Frequency Electronics, Inc. Announces Second Quarter Fiscal Year 2019 Results
MITCHEL FIELD, N.Y.,
Selected Fiscal 2019 Financial Metrics and Other Items
- For the six months ended
October 31, 2018satellite related revenues, both for Government/ DODand commercial end use were approximately $11.3 millioncompared to $9.0 millionfor the same period of fiscal 2018. Commercial and U.S. Governmentsatellite payload programs accounted for approximately 49% of consolidated revenues, compared to 42% for the same period of fiscal 2018.
- For the six months ended
October 31, 2018sales for non-space related U.S. Government/ DOD, end use were $10.4 millioncompared to $7.7 millionfor the same period of fiscal 2018. Sales for U.S. Government/ DODnon-space end use accounted for approximately 45% of consolidated revenues compared to 36% of consolidated revenues for the same period of fiscal 2018.
- Sales for other commercial and industrial applications were approximately
$1.4 millionfor fiscal 2019 compared to $4.7 millionfor the same period of fiscal 2018. Commercial and industrial applications accounted for approximately 6% of consolidated revenues, compared to 22% for the same period of the prior year.
- Gross margin rate for the six months of fiscal 2019 increased to 35.8% as compared to 31.5% during the same period of fiscal 2018. The increase in gross margin rate was due to increased revenues, lower repair costs and favorable product mix.
- Research and development expense were to
$3.3 millionfor the six months of fiscal 2019 comparable to $3.4 millionfor the same period of fiscal 2018. For the balance of the fiscal year research and development activity will include a significantly higher level of customer funded R&D.
- The Company is actively engaged in recruiting additional key physicists, engineering, marketing and manufacturing personnel.
- Backlog at the end of the second quarter of fiscal 2019 rose to
$38 millionfrom $21 millionfor the second quarter of the prior year.
Investor Conference Call
As announced on
The call will be archived on the Company’s website through
Frequency’s Mission Statement: “Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 50 GHz, for space and other challenging environments.”
Subsidiaries and Affiliates:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
The Statements in this press release regarding the future constitute "forward-looking" statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, consumer spending trends, reliance on key customers, continued acceptance of the Company's products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, competitive developments, changes in manufacturing and transportation costs, the availability of capital, and other risks detailed in the Company's periodic report filings with the
Telephone: (516) 794-4500
Condensed Consolidated Statement of Operations (unaudited)
(in thousands except per share data)
|Six Months ended
||Three Months Ended
|Revenues||$ 12,142||$ 9,337|
|Cost of Revenues||14,860||14,636||8,123||7,134|
|Selling and Administrative||5,182||5,046||2,642||2,335|
|Research and Development||3,257||3,364||1,607||1,734|
|Interest and Other, Net||276||1,129||322||(7||)|
|Income (Loss) before Income Taxes||130||(557||)||92||(1,873||)|
|Income Tax Benefit||(23||)||(98||)||(30||)||(584||)|
|Net Income (Loss) from Continuing Operations||153||(459||)||122||(1,289||)|
|Loss from Discontinued Operations, net of tax||-||(408||)||-||(192||)|
|Net Income (Loss)||$ 153||$ (867||)||$ 122||$ (1,481||)|
|Net Income (Loss) per share:|
|Basic and diluted income (loss) from continued operations||$(0.05||)||$ 0.01||$ (0.15||)|
|Basic and diluted loss earnings from discontinued operations||$(0.05||)||$ (0.02||)|
|Basic and diluted income (loss) per share||$(0.10||)||$ 0.01||$ (0.17||)|
|Average Shares Outstanding|
Condensed Consolidated Balance Sheets
|$ 11,252||$ 14,018|
|Costs and Estimated Earnings|
|in Excess of Billings, net||7,047||5,094|
|Other Current Assets||1,623||2,509|
|Property, Plant & Equipment||13,486||14,127|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Current Liabilities||$ 4,252||$ 5,257|
|Other Long-term Obligations||15,186||15,065|
Source: Frequency Electronics, Inc.