Frequency Electronics(FEIM)

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FEI-Zyfer Announces Contract Award for $3.14 Million
GlobeNewswire News Room· 2025-08-25 13:00
GARDEN GROVE, Calif., Aug. 25, 2025 (GLOBE NEWSWIRE) -- FEI-Zyfer, Inc., a wholly-owned subsidiary of Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce the receipt of a contract from the Defense Logistics Agency - Aviation Division at Redstone Arsenal, AL for additional systems in support of the Patriot Missile system. The base year (Year 1) contract value is $3.14 million dollars, with a period o ...
Frequency Electronics Announces 2025 Quantum Sensing Summit in New York City
Globenewswire· 2025-08-01 17:07
Core Insights - Frequency Electronics, Inc. (FEI) is hosting the 2025 Quantum Sensing Summit on October 29–30, 2025, in New York City to promote the transition of quantum sensing technologies from laboratory settings to practical applications [1][3] - The summit will feature keynotes, panels, and technical sessions focusing on technologies such as Rydberg and NV-diamond sensors, photonic integrated circuits (PICs), frequency combs, and ultra-low-noise oscillators [2] - The event aims to attract 100–150 participants, including government decision-makers and industry innovators, fostering collaboration and policy influence in the quantum technology sector [3] Company Overview - Frequency Electronics, Inc. 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 various sectors, including satellite payloads, military systems, and secure communications, with over 100 awards for excellence in electronic assemblies [4] - FEI emphasizes transforming research breakthroughs into practical products, maintaining a commitment to excellence and innovation in its offerings [4]
Frequency Electronics(FEIM) - 2025 Q4 - Annual Report
2025-07-18 20:02
Part I [Business Overview](index=4&type=section&id=Item%201%2E%20Business) Frequency Electronics, Inc. leads in precision time and frequency technology for space and defense, with most sales to the U.S. Government - The company is a world leader in precision time and frequency generation technology for commercial and U.S. Government satellites, C4ISR, and Electronic Warfare (EW) systems[14](index=14&type=chunk) - The business is organized into two reportable segments: FEI-NY (including FEI-Elcom) and FEI-Zyfer, primarily based on geographic location[20](index=20&type=chunk)[27](index=27&type=chunk) Segment Revenue Contribution (FY2025 vs FY2024) | Segment | FY2025 Revenue % | FY2024 Revenue % | | :--- | :--- | :--- | | FEI-NY | 76% | 73% | | FEI-Zyfer | 27% | 33% | *Note: Percentages sum to over 100% due to intersegment sales.* - Sales to U.S. Government programs accounted for approximately **94% of total sales in fiscal 2025**, a decrease from 98% in fiscal 2024[42](index=42&type=chunk) - Consolidated backlog was approximately **$70 million** as of April 30, 2025, with about **64% expected in fiscal year 2026**[41](index=41&type=chunk) - In fiscal 2025, **Northrop Grumman** was the sole customer exceeding **10% of consolidated revenues**[42](index=42&type=chunk)[43](index=43&type=chunk) Company-Funded R&D Expenditures | Fiscal Year | Amount (in millions) | | :--- | :--- | | 2025 | $6.1 | | 2024 | $3.4 | [Risk Factors](index=12&type=section&id=Item%201A%2E%20Risk%20Factors) Significant risks stem from U.S. Government contract reliance, customer concentration, fixed-price contracts, and workforce retention - Heavy reliance on U.S. Government programs, accounting for **94% of sales in fiscal 2025**, creates risks from funding changes or contract terminations[59](index=59&type=chunk) - Dependence on a small number of large customers, like **Northrop Grumman**, poses a material business risk[61](index=61&type=chunk) - **Fixed-price contracts**, comprising **96% of sales in fiscal 2025**, carry inherent financial risks from cost overruns and inflation[64](index=64&type=chunk) - The company faces substantial competition from larger firms and the in-house capabilities of major customers[67](index=67&type=chunk) - Dependence on a highly skilled, aging workforce with a **median age of 51** creates talent retention and retirement risks[70](index=70&type=chunk) - A material weakness in internal control over financial reporting for loss provision calculations was identified in FY2024, but management believes it was remediated by April 30, 2025[76](index=76&type=chunk)[79](index=79&type=chunk) - As a defense contractor, the company is a target for significant cybersecurity attacks risking intellectual property theft and operational disruption[81](index=81&type=chunk) [Cybersecurity](index=18&type=section&id=Item%201C%2E%20Cybersecurity) Cybersecurity is integrated into risk management, protecting CUI under DFARS and CMMC, with Board oversight and no material threats - The cybersecurity