Frequency Electronics, Inc. Reports Strong Second Quarter Fiscal 2025 Results
Frequency Electronics, Inc. (NASDAQ: FEIM) announced its financial results for the second quarter of fiscal 2025, which ended on October 31, 2024.
Key Financial Metrics
| Financial Metric | Q2 FY2025 | Q2 FY2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $15.8M | $13.6M | +16.2% |
| Operating Income | $2.6M | $0.9M | +188.9% |
| Net Income | $2.7M | $0.8M | +237.5% |
| Earnings Per Share (EPS) | $0.28 | $0.08 | +250% |
Interpretation : Frequency Electronics experienced substantial growth across all major financial metrics. The revenue increased significantly year-over-year, alongside operating and net income, reflecting excellent performance and financial strength. EPS saw a dramatic increase, indicative of improved shareholder value.
Revenue Breakdown by Segment
| Segment | Q2 FY2025 Revenue | Q2 FY2024 Revenue | YoY Change |
|---|---|---|---|
| Satellite Payloads | $9.4M (59%) | $4.7M (35%) | +100% |
| U.S. Gov't/DOD | $5.8M (37%) | $8.2M (60%) | -29.3% |
| Other Commercial/Ind. | $0.6M (4%) | $0.7M (5%) | -14.3% |
Interpretation : The satellite payload segment has doubled its revenue contribution, underscoring its growing importance for the company. However, there was a decrease in revenues from non-space U.S. Government and DOD customers and other commercial and industrial sales.
Key Developments and Operational Highlights
- FEI reported a record backlog of $81 million, up from $70 million at the end of the first quarter of FY2025.
- The company successfully organized a 'Quantum Sensor Summit' in New York City, generating positive industry feedback.
- FEI maintained a debt-free status while increasing internal R&D expenditure to 10% of revenue.
Executive Comments
Tom McClelland, President and CEO, stated, 'For both the quarter and year to date, revenue, gross margin, and operating income have grown substantially... We are well into the execution phase of several key programs... Our efforts reflect continued growth in our core businesses.'
Dividends and Share Repurchase Program
- FEI has paid two special dividends over the past two years but did not announce any new dividends or share repurchase programs for this quarter.
Forward Guidance
The company did not provide specific forward guidance but expressed confidence in continued profitability and operational improvement.
Conclusion : Frequency Electronics reported a robust second quarter, driven by significant revenue growth and operational improvements. Their debt-free status and increased investment in R&D indicate a strategic focus on future innovation and sustainability in core markets.
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