Earnings Results under Review: Frequency Electronics, Inc. (NASDAQ:FEIM)

On 30 May 2019, Frequency Electronics, Inc. (NASDAQ:FEIM) oscillated between $11.65 and $11.85 before concluding trading period lower/higher +1.30% at $11.65. The stock recorded total trading quantity of 6,736 shares as compared to its average volume of 7,703 shares. The firm has a total market worth of $7.7k and $101.701M shares remain outstanding.

Frequency Electronics, Inc. (FEIM) stated revenues for the third quarter of fiscal 2019, which ended January 31, 2019, of $13.2M contrast to $10.6M in the third quarter of fiscal 2018.  Revenues for the first nine months of fiscal 2019 were $36.3M contrast to $31.9M recorded in the same period of the previous year. The Company recorded a $0.4M operating loss for the third quarter of fiscal 2019, contrast to an operating loss of $7.3M in the third quarter of fiscal 2018.  Operating loss for the first nine months of fiscal 2019 was $0.5M contrast to $9.0M in the first nine months of fiscal 2018.  Net loss from continuing operations for the third quarter of fiscal 2019 was ($0.3)M or ($0.04) per diluted share contrast to net loss ($10.1)M or ($1.15) per diluted share for the third quarter of the previousyear.  Net loss from continuing operations for the first nine months of fiscal 2019 was ($0.2)M or ($0.02) per diluted share contrast to net loss to ($10.6)M or ($1.20) per diluted share for the first nine months of fiscal 2018.

Selected Fiscal 2019 Financial Metrics and Other Items

  • For the nine months ended January 31, 2019 satellite related revenues, both for Government/DOD and commercial end use were about $17.3M contrast to $11.4M for the same period of fiscal 2018.  Commercial and U.S. Government satellite payload programs accounted for about 48% of consolidated revenues, contrast to 36% for the same period of fiscal 2018.
  • For the nine months ended January 31, 2019 sales for non-space related U.S. Government/DOD, end use were $17.1M contrast to $13.9M for the same period of fiscal 2018.  Sales for U.S. Government/DOD non-space end use accounted for about 47% of consolidated revenues contrast to 44% of consolidated revenues for the same period of fiscal 2018.
  • Sales for other commercial and industrial applications were about $2.0M for fiscal 2019 contrast to $6.6M for the same period of fiscal 2018.  Commercial and industrial applications accounted for about 5% of consolidated revenues, contrast to 21% for the same period of the previous year.
  • Gross margin rate for the nine months of fiscal 2019 raised to 34.1% as contrast to 12.1% during the same period of fiscal 2018.  For the nine and three month period ended January 31, 2019 gross margin and gross margin rate raised over the same period in fiscal 2018. The previous year’s gross margin and gross margin rate was effected by a $5.0M inventory write downs, lower revenues, raised repair costs and unabsorbed manufacturing overhead costs.
  • Research and development expense were to $5.1M for the nine months of fiscal 2019 comparable to $5.1M for the same period of fiscal 2018. For the balance of the fiscal year research and development activity will include a importantly higher level of consumer funded R&D.
  • The Company continues to be engaged in recruiting additional key physicists, engineering, marketing and manufacturing personnel.
  • Backlog at the end of the third quarter of fiscal 2019 rose to $39M from $30M at the end of the previous fiscal year end.

EPS growth for this year is -127.10%. EPS growth in past five years was -37.80% while EPS growth in next five years is projected to arrive at 15.00%. Sales growth past 5 years was measured at -10.60%.

Leave a Reply

Your email address will not be published. Required fields are marked *