framework includes risk-based controls, an incident response plan, employee training, and third-party assessments[92](index=92&type=chunk) - Adherence to Defense Federal Acquisition Regulation Supplement (DFARS) and Cybersecurity Maturity Model Certification (CMMC) is critical for protecting Controlled Unclassified Information (CUI)[89](index=89&type=chunk) - The full Board of Directors oversees cybersecurity, with the Chief Information Officer (CIO) leading the program and reporting to the CEO[91](index=91&type=chunk)[93](index=93&type=chunk) - To date, no cybersecurity threats have materially affected the company's business, operations, or financial condition[90](index=90&type=chunk) [Other Part I Items (Properties, Legal Proceedings)](index=18&type=section&id=Other%20Part%20I%20Items) The company leases primary facilities in NY, CA, and NJ, reporting no material legal proceedings or unresolved staff comments - The company leases its main facilities in New York, California, and New Jersey[94](index=94&type=chunk) - As of July 18, 2025, the Company was not a party to any material pending legal proceedings[98](index=98&type=chunk) - There are no unresolved staff comments or mine safety disclosures to report[85](index=85&type=chunk)[99](index=99&type=chunk) Part II [Market for Common Equity and Related Matters](index=20&type=section&id=Item%205%2E%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock trades on Nasdaq 'FEIM'; a **$1.00 per share special dividend** was declared, with an ongoing stock repurchase program - A special cash dividend of **$1.00 per share**, totaling approximately **$9.4 million**, was paid on August 29, 2024[103](index=103&type=chunk) - The company has a **$5 million stock repurchase program**, with approximately **$1.1 million** remaining authorized as of April 30, 2025[105](index=105&type=chunk)[106](index=106&type=chunk) [Management's Discussion and Analysis (MD&A)](index=20&type=section&id=Item%207%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2025 revenues grew **26.3% to $69.8 million**, gross margin expanded to **43.1%**, and net income reached **$23.7 million** due to a tax benefit [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Consolidated Revenues by Segment (in thousands) | Segment | FY 2025 | FY 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | FEI-NY | $53,269 | $40,261 | $13,008 | 32.3% | | FEI-Zyfer | $18,660 | $18,138 | $522 | 2.9% | | Intersegment | ($2,118) | ($3,125) | $1,007 | (32.2)% | | **Total** | **$69,811** | **$55,274** | **$14,537** | **26.3%** | - The **$14.5 million revenue increase** in FY2025 was primarily driven by a **$17.7 million (76%) increase** in satellite program sales due to contract efficiencies[118](index=118&type=chunk) Gross Profit Performance (in thousands) | Metric | FY 2025 | FY 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $30,097 | $18,583 | $11,514 | 62.0% | | Gross Margin % | 43.1% | 33.6% | - | - | - The gross margin percentage increased significantly due to strong performance and favorable cumulative catch-up adjustments on FEI-NY space programs[120](index=120&type=chunk) - R&D expenses increased by **79.8% to $6.1 million** in FY2025, representing **9% of consolidated revenue**[122](index=122&type=chunk) - Operating income increased **133.8% to $11.7 million** in FY2025, driven by higher revenue and gross margin[124](index=124&type=chunk) - The company recorded an income tax benefit of **$11.5 million** in FY2025, primarily due to the reduction of the valuation allowance on deferred tax assets[126](index=126&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Key Liquidity Metrics (as of April 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Working Capital | $29.7 million | $27.3 million | | Cash and Cash Equivalents | $4.7 million | $18.3 million | | Current Ratio | 2.3 to 1 | 1.9 to 1 | - Net cash used in operations was **$1.4 million** in FY2025, a significant shift from **$8.7 million provided** in FY2024[129](index=129&type=chunk) - Net cash used in financing activities was **$9.9 million** in FY2025, primarily due to a **$9.6 million special cash dividend payment**[132](index=132&type=chunk) - Management believes existing cash and cash flows from operations will be sufficient to meet short-term and long-term operating needs[135](index=135&type=chunk) [Other Matters (Morion Investment)](index=27&type=section&id=Other%20Matters%20%28Morion%20Investment%29) - The company's investment in Morion, a Russian company, was fully impaired in fiscal year 2022 due to the Russia-Ukraine conflict and sanctions[141](index=141&type=chunk) - Morion's designation as a Specially Designated National by the U.S. Treasury led to termination of commercial relationships and establishment of alternate supply sources[142](index=142&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208%2E%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements