Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM)
reported revenues for the second quarter of fiscal 2020, which
ended October 31, 2019, of $9.1 million compared to $12.1 million
in the second quarter of fiscal 2019. Revenues for the first six
months of fiscal 2020 were $21.6 million compared to $23.2 million
recorded in the same period of the prior year. The Company recorded
operating loss of $4.9 million for the second quarter of fiscal
2020, compared to an operating loss of $230,000 in the second
quarter of fiscal 2019. Operating loss for the first six months of
fiscal 2020 was $5.7 million compared to $146,000 in the first half
of fiscal 2019. Net loss for the second quarter of fiscal 2020 was
$4.9 million or ($0.54) per diluted share compared to net income of
$122,000 or $0.01 per diluted share for the second quarter of the
prior year. Net loss for the first six months of fiscal 2020 was
$5.5 million or ($0.61) per diluted share compared the net income
of $153,000 or $0.02 per diluted share for the first half of fiscal
2019.
FEI CEO, Stan Sloane, commented on second
quarter results, “While our financial results were disappointing
this quarter, I remain encouraged by the number of new business
opportunities we are tracking, around $500 million in potential
value. In Q2, we saw some slips in anticipated contract awards that
resulted in planned revenues shifting to the right, but this was
not the result of lost awards, just timing. The increase in backlog
is indicative that these awards are starting to come in now, best
illustrated by $40 million in total backlog at quarter end, up from
$35 million in the previous period. This does not include contract
value which is not yet fully funded or the value of production
options which are not yet exercised. Subsequent to the quarter end,
we have also added approximately $4 million of additional backlog.
We continue to be cash positive and have no debt.
Margin impacts this quarter resulted from
additional engineering costs incurred on a few programs that are
still in their development phase. Keeping in mind that much of what
we do is pushing the state of the art, the amount required to solve
complex technical issues can sometimes be unforeseen. This is
typical of development programs where the technical issues appear
at certain cyclical points in the process, creating a “lumpiness”
in the amount of effort needed to resolve them. As we complete
development and transition to production on these programs, we
would anticipate less cost fluctuation. These programs will
generate future top line and bottom line growth once through this
transition.”
Fiscal 2020 Selected Financial Metrics
and Other Items
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For the six
months ended October 31, 2019 satellite related revenues, both for
Government/DOD and commercial end use were approximately $9.4
million compared to $11.3 million for the same period of fiscal
2019. Commercial and U.S. Government satellite payload programs
accounted for approximately 44% of consolidated revenues, for both
fiscal periods. |
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For the six months ended October 31, 2019 sales for non-space
related U.S. Government/DOD, end use were $9.0 million compared to
$10.4 million for the same period of fiscal 2019. Sales for U.S.
Government/DOD non-space end use accounted for approximately 42% of
consolidated revenues compared to 45% of consolidated revenues for
the same period of fiscal 2019. |
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Sales for other commercial and industrial applications were
approximately $3.2 million for fiscal 2020 compared to $1.4 million
for the same period of fiscal 2019. Commercial and industrial
applications accounted for approximately 14% of consolidated
revenues, compared to 6% for the same period of the prior
year. |
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Research and development expense were $3.7 million for the six
months of fiscal 2020 compared to $3.3 million for the same period
of fiscal 2019. |
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For the quarter ended October 31, 2019 the Company generated
nominal positive cash flows from operations. |
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Backlog at the end of the quarter ended October 31, 2019 was
approximately $40 million. |
Investor Conference Call
As previously announced, the Company will hold a
conference call to discuss these results on Thursday, December 12,
2019, at 4:30 PM Eastern Time. Investors and analysts may access
the call by dialing 1-844-407-9500. International callers may dial
1-862-298-0850. Ask for the Frequency Electronics conference
call.
The archived call may be accessed by calling
1-877-481-4010 (domestic), or 1-919-882-2331 (international), use
pin 53664 for one week following the call. Subsequent to that, the
call can be accessed via a link available on the company’s website
through March 16, 2020.
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 government, military and
commercial, systems including C4ISR, EW, missiles, UAVs, aircraft,
secure communications, energy exploration and wireline and wireless
communication networks. With over one thousand systems delivered to
defense department and commercial customers, Frequency has received
more than 100 awards for excellence in providing high performance
electronic assemblies for over 150 space and DOD programs. The
Company invests significant resources in research and development
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 50 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 Electronic Warfare (“EW”) and added resources for
state-of-the-art RF microwave products. Frequency's Morion
affiliate supplies high-quality, cost effective oscillators and
quartz components for commercial applications. 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
future earnings and operations and other statements relating to the
future constitute "forward-looking" statements within the meaning
of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1933 or the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The words
“believe,” “may,” “will,” “could,” “should,” “would,” “anticipate,”
“estimate,” “expect,” “project,” “intend,” “objective,” “seek”
“strive,” “might,” “likely result,” “build,” “grow,” “plan,”
“goal,” “expand,” “position,” or similar words, or the negatives of
these words, or similar terminology, identify forward-looking
statements. All statements by the Company that address activities,
events or developments that the Company expects or anticipates will
occur in the future, including all statements by the Company
regarding its expected financial position, revenues, cash flows and
other operating results, business position, legal proceedings or
similar matters, are forward-looking statements. These statements
are based on assumptions that the Company believes are reasonable,
but are subject to a wide range of risks and uncertainties, and a
number of factors could cause the Company’s actual results to
differ materially from those expressed in the forward-looking
statements referred to above. Factors that would cause or
contribute to such differences include, but are not limited to,
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, changes in contractual terms, the
availability of capital, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
these forward-looking statements, which relate only to events as of
the date on which the statements are made and which reflect
management’s analysis, judgments, belief, or expectation only as of
such date. Any and all of the forward-looking statements contained
in this Form 10-Q and any other public statements made by the
Company or its management may turn out to be incorrect. The Company
expressly disclaims any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.
