Frequency Electronics, Inc. Announces Second Quarter and Fiscal Year 2026 Financial Results

Core Insights - Frequency Electronics, Inc. reported strong financial results for Q2 and the first half of fiscal year 2026, with revenues of approximately $17.1 million for the quarter, representing a 24% increase quarter over quarter, and a total of $30.9 million for the six months [2][3] - The company experienced a decrease in operating income, reporting $1.7 million for Q2 and $2.1 million for the first half, compared to $2.6 million and $5.0 million in the same periods of the previous fiscal year [2] - Net income for Q2 was $1.8 million or $0.18 per diluted share, and for the first half, it was $2.4 million or $0.25 per diluted share, down from $2.7 million or $0.28 per diluted share and $5.1 million or $0.53 per diluted share in the prior year [2] - The backlog at the end of October 2025 was approximately $82 million, an increase from $70 million at the end of April 2025, indicating strong future demand [2][3] Financial Performance - Revenue for the three months ended October 31, 2025, was $17.1 million, up from $15.8 million in the same period of 2024, while revenue for the six months was $30.9 million, slightly up from $30.9 million in the previous year [12] - The gross margin for Q2 was $6.5 million, down from $7.6 million in Q2 2024, and for the first half, it was $11.6 million, down from $14.3 million [12] - Selling and administrative expenses increased to $3.6 million for Q2 and $7.2 million for the first half, compared to $3.4 million and $6.2 million in the same periods of the previous year [12] Strategic Outlook - The company anticipates multiple large contract awards in the near term, particularly in its core technologies, which are expected to yield high margins [4] - There is optimism regarding the growth of the core business, which is expected to continue expanding beyond the next few quarters, alongside new opportunities in quantum sensing and satellite applications [4] - The second annual Quantum Sensing Summit has been rescheduled for January 14-15, 2026, which will gather leaders from various sectors to discuss advancements in technology and reinforce the company's strategic role in this field [5]