for FY2025 and FY2024 are presented with an unqualified opinion, noting revenue recognition as a critical audit matter Consolidated Statement of Operations Highlights (in thousands) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Revenues | $69,811 | $55,274 | | Gross Margin | $30,097 | $18,583 | | Operating Income | $11,732 | $5,019 | | Net Income | $23,686 | $5,594 | | Basic EPS | $2.46 | $0.59 | Consolidated Balance Sheet Highlights (in thousands) | Line Item | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $53,106 | $58,121 | | Total Assets | $93,737 | $83,253 | | Total Current Liabilities | $23,455 | $30,796 | | Total Liabilities | $38,117 | $43,437 | | Total Stockholders' Equity | $55,620 | $39,816 | Consolidated Cash Flow Highlights (in thousands) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($1,428) | $8,708 | | Net cash used in investing activities | ($1,808) | ($1,492) | | Net cash used in financing activities | ($9,944) | $0 | | Net (decrease) increase in cash | ($13,180) | $7,216 | - The independent auditor identified revenue recognition using the percentage-of-completion method as a critical audit matter due to significant estimates[154](index=154&type=chunk)[155](index=155&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%209A%2E%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective, remediating a prior material weakness - Management concluded that disclosure controls and procedures were effective as of April 30, 2025[276](index=276&type=chunk) - A material weakness in internal control over loss provision accrual calculations, identified in FY2024, is believed remediated by April 30, 2025[278](index=278&type=chunk) - Remediation involved updating loss provision calculation methods and implementing enhanced review and monitoring controls[281](index=281&type=chunk) - Management assessed internal control over financial reporting as effective as of April 30, 2025, based on the COSO 2013 framework[280](index=280&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=60&type=section&id=Items%2010-14) Information on directors, executive compensation, and corporate governance is incorporated by reference from the forthcoming 2025 Proxy Statement - Information on directors, executive officers, corporate governance, executive compensation, security ownership, and principal accountant fees is incorporated by reference from the forthcoming 2025 Proxy Statement[286](index=286&type=chunk)[288](index=288&type=chunk)[290](index=290&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=61&type=section&id=Item%2015%2E%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of financial statements and a list of all exhibits filed with the Form 10-K - This section contains the index to financial statements and a list of exhibits filed with the annual report[292](index=292&type=chunk)
FEIM's Q4 Earnings Rise Y/Y on Satellite Growth, Stock Down 10%
ZACKS· 2025-07-18 18:35
Core Insights - Frequency Electronics, Inc. (FEIM) reported a significant increase in quarterly financial results, yet its stock has declined 10.4% since the earnings report, indicating investor caution despite strong performance [1][2][6] Financial Performance - For Q4 fiscal 2025, net income was $3.3 million or 34 cents per share, up from $2.6 million or 28 cents per share in the prior year [2] - Revenues reached $20 million, a 28.3% increase from $15.6 million in the same quarter last year [2] - Operating income rose to $3.3 million from $2.5 million year-over-year [3] Revenue Breakdown - Satellite payloads generated $12.1 million in Q4, accounting for 60% of total revenues, up from $6.9 million or 44% in the prior-year quarter [4] - Non-space U.S. Government/DoD revenues decreased to $7 million from $7.9 million in the previous year [4] Cash Flow and Backlog - The backlog at fiscal year-end was $70 million, down from $78 million a year earlier [5] - Net cash used in operations was $1.4 million, a reversal from $8.7 million in cash provided in the previous year, partly due to a $9.6 million dividend paid [5] Management Commentary - CEO Thomas McClelland highlighted the quarter as the highest-revenue quarter in 25 years, attributing success to strong execution and accelerated revenue recognition [6] - CFO Steven Bernstein noted a $13.9 million release of deferred tax valuation allowances contributing to the earnings surge [7] Strategic Focus - The company is targeting emerging opportunities in quantum sensing and alternative navigation technologies, with plans to launch a compact rubidium atomic clock branded as TURBO [11] - FEIM is involved in the GPS IIIF program and plans to host the Second Annual Quantum Sensing Summit in New York City [12] Annual Performance Overview - For fiscal 2025, total revenue was $69.8 million, a 26.3% increase from $55.3 million in fiscal 2024 [9] - Net income surged to $23.8 million or $2.48 per share, up from $5.6 million or 59 cents per share in fiscal 2024 [9] - Operating income more than doubled to $11.7 million from $5 million [9]
