Frequency Electronics Annual Shareholder Meeting Discusses Company's Future.
MITCHEL FIELD, NY, Oct 19, 2000 (BUSINESS WIRE) -- Frequency Electronics Inc, held its Annual Shareholders meeting on October 19, 2000, at the Company's offices in Mitchel Field, New York. All incumbent members of the Board of Directors were re-elected to serve for the coming year.
In describing opportunities for the future, General Joseph Franklin, Chairman of the Board, made the following statement: "FEI is positioned to supply the critical timing, frequency, and synchronization devices for powerful new generations of infrastructure upon which long term growth of wireless and other telecommunications services will depend. Our devices are crucial building blocks for the expansion of these services. We are looking forward to increased revenues and profitability for the current year, and for the years ahead."
Mr. Martin Bloch, President and CEO, also reviewed the future buildout of infrastructure for both the wireless and the wireline telecommunications industries to demonstrate the key role of precision timing, frequency, and synchronization in all telecommunications systems. FEI is uniquely positioned as a world leader in developing and producing precision rubidium and quartz standards, which are the heart of all synchronization products.
Addressing Gillam, Mr. Bloch stated that FEI has acquired a very valuable new proprietary technology for synchronization and a line of excellent products for wireline telecommunications. Gillam will be a strong partner to market FEI's products in Europe, and FEI will play a reciprocal role for Gillam in North America.
Mr. Bloch also described the increasing demand from customers for FEI to develop wrap-around electronics and related software as integral elements of its basic quartz and rubidium standards. New products incorporating these features are in pre-production. This will save customers significant costs and increase the value of goods sold by FEI, while maintaining and improving operating margins.
Finally, Mr. Bloch reported on steps taken to increase production capacity and the Company's vision for future expansion. He explained that the current capacity for rubidium production was approaching 400 units per week. The Company is working on expanding this capacity up to as many as 1,000 units per week during the coming year. In-house capacity is being expanded for proprietary technology operations, and other operations are being outsourced to qualified vendors. In-house expansion will continue to be funded from operating cash flow, and the Company will also use acquisitions, partnerships, and joint manufacturing relationships to increase its external production facilities. Relationships have already been established in Eastern Europe and China.
The Chairman closed the Annual meeting with the following statement: "FEI is in the 'sweet spot' of the telecommunications industry. Our future has never been brighter!"
Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high-technology frequency, timing and synchronization products for satellite and terrestrial voice, video and data telecommunications. The Company's technologies provide unique solutions that are essential building blocks for the next generation of broadband wireless and fiber optic communications systems, and for the ongoing expansion of existing wireless and wireline networks. Additional information is available on FEI'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 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, ability 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: Frequency Electronics, Mitchel Field General Joseph P. Franklin Telephone: 516/794-4500