Core Insights - Frequency Electronics, Inc. reported significant revenue growth for the three and nine months ended January 31, 2025, with revenues of approximately 49.8 million, respectively, compared to 39.7 million for the same periods in fiscal year 2024 [1] - The company achieved operating income of 8.5 million for the three and nine months ended, respectively, a notable improvement from an operating loss of 2.5 million in the prior year [1] - Net income from operations for the three and nine months ended January 31, 2025, was 1.60 per diluted share) and 2.14 per diluted share), respectively, compared to 0.01 per diluted share) and 0.32 per diluted share) in the same periods of the previous fiscal year [1] Financial Performance - The gross margin for the third quarter was reported at 44%, and 45% for the first nine months of FY2025, reflecting the company's focus on high-quality work [2] - R&D expenditures increased significantly, accounting for 9% of revenue for the first nine months of FY2025, as the company expands its competitive capabilities in the proliferated satellite market and quantum sensing [3] - The backlog at January 31, 2025, was approximately 78 million at April 30, 2024, indicating a stable demand for the company's services [5] Revenue Breakdown - Revenues from satellite payloads constituted approximately 59% (28.8 million) of consolidated revenues for the three and nine months ended January 31, 2025, respectively, up from 50% (16.3 million) in the prior year [4] - Revenues from non-space U.S. Government/DOD customers were approximately 39% (19.5 million) of consolidated revenues for the same periods, compared to 44% (21.0 million) in the previous fiscal year [4] - Other commercial and industrial sales accounted for approximately 2% (1.5 million) of consolidated revenues for the three and nine months ended January 31, 2025, down from 7% (2.3 million) in the prior year [4] Strategic Outlook - The company anticipates continued profitability and is optimistic about winning several key programs in the upcoming quarters, despite potential delays due to changes in government funding and federal workforce reductions [2] - The focus on expanding into larger end-markets through increased R&D investment is expected to yield meaningful returns over time [3] - The company remains debt-free and is positioned to invest in profitable growth while rewarding employees and maintaining flexibility for shareholder initiatives [3]
Frequency Electronics, Inc. Announces Third Quarter and Fiscal Year 2025 Financial Results