Frequency Electronics, Inc. (FEIM) designs, develops, and manufactures precision time and frequency control products for satellite payloads and terrestrial secure communication systems. The company serves both commercial and U.S. Government markets, providing critical technologies for applications such as satellite communications, electronic warfare, and secure command and control systems. FEIM operates through two main segments, FEI-NY and FEI-Zyfer, and focuses on high-precision timing systems and GPS-enabled technologies.
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Satellite Payload Products - Provides master timing systems, power converters, and frequency generation, synthesis, and distribution systems for commercial and U.S. Government satellites, supporting operations in Geostationary, Medium, and Low Earth Orbits.
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Terrestrial Secure Communication Systems - Offers ruggedized, high-precision clocks and GPS-enabled technologies for secure command, control, and communications systems, addressing threats like GPS signal jamming and spoofing.
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FEI-NY Segment - Manufactures precision time and frequency generation systems, synchronization products, and RF microwave modules for satellite payloads, electronic warfare, SATCOM communication, and signal intelligence applications.
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FEI-Zyfer Segment - Designs and produces GPS-enabled technologies and high-precision clocks for terrestrial secure communications and embedded systems, collaborating with FEI-NY on joint product development.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Thomas McClelland ExecutiveBoard | President and Chief Executive Officer | Thomas McClelland has been serving as the President and Chief Executive Officer at FEIM since January 17, 2023. He began his career at FEIM in 1984 and has advanced through roles including Vice President, Commercial Products (1999), Senior Vice President and Chief Scientist (January 2020), before assuming his current role. | View Report → | |
Oleandro Mancini Executive | Senior Vice President, Business Development | Oleandro Mancini is the Senior Vice President, Business Development at FEIM. He joined FEIM in August 2000 as Vice President, Business Development and was promoted to his current role in 2010. | ||
Steven L. Bernstein Executive | Chief Financial Officer, Secretary, and Treasurer | Steven L. Bernstein serves as the Chief Financial Officer, Secretary, and Treasurer at Frequency Electronics, Inc. since April 2016, having joined FEIM as Controller in April 2010 and later assuming additional responsibilities in January 2019. He also brings prior financial expertise from his role with the North America accounting group at Arrow Electronics. | ||
Jonathan Brolin Board | Director | Founder and Managing Partner, Edenbrook Capital, LLC | Jonathan Brolin has served as a Director of FEIM since November 2017 and currently chairs the Audit Committee, having also served as Lead Independent Director from 2018 to 2020. He brings over 25 years of finance and investment experience, including founding Edenbrook Capital, LLC. | |
Lance W. Lord Board | Chairman of the Board | Founder and Chairman of L2 Aerospace; Founder and Chairman of OmniTeq; Chairman of Hera Systems Advisory Board; Member of Iridium Corporation’s Government Advisory Board; Board Member at BONEAL Aerospace; Senior Associate at Four Star Group | Lance W. Lord is a retired four-star general with a 37-year military career and extensive aerospace and corporate governance experience, having joined FEIM as a director in September 2016 and becoming Chairman of the Board in May 2022. | |
Richard Schwartz Board | Director | Board Director at Astronautics Corporation of America | Richard Schwartz is a director at FEIM since 2004 with extensive experience in the aerospace and defense sectors, having previously served as CEO and Chairman of ATK and as President of the Rocketdyne Division at Rockwell International. He has played a key role in the development of GPS and is recognized in the GPS Hall of Fame and with the Queen Elizabeth Prize for Engineering. | |
Russell M. Sarachek Board | Director | Managing Director at Contra Capital Management, LLC | Russell M. Sarachek has served as a Director at Frequency Electronics, Inc. (FEIM) since August 2016. He also served as Chairman of the Board from June 2020 to May 2022 and currently holds the role of Managing Director at Contra Capital Management, LLC, demonstrating his extensive expertise in corporate governance and strategic management. |
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Given the significant investments required for product development in areas like quantum sensors and radiation hardening, does the company have sufficient financial resources to meet these needs without straining your balance sheet, and what funding strategies are in place to support these initiatives?
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With uncertainties in Washington and potential delays in government contracts, how is the company managing the risk of revenue fluctuations, and what steps are you taking to diversify your customer base or revenue streams beyond government contracts?
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Considering that you currently have no products in the quantum sensing segment and anticipate revenue primarily from development contracts over the next one to two years, how confident are you in the market potential of these technologies, and what is the timeline for bringing actual products to market?
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As you enter the proliferated satellite market, where cost and speed are critical, how does the company plan to compete against larger players with more resources, and what are the risks associated with adapting your products for this market, especially regarding radiation hardening and digital circuitry challenges?
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R&D expenses have increased substantially, impacting operating income. How do you balance the need for increased R&D investments with maintaining profitability, and what is the expected return on these investments in terms of new products or revenue streams?
Research analysts who have asked questions during FREQUENCY ELECTRONICS earnings calls.
