Frequency Electronics, Inc. Announces First Quarter Fiscal Year 2021 Results
MITCHEL FIELD, N.Y.,
Significant contracts typically start off slowly, in order to conduct all the necessary project planning and scheduling and then ramp up over time. Thus, even small revenue increases are a good leading indicator of anticipated increasing revenue trends when they are backed up by increasing backlog, as we see this quarter. While operating loss is not something we like, this quarter was affected by unusual insurance costs, legal expenses and the lingering accounting impact of technical issues associated with development programs we have previously discussed. We also maintained positive cash flow for the quarter.
I am also happy with the fact that we have managed our way through the COVID-19 pandemic without significant impact to the business, handling supplier delays, facility shutdowns and employee quarantines along the way. Our employees have been remarkable in their resiliency and commitment to maintaining our customer commitments through all this. This goes a long way in cementing customer loyalty, which is critical in our business.”
Fiscal Year 2021 Selected Financial Metrics and Other Items
- For the three months ended
July 31, 2020, revenues from satellite payloads were approximately $6.7 million, or 51%, of consolidated revenues compared to $3.9 million, or 31%, for the prior year.
- Revenues for non-space
U.S. Government/ DODcustomers were $5.3 million, or 41%, of consolidated revenues compared to $6.7 million, or 54%, for the prior year.
- Revenues from other commercial and industrial sales accounted for approximately
$1.0 million, or 8%, of consolidated revenues compared to approximately $1.9 million, or 15%, for fiscal year 2019.
- For the quarter ended
July 31, 2020the Company generated nominal positive cash flows from operations
- Backlog at
July 31, 2020was $38 millioncompared to $36 millionat April 30, 2020.
Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on
The archived call may be accessed by calling 1-877-481-4010 (domestic), or 1-919-882-2331 (international), for one week following the call. Subsequent to that, the call can be accessed via a link available on the company’s website through
Frequency’s Mission Statement: “Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 50 GHz, for space and other challenging environments.”
Subsidiaries and Affiliates:
|TELEPHONE: (516) 794-4500 ext.5000||WEBSITE: www.freqelec.com|
Condensed Consolidated Statements of Operations
|Three Months Ended
|(in thousands except per share data)|
|Cost of revenues||8,863||8,601|
|Selling and Administrative||3,228||2,453|
|Research and Development||1,197||2,280|
|Loss from operations||(337||)||(780||)|
|Interest and Other, Net||84||209|
|Loss before Income Taxes||(253||)||(571||)|
|Income Tax Provision||9||20|
|Net loss per Share:|
|Basic and diluted loss per share||$||(0.03||)||$||(0.07||)|
|Average Shares Outstanding:|
|Basic and diluted||9,139||9,001|
Condensed Consolidated Balance Sheets
|Costs and Estimated Earnings|
|in Excess of Billings, net||6,932||6,953|
|Other Current Assets||2,375||2,554|
|Property, Plant & Equipment, net||10,731||11,267|
|Right-of-Use Assets – Leases||10,546||10,864|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Lease Liability - current||$||1,822||$||1,869|
|Other Long-term Obligations||14,699||14,608|
|Lease Liability – non-current||9,172||9,444|
Source: Frequency Electronics, Inc.