Frequency Electronics(US:FEIM)2019-03-18 19:31Revenue Performance - Revenues for the nine months ended January 31, 2019, increased to $36,345,000, up from $31,932,000 in the same period of 2018, representing a growth of 13.5%[13] - For the three months ended January 31, 2019, revenues were $13,193,000, an increase from $10,572,000 in the same quarter of 2018, reflecting a growth of 24.4%[14] - Total revenue for the nine months ended January 31, 2019, was $36.3 million, an increase from $31.9 million in the same period of 2018, representing a growth of approximately 13.4%[78] - Revenue from the FEI-NY segment for the nine months ended January 31, 2019, was $28.1 million, while the FEI-Zyfer segment contributed $8.7 million[77] - Satellite revenue for the nine months ended January 31, 2019, was $17.3 million, compared to $11.4 million in the same period of 2018, reflecting a growth of approximately 51.5%[78] - Government Non-Space revenue for the nine months ended January 31, 2019, was $17.1 million, up from $13.9 million in the prior year, indicating an increase of approximately 22.5%[78] Profitability and Loss - Gross margin for the nine months ended January 31, 2019, improved to $12,392,000 compared to $3,872,000 in 2018, indicating a significant increase in profitability[13] - The operating loss for the nine months ended January 31, 2019, was reduced to $540,000 from $8,995,000 in the previous year, showing a substantial improvement in operational efficiency[13] - The net loss for the nine months ended January 31, 2019, was $168,000, a significant reduction from a net loss of $11,263,000 in the prior year[13] - The basic and diluted loss per share from continuing operations for the nine months ended January 31, 2019, was $(0.02), compared to $(1.20) in the same period of 2018[13] - The gross margin for the nine months ended January 31, 2019 was 34.1%, a significant increase from 12.1% in the same period of the previous year[111] - The company reported a net loss of 0.5% for the nine months ended January 31, 2019, compared to a net loss of 35.3% in the same period of the previous year[107] Financial Position - Total assets as of January 31, 2019, were $84,248,000, slightly up from $83,584,000 as of April 30, 2018[11] - Total liabilities decreased to $19,657,000 as of January 31, 2019, from $20,322,000 as of April 30, 2018, indicating improved financial stability[11] - Stockholders' equity increased to $64,591,000 as of January 31, 2019, compared to $63,262,000 as of April 30, 2018, reflecting a strengthening balance sheet[11] - The company's identifiable assets totaled $84.2 million as of January 31, 2019, compared to $83.6 million as of April 30, 2018, indicating a marginal increase of approximately 0.7%[46] Cash Flow and Investments - Cash provided by operating activities from continuing operations was negative at $1,285,000, compared to positive cash flow of $2,793,000 in 2018[18] - Total cash and cash equivalents at the end of the period decreased to $2,418,000 from $7,927,000 in 2018[18] - Cash used in investing activities from continuing operations was $4,388,000, compared to cash provided of $484,000 in 2018[18] - The net cash used in investing activities was $4,388,000, a significant increase from $440,000 in 2018[18] - The company incurred approximately $3.3 million and $8.3 million of non-cash operating expenses for the nine months ended January 31, 2019 and 2018, respectively[131] Segment Performance - The FEI-NY segment generated revenues of $28.1 million for the nine months ended January 31, 2019, compared to $22.2 million in the prior year, reflecting a growth of about 26.5%[45] - The FEI-Zyfer segment reported revenues of $8.7 million for the nine months ended January 31, 2019, down from $12.4 million in the same period of 2018, indicating a decline of approximately 29.1%[45] Accounting and Compliance - The Company adopted ASU 2014-09, resulting in a cumulative effect increase of $484,000 to retained earnings as of May 1, 2018[61] - The Company expects the adoption of ASU 2016-02 regarding leases to have a material effect on its financial statements, particularly in recognizing new right-of-use assets and lease liabilities[59] - The company is required to comply with the Sarbanes-Oxley Act of 2002, ensuring the accuracy of financial reporting by the CEO and CFO[150] Research and Development - Research and development expenses for the nine months ended January 31, 2019 were $5.1 million, representing 14% of sales, compared to 16% for the same period in the previous fiscal year[114] - The company expects to maintain a similar level of R&D activity to address new opportunities in secure communications and next-generation satellite payload products[114] Backlog and Future Expectations - The company's consolidated funded backlog was approximately $39 million as of January 31, 2019, up from $30 million at April 30, 2018, with about 75% expected to be realized in the next twelve months[138] - The company expects internally generated cash to be adequate to fund its development efforts in R&D for space applications and communication systems[137]