000 in the same period of 2023, driven by modernization of products[72] - The Company plans to continue investing in R&D for space applications and may pursue acquisitions to expand its product range, expecting internally generated cash to fund these efforts[89] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $11,040,000, compared to $8,708,000 at the end of October 2023, reflecting a year-over-year increase of 26.5%[17] - The company reported a net cash provided by operating activities of $2,352,000 for the six months ended October 31, 2024, compared to a net cash used of $(2,981,000) in the same period last year[17] - Net cash provided by operating activities for the six months ended October 31, 2024, was approximately $2.4 million, compared to a net cash used of $2.9 million in the same period of 2023[85] - The Company incurred approximately $9.7 million in net cash used in financing activities for the six months ended October 31, 2024, primarily due to a special cash dividend of $1.00 per share[87] Shareholder Returns - The company paid dividends totaling $9,567,000 during the six months ended October 31, 2024, indicating a commitment to returning value to shareholders[17] - The company declared a special cash dividend of $1.00 per share, totaling approximately $9.6 million, paid on August 29, 2024[24] - During the quarter ended October 31, 2024, the Company repurchased a total of 7,893 shares at an average price of $12.62 per share[112] - The approximate dollar value that may yet be purchased under the share repurchase plan is $1,354,252[112] Assets and Liabilities - Total liabilities decreased to $41,583,000 as of October 31, 2024, down from $43,437,000 at the end of April 2024[12] - Total stockholders' equity decreased to $36,192,000 as of October 31, 2024, down from $39,816,000 at the end of April 2024[12] - As of October 31, 2024, the total assets amounted to $36,192 million, with a net income of $2,654 million for the six months ended October 31, 2024[20] - The company’s total liabilities included a deficit of $14,943 million as of October 31, 2024[20] - The total lease liabilities as of October 31, 2024, amounted to $5.3 million, a decrease from $6.2 million as of April 30, 2024[34] Internal Controls and Compliance - The Company identified a material weakness in internal control over financial reporting related to the calculation of loss provision accruals in contracts with customers[103] - Management concluded that the internal control over financial reporting was not effective as of April 30, 2024, due to the identified material weakness[101] - The Company is currently remediating the material weakness by improving controls over the calculation of loss provision accruals and implementing enhanced review and monitoring controls[106] - The errors resulting from the material weakness were corrected prior to the issuance of the consolidated financial statements as of April 30, 2024[103] - Management believes that the audited consolidated financial statements fairly presented the financial position and results of operations in conformity with GAAP despite the material weakness[104] Segment Performance - The FEI-NY segment generated revenues of $11.5 million for the three months ended October 31, 2024, up 24.5% from $9.3 million in the same period of 2023[42] - The FEI-Zyfer segment reported revenues of $4.6 million for the three months ended October 31, 2024, a slight decrease of 4.1% from $4.8 million in the same period of 2023[42] - Revenues from commercial and U.S. Government communication satellite programs accounted for approximately 59% of consolidated revenues for the three months ended October 31, 2024, compared to 34% in the prior fiscal year[66] Taxation - The effective tax rate for the three months ended October 31, 2024, was 4.96% on pretax income of $2.8 million, compared to 0.7% on pretax income of $800,000 in the prior year[82] - The estimated annual effective tax rate for the fiscal year ending April 30, 2025, is projected to be 5.15%[79] Other Financial Metrics - The Company reported a consolidated funded backlog of approximately $81 million as of October 31, 2024, up from $78 million at April 30, 2024, with 65% expected to be realized in the next twelve months[92] - The Company's current ratio was 1.8 to 1 at October 31, 2024, compared to 1.9 to 1 as of April 30, 2024, indicating a strong working capital position[84] - The company maintained a full valuation allowance against its deferred tax assets as of October 31, 2024, indicating potential future adjustments[56] - The company is evaluating the impact of new accounting standards issued by FASB, which may affect financial disclosures starting in fiscal year 2025[53][54]

Shares of Frequency Electronics, Inc. (FEIM) have gained 26.2% since the company reported its earnings for the quarter ended Oct. 31, 2024. This compares to the S&P 500 index’s 1% growth over the same time frame. Over the past month, the stock has gained 24.4% compared with the S&P 500’s 2.1% growth.For the second quarter of fiscal 2025, Frequency Electronics reported net income from operations of 28 cents per share compared with 8 cents per share in the year-ago quarter.  Revenues of $15.8 million denoted ...

