Frequency Electronics Reports Impressive Q1 Growth for 2025

Author: Addison Perry Updated: 09-10-2024 04:15 PM

Frequency Electronics Inc. Displays Strong Financial Performance

Frequency Electronics, Inc. (NASDAQ: FEIM) has announced its financial results for the first quarter of the fiscal year 2025, showcasing a noteworthy increase in revenues and income. The company reported a revenue of approximately $15.1 million for the quarter ending July 31, 2024, marking an increase from the $12.4 million reported in the same quarter the previous year. This reflects a growth of approximately 22%, demonstrating the firm's solid market positioning.

Operating Income and Net Income Insights

The operating income for this quarter stood at $2.4 million, a rise from $2.1 million in the first quarter of the previous fiscal year. Furthermore, the net income from operations was reported at $2.4 million, equating to $0.25 per diluted share. This is an improvement from last year’s $2.0 million or $0.22 per diluted share, indicating a positive trend for Frequency Electronics Inc.

CEO's Perspective on Growth

Tom McClelland, President and CEO of Frequency Electronics, expressed his optimism regarding the company's performance, stating that the increased revenue and operating income were results of disciplined management and a strong product lineup. He noted that the company's backlog at the end of this quarter was $70 million; although this is a slight decrease from the peak of $78 million at the end of the fiscal year 2024, it reflects a significant increase compared to previous years. This backlog illustrates a positive business outlook for the company.

Financial Breakdown: Key Metrics

Revenue Sources and Distribution

During the three months ending July 31, 2024, approximately $8.3 million was generated from satellite payload revenues, which constituted about 55% of consolidated revenues. This is a substantial increase compared to $4.9 million, or 39%, in the same period the previous year. Additionally, revenues from non-space U.S. Government/DOD customers amounted to about $6.3 million, making up approximately 42% of total revenues, although this was lower compared to $6.9 million, or 55%, from the previous year's quarter.

Operating Activities and Cash Flow

Net cash used in operating activities for the first quarter was around $1.5 million, significantly down from $2.8 million in the previous year. This reduction indicates improvements in cash management and overall operating efficiency within Frequency Electronics Inc.

Expected Future Developments

The leadership remains committed to reinforcing profitability and cash generation. McClelland highlighted a strong focus on delivering effective solutions that enhance quality of life and protect national interests. The company anticipates sustained growth in new business activities leading up to the end of the fiscal year on April 30, 2025.

Investor Call Announcement

Frequency Electronics has scheduled a conference call for investors to discuss these financial results in detail. The call will take place on the day of the announcement. Participants can dial in using the provided numbers and access relevant information through the company’s website after the call.

About Frequency Electronics, Inc.

Frequency Electronics, Inc. is a recognized leader in developing cutting-edge timing, frequency generation, and RF control products for various applications, including space and terrestrial deployments. The company's products play a critical role in numerous systems used by commercial, government, and military entities. With a commitment to advancing technology through research and development, Frequency Electronics continues to build a legacy of delivering precision and reliability in its offerings.

Frequently Asked Questions

What were Frequency Electronics’ revenues for the first quarter of 2025?

The revenues for the first quarter of fiscal year 2025 were approximately $15.1 million, up from $12.4 million in the previous year.

How much was the operating income reported?

The operating income for the first quarter was $2.4 million, increasing from $2.1 million the prior year.

What percentage of revenues came from satellite payloads?

Satellite payload revenues accounted for approximately 55% of consolidated revenues in the first quarter.

When is the investor conference call scheduled?

The investor conference call was scheduled for September 10, 2024, at 4:30 PM Eastern Time.

Who can be contacted for investor relations information?

Dr. Thomas McClelland, President, and Chief Executive Officer, as well as Steven Bernstein, Chief Financial Officer, are available for investor inquiries.

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