Q3 2026 Frequency Electronics Inc Earnings Call Transcript
Key Points
- Frequency Electronics Inc (FEIM) announced two significant contract awards valued at approximately $45 million, indicating strong business momentum.
- The company's backlog reached a new record of approximately $83 million, with expectations to surpass $100 million in the near future.
- FEIM is actively working on additional contracts in both traditional and new business lines, suggesting continued growth opportunities.
- The company is involved in numerous defense programs, which are expected to expand as government deployment increases.
- FEIM is investing in alternative position, navigation, and timing systems, positioning itself for future growth in emerging technologies.
- Revenue for the third fiscal quarter was $16.9 million, down from $18.9 million in the same period of the prior fiscal year.
- Gross margin and gross margin rate decreased compared to the same period in the prior fiscal year due to a change in the mix of programs.
- Selling, general, and administrative expenses increased, accounting for approximately 21% of consolidated revenue, up from 18% in the prior year.
- Operating income decreased to approximately $1.3 million from $3.5 million in the prior fiscal year due to lower revenue and increased expenses.
- The company anticipates lower gross margins in the short run for proliferated satellite business as it gets refined in the initial years.
Greetings, and welcome to the Frequency Electronics third-quarter fiscal 2026 earnings release conference call.
(Operator Instructions) As a reminder, this conference is being recorded.
Any statements made by the company during this conference call, regarding the future, constitute forward-looking statements, pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements inherently involve uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences are included in the company's press releases and are further 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 conference call.
It is now my pleasure to introduce your host, Thomas McClelland, President and Chief Executive Officer.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