Contact information: Stanton Sloane, President, Chief Executive
Officer, Steven Bernstein, Chief Financial Officer, Martin Bloch,
Executive Chairman of the Board
TELEPHONE: (516)
794-4500
WEBSITE: WWW.FREQUENCYELECTRONICS.COM
Frequency Electronics, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(in thousands except per share
data)
|
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Six Months EndedOctober 31, |
|
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Three Months EndedOctober
31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues |
|
$ |
21,641 |
|
|
$ |
23,153 |
|
|
$ |
9,087 |
|
|
$ |
12,142 |
|
Cost of Revenues |
|
|
18,870 |
|
|
|
14,860 |
|
|
|
10,269 |
|
|
|
8,123 |
|
Gross Margin |
|
|
2,771 |
|
|
|
8,293 |
|
|
|
(1,182 |
) |
|
|
4,019 |
|
Selling and
Administrative |
|
|
4,743 |
|
|
|
5,182 |
|
|
|
2,290 |
|
|
|
2,642 |
|
Research and Development |
|
|
3,731 |
|
|
|
3,257 |
|
|
|
1,450 |
|
|
|
1,607 |
|
Operating Loss |
|
|
(5,703 |
) |
|
|
(146 |
) |
|
|
(4,922 |
) |
|
|
(230 |
) |
Interest and Other, Net |
|
|
232 |
|
|
|
276 |
|
|
|
22 |
|
|
|
322 |
|
(Loss) Income before
Income Taxes |
|
|
(5,471 |
) |
|
|
130 |
|
|
|
(4,900 |
) |
|
|
92 |
|
Income Tax Benefit |
|
|
29 |
|
|
|
(23 |
) |
|
|
9 |
|
|
|
(30 |
) |
Net (Loss) Income |
|
$ |
(5,500 |
) |
|
$ |
153 |
|
|
$ |
(4,909 |
) |
|
$ |
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted (loss) earnings per share |
|
$ |
(0.61 |
) |
|
$ |
0.02 |
|
|
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
9,037 |
|
|
|
8,885 |
|
|
|
9,072 |
|
|
|
8,893 |
|
Diluted |
|
|
9,037 |
|
|
|
9,046 |
|
|
|
9,072 |
|
|
|
9,102 |
|
|
|
Frequency Electronics, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets
|
|
|
|
|
|
|
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October 31, 2019 |
|
|
April 30, 2019 |
|
|
|
(unaudited) |
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|
(unaudited) |
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|
|
(in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cash & Marketable Securities |
|
$ |
10,989 |
|
|
$ |
11,882 |
|
Accounts Receivable, Net |
|
|
4,437 |
|
|
|
6,362 |
|
Costs and Estimated Earnings in Excess of Billings, Net |
|
|
8,086 |
|
|
|
6,670 |
|
Inventories, Net |
|
|
23,280 |
|
|
|
23,356 |
|
Other Current Assets |
|
|
2,259 |
|
|
|
3,082 |
|
Current Assets Held for Sale |
|
|
- |
|
|
|
1,347 |
|
Property, Plant & Equipment, Net |
|
|
12,708 |
|
|
|
13,038 |
|
Right –of –Use Assets |
|
|
11,354 |
|
|
|
- |
|
CSV of Life Insurance |
|
|
14,640 |
|
|
|
14,292 |
|
Other Assets |
|
|
4,196 |
|
|
|
6,540 |
|
Non-Current Assets Held for Sale |
|
|
- |
|
|
|
202 |
|
|
|
$ |
91,949 |
|
|
$ |
86,771 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liability, current |
|
$ |
1,903 |
|
|
$ |
- |
|
Other current liabilities |
|
|
6,412 |
|
|
|
4,759 |
|
Current Liabilities Held for Sale |
|
|
- |
|
|
|
1,078 |
|
Non-Current Lease Liability |
|
|
9,784 |
|
|
|
- |
|
Other Long-term Obligations |
|
|
15,682 |
|
|
|
15,592 |
|
Non-Current Liabilities Held for Sale |
|
|
- |
|
|
|
2,253 |
|
Stockholders’ Equity |
|
|
58,168 |
|
|
|
63,089 |
|
|
|
$ |
91,949 |
|
|
$ |
86,771 |
|
Frequency Electronics (NASDAQ:FEIM)
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부터 6월(6) 2024 으로 7월(7) 2024
Frequency Electronics (NASDAQ:FEIM)
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부터 7월(7) 2023 으로 7월(7) 2024