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How did they do?
Frequency Electronics, Inc. (Nasdaq:FEIM) reported revenues for the third quarter of fiscal 2015, which ended January 31, 2015, of $18.4 million, compared to $18.2 million recorded in the third quarter of fiscal 2014. Revenues for the first nine months of fiscal 2015 were $57.4 million compared to $52.1 million recorded in the same period of fiscal year 2014.
Operating profit was $997,000 for the quarter ended January 31, 2015, compared to $1.3 million in the third quarter of the prior year. Operating profit for the first nine months of fiscal year 2015 was $3.7 million compared to $3.5 million in the same period of fiscal year 2014.
Net income for the third quarter of fiscal 2015 was $878,000 or $0.10 per diluted share, compared to $1.2 million or $0.14 per diluted share for the third quarter of the prior year. For the year to date, net income was $2.9 million or $0.33 per diluted share compared to the prior year’s $3.3 million or $0.37 per diluted share. The prior year’s results included $736,000 in net proceeds from the sale of certain manufacturing equipment under a license agreement.
Commenting on these results, Chairman of the Board General Joseph Franklin said: “During the past quarter, and since the end of that period, FEI has made good progress in meeting our long-standing challenge of expanding production throughput capacity. Increased costs associated with this expansion effort, along with product mix, impacted our margins and revenue recognition for the period.
“Throughput capacity objectives should be substantially achieved by the end of the current quarter which ends our fiscal year. We are ready to handle larger new satellite payload contracts. Looking ahead, our focus will remain on potential corporate transaction opportunities and on rationalizing our segment assets and operations in order to enhance shareholder value.”
Fiscal 2015 Selected Financial Metrics and Other Items:
– For the nine months ended January 31, 2015, satellite payload revenues continued to account for more than 60% of consolidated revenues. Satellite payloads account for over three-fourths of Company’s consolidated backlog.
– For the nine months ended January 31, 2015, total sales for U.S. Government/DOD end-use, including revenues on U.S. Government satellite programs, was approximately 45% of consolidated revenues. More than half of funded backlog is related to products for U.S. Government end-use.
– Backlog at January 31, 2015 is approximately $41 million compared to $48 million as of the beginning of fiscal year 2015. Satellite backlog to-date does not include orders for the Company’s new satellite payload microwave receivers/converters product line.
– In the third quarter of fiscal year 2015, both FEI-NY and FEI-Zyfer contributed to operating profits while Gillam-FEI recorded an operating loss of $194,000.
– During the quarter ended January 31, 2015, the Company generated positive operating cash flow of $1.7 million. With an historically high level of billed accounts receivable as contractual and production milestones were met, the Company expects to continue to generate substantial positive cash flow in subsequent fiscal quarters.