Frequency Electronics Issues a Clarification to Yesterday's Earnings Call
Globenewswire· 2025-07-11 16:45
Core Insights - Frequency Electronics, Inc. (FEI) clarifies revenue expectations for its TURbO compact rubidium atomic clock, stating that the anticipated revenue of $1 million to $2 million for FY2026 refers to orders already received and does not fully capture the market potential for this technology [1] - The TURbO atomic clock is expected to significantly expand FEI's market exposure, particularly in drone applications and traditional aircraft radar, with a potential market growth estimated at $20 million or more in FY2027 [2] Company Overview - Frequency Electronics, Inc. is a leader in precision timing and frequency technology, providing products for various applications including satellite payloads, military systems, and secure communications [4] - The company has received over 100 awards for excellence in high-performance electronic assemblies and invests heavily in research and development to enhance its capabilities and market reach [4] Future Outlook - The company anticipates sharing further developments in the growth market for TURbO and updates on quantum sensing and magnetometers in upcoming quarters [3]
Frequency Electronics(FEIM) - 2025 Q4 - Earnings Call Transcript
2025-07-10 21:32
Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8][10] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous fiscal year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's balance sheet reflects a strong working capital position of approximately $30 million and a current ratio of about 2.3:1, with no debt [15] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [9] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% previously [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional primes and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][10] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by new legislation supporting space and defense programs, although they cautioned about variability in contract timing due to changes in administration [4][30] - The company expects to see additional revenue from contract awards flowing in over the coming quarters and years [4] Other Important Information - The company recorded a decrease in valuation allowance of approximately $13.9 million, primarily related to deferred tax assets [14] - Cash decreased by approximately $13.6 million, with dividends accounting for about $9.6 million of this decrease [15] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas, with quantum sensors appearing particularly promising due to the vulnerability of GPS [21][22] Question: Adequacy of cash for increased R&D spending - Management is confident in their ability to fund increased R&D through internal funds and is exploring external funding options [24][25] Question: Short-term uncertainty and backlog variability - Management clarified that while there may be variability in future contracts, the current backlog of $70 million is solid [33][34] Question: Gross margin outlook - Management aims to maintain gross margins in the low to mid-40% range for the upcoming fiscal year [68] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated in about five years [70] Question: SG&A and R&D targets for 2026 - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [79]
Frequency Electronics(FEIM) - 2025 Q4 - Earnings Call Transcript
2025-07-10 21:30
Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's fully funded backlog at April 2025 was approximately $70 million, down from $78 million in the previous fiscal year [14] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [8] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% in the prior year [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional prime contractors and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][24] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] - The company aims to maintain a gross margin of 40% or more in the upcoming fiscal year [72] Management's Comments on Operating Environment and Future Outlook - Management noted that while the recent quarter was strong, future quarters may not replicate this performance due to the lumpiness of contract awards [4] - There is variability in the timing of contracts due to changes in administration priorities, but the overall spending outlook remains positive [30][31] - Management expressed confidence in the company's ability to fund increased R&D spending through internal funds and external funding opportunities [25][26] Other Important Information - The company is debt-free and maintains a