UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 10, 2015
Frequency Electronics, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 1-8061 | 11-1986657 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
55 Charles Lindbergh Blvd., Mitchel Field, NY | 11553 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 516-794-4500
________________________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On September 10, 2015 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated September 10, 2015
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Frequency Electronics, Inc.
(Registrant) |
||
September 10, 2015
(Date) |
/s/ ALAN MILLER
Alan Miller Treasurer and Chief Financial Officer |
Exhibit Index | ||
99.1 | Press release dated September 10, 2015 |
EXHIBIT 99.1
MITCHEL FIELD, N.Y., Sept. 10, 2015 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (NASDAQ:FEIM) reported revenues for the first quarter of fiscal 2016, which ended July 31, 2015, of $16.7 million as compared to $19.7 million in the same quarter of fiscal 2015. The Company recorded operating profit of $941,000 for the quarter ended July 31, 2015, compared to $928,000 in the first quarter of fiscal 2015. Net income for the first quarter of fiscal 2016 was $891,000 or $0.10 per diluted share compared to $719,000 or $0.08 per diluted share for the first quarter of the prior year.
Commenting on the Company's performance and business outlook, Chairman of the Board General Joseph Franklin said: "The first quarter fiscal 2016 reduction in revenues compared to the prior year resulted primarily from approximately $2 million in lower third-party contract manufacturing sales at FEI-Asia. To a lesser extent, revenues were also impacted by previously discussed production issues, now behind us, which occurred in the final quarter of last fiscal year and continued into the first quarter of fiscal 2016. We are pleased that our profits rose during the first quarter despite the decrease in revenues."
"Proposal activity remains high and includes participation in new small satellite mega-constellations. Our present business pipeline still reflects project orders, the majority of which are sole-sourced to Frequency, which we expected to be booked earlier this calendar year. Approximately $35 million of such orders were postponed, including the first production-sized opportunity for our new up/down frequency converter product line. This product line, long in development, effectively enables us to address a far larger segment of the total satellite market as well as a much larger portion of the satellite payload. Also this year, in addition to the up/down frequency converters, we introduced another new product line of frequency synthesizers particularly suited for small, earth-orbiting satellites (LEOs), a rapidly expanding market especially for U.S. Government end-use. Notably, Euroconsult's most recent space industry report predicts a significant increase in spending on satellite manufacturing and launch, more than $250 billion on 1,400 satellites over the next ten years. The outlook is very promising."
"In the area of business development opportunities, we continue to be actively engaged in seeking appropriate partners with greater throughput capacity, more extensive marketing reach and development resources with whom our growth could be exponentially accelerated."
Selected Fiscal 2016 Financial Metrics and Other Items
Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on Thursday, September 10, 2015, at 4:30 PM Eastern Time. Investors and analysts may access the call by dialing 1-877-407-9205. International callers may dial 1-201-689-8054. Ask for the Frequency Electronics conference call.
The call will be archived on the Company's website through October 9, 2015. The archived call may also be retrieved at 1-877-660-6853 (domestic) or 1-201-612-7415 (international) using Conference ID #: 13619367.
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 commercial, government and military systems including C4ISR markets, missiles, UAVs, aircraft, GPS, secure radios, energy exploration and wireline and wireless communication networks. Frequency has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development and strategic acquisitions world-wide 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 46 GHz, for space and other challenging environments."
Subsidiaries and Affiliates: Gillam-FEI provides expertise in network synchronization and monitoring; FEI-Zyfer provides GPS and secure timing ("SAASM") capabilities for critical military and commercial applications; FEI-Asia provides cost effective manufacturing capabilities; FEI-Elcom Tech provides added resources for state-of-the-art RF microwave products. Frequency's Morion affiliate supplies high-quality, cost effective oscillators and components. 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 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 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.
Frequency Electronics, Inc. and Subsidiaries | ||
Condensed Consolidated Statement of Operations | ||
Quarter Ended | ||
July 31, | ||
2015 | 2014 | |
(unaudited) | ||
(in thousands except per share data) | ||
Revenues | $16,680 | $19,740 |
Cost of Revenues | 10,907 | 14,075 |
Gross Margin | 5,773 | 5,665 |
Selling and Administrative | 3,685 | 3,498 |
Research and Development | 1,147 | 1,239 |
Operating Profit | 941 | 928 |
Interest and Other, Net | 650 | 381 |
Income before Income Taxes | 1,591 | 1,309 |
Income Tax Provision | 700 | 590 |
Net Income | $891 | $719 |
Net Income per Share: | ||
Basic | $0.10 | $0.08 |
Diluted | $0.10 | $0.08 |
Average Shares Outstanding | ||
Basic | 8,706 | 8,579 |
Diluted | 8,984 | 8,857 |
Frequency Electronics, Inc. and Subsidiaries | ||
Condensed Consolidated Balance Sheets | ||
July 31, | April 30, | |
2015 | 2015 | |
(unaudited) | ||
(in thousands) | ||
ASSETS | ||
Cash & Marketable Securities | $16,288 | $18,408 |
Accounts Receivable | 10,021 | 9,689 |
Costs and Estimated Earnings in Excess of Billings, net | 14,645 | 12,929 |
Inventories | 39,090 | 38,239 |
Other Current Assets | 4,362 | 4,334 |
Property, Plant & Equipment | 12,677 | 12,686 |
Other Assets | 22,039 | 21,540 |
$119,122 | $117,825 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current Liabilities | $7,821 | $8,350 |
Long-term debt | 6,000 | 6,000 |
Other Long-term Obligations | 11,803 | 11,665 |
Stockholders' Equity | 93,498 | 91,810 |
$119,122 | $117,825 |
CONTACT: Alan Miller, CFO, or General Joseph P. Franklin, Chairman: TELEPHONE: (516) 794-4500 WEBSITE: www.frequencyelectronics.com