Frequency Electronics Inc. Posts Strong First-Quarter FY2025 Results
Frequency Electronics, Inc. (NASDAQ: FEIM) reported a solid start to fiscal year 2025, with both revenue and earnings moving higher. For the quarter ended July 31, 2024, revenue came in at approximately $15.1 million, up from $12.4 million in the same period last year. That’s roughly 22% year-over-year growth—clear evidence that demand for the company’s solutions continues to strengthen.
Operating Income and Net Income
Profitability also improved. Operating income for the quarter was $2.4 million, compared with $2.1 million in the first quarter of the prior fiscal year. Net income was likewise $2.4 million, or $0.25 per diluted share, up from $2.0 million, or $0.22 per diluted share, a year ago. The step-up in both operating income and earnings per share reflects tighter execution and a more favorable mix of work.
CEO’s View on Momentum and Backlog
President and CEO Tom McClelland pointed to disciplined management and a resilient product portfolio as key drivers of the quarter’s performance. He noted the company ended the quarter with a $70 million backlog. While that’s slightly below the $78 million peak reported at the end of fiscal year 2024, it remains meaningfully higher than in prior years. In practical terms, the backlog signals sustained customer demand and provides visibility into upcoming production.
Financial Breakdown: Key Metrics
Revenue Mix and Trends
In the three months ended July 31, 2024, satellite payload programs generated approximately $8.3 million, or about 55% of consolidated revenue. That’s a notable jump from $4.9 million, or 39%, in the same quarter last year. Revenues from non-space U.S. Government/Department of Defense customers were about $6.3 million, representing roughly 42% of total revenue, compared with $6.9 million, or 55%, in the year-ago period. The shift underscores a larger contribution from space payload work this quarter while maintaining a significant base of U.S. Government/DOD activity.
Operating Activities and Cash Flow
Cash use improved meaningfully. Net cash used in operating activities was approximately $1.5 million for the quarter, better than the $2.8 million used in the prior-year period. The year-over-year reduction points to progress in cash management and operating efficiency.
Expected Future Developments
Leadership reiterated its focus on strengthening profitability and cash generation. McClelland emphasized delivering solutions that improve quality of life and safeguard national interests—work the company intends to pursue with the same discipline shown this quarter. Management expects continued momentum in new business activity through the remainder of the fiscal year, which ends on April 30, 2025.
Investor Call Announcement
Frequency Electronics scheduled a conference call for investors to discuss these results in greater detail, taking place on the day of the announcement. Participants can dial in using the provided numbers, and a replay and related materials will be available on the company’s website after the call.
About Frequency Electronics, Inc.
Frequency Electronics, Inc. designs and manufactures precision timing, frequency generation, and RF control products for both space and terrestrial applications. Its technologies support critical systems used by commercial, government, and military customers. Backed by ongoing research and development, the company’s offerings are built for accuracy and reliability—attributes that have defined its work for decades.
Frequently Asked Questions
What were Frequency Electronics’ revenues for the first quarter of 2025?
Revenue was approximately $15.1 million for the quarter ended July 31, 2024, up from $12.4 million in the same quarter last year—an increase of about 22%.
How much was the operating income reported?
Operating income was $2.4 million for the first quarter, compared with $2.1 million in the prior-year period, reflecting improved execution and mix.
What percentage of revenues came from satellite payloads?
Satellite payload revenues accounted for about 55% of consolidated revenue in the quarter, or roughly $8.3 million, up from 39% (about $4.9 million) a year earlier.
When is the investor conference call scheduled?
The investor call was scheduled for September 10, 2024, at 4:30 PM Eastern Time, with related materials to be posted on the company’s website after the call.
Who can be contacted for investor relations information?
Investor inquiries may be directed to Dr. Thomas McClelland, President and Chief Executive Officer, and Steven Bernstein, Chief Financial Officer.
