Frequency Electronics Reports Strong Q1 Growth with Profits Up!
Frequency Electronics Posts Strong First-Quarter Results for Fiscal Year 2025
Frequency Electronics, Inc. (NASDAQ: FEIM) reported its first-quarter results for fiscal year 2025, covering the period that ended on July 31, 2024. Revenue came in at approximately $15.1 million, up from $12.4 million in the same quarter last year. That’s a 22% year-over-year increase, driven by steady demand across key programs and product lines, and it reflects strategies that continue to convert engineering work into revenue-generating deliveries.
Operating Performance and Earnings
Operating income for the quarter was $2.4 million, compared with $2.1 million a year ago. The roughly 15% improvement points to ongoing discipline in execution and cost control. Net income was $2.4 million, or $0.25 per diluted share, up from $2.0 million, or $0.22 per diluted share, in the prior-year period. In short: higher sales, higher operating profit, and better earnings per share.
CEO Perspective and Demand Signals
President and CEO Tom McClelland underscored the momentum, noting, “Our revenue growth and improved operating income reflect our commitment to providing high-quality solutions. We anticipate continued progress due to our strong product offerings and customer-focused strategy.” He also highlighted a current backlog of $70 million—off its peak of $78 million, yet still historically high for the company—signaling durable demand for Frequency Electronics’ technologies.
Revenue Mix and Segment Highlights
The quarter’s growth was broad-based but especially strong in space-related work. Satellite payload revenue totaled approximately $8.3 million, or 55% of total revenue, up sharply from $4.9 million (39% of consolidated revenue) in the year-ago quarter. Revenue from non-space U.S. Government and DOD customers remained solid at around $6.3 million, a modest step down from $6.9 million in the same period last year. Together, these figures sketch a diversified base with space payloads taking a larger share of the mix this quarter.
Capital Returns and Cash Use
On July 22, 2024, the Board of Directors declared a special cash dividend of $1.00 per share. The payment—approximately $9.6 million in total—was distributed on August 29, 2024. On the cash front, the company used about $1.5 million in operating activities this quarter, an improvement from $2.8 million used in the prior-year period, reflecting tighter working-capital management and a more efficient cash cycle.
Outlook for the Remainder of FY2025
Management expects substantial growth from new business initiatives through the balance of the fiscal year ending April 30, 2025. The focus remains on sustaining profitability, strengthening cash generation, and converting backlog into on-time deliveries—steady steps intended to compound the company’s recent gains.
About Frequency Electronics
Frequency Electronics, Inc. designs and manufactures high-precision timing, frequency generation, and RF control products for both space and terrestrial uses. Its technology supports commercial, government, and military systems, including applications in C4ISR and electronic warfare. With more than 100 awards recognizing performance and innovation, the company continues to invest in research and development to expand capabilities and address evolving mission needs.
Frequently Asked Questions
What revenue did Frequency Electronics report for Q1 FY2025?
Revenue was approximately $15.1 million for the quarter ended July 31, 2024, up from $12.4 million in the same quarter last year.
How did profitability change year over year?
Operating income rose to $2.4 million from $2.1 million, and net income increased to $2.4 million, or $0.25 per diluted share, from $2.0 million, or $0.22 per diluted share.
What does the current backlog indicate?
The backlog stands at $70 million. While slightly below the previous high of $78 million, it remains historically strong and points to steady demand.
What shareholder actions did the Board take this quarter?
The Board declared a special cash dividend of $1.00 per share on July 22, 2024, totaling roughly $9.6 million and paid on August 29, 2024.
Which markets and applications does the company serve?
Frequency Electronics supplies high-precision timing, frequency generation, and RF control products for space and terrestrial systems across commercial, government, and military markets, including C4ISR and electronic warfare applications.
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