Core Insights - Frequency Electronics, Inc. (FEIM) specializes in precision time and frequency control products, essential for telecommunications, space, and defense industries [1] - The company reported a first-quarter EPS of $0.07, significantly below the estimated $0.36, indicating a decrease in net income from operations [2][6] - FEIM's revenue for the quarter was $13.81 million, missing the anticipated $16.5 million and down from $15.1 million in the previous year [3][6] Financial Performance - The net income from operations decreased to $0.6 million compared to $2.4 million in the previous year [2] - Operating income fell to $0.4 million from $2.4 million in the prior year due to declining revenue [3] - Despite these challenges, the company generated a positive cash flow of $1.2 million from operating activities [2] Strategic Initiatives - FEIM has authorized a $20 million share repurchase program, reflecting confidence in its long-term prospects despite current financial difficulties [3][6] Financial Ratios - The company has a price-to-earnings (P/E) ratio of approximately 13.96, indicating investor willingness to pay $13.96 for every dollar of earnings [4] - The price-to-sales ratio is about 4.79, and the enterprise value to sales ratio is around 4.84, reflecting market valuation of the company's revenue [4] - FEIM maintains a low debt-to-equity ratio of 0.16, indicating conservative use of debt, and a current ratio of 2.26, suggesting strong short-term financial health [5] Investment Metrics - The enterprise value to operating cash flow ratio is high at 54.47, while the earnings yield is approximately 7.16%, providing insight into the return on investment for shareholders [5]