Frequency Electronics, Inc. Announces Second Quarter Fiscal Year 2018 Results
14 12월 2017 - 6:00AM
Frequency Electronics, Inc. (NASDAQ:FEIM) reported revenues for the
second quarter of fiscal 2018, which ended October 31, 2017, of
$9.3 million as compared to $11.5 million in the same quarter of
fiscal 2017. Revenues for the first six months of fiscal 2018
were $21.3 million compared to $23.0 million recorded in the same
period of the prior year. The Company recorded an operating loss of
$1.9 million for the quarter ended October 31, 2017, compared to an
operating loss of $1.2 million in the second quarter of fiscal
2017. Operating loss for the first six months of fiscal 2018 was
$1.7 million compared to $1.6 million in the first half of fiscal
2017. Net loss for the second quarter of fiscal 2018 was $1.5
million or ($0.17) per diluted share compared to net loss of $1.0
million or ($0.12) per diluted share for the second quarter of the
prior year. Net loss for the first six months of fiscal 2018 was
$867,000 or ($0.10) per diluted share compared to $1.7 million or
($0.20) per diluted share for the first half of fiscal 2017.
Commenting on the Company’s performance and
business outlook, Chairman of the Board Joel Girsky said, “Results
this quarter were generally in line with expectation. We are,
however, disappointed with the continuing uncertainty in the
satellite market which is delaying new satellite procurements.
As we have previously discussed, these delays manifest
themselves in lower revenue and reduced gross margins. Despite
these issues, I am pleased with cash management this quarter.
In calendar 2018, despite the continuing
uncertainty, we expect to book in excess of $50 million in new
contracts across several satellite related programs.
For the near term, we are working hard to reduce
costs and manage our way through what we believe to be a temporary
situation. Irrespective of quarterly financial matters, I am
encouraged by the continuing high level of proposal activity and,
in fact, the largest pipeline of new business opportunities in
FEI’s history. This suggests the market is picking up and while it
takes some time for proposals to convert to signed contracts, the
trend is favorable. We are also very pleased by our continued
progress in the secure communications/command and control business
and FEI-Zyfer’s performance this quarter. We see this business area
is having significant opportunities for growth and will continue to
allocate resources to pursue it. We also need to maintain our focus
on R&D progress to ensure we are well positioned as the market
improves. FEI’s low G-sensitive, low phase noise oscillators
and precision timing technologies are critical to many satellite,
airborne and terrestrial systems, including applications for secure
communications, communications-on-the-move, and infrastructure
protection. The R&D activity is a major component of the
reported operating losses over the recent past.”
GillamAs previously announced, Gillam is being
reported as a “discontinued operation”. The Company
anticipates concluding the disposition of its interest in Gillam by
the end of this fiscal 2018. The results of Gillam for
quarters ended October 31, 2017 and 2016, are presented as
discontinued operations herewith and in the Company’s 10-Q to be
filed on December 15, 2017.
Selected Fiscal 2018 Financial Metrics
and Other Items
- For the six months ended October 31, 2017, revenues from
commercial and U.S. Government satellite payload programs were
approximately $9.0 million compared to $10.6 million for the same
period of fiscal 2017. Commercial and U.S. Government
satellite payload programs accounted for approximately 42% of
consolidated revenues, compared to 46% in the prior year.
- For the six months ended October 31, 2017, sales for U.S.
Government/DOD non-space end use were $7.7 million compared to $9.0
million for the same period of fiscal 2017. Sales for U.S.
Government/DOD, non-space end use accounted for approximately 36%
of consolidated revenues compared to 39% of revenues for the same
quarter of last year.
- Sales for other commercial and industrial applications were
approximately $4.7 million compared to $3.5 million for the same
period of fiscal 2017. Commercial and industrial applications
accounted for approximately 22% of consolidated revenues, compared
to 15% in the prior year.
- Gross margin rate for the six months ended October 31, 2017
decreased to 31.5% as compared to 32.8% during the same period of
the prior year. The gross margin was affected by unabsorbed
overhead costs and increased costs to repair product returned to
the Company.
- Research and development expense was $3.4 million for the first
six months of fiscal 2018 compared to $3.5 million for the same
period of fiscal 2017. The Company expects the accelerated level of
internal and customer funded R&D to continue for the
foreseeable future as we address new large opportunities in secure
communications/command and control applications, next generation
satellite payload products and additional DOD markets.
- Backlog at the end of the quarter was $21 million down from $28
million at year end.
Investor Conference Call
As announced on December 8, 2017, the Company
will hold a conference call to discuss these results on Wednesday,
December 13, 2017, at 4:30 PM Eastern Time. Investors and
analysts may access the call by dialing 1-877-407-9205.
International callers may dial 1-201-689-8054. Ask for the
Frequency Electronics conference call.
The call will be archived on the Company’s
website through March 12, 2018. The archived call may also be
retrieved at 1-877-481-4010 (domestic) or 1-919-882-2331
(international) using Conference ID #: 13674540 for one week
following the call.
About Frequency Electronics
Frequency Electronics, Inc. is a world leader in
the design, development and manufacture of high precision timing,
frequency control and synchronization products for space and
terrestrial applications. Frequency’s products are used in
satellite payloads and in other commercial, government and military
systems including C4ISR and EW markets, missiles, UAVs, aircraft,
GPS, secure radios, energy exploration and wireline and wireless
communication networks. Frequency has received over 100
awards of excellence for achievements in providing high performance
electronic assemblies for over 150 space and DOD programs.
The Company invests significant resources in research and
development and strategic acquisitions world-wide to expand its
capabilities and markets.
Frequency’s Mission Statement: “Our mission is
to provide precision time and low phase noise frequency generation
systems from 1 Hz to 46 GHz, for space and other challenging
environments.”
