Frequency Electronics, Inc. has unveiled its financial performance for the third quarter of fiscal year 2025, highlighting impressive growth. The company reported revenues of approximately $18.9 million for the three months ending January 31, 2025, marking a significant rise from $13.7 million during the same period in the previous fiscal year. For the nine-month period ending on the same date, revenues climbed to $49.8 million, up from $39.7 million the year before.
Operating income experienced a notable increase, reaching $3.5 million for the quarter and $8.5 million for the nine months, compared to an operating loss of $0.5 million and an income of $2.5 million, respectively, in fiscal year 2024. Net income for the quarter was $15.4 million, or $1.60 per diluted share, and $20.5 million, or $2.14 per diluted share, for the nine months, reflecting a substantial improvement over last year's results.
Tom McClelland, President and CEO of Frequency Electronics, attributed the company's strong performance to growth in its core businesses and a robust backlog. He expressed optimism about the company's future, citing ongoing work on key programs and emerging business opportunities. Despite potential challenges from changes in government funding, McClelland remains confident in the company's ability to sustain profitability and expand its market presence.
Financial Highlights and Market Expansion
In the third quarter, satellite payload revenues constituted 59% of Frequency Electronics' consolidated revenues, up from 50% in the previous year. Revenues from non-space U.S. Government/DOD customers accounted for 39% of total revenues, while other commercial and industrial sales contributed 2%.
The company has increased its research and development expenditures to 9% of revenue for the first nine months of FY2025, focusing on developing products for the proliferated satellite market and quantum sensors for critical applications. This strategic investment is anticipated to yield significant returns as the company taps into larger end-markets.
Strategic Initiatives and Future Outlook
Frequency Electronics is capitalizing on federal changes to enhance its organizational structure and expand its talent pool. The company remains debt-free, enabling it to invest in growth opportunities and reward employees while maintaining flexibility for shareholder-oriented initiatives.
McClelland expressed satisfaction with the company's performance and enthusiasm for its future, emphasizing the importance of adapting to changes in Washington and continuing to build on Frequency Electronics' legacy of excellence in precision timing and frequency generation products.
Conference Call and Company Overview
The company has scheduled a conference call on March 13, 2025, to discuss these results. Investors and analysts are invited to join the call using the provided access codes. The call will also be archived for later access.
Frequency Electronics, Inc. is a leader in high precision timing, frequency generation, and RF control products for space and terrestrial applications. With a strong focus on research and development, the company aims to transform laboratory discoveries into practical products that create value for customers, employees, and stockholders.