Financial Data and Key Metrics - Revenue for the six months ended October 31, 2024, was $30.9 million, up from $26 million in the same period of the prior fiscal year [11] - Gross margin increased due to a large space program completing a major milestone, with older lower-margin programs nearing completion [14] - Operating income for the six months ended October 31, 2024, was $5 million, compared to $3 million in the prior year [20] - R&D expenses increased to $3.1 million, or 10% of revenue, up from $1.3 million, or 5% of revenue, in the prior year [17] - Consolidated net income for the six months ended October 31, 2024, was $5.1 million, or $0.53 per share, compared to $2.8 million, or $0.30 per share, in the previous fiscal year [23] - Backlog reached an all-time high of $81 million, up from $70 million at the end of the first quarter and $78 million at the end of the last fiscal year [4] Business Line Data and Key Metrics - Revenue from commercial and U.S. government satellite programs was $17.7 million, or 57% of total revenue, compared to $9.5 million, or 37%, in the prior year [11] - Revenue from non-space U.S. government and DOD customers was $12.1 million, or 39% of total revenue, down from $15.1 million, or 58%, in the prior year [12] - Other commercial and industrial revenue was $1.1 million, down from $1.4 million in the prior year [13] Market Data and Key Metrics - The U.S. government space business accounted for more than half of the revenue and operating income for the first half of the fiscal year [5] - Less than 10% of the backlog is associated with proliferated small satellites, but this is expected to grow significantly over the next decade [6] Company Strategy and Industry Competition - The company is focusing on developing smaller, lower-cost products for the proliferated small satellite market, leveraging existing technologies [7] - R&D spending is expected to remain at approximately 10% of revenue to support product modernization and new business opportunities [8] - The company is pursuing Cooperative Research and Development Agreements (CRADAs) with NIST and other government laboratories to advance quantum sensor technology [10] Management Commentary on Operating Environment and Future Outlook - Management is cautiously optimistic about the government fiscal year 2025 budget being passed expeditiously, which would accelerate funding availability [10] - The company is well-positioned to participate in the rapidly developing quantum sensor market, with potential government funding expected in the next two quarters [9] - The backlog strength and strong working capital position of $23 million provide confidence in meeting operating and investing needs for the next 12 months [23] Other Important Information - The company hosted the Quantum Sensor Summit in October 2024, which was well-attended and received positive feedback [9] - SG&A expenses increased to 20% of revenue, driven by payroll-related expenses and costs associated with the Quantum Sensor Summit [15] Q&A Session Summary Question: Competitive Advantage in Small Satellite Products - The company's advantage lies in its history of designing high-quality products and its ability to adapt existing technologies for smaller, lower-cost satellite applications [28][32] - The company is targeting a "sweet spot" in the market, offering smaller, lower-power, and lower-cost products with good performance, though not as high as its premium offerings [29][30] Question: Risk of Small Satellites Cannibalizing Existing Business - While there is potential for small satellites to impact the traditional satellite business, the company believes there will still be demand for high-precision timing and frequency hardware in certain applications [33][34] Question: Revenue Growth and Backlog Correlation - Revenue growth is expected to track qualitatively with backlog growth, though not instantaneously [40] Question: Technical Challenges in Developing Small Satellite Products - The primary challenge is adapting terrestrial products to survive in the space environment, particularly dealing with radiation effects in low Earth orbit [43][46] Question: Government Budgetary Environment - The company is optimistic about the new administration and expects the government fiscal year 2025 budget to be passed expeditiously, which would benefit space-related funding [51] Question: Gross Margins and R&D Spending - Gross margins reached 48%, and R&D spending is expected to remain at approximately 10% of revenue for the foreseeable future [56][57] Question: Quantum Sensor Revenue - Quantum sensor revenue is not significant in the current quarter but is a focus area for future growth [58] Question: Non-Space Government Business Recovery - The company anticipates variability in non-space government business but expects significant growth, though timing is uncertain [75] Question: GEO Contract Prospects - The company expects significant work in GEO contracts over the next six to nine months, with proposals out to multiple primes [80] Question: Zyfer Unit Performance and R&D Priorities - The Zyfer unit is performing well, with R&D focused on smaller, cheaper products and integrating navigation capabilities in the absence of GPS [86][87]

Financial Performance - Revenues for Q2 FY2025 were approximately $15.8 million, a 16.1% increase from $13.6 million in Q2 FY2024[3] - Operating income for Q2 FY2025 was $2.6 million, compared to $0.9 million in Q2 FY2024, reflecting a significant growth of 188.9%[3] - Net income for Q2 FY2025 was $2.7 million or $0.28 per diluted share, up from $0.8 million or $0.08 per diluted share in Q2 FY2024[3] - Gross margins for Q2 FY2025 were 48%, reflecting successful operational improvements[4] - Net cash provided by operating activities was approximately $2.4 million in the first half of FY2025, a turnaround from net cash used in operations of $3.0 million in the same period of FY2024[9] - The company remains debt-free and has paid two special dividends over the past two years, indicating strong financial health[5] Revenue Composition - Revenues from satellite payloads accounted for approximately 59% of consolidated revenues in Q2 FY2025, up from 35% in Q2 FY2024[6] - Revenues from non-space U.S. Government/DOD customers decreased to 37% of consolidated revenues in Q2 FY2025, down from 60% in Q2 FY2024[7] Backlog and R&D - The backlog reached an all-time high of $81 million as of October 31, 2024, compared to $70 million at the end of Q1 FY2025[4] - Internal R&D expenditures increased to 10% of revenue in FY2025, supporting competitive positioning in the quantum sensors market[5]

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 July 31, 2024 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 (State or other jurisdiction ...

Frequency Electronics, Inc. (FEIM) reported earnings per share of 25 cents for the first quarter of fiscal 2025, up from 22 cents in the same quarter of fiscal 2024. Revenues increased 22% year over year, reaching $15.1 million compared to $12.4 million a year earlier. Frequency Electronics delivered a strong first quarter for fiscal 2025, characterized by revenue growth, margin expansion, and disciplined financial management. While government revenues showed some relative weakness, the performance in satel ...