strong working capital position of approximately $30 million [15] - Cash decreased by approximately $13.6 million since the prior fiscal year end, primarily due to dividend payments and timing of billing [15][16] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas and is in discussions with prime customers about capabilities [22][24] Question: Potential for growth in specific areas - Quantum sensor technology appears promising, with significant market potential, while Golden Dome also shows potential but with uncertain funding [24] Question: Adequacy of cash for increased R&D spending - Management is confident in having adequate cash to fund increased R&D, with a cautious approach to resource allocation [25] Question: Short-term uncertainty and backlog variability - Management clarified that the $70 million backlog is solid, with variability mainly concerning future contracts [34][35] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated five years out [73] Question: SG&A and R&D targets for future years - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [83] Question: SDA bids and investment expenses - The SDA process is currently being rethought by the new administration, with potential developments expected within the next 9 to 12 months [86][87]
Frequency Electronics(FEIM) - 2025 Q4 - Annual Results
2025-07-10 20:05
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Fiscal Year 2025 and Q4 Financial Highlights](index=1&type=section&id=Fiscal%20Year%202025%20and%20Q4%20Financial%20Highlights) The company reported significant revenue and net income growth for Q4 and the full fiscal year 2025 | Metric | Q4 FY2025 | Q4 FY2024 | YoY Change | Full Year FY2025 | Full Year FY2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $20.0M | $15.6M | +28.2% | $69.8M | $55.3M | +26.2% | | **Operating Income** | $3.3M | $2.5M | +32.0% | $11.7M | $5.0M | +134.0% | | **Net Income** | $3.3M | $2.6M | +26.9% | $23.8M | $5.6M | +325.0% | | **Diluted EPS** | $0.34 | $0.28 | +21.4% | $2.48 | $0.59 | +320.3% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted a record Q4, affirmed long-term confidence, and detailed strategic R&D investments - Q4 FY2025 was the highest revenue quarter for the company in the past twenty-five years, with **historically high margins and operating income**[3](index=3&type=chunk) - The strong quarterly performance was partly due to **accelerating revenue and profit** from programs originally scheduled for FY26 and beyond, a pace the CEO noted is not sustainable every quarter[3](index=3&type=chunk) - FEI is making targeted internal R&D investments, supplemented by external funding, to develop products for space and defense with minimal customization, focusing on **quantum sensor applications**[3](index=3&type=chunk) - The company is actively hiring scientists and engineers with expertise in quantum sensing to enhance its capabilities in this key growth area[3](index=3&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=Detailed%20Financial%20Analysis) [Selected Financial Metrics (FY2025)](index=1&type=section&id=Selected%20Financial%20Metrics%20%28FY2025%29) Satellite payload revenue grew to 59% of total as operating cash flow turned negative and backlog decreased | Revenue Source | FY2025 Revenue | % of Total | FY2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | Satellite Payloads | $40.9M | 59% | $23.2M | 42% | | Non-space U.S. Gov/DOD | $26.5M | 38% | $29.0M | 52% | | Other Commercial/Industrial | $2.4M | 3% | $3.1M | 6% | - Net cash used in operating activities was approximately **$1.4 million** in FY2025, compared to net cash provided by operations of **$8.7 million** in FY2024[4](index=4&type=chunk) - Backlog at April 30, 2025, was approximately **$70 million**, a decrease from **$78 million** at April 30, 2024[4](index=4&type=chunk) [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue grew 26.3% and gross margin improved, with net income surging due to a large income tax benefit | (in thousands) | Twelve Months Ended April 30, 2025 | Twelve Months Ended April 30, 2024 | | :--- | :--- | :--- | | **Revenues** | $69,811 | $55,274 | | **Gross margin** | $30,097 | $18,583 | | **Operating income** | $11,732 | $5,019 | | **Benefit provision for Income Taxes** | $(11,658) | $(130) | | **Net income** | $23,802 | $5,594 | - Research and development expenses **increased by 79.8%** from $3.4 million in FY2024 to $6.1 million in FY2025, reflecting the company's strategic investments[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew as cash decreased significantly, offset by increases in contract and deferred tax assets | (in thousands) | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $4,720 | $18,320 | | **Contract assets** | $17,914 | $10,523 | | **Deferred taxes** | $12,159 | $- | | **Total Assets** | $93,851 | $83,253 | | **Contract