Core Insights - Frequency Electronics, Inc. reported significant revenue growth for the three and nine months ended January 31, 2025, with revenues of approximately $18.9 million and $49.8 million, respectively, compared to $13.7 million and $39.7 million for the same periods in fiscal year 2024 [1] - The company achieved operating income of $3.5 million and $8.5 million for the three and nine months ended, respectively, a notable improvement from an operating loss of $0.5 million and operating income of $2.5 million in the prior year [1] - Net income from operations for the three and nine months ended January 31, 2025, was $15.4 million ($1.60 per diluted share) and $20.5 million ($2.14 per diluted share), respectively, compared to $0.1 million ($0.01 per diluted share) and $3.0 million ($0.32 per diluted share) in the same periods of the previous fiscal year [1] Financial Performance - The gross margin for the third quarter was reported at 44%, and 45% for the first nine months of FY2025, reflecting the company's focus on high-quality work [2] - R&D expenditures increased significantly, accounting for 9% of revenue for the first nine months of FY2025, as the company expands its competitive capabilities in the proliferated satellite market and quantum sensing [3] - The backlog at January 31, 2025, was approximately $73 million, slightly down from $78 million at April 30, 2024, indicating a stable demand for the company's services [5] Revenue Breakdown - Revenues from satellite payloads constituted approximately 59% ($11.2 million) and 58% ($28.8 million) of consolidated revenues for the three and nine months ended January 31, 2025, respectively, up from 50% ($6.8 million) and 41% ($16.3 million) in the prior year [4] - Revenues from non-space U.S. Government/DOD customers were approximately 39% ($7.4 million) and 39% ($19.5 million) of consolidated revenues for the same periods, compared to 44% ($6.0 million) and 53% ($21.0 million) in the previous fiscal year [4] - Other commercial and industrial sales accounted for approximately 2% ($0.4 million) and 3% ($1.5 million) of consolidated revenues for the three and nine months ended January 31, 2025, down from 7% ($0.9 million) and 6% ($2.3 million) in the prior year [4] Strategic Outlook - The company anticipates continued profitability and is optimistic about winning several key programs in the upcoming quarters, despite potential delays due to changes in government funding and federal workforce reductions [2] - The focus on expanding into larger end-markets through increased R&D investment is expected to yield meaningful returns over time [3] - The company remains debt-free and is positioned to invest in profitable growth while rewarding employees and maintaining flexibility for shareholder initiatives [3]
Frequency Electronics, Inc. Announces Third Quarter and Fiscal Year 2025 Financial Results