Subsidiaries and Affiliates: FEI-Zyfer provides
GPS and secure timing ("SAASM") capabilities for critical military
and commercial applications; FEI-Elcom Tech provides sub-systems
for the Electronic Warfare (“EW”) markets and added resources for
state-of-the-art RF microwave products, FEI-Asia provides cost
effective manufacturing capabilities. Frequency's Morion
affiliate supplies high-quality, cost effective oscillators and
components. Additional information is available on the
Company’s website: www.frequencyelectronics.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995:
The Statements in this press release regarding
the future constitute "forward-looking" statements pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that
would cause or contribute to such differences include, but are not
limited to, inability to integrate operations and personnel,
actions by significant customers or competitors, general domestic
and international economic conditions, consumer spending trends,
reliance on key customers, continued acceptance of the Company's
products in the marketplace, competitive factors, new products and
technological changes, product prices and raw material costs,
dependence upon third-party vendors, competitive developments,
changes in manufacturing and transportation costs, the availability
of capital, and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission.
By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revisions or changes
after the date of this release.
Contact information: Martin B. Bloch, President
and CEO: TELEPHONE: (516) 794-4500
WEBSITE: www.frequencyelectronics.com
|
Frequency Electronics, Inc. and
Subsidiaries |
Condensed Consolidated Statement of
Operations |
(in thousands except per share
data) |
|
|
Six Months ended |
|
Quarter Ended |
|
October 31, |
|
October 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
21,360 |
|
|
$ |
23,028 |
|
|
$ |
9,337 |
|
|
$ |
11,466 |
|
Cost of Revenues |
|
14,636 |
|
|
|
15,474 |
|
|
|
7,134 |
|
|
|
7,737 |
|
Gross
Margin |
|
6,724 |
|
|
|
7,554 |
|
|
|
2,203 |
|
|
|
3,729 |
|
Selling and
Administrative |
|
5,046 |
|
|
|
5,648 |
|
|
|
2,335 |
|
|
|
2,816 |
|
Research and
Development |
|
3,364 |
|
|
|
3,496 |
|
|
|
1,734 |
|
|
|
2,095 |
|
Operating
Loss |
|
(1,686 |
) |
|
|
(1,590 |
) |
|
|
(1,866 |
) |
|
|
(1,182 |
) |
Interest and Other,
Net |
|
1,129 |
|
|
|
213 |
|
|
|
(7 |
) |
|
|
161 |
|
Loss before Income
Taxes |
|
(557 |
) |
|
|
(1,377 |
) |
|
|
(1,873 |
) |
|
|
(1,021 |
) |
Income Tax Benefit |
|
(98 |
) |
|
|
(204 |
) |
|
|
(584 |
) |
|
|
(164 |
) |
Net Loss from
Continuing Operations |
|
(459 |
) |
|
|
(1,173 |
) |
|
|
(1,289 |
) |
|
|
(857 |
) |
Loss from Discontinued
Operations, net of tax |
|
(408 |
) |
|
|
(557 |
) |
|
|
(192 |
) |
|
|
(167 |
) |
Net Loss |
$ |
(867 |
) |
|
$ |
(1,730 |
) |
|
$ |
(1,481 |
) |
|
$ |
(1,024 |
) |
|
|
|
|
|
|
|
|
Net Loss per
Share: |
|
|
|
|
|
|
|
Basic
Loss from Continued Operations |
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.10 |
) |
Basic
Loss from Discontinued Operations |
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
Basic
Loss per Share |
$ |
(0.10 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.12 |
) |
Diluted
Loss from Continued Operations |
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.10 |
) |
Diluted
Loss from Discontinued Operations |
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
Diluted
Loss per Share |
$ |
(0.10 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.12 |
) |
Average Shares
Outstanding |
|
|
|
|
|
|
|
Basic |
|
8,830 |
|
|
|
8,771 |
|
|
|
8,835 |
|
|
|
8,781 |
|
Diluted |
|
8,830 |
|
|
|
8,771 |
|
|
|
8,835 |
|
|
|
8,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Frequency Electronics, Inc. and
Subsidiaries |
Condensed Consolidated Balance
Sheets |
(in thousands) |
|
|
|
|
|
October 31, |
|
April 30, |
|
2017 |
|
2017 |
|
|
|
|
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
Cash
& Marketable Securities |
$ |
12,410 |
|
$ |
9,978 |
Accounts Receivable |
|
7,071 |
|
|
10,986 |
Costs
and Estimated Earnings |
|
|
|
|
in Excess of Billings, net |
|
5,949 |
|
|
7,964 |
Inventories |
|
31,210 |
|
|
29,051 |
Other
Current Assets |
|
4,720 |
|
|
3,711 |
Current Assets of Discontinued Operations |
|
8,157 |
|
|
8,165 |
Property, Plant & Equipment |
|
14,349 |
|
|
14,813 |
Other
Assets |
|
28,274 |
|
|
28,082 |
Non-Current Assets of Discontinued Operations |
|
562 |
|
|
569 |
|
$ |
112,702 |
|
$ |
113,319 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current Liabilities |
$ |
5,601 |
|
$ |
5,862 |
Current Liabilities of Discontinued Operations |
|
1,978 |
|
|
2,249 |
Other
Long-term Obligations |
|
14,858 |
|
|
14,661 |
Non-Current Liabilities of Discontinued Operations |
|
1,387 |
|
|
1,215 |
Stockholders’ Equity |
|
88,878 |
|
|
89,332 |
|
$ |
112,702 |
|
$ |
113,319 |
|
|
|
|
|
|
Frequency Electronics (NASDAQ:FEIM)
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부터 6월(6) 2024 으로 7월(7) 2024
Frequency Electronics (NASDAQ:FEIM)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024