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    Frank Wisneski • Private Investor

    Frank Wisneski's questions to Frequency Electronics Inc (FEIM) leadership

    Frank Wisneski's questions to Frequency Electronics Inc (FEIM) leadership • Q2 2025

    Question

    Frank Wisneski, a private investor, questioned the recent weakness in the non-space U.S. government and DOD business segment. He asked about the potential for revenue recovery in this area and whether the company's backlog is dominated by space-related contracts.

    Answer

    Executive Thomas McClelland acknowledged the quarter-to-quarter variability in the non-space government sector but stated it is not a downward trend. He affirmed the business is solid and profitable and that he anticipates significant growth, though the timing is difficult to predict. McClelland also confirmed that space business constitutes a large portion of the backlog.

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    Frank Wisneski's questions to Frequency Electronics Inc (FEIM) leadership • Q1 2025

    Question

    Frank Wisneski, a private investor, asked about the revenue mix shift and its impact on gross margins, the outlook for the non-satellite business, the full-year R&D spending rate, and the size of the unfunded backlog. He also inquired about the nature of the proliferated satellite contracts and the timing of potential revenue from this new market.

    Answer

    Executive Thomas McClelland clarified that the gross margin increase was not due to the revenue mix shift and that the non-satellite business is expected to increase. He confirmed the full-year R&D rate should be closer to 5% of sales, much lower than Q1's 10%. CFO Steven Bernstein declined to provide a number for the unfunded backlog, calling it a 'dangerous number' as it may not get funded. McClelland explained that proliferated satellite systems are often LEOs and confirmed they have initial government contracts in this area, with significant revenue being several quarters away.

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