Sep 10, 2026, 4:10 PM ETTechnology

Frequency Electronics, Inc. — First Quarter Fiscal Year 2027 Earnings Summary

FEIMFREQUENCY ELECTRONICS INC

Financial Performance

Revenue reached a record $23.5 million for the three months ended July 31, 2026, representing a 70% year-over-year increase and a 52% sequential increase from the prior quarter.
Operating income was $5.2 million, compared to $0.4 million in the same period of the previous fiscal year.
Net income from operations was $4.2 million ($0.41 per diluted share), compared to $0.6 million ($0.07 per diluted share) in the prior year period.
Gross margin expanded to approximately 46%, and operating margin exceeded 22%.
Net cash provided by operating activities was approximately $3.0 million, compared to net cash used of $1.2 million in the prior year period.
Backlog reached a record $129 million at July 31, 2026, up 82% year-over-year and 16% sequentially from $111 million at April 30, 2026.
The company remains debt-free.
A secondary offering completed during the quarter added approximately $73 million in cash, with approximately $14 million received after the quarter ended.
Cash and cash equivalents increased to $61.4 million at July 31, 2026, from $1.6 million at April 30, 2026.

Management expressed increasing confidence in meeting or exceeding the previously guided annual revenue target of $150 million or more by the end of Fiscal 2029 (April 30, 2029).
The company expects to be cash-generative on an annual basis going forward.
Management highlighted a three-year gross margin target, a three-year operating margin target, and a three-year revenue target in forward-looking statements.

Growth is supported by technology leveraging the company's long-standing market leadership in space and defense applications.
The company serves commercial and U.S. Government satellites, C4ISR, and Electronic Warfare (EW) systems.
The company has received over 100 awards of excellence for high-performance electronic assemblies for over 150 space and DOW programs.
Significant resources are invested in research and development to expand capabilities and markets.

The company is entering significantly larger end-markets compared to previous periods.
The company operates in a highly competitive and rapidly changing environment.
The company holds a position of market leadership in space and defense applications.

Risks include reliance on key customers, including the U.S. government.
Potential impacts from the use of estimates when accounting for contracts.
Competitive factors, new products, and technological changes.
Dependence on third-party vendors, product prices, and raw material costs.
Ability to attract and retain key employees.
General domestic and international economic conditions, health epidemics, and external disruptions to facilities or supply chains.
Operations in a highly regulated industry and potential litigation outcomes.
Cybersecurity attacks and noncompliance with credit agreement covenants.
Volatility in stock price due to relatively low trading volume.
Failure to maintain an effective system of internal controls over financial reporting.

CEO Tom McClelland described the quarter as a "strong proof point" of the company's return to growth.
Management stated that "business is booming" and cited many attractive organic growth opportunities leveraging core strengths.
The tone reflects high confidence in the ability to generate profitable, cash-generative revenue growth for years to come.
Management noted that the secondary offering significantly enhanced the balance sheet.

The company held a conference call on September 10, 2026, to discuss results, with dial-in numbers and replay codes provided for investors.
The press release includes a detailed "Forward-Looking Statements" section outlining safe harbor provisions under the Private Securities Litigation Reform Act of 1995.
The company's fiscal year ends on April 30.