Frequency Electronics Announces Results for 3rd Quarter FY 2003
MITCHEL FIELD, N.Y., Mar 10, 2003 (BUSINESS WIRE) -- Frequency Electronics, Inc. (AMEX:FEI) today announced that revenues for the third quarter of fiscal 2003 which ended January 31, 2003, were $9.4 million compared to $9.6 million during the same period last year.
Net income for the third quarter was $239,000 or $0.03 per diluted share, compared to $326,000 and $0.04 per share during the same period last year.
For the first nine months of fiscal 2003, revenues were $24.5 million and the Company recorded nominal net income ($0.00 per diluted share) compared to revenues of $32.1 million and net income of $1.96 million ($0.23 per diluted share) for the first nine months of the prior year.
Compared to the second quarter of fiscal 2003, revenues for the third quarter increased by $1.1 million, or 13%. Revenues for the US Government segment rose from $2.4 million to $2.6 million, while commercial communications segment revenue rose from $4.0 million to $4.9 million. Revenues for the Gillam-FEI segment remained the same at $2.0 million. General Joseph Franklin, Chairman of the Board, noted "We are pleased to see that the positive trend for revenues from the commercial communications and defense segments are continuing."
Commenting on the outlook for future business, Martin Bloch, President and CEO, said "New satellite proposal activity is very high and we expect to begin receiving significant revenues from this business in the near future. In addition, FEI has received several seed contracts to develop the timing systems for secure communications, surveillance, and precision weapon delivery systems. We expect the level of our participation in these projects to equal or exceed any in the Company's history."
About Frequency Electronics
Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high-technology frequency, timing and synchronization products for voice, video and data telecommunications delivered by satellite or terrestrial means for both commercial and DOD customers. The Company's technologies provide unique solutions that are essential building blocks for the next generation of broadband wireless and fiber optic communications systems, for critical defense applications 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 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
Consolidated Condensed Summary of Operations
Quarter Ended Nine Months Ended
January 31, January 31,
2003 2002 2003 2002
---- ---- ---- ----
(unaudited) (unaudited)
(in thousands except per share data)
Net Sales $ 9,390 $ 9,565 $ 24,518 $ 32,100
Cost of Sales 6,317 5,939 16,769 19,963
------- -------- ---------- --------
Gross Margin 3,073 3,626 7,749 12,137
Selling and
Administrative 2,099 2,163 6,041 6,404
Research and
Development 1,269 1,365 2,941 4,235
------- -------- ---------- --------
Operating (Loss) Profit (295) 98 (1,233) 1,498
Interest and Other, Net 625 388 1,206 1,382
------- -------- ---------- --------
Income (loss) before
Taxes & Minority
Interest 330 486 (27) 2,880
Minority Interest (16) 10 (38) 2
------- -------- ---------- --------
Income before Income
Taxes 346 476 11 2,878
Income Tax Provision 107 150 10 920
------- -------- ---------- --------
Net Income (Loss) $ 239 $ 326 $ 1 $ 1,958
======= ======== ========== ========
Net Income per Share:
Basic $ 0.03 $ 0.04 $ 0.00 $ 0.23
======= ======== ========== ========
Diluted $ 0.03 $ 0.04 $ 0.00 $ 0.23
======= ======== ========== ========
Average Shares
Outstanding
Basic 8,318,481 8,357,402 8,330,367 8,345,439
========= ========= ========= =========
Diluted 8,390,162 8,539,114 8,393,651 8,531,732
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Frequency Electronics, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
January 31, April 30,
2003 2002
---- ----
(unaudited)
(in thousands)
ASSETS
Cash & Marketable Securities $32,705 $36,231
Accounts Receivable 10,477 11,725
Inventories 21,588 19,601
Other Current Assets 6,398 6,323
Property, Plant & Equipment 11,102 11,361
Other Assets 12,431 10,770
------- -------
$94,701 $96,011
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $ 4,487 $ 7,649
Long-term Obligations and Other 18,521 18,020
Stockholders' Equity 71,693 70,342
------- -------
$94,701 $96,011
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CONTACT:
Frequency Electronics, Inc.
General Joseph P. Franklin, 516/794-4500
www.frequencyelectronics.com
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