Sign in

    George Marema • Pareto Ventures

    George Marema's questions to Frequency Electronics Inc (FEIM) leadership

    George Marema's questions to Frequency Electronics Inc (FEIM) leadership • Q4 2025

    Question

    George Marema of Pareto Ventures asked about the reason for the lower gross margin in the quarter, the target margin for the upcoming year, the revenue potential and timeline for quantum sensing, and the launch schedule and market size for the new TURBO product.

    Answer

    CEO Thomas McClelland attributed the quarterly margin dip to normal lumpiness and stated the company is targeting 40% or more going forward. He projected quantum sensing revenue would be less than 1% next year, with products five years out. In contrast, the TURBO compact rubidium standard will be available this fiscal year, targeting a growing market he estimated at $1-2 million in the near term.

    Ask Fintool Equity Research AI

    George Marema's questions to Frequency Electronics Inc (FEIM) leadership • Q3 2025

    Question

    George Marema of Pareto Ventures inquired about the company's quantum sensing initiatives, asking for a product development timeline, revenue expectations for calendar 2025, and whether new business opportunities were related to quantum or legacy systems. He also asked for the quarterly adjusted EPS and the projected tax rate.

    Answer

    Executive Thomas McClelland explained that while no quantum sensing products exist yet, development contracts for magnetometers and Ridberg sensors are anticipated. He noted new business would likely come from both quantum and legacy areas, with some caution due to government uncertainties. CFO Steven Bernstein addressed the financial questions, stating the quarterly EPS was not on hand but that the future tax rate would be low due to NOLs, with the primary tax burden coming from California.

    Ask Fintool Equity Research AI

    George Marema's questions to Frequency Electronics Inc (FEIM) leadership • Q2 2025

    Question

    George Marema of Pareto Ventures inquired about the technical difficulty of creating smaller, cheaper satellite components, the government budget outlook post-election, and the performance and R&D priorities of the Zyfer business unit.

    Answer

    Executive Thomas McClelland explained that the primary technical challenge is adapting terrestrial digital electronics to survive the radiation environment of space, which requires significant testing and development of cost-effective, radiation-hardened parts. He expressed cautious optimism about the budget, hoping a non-divided Congress would prevent delays. McClelland also confirmed the Zyfer unit is performing well, with R&D focused on miniaturization and adding non-GPS navigation capabilities.

    Ask Fintool Equity Research AI

    George Marema's questions to Frequency Electronics Inc (FEIM) leadership • Q1 2025

    Question

    George Marema of Pareto Ventures asked about the company's technology strategy, including its use of MEMS and involvement in quantum sensors, the sustainability of current R&D and SG&A spending, the outlook for gross margins, and the company's production capacity to meet demand from larger addressable markets.

    Answer

    Executive Thomas McClelland and CFO Steven Bernstein clarified that the high Q1 R&D spending was not a new run-rate, with a third to a half being unique to the quarter, while SG&A is at a steady state. McClelland noted that while they utilize MEMS technology, their focus remains on high-performance Quartz resonators. He stated that plant capacity is sufficient for growth, with personnel being the primary challenge. On new technologies, McClelland detailed the development of quantum sensors for applications like GPS-denied navigation, confirming they are in a pre-product phase. Bernstein also projected a very low fiscal '25 tax rate due to NOLs.

    Ask Fintool Equity Research AI