Frequency Electronics(FEIM) - 2025 Q3 - Quarterly Results

Financial Performance - For the three and nine months ended January 31, 2025, revenues were approximately $18.9 million and $49.8 million, representing increases of 38.6% and 25.5% compared to $13.7 million and $39.7 million for the same periods in fiscal year 2024[2] - Operating income for the three and nine months ended was $3.5 million and $8.5 million, compared to an operating loss of $0.5 million and operating income of $2.5 million for the same periods in fiscal year 2024[2] - Net income from operations for the three and nine months ended was $15.4 million or $1.60 per diluted share and $20.5 million or $2.14 per diluted share, compared to $0.1 million or $0.01 per diluted share and $3.0 million or $0.32 per diluted share for the same periods in fiscal year 2024[2] Margins and Expenditures - Gross margins were 44% for the quarter and 45% for the first nine months of FY2025, reflecting the company's efforts to deliver high-quality work[3] - R&D expenditures increased to 9% of revenue for the first nine months of FY2025, as the company expands its competitive capabilities in the proliferated satellite market and quantum sensors[4] Revenue Sources - Revenues from satellite payloads accounted for approximately $11.2 million or 59% and $28.8 million or 58% of consolidated revenues for the three and nine months ended January 31, 2025, compared to $6.8 million or 50% and $16.3 million or 41% for the same periods in the prior fiscal year[5] Backlog and Debt - The backlog at January 31, 2025 was approximately $73 million, down from $78 million at April 30, 2024[5] - The company remains debt-free and is confident in its ability to invest for profitable growth while maintaining flexibility for shareholder-oriented initiatives[4] Future Outlook - The company anticipates continued profitability and higher, more consistent margins going forward despite potential delays in contract awards due to changes in government funding[3] - The company is focused on diversifying its customer base and end-market exposure, particularly in smaller satellite programs and quantum sensing[3]