liabilities** | $13,454 | $21,639 | | **Stockholders' equity** | $55,736 | $39,816 | - The significant drop in cash was coupled with a large decrease in contract liabilities (deferred revenue) from **$21.6 million to $13.5 million**, suggesting revenue recognition from prior advance payments[14](index=14&type=chunk) [Corporate Information and Outlook](index=2&type=section&id=Corporate%20Information%20and%20Outlook) [Investor Conference Call Information](index=2&type=section&id=Investor%20Conference%20Call%20Information) The company will host an investor conference call on July 10, 2025, to discuss its financial results - A conference call to discuss the results is scheduled for **Thursday, July 10, 2025, at 4:30 PM Eastern Time**[5](index=5&type=chunk) - A replay of the call will be available for one week by phone and archived on the company's website through **October 10, 2025**[6](index=6&type=chunk) [Company Profile and Forward-Looking Statements](index=2&type=section&id=Company%20Profile%20and%20Forward-Looking%20Statements) FEI is a leader in high-precision timing products, and the report includes a standard risk disclaimer - FEI is a world leader in high-precision timing, frequency generation, and RF control products for **space and terrestrial applications**, including satellite payloads, C4ISR, electronic warfare, and GPS[7](index=7&type=chunk) - The company's mission is to **commercialize research discoveries into practical products**, aiming to create value for customers, employees, and stockholders[8](index=8&type=chunk) - The press release includes a **"safe harbor" provision** under the Private Securities Litigation Reform Act of 1995, warning that forward-looking statements are subject to various risks and uncertainties[9](index=9&type=chunk)
Frequency Electronics, Inc. Announces Fourth Quarter and Full Fiscal Year 2025 Financial Results
GlobeNewswire News Room· 2025-07-10 20:01
Core Insights - Frequency Electronics, Inc. reported significant revenue growth for the fiscal year 2025, with revenues of approximately $20.0 million for Q4 and $69.8 million for the full year, compared to $15.6 million and $55.3 million in the previous fiscal year [1] - The company achieved an operating income of $3.3 million for Q4 and $11.7 million for the full year, up from $2.5 million and $5.0 million in the prior year [1] - Net income from operations for Q4 was $3.3 million ($0.34 per diluted share) and $23.8 million ($2.48 per diluted share) for the full year, compared to $2.6 million ($0.28 per diluted share) and $5.6 million ($0.59 per diluted share) in FY2024 [1] Financial Performance - Q4 revenues from satellite payloads were approximately $12.1 million, representing 60% of consolidated revenues, compared to $6.9 million (44%) in the same period of FY2024 [6] - Revenues from non-space U.S. Government/DOD customers were approximately $7.0 million (35%) for Q4, down from $7.9 million (51%) in FY2024 [6] - Total revenues from other commercial and industrial sales accounted for approximately $0.9 million (4%) for Q4, slightly up from $0.8 million (5%) in the previous year [7] Strategic Outlook - The company is well-positioned to capitalize on the growing quantum sensor market, leveraging its expertise in atomic clocks and actively hiring skilled professionals in this field [5] - FEI is investing in targeted internal R&D to develop products for space and defense applications, aiming for faster execution and reduced customization needs [4] - The recent U.S. budget legislation indicates strong government commitment to space and defense, which FEI anticipates will positively impact its business in the medium to long term [3] Operational Metrics - Net cash used in operating activities was approximately $1.4 million for FY2025, a decline from $8.7 million in FY2024 [12] - The backlog at April 30, 2025, was approximately $70 million, down from $78 million at the same time in the previous year [12]
Frequency Electronics Announces Year End Fiscal 2025 Financial Results Conference Call: Thursday, July 10, 2025, at 4:30 PM ET
Globenewswire· 2025-07-09 11:08
Company Overview - Frequency Electronics, Inc. (FEI) is a leader in the design, development, and manufacture of 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 commercial, government, and military 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 (DOD) programs [4] Upcoming Events - Frequency Electronics will hold a conference call to discuss its fiscal year 2025 results on July 10, 2025, at 4:30 PM Eastern Time [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 archived call will be available for one week following the call, with specific domestic and international numbers provided for access [3] - The call can also be accessed via a link on the company's website until September 10, 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]