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]
FEIM's Q4 Earnings Rise Y/Y on Satellite Growth, Stock Down 10%