Core Insights - Frequency Electronics, Inc. (FEIM) reported a strong financial performance for the third quarter of fiscal 2025, with net income of 0.01 in the prior-year quarter [2][3] - Revenues reached 13.7 million in the prior-year period [2][3] - The company's gross margin improved to 44% from 23% in the prior-year quarter, driven by revenue growth in core business areas and high-margin contracts [4] Financial Performance - Operating income for the fiscal third quarter was 0.5 million in the prior year [3] - Net income increased to 0.1 million in the year-ago period [3] - Revenues from satellite payloads surged to 6.8 million (50%) in the year-ago period [5] Business Metrics - The company's backlog stood at 78 million at the end of fiscal 2024, indicating continued demand for its products [6] - R&D spending increased to 1 million in the prior year, representing 8% of revenues compared to 7% in the prior-year quarter [9] Strategic Outlook - CEO Thomas McClelland expressed optimism about the company's growth trajectory, highlighting strong performance in core businesses and demand for FEIM's technology [7] - The company is focused on expanding its presence in proliferated satellite programs and quantum sensing, anticipating additional contract wins despite potential delays in government funding [8] Competitive Positioning - FEIM is developing quantum sensors for applications such as GPS-denied navigation and submarine detection, with expectations of generating meaningful revenues over time [10] - The company is actively bidding for contracts with the Space Development Agency and adapting technology for radiation-heavy environments, believing its expertise provides a competitive edge in the proliferated satellite market [14] Financial Position - FEIM maintained a strong financial position, remaining debt-free with working capital of approximately 5.5 million from 9.6 million special dividend payment [12]
FEIM Posts Strong Q3 Earnings Y/Y Growth, Shares Up 10%