Frequency Electronics(US:FEIM)2022-07-13 21:57Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2022, consolidated revenue decreased to $48.3 million from $54.3 million in the prior fiscal year, representing a decline of approximately 11% [9][10] - The consolidated net loss for the fiscal year was $8.7 million or $0.93 per share, compared to a net income of $680,000 or $0.07 per share in the previous fiscal year [20] - The company recorded an operating loss of $8.1 million, significantly higher than the operating loss of $1 million in the prior year [17] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. government satellite programs was approximately $26.1 million, accounting for 54% of total revenue, compared to $27 million or 50% in the prior fiscal year [9] - Revenues from non-space U.S. Government/DOD customers decreased to $19.6 million from $24.8 million, representing 41% of consolidated revenue compared to 46% in the prior fiscal year [10] - Other commercial and industrial revenues slightly increased to $2.6 million from $2.5 million in the prior fiscal year [11] Market Data and Key Metrics Changes - The majority of the revenue decrease was attributed to the FEI-Zyfer segment, primarily due to delays in expected bookings and the relocation of manufacturing from California to New York [11][12] - The company believes that the revenue lost in fiscal 2022 has shifted into fiscal 2023, indicating potential recovery in the upcoming year [12] Company Strategy and Development Direction - The company is focusing on developing next-generation precision timing systems, including pulse laser-based rubidium atomic clocks and mercury ion atomic clocks, with demonstrations expected in 2023 and 2024 [5] - There is a strategic emphasis on supporting the space community's migration to small satellites by leveraging core technologies while enhancing performance and reducing size, weight, power, and cost [6] - The company is committed to deploying its technical capabilities in position, navigation, timing, and other applications, indicating a strong focus on innovation and market adaptation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future prospects despite the challenges faced in the past year, highlighting significant wins and expected additional awards in the upcoming year [9] - The company acknowledges the difficulties encountered, particularly in engineering costs and contract delays, but believes that most challenges have been overcome [14] - Management emphasized the importance of maintaining a strong working capital position and adequate liquidity to meet operational needs [21] Other Important Information - The company recorded a gross margin decrease due to reduced revenue and increased engineering costs, which were exacerbated by supply chain impacts [13] - R&D expenses increased to $5 million from $4.7 million, reflecting ongoing investments in new and existing projects [16] - The company remains debt-free with a current ratio of approximately 2.5 to 1, indicating a strong financial position [21] Summary of Q&A Session Questions and Answers - There was no question-and-answer session conducted at the end of the call, as indicated by the operator's announcement [22]