Frequency Electronics(NASDAQ) FEIM

Frequency Electronics, Inc. creates precision clocks for satellites and military equipment. These tools ensure navigation and communication systems work accurately everywhere. Its products help customers send data safely across the globe.

Keeping the World on Time

• FEI-NY: Advanced timing and synchronization systems for communication satellites and cellular ground stations; accounted for 75.0% of revenue in the three months ended July 31, 2026.
• FEI-Zyfer: Precision navigation and timing solutions using Global Positioning System (GPS) technology for intelligence platforms; accounted for 29.7% of revenue in the three months ended July 31, 2026.
• Satellite Systems: High-precision frequency products for commercial and government space programs; represented approximately 50% of revenue in the three months ended July 31, 2026.
• Nonspace Defense: Specialized tools for secure military communications and electronic warfare; represented approximately 47% of revenue in the three months ended July 31, 2026.

Funding the Next Phase

• Completed a public offering of common stock in July 2026, which provided net proceeds of approximately $58.1 million.
• Exercised an underwriters' option to purchase additional shares in August 2026, raising gross proceeds of approximately $15 million.
• Established a $10.0 million senior secured revolving credit facility with JPMorgan Chase Bank in June 2026.
• Authorized a $20.0 million share repurchase program in September 2025 to buy back outstanding stock.

Precision at Scale

Frequency Electronics manages global distribution through direct sales and independent partners in the United States, Europe, and Asia. The company applies specialized microwave integrated circuit technology to support secure government communication and C4ISR (Command, Control, Communication, Computer, Intelligence, Security and Reconnaissance) systems.

Key Financial Performance

• Consolidated revenues were $23.5 million for the three months ended July 31, 2026, up 69.8% year over year.
• Operating income rose to $5.2 million for the three months ended July 31, 2026, up 1,328.6% year over year.
• Cash and cash equivalents reached $61.4 million as of July 31, 2026, compared to $1.6 million on April 30, 2026.
• Consolidated funded backlog was approximately $129 million as of July 31, 2026, compared to $111 million as of April 30, 2026.
• The company maintained a current ratio of 5.3 to 1 as of July 31, 2026, indicating a strong working capital position.

Bottom Line

Frequency Electronics has evolved from a component manufacturer into a specialized provider of integrated timing systems for space and defense. Its significant capital raise and growing backlog reflect a focus on scaling production for high-demand satellite and military markets.