Frequency Electronics Declines to Pursue Merger with Datum Inc.
The quarter to quarter increase in sales from the 1st quarter of fiscal 2000 represents a trend which the Company expects to continue for the balance of the fiscal year. Based on the current backlog as well as projections from customers for future orders, the Company expects sales of terrestrial wireless products to continue to accelerate. As reported previously, sales from space-based wireless communications products are also expected to increase by mid-calendar year 2000.
Strong margins continue to produce improved current year operating profits. Product development costs have continued at the same rate as the 1st quarter of fiscal 2000 but at a significantly slower pace than the last half of the preceding fiscal year. The Company expects the rate of development spending to slow further in the second half of fiscal 2000.
Frequency Electronics is a wireless communications company which designs, develops, manufactures and markets high technology precision time and frequency products used to synchronize the wireless transmission of voice, video, and data communications for terrestrial and space applications. Additional information is available on FEI's website.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are forward-looking statements and not based on historical facts are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied herein.
| Frequency Electronics, Inc. and Subsidiaries Consolidated Condensed Summary of Operations | ||||
|---|---|---|---|---|
| Quarter Ended | Six Months Ended | |||
| October 31, | October 31, | |||
| 1999 | 1998 | 1999 | 1998 | |
| (unaudited) | ||||
| (in thousands except per share data) |
||||
| Net Sales | $ 6,036 | $ 6,180 | $11,500 | $13,195 |
| Cost of Sales | 3,355 | 4,155 | 6,427 | 8,781 |
| Insurance Reimbursement | - | (4,500) | - | (4,500) |
| Selling and Administrative | 1,112 | 1,126 | 2,324 | 2,320 |
| Research and Development | 1,240 | 1,171 | 2,490 | 1,966 |
| Operating Profit | 329 | 4,228 | 259 | 4,628 |
| Interest and Other, Net | 429 | 381 | 1,173 | 899 |
| Earnings before income taxes | 758 | 4,609 | 1,432 | 5,527 |
| Income Tax Provision | 280 | 1,400 | 510 | 1,800 |
| Net Earnings | $ 478 | $ 3,209 | $ 922 | $ 3,727 |
| Net Earnings per Share: | ||||
| Basic | $ 0.06 | $ 0.43 | $ 0.12 | $ 0.50 |
| Diluted | $ 0.06 | $ 0.41 | $ 0.12 | $ 0.47 |
| Average Shares Outstanding | ||||
| Basic | 7,577,010 | 7,499,924 | 7,566,569 | 7,507,383 |
| Diluted | 7,979,270 | 7,776,478 | 7,933,654 | 7,847,101 |
| Frequency Electronics, Inc. and Subsidiaries Consolidated Condensed Balance Sheets | ||||
|---|---|---|---|---|
| October 31, 1999 | April 30, 1999 | |||
| (in thousands) | ||||
| ASSETS | ||||
| Cash & Marketable Securities | $38,922 | $39,287 | ||
| Other Current Assets | 23,692 | 25,404 | ||
| Property, Plant & Equipment | 9,391 | 9,489 | ||
| Other Assets | 4,315 | 4,175 | ||
| Total: | $76,320 | $78,355 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current Liabilities | $ 3,628 | $ 4,889 | ||
| Long-term Obligations | 16,873 | 16,959 | ||
| Stockholders' Equity | 55,819 | 56,507 | ||
| Total: | $76,320 | $78,355 | ||