Frequency Electronics, Inc. FEIM reported earnings per share of 25 cents for the primary quarter of fiscal 2025, up from 22 cents in the identical quarter of fiscal 2024.
Revenues elevated 22% 12 months over 12 months, reaching $15.1 million in comparison with $12.4 million a 12 months earlier.
Frequency Electronics delivered a robust first quarter for fiscal 2025, characterised by income progress, margin growth, and disciplined monetary administration. Whereas authorities revenues confirmed some relative weak point, the efficiency in satellite tv for pc payloads and the general backlog level to a constructive outlook for the rest of the 12 months.
Frequency Electronics, Inc. Worth, Consensus and EPS Shock
Frequency Electronics, Inc. price-consensus-eps-surprise-chart | Frequency Electronics, Inc. Quote
FEIM’s Quarterly Efficiency Overview
Working revenue rose to $2.4 million, a 15% enhance from $2.1 million within the prior-year quarter. Internet revenue equally improved to $2.4 million, up from $2 million.
Frequency Electronics’ gross margin elevated from $4.9 million within the first quarter of fiscal 2024 to $6.7 million within the first quarter of fiscal 2025. This growth in margin could be attributed to raised price management and elevated efficiencies inside the manufacturing course of.
Promoting and administrative bills grew to $2.8 million, up from $2.3 million within the prior-year quarter. Nonetheless, analysis and growth (R&D) bills additionally elevated, from $0.5 million to $1.5 million, reflecting larger funding in innovation and product growth. This elevated R&D spending is probably going aimed toward sustaining the corporate’s aggressive edge, significantly in space-related applied sciences and superior RF management techniques.
The corporate ended the quarter with a backlog of $70 million, down from $78 million on the finish of fiscal 2024, but nonetheless considerably larger than earlier years. This backlog displays a traditionally excessive stage, offering robust visibility into future income streams.
Frequency Electronics’ Phase Efficiency
Satellite tv for pc Payloads
Revenues from satellite tv for pc payloads had been a significant contributor, accounting for $8.3 million, or 55% of whole revenues in contrast with $4.9 million, or 39% within the prior-year interval. This vital enhance underscores the robust demand for Frequency Electronics’ space-related merchandise.
Non-space U.S. Authorities/Division of Protection (DOD) Clients
Revenues from non-space authorities prospects, together with the DOD, totaled $6.3 million, representing 42% of whole revenues. This marks a decline from $6.9 million (55%) in the identical quarter of fiscal 2024. Whereas nonetheless a key income driver, the relative lower in authorities enterprise could point out a shift in product combine.
Different Business and Industrial Gross sales
Revenues from different business and industrial gross sales noticed a slight dip, falling to $0.5 million (4% of income) from $0.7 million (5%) a 12 months in the past.
FEIM’s Stability Sheet Place (As of July 31, 2024)
Frequency Electronics ended the quarter with $16.2 million in money and money equivalents, down from $18.3 million on the finish of fiscal 2024. Complete property elevated barely to $84.3 million from $83.3 million over the identical interval.
Contract liabilities decreased from $21.6 million on the finish of fiscal 2024 to $20.9 million. Different present liabilities fell to $6.8 million from $7.5 million in fiscal 2024. In the meantime, different long-term obligations remained steady at $8.1 million.
Stockholders’ fairness dropped considerably to $33.2 million from $39.8 million on the finish of fiscal 2024.
Money Flows for FEIM
Internet money utilized in operations got here in at $1.5 million within the first quarter of fiscal 2025, whereas the metric amounted to $2.8 million within the prior-year quarter.
FEIM’s Administration Steering
The CEO expressed optimism about continued progress in new enterprise throughout fiscal 2025, supported by the corporate’s aggressive product choices and a positive market atmosphere.
Different Developments for Frequency Electronics
A big growth within the quarter was the announcement of a particular money dividend of $1.00 per share, paid on Aug. 29, 2024. The whole payout amounted to roughly $9.6 million. This dividend highlights the corporate’s dedication to returning capital to shareholders.
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