Frequency Electronics Reports Record Q1 Earnings Amid Strong Backlog Growth
Frequency Electronics (NASDAQ:FEIM) reported record fiscal first-quarter revenue of $23.5 million, a 70% year-over-year increase driven by growth in satellite and U.S. government defense programs. The company also achieved an operating income of $5.2 million and net income of $4.2 million ($0.41 per share). Funded backlog reached a record high of $129 million, up 82% year-over-year, with approximately 65% expected to convert within the next 12 months. The company raised around $73 million in July through a stock offering, which is intended to support production expansion and automation. Management expressed confidence in achieving its goal of at least $150 million in annual revenue by fiscal 2029 (ending April 30, 2029). Gross margin improved to 45.8%, nearing the company's three-year target of 50%. CFO Steven Bernstein noted that SG&A expenses rose but decreased as a percentage of total revenue due to operating leverage. Revenue from satellite programs and U.S. government contracts accounted for nearly all consolidated sales, with commercial and industrial segments contributing only about 3%.
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