Frequency Electronics Earnings Call Transcripts
Fiscal Year 2026
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Record backlog and strong bookings position the company for multi-year growth, with a 34% CAGR revenue target and significant margin expansion expected by FY29. Strategic restructuring and investments have aligned resources to high-growth markets, with multiple record revenue quarters anticipated in FY27.
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Revenue was $16.9M, down year-over-year but among the highest in a decade, with a record $83M backlog and $45M in new contracts. Gross margin declined due to mix shift, but future margin and backlog growth are expected as new awards and higher-rate production ramp up.
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Q2 FY2026 revenue rose 24% sequentially to $17.1M, with record backlog of $82M and strong growth in non-space defense. Margins declined due to contract mix, but normalization is expected as new awards and backlog growth continue.
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Q1 FY2026 revenue declined year-over-year due to customer-driven delays, but fundamentals remain strong with a record backlog and robust liquidity. Investments in quantum sensing and a $20M share repurchase highlight growth and shareholder focus. Delayed revenue is expected to be recognized in upcoming quarters.
Fiscal Year 2025
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Achieved record annual revenue and net income, driven by strong space program execution and margin gains. Medium-term growth outlook is positive, with new products and quantum sensing initiatives underway, while maintaining a solid balance sheet and liquidity.
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Revenue, gross margin, and operating income saw substantial year-over-year growth, driven by strong satellite program performance and a robust backlog. Net income surged to $20.5M, aided by a significant tax benefit, while the company remains debt-free and optimistic about continued growth in space and quantum sensing markets.
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Revenue, gross margin, and operating income grew significantly year-over-year, driven by strong U.S. government space business and a record $81 million backlog. R&D spending is up to support new small satellite products, with continued optimism for future government contracts and quantum sensor opportunities.
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Q1 revenue grew 22% and operating income 15% year-over-year, with record gross margins and a $70M backlog. New contracts in proliferated satellite and quantum sensor markets signal expansion, while R&D and SG&A costs rose. Liquidity remains strong and the company is debt-free.
Fiscal Year 2024
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Revenue grew 36% year-over-year to $55.3 million, with net income of $5.6 million and a record $78 million backlog. A $1 per share special dividend was declared, and the company remains debt free with strong working capital and positive outlook in core markets.