Core Insights - Frequency Electronics, Inc. (FEIM) shares have increased by 29.2% since the earnings report for the quarter ended October 31, 2025, significantly outperforming the S&P 500 index, which declined by 1.2% during the same period [1] - The stock has surged 61.4% over the past month, compared to a 3.4% growth in the S&P 500, indicating strong investor sentiment following the company's fiscal Q2 2026 results [1] Financial Performance - For Q2 fiscal 2026, FEIM reported a net income of $1.8 million (18 cents per share), down 35.7% from $2.7 million (28 cents per share) in the prior-year quarter [2] - Revenues increased by 8.3% to $17.1 million from $15.8 million year-over-year [2] - Gross margin decreased to $6.5 million, a decline of approximately 14.2% from $7.6 million a year ago [3] - Operating income fell to $1.7 million from $2.6 million in the previous year [2][3] Operational Metrics - Net cash from operating activities for the first half of fiscal 2026 was $0.6 million, down from $2.4 million in the same period last year [4] - The company's backlog grew to approximately $82 million at the end of October 2025, a 17.1% increase from $70 million at the end of April 2025 [4] Management Commentary - The President and CEO characterized Q2 as strong, noting that $17.1 million in revenue was the third-highest quarterly figure in the past decade [5] - Management anticipates reversing the effects of contract delays caused by a government shutdown in the upcoming fiscal quarters [6] - There is optimism regarding upcoming contract awards, which may exceed previous high-value contracts, particularly in core technology areas [6] Growth Opportunities - The company sees long-term growth potential in quantum sensing applications, including magnetometers and alternative positioning, navigation, and timing (ALT-PNT) solutions, expected to contribute significantly to growth over the next three to five years [7] - Management expects multiple contract wins in the near term, which are anticipated to be accretive and enhance performance in the second half of the fiscal year [10] Industry Developments - The second annual Quantum Sensing Summit was postponed due to the government shutdown and is rescheduled for January 14-15, 2026, in New York City, highlighting FEI's expanding role in quantum technologies [12]

Core Insights - Frequency Electronics, Inc. reported significant revenue growth for the fiscal year 2025, with revenues of approximately $20.0 million for Q4 and $69.8 million for the full year, compared to $15.6 million and $55.3 million in the previous fiscal year [1] - The company achieved an operating income of $3.3 million for Q4 and $11.7 million for the full year, up from $2.5 million and $5.0 million in the prior year [1] - Net income from operations for Q4 was $3.3 million ($0.34 per diluted share) and $23.8 million ($2.48 per diluted share) for the full year, compared to $2.6 million ($0.28 per diluted share) and $5.6 million ($0.59 per diluted share) in FY2024 [1] Financial Performance - Q4 revenues from satellite payloads were approximately $12.1 million, representing 60% of consolidated revenues, compared to $6.9 million (44%) in the same period of FY2024 [6] - Revenues from non-space U.S. Government/DOD customers were approximately $7.0 million (35%) for Q4, down from $7.9 million (51%) in FY2024 [6] - Total revenues from other commercial and industrial sales accounted for approximately $0.9 million (4%) for Q4, slightly up from $0.8 million (5%) in the previous year [7] Strategic Outlook - The company is well-positioned to capitalize on the growing quantum sensor market, leveraging its expertise in atomic clocks and actively hiring skilled professionals in this field [5] - FEI is investing in targeted internal R&D to develop products for space and defense applications, aiming for faster execution and reduced customization needs [4] - The recent U.S. budget legislation indicates strong government commitment to space and defense, which FEI anticipates will positively impact its business in the medium to long term [3] Operational Metrics - Net cash used in operating activities was approximately $1.4 million for FY2025, a decline from $8.7 million in FY2024 [12] - The backlog at April 30, 2025, was approximately $70 million, down from $78 million at the same time in the previous year [12]

Core Viewpoint - Frequency Electronics, Inc. has been awarded a subcontract from Leidos to develop a next-generation Nitrogen Vacancy (NV) Diamond Magnetometer, which is aimed at enhancing magnetic navigation in GPS-denied environments [1][2][4]. Group 1: Company Overview - Frequency Electronics, Inc. is a leading provider of precision timing and frequency technology, specializing in high precision timing, frequency generation, and RF control products for both space and terrestrial applications [5]. - The company has received over 100 awards for excellence in providing high-performance electronic assemblies for more than 150 space and Department of Defense (DOD) programs [5]. - Frequency Electronics invests significantly in research and development to expand its capabilities and markets [5]. Group 2: Project Details - The NV Diamond magnetometer will utilize nitrogen vacancy centers in diamond to create a compact and highly sensitive quantum magnetometer, suitable for deployment in challenging operational environments [2][3]. - Frequency Electronics will lead the design, prototyping, and testing phases of the NV Diamond magnetometer over a multi-year effort, aligning with national investments in quantum technologies [4]. Group 3: Industry Context - The demand for highly sensitive, reliable, and compact magnetic field sensors is growing across defense, intelligence, and scientific applications, reflecting the frontier of modern physics and defense technology [3]. - The initiative supports broader national goals of enhancing situational awareness, navigation, and detection capabilities in various operational contexts [4].

Core Viewpoint - Frequency Electronics, Inc. has been awarded a subcontract from Leidos to develop a next-generation Nitrogen Vacancy (NV) Diamond Magnetometer, which is aimed at enhancing magnetic navigation capabilities in GPS-denied environments [1][2][3]. Group 1: Company Overview - Frequency Electronics, Inc. is a leading provider of precision timing and frequency technology, focusing on high precision timing, frequency generation, and RF control products for various applications including space and terrestrial uses [5]. - The company has received over 100 awards for excellence in providing high-performance electronic assemblies for more than 150 space and Department of Defense (DOD) programs [5]. Group 2: Project Details - The NV Diamond Magnetometer will utilize nitrogen vacancy centers in diamond to create a compact and highly sensitive quantum magnetometer, suitable for deployment in challenging operational environments [2][4]. - Frequency Electronics will lead the design, prototyping, and testing phases of the NV Diamond Magnetometer over a multi-year effort, aligning with national investments in quantum technologies [4]. Group 3: Industry Context - The demand for highly sensitive, reliable, and compact magnetic field sensors is growing across defense, intelligence, and scientific applications, reflecting the importance of quantum sensing in modern physics and defense technology [3]. - The initiative supports broader national goals of enhancing situational awareness, navigation, and detection capabilities in various operational contexts [4].