Mon, Mar 17, 8:27 PM (40 days ago)
**Frequency Electronics, Inc. (FEIM) Q3 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q3 2025 revenue was $18,927,000, up 38% from Q3 2024 ($13,714,000). Nine-month revenue was $49,825,000, up 25.5% from $39,698,000. - **Profit Margins:** Gross margin increased to 43.8% in Q3 2025 from 22.6% in Q3 2024. Nine-month gross margin was 45.4% compared to 31%. - **Net Income:** Q3 2025 net income was $15,405,000, a significant increase from $130,000 in Q3 2024. Nine-month net income was $20,489,000 compared to $2,969,000. - **Cash Flow:** Net cash used in operating activities was $1,273,000 for the nine months ended January 31, 2025, compared to $1,226,000 provided in the same period in 2024. - **Earnings Changes:** Earnings per share (EPS) for Q3 2025 was $1.60, up from $0.01 in Q3 2024. Nine-month EPS was $2.14 compared to $0.32. **Segment Performance:** - **FEI-NY:** Revenue increased by 24.6% in Q3 2025 and 21.8% for the nine months. Operating income improved significantly. - **FEI-Zyfer:** Revenue increased by 47.7% in Q3 2025 and 21.3% for the nine months. **Trends and Uncertainties:** - **Revenue Growth:** Driven by increased sales to U.S. Government space and non-space customers. - **Profitability:** Improved due to higher revenue and completion of major milestones in key programs. - **Cash Flow:** Impacted by increases in deferred tax assets, accounts receivable, and inventories. - **Future Operations:** The company plans to continue investing in R&D and may pursue acquisitions to expand its product range. **Future Outlook:** - **Liquidity:** The company's liquidity is adequate to meet short-term and long-term operating and investment needs. - **Backlog:** The consolidated funded backlog was approximately $73 million as of January 31, 2025, with 65% expected to be realized in the next twelve months. - **Internal Controls:** The company is addressing a material weakness in internal control over financial reporting related to the calculation of loss provision accruals. **Ticker:** FEIM