{"id":825588,"date":"2025-03-13T16:06:26","date_gmt":"2025-03-13T20:06:26","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/frequency-electronics-inc-announces-third-quarter-and-fiscal-year-2025-financial-results\/"},"modified":"2025-03-13T16:06:26","modified_gmt":"2025-03-13T20:06:26","slug":"frequency-electronics-inc-announces-third-quarter-and-fiscal-year-2025-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/frequency-electronics-inc-announces-third-quarter-and-fiscal-year-2025-financial-results\/","title":{"rendered":"Frequency Electronics, Inc. Announces Third Quarter and Fiscal Year 2025 Financial Results"},"content":{"rendered":"
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MITCHEL FIELD, N.Y., March 13, 2025 (GLOBE NEWSWIRE) — Frequency Electronics, Inc. (\u201cFEI\u201d or the \u201cCompany\u201d) (NASDAQ-FEIM) is reporting revenues for the three and nine months ended January 31, 2025, of approximately $18.9 million and $49.8 million, respectively, compared to revenues of $13.7 million and $39.7 million, for the same period of fiscal year 2024, ended January 31, 2024. Operating income for the three and nine months ended was $3.5 million and $8.5 million, respectively, compared to an operating loss of $0.5 million and operating income of $2.5 million for the same period of fiscal year 2024. Net Income from operations for the three and nine months ended January 31, 2025 was $15.4 million or $1.60 per diluted share and $20.5 million or $2.14 per diluted share, respectively, compared to a net income from operations for the three and nine months ended January 31, 2024 of $0.1 million or $0.01 per diluted share and $3.0 million or $0.32 per diluted share, respectively.<\/p>\n

FEI President and CEO, Tom McClelland commented, \u201cThe third quarter of fiscal year 2025 was another excellent financial quarter, for the Company. For both the quarter and year to date, revenue, gross margin, and operating income have grown substantially. The results reflect continued solid growth in our core businesses, which show every indication of continuing, with our backlog still at a historically high level. We continue work on several key programs that we won over the past two years, and our gross margins (44% for the quarter, and 45% for the first 9 months of FY2025) reflect our efforts to obtain high quality work, and deliver it successfully. We also see plenty of new business opportunities, and anticipate winning several key programs over the next few quarters. That said, we have to be mindful of the potential for changes in government funding and federal workforce reductions to impact the timing of the awarding of contracts to our end customers, which could then impact the timing of the portion of our business related to those contracts. Given the increasing importance of the work we are doing, we see any such impact as one of potential delay, rather than elimination with respect to major programs relevant to FEI. Furthermore, as we increase our exposure to programs like highly proliferated smaller satellite programs and quantum sensing, we anticipate diversifying our customer base and end-market exposure. As we have stated in the past, we anticipate continued profitability going forward, though the mix in any given quarter can cause variability; and we continue to believe that we are well positioned to achieve higher, more consistent margins than we have experienced in the past.<\/p>\n

\u201cR&D expenditures are up significantly from last year (9% of revenue for the first 9 months of FY2025), as we expand our competitive capabilities. We are developing products for the proliferated satellite market, and are building off our heritage of precision timing expertise to design and manufacture quantum sensors for critical applications. These are much larger end-markets than we have traditionally served, and in time, we expect to generate meaningful returns on this stepped up R&D investment. We also believe some of the changes occurring at the federal level allow us to play offense, fine tune our organizational structure, and build our talent base by accessing physicists, timing experts, and laboratories that we can leverage to expand our capabilities and R&D potential. We remain debt-free and are confident in our ability to invest for profitable growth, reward our employees for serving our customers and maintain flexibility for shareholder-oriented initiatives, such as the two special dividends we have paid over the past two years.<\/p>\n

\u201cAll and all, I am happy with our performance, vigilant regarding the changes in Washington, and very enthusiastic about our future.\u201d<\/p>\n

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\n Fiscal Year 2025 Selected Financial Metrics and Other Items<\/u>
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