George Marema
Pareto Ventures
4 questions for FEIM
Tim Hasara
Sinnet Capital
2 questions for FEIM
Brett Reiss
Not specified in transcript
1 question for FEIM
Jon deRoy Gruber
Gruber McBaine
1 question for FEIM
Robert Smith
Center of Performance Investing
1 question for FEIM
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company faces competition from the in-house capabilities of its major customers, which include this competitor, particularly in the space products segment. | |
This competitor is mentioned as one of the major customers with in-house capabilities that compete with the company's space products. | |
This competitor is identified as having in-house capabilities that compete with the company's space products. | |
This competitor is noted as a larger domestic company competing with the company in non-space products, such as systems for precision time for terrestrial secure communication and command and control. | |
This competitor is mentioned as a larger domestic company competing in the non-space products market, including systems for precision time and electronic warfare applications. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
U.S. Government | Primary customer for precision time & frequency solutions | All | 94% of total revenue in FY 2025 |
Northrop Grumman | Integrates FEIM’s products into U.S. Government programs | All | >10% of consolidated revenues in FY 2025 |
Unnamed FEI-NY Customer (FY2025) | Purchases from FEI-NY segment | FEI-NY | $26.9 million in FY 2025 ; >10% of FEI-NY segment revenue |
Unnamed FEI-Zyfer Customer #1 (FY2025) | Purchases from FEI-Zyfer segment | FEI-Zyfer | $2.9 million in FY 2025 ; >10% of FEI-Zyfer segment revenue |
Unnamed FEI-Zyfer Customer #2 (FY2025) | Purchases from FEI-Zyfer segment | FEI-Zyfer | $3.4 million in FY 2025 ; >10% of FEI-Zyfer segment revenue |
Unnamed FEI-NY Customer #1 (FY2024) | Purchases from FEI-NY segment | FEI-NY | $7.5 million in FY 2024 ; >10% of FEI-NY segment revenue |
Unnamed FEI-NY Customer #2 (FY2024) | Purchases from FEI-NY segment | FEI-NY | $10.9 million in FY 2024 ; >10% of FEI-NY segment revenue |
Unnamed FEI-NY Customer #3 (FY2024) | Purchases from FEI-NY segment | FEI-NY | $4.7 million in FY 2024 ; >10% of FEI-NY segment revenue |
Unnamed FEI-NY Customer #4 (FY2024) | Purchases from FEI-NY segment | FEI-NY | $4.5 million in FY 2024 ; >10% of FEI-NY segment revenue |
Unnamed FEI-Zyfer Customer #1 (FY2024) | Purchases from FEI-Zyfer segment | FEI-Zyfer | $4.2 million in FY 2024 ; >10% of FEI-Zyfer segment revenue |
Unnamed FEI-Zyfer Customer #2 (FY2024) | Purchases from FEI-Zyfer segment | FEI-Zyfer | $5.2 million in FY 2024 ; >10% of FEI-Zyfer segment revenue |
Lockheed Martin | Integrates FEIM’s products into U.S. Government programs | All | >10% of consolidated revenues in FY 2024 |
Office of Naval Research | Supports FEIM’s R&D and product development for government purposes | All | >10% of consolidated revenues in FY 2024 |
BAE Systems | Integrates FEIM’s products into U.S. Government programs | All | >10% of consolidated revenues in FY 2024 |
Recent press releases and 8-K filings for FEIM.
- Frequency Electronics reported Q1 fiscal year 2026 consolidated revenue of $13.8 million and net income of $634,000, or $0.07 per share, a decrease compared to the prior fiscal year.
- The decrease in revenue was primarily due to customer-driven program delays, but this revenue is expected to be recognized in upcoming quarters, predominantly within the current fiscal year.
- The company's funded backlog remained strong at approximately $71 million at the end of July 2025, slightly up from $70 million at the end of April 2025.
- Frequency Electronics announced a $20 million authorization for the repurchase of shares and maintains a debt-free balance sheet with $30 million in working capital as of July 31, 2025.
- Strategic investments include opening an engineering facility in Boulder, Colorado, to support quantum sensing and ongoing programs, with anticipated positive contribution to the bottom line by the third quarter of this fiscal year.
- Frequency Electronics reported Q1 fiscal year 2026 consolidated revenue of $13.8 million, with net income of $634,000, or $0.07 per share, a decrease from the prior year. This decline was primarily attributed to customer-driven program delays, which are not expected to result in overall program revenue reductions, with the shortfall anticipated to be made up in upcoming quarters.
- The company's funded backlog remained strong at approximately $71 million at the end of July 2025.
- FEIM announced a $20 million authorization for the repurchase of shares.
- The company is investing in future growth, including opening a new engineering facility in Boulder, Colorado, focused on quantum sensing, and is developing prototypes for the Mercury Ion atomic clock and Envi Diamond magnetometer.
- Frequency Electronics reported consolidated revenue of $13.8 million for the three months ending July 31, 2025 (Q1 FY2026), down from $15.1 million in the same period of the prior fiscal year. Consolidated net income for Q1 FY2026 was $634,000, or $0.07 per share, compared to $2.4 million, or $0.25 per share, in the prior year period.
- The decrease in revenue was primarily due to customer-driven delays on key programs, which are not expected to result in overall program revenue reductions and are anticipated to be recovered in upcoming quarters, predominantly within the current fiscal year.
- The company's fully funded backlog remained strong at approximately $71 million at the end of July 2025, compared to $70 million at April 30, 2025. Frequency Electronics also maintains a debt-free balance sheet with a strong working capital position of approximately $30 million.
- The company announced a $20 million authorization for the repurchase of shares and is investing in future growth, including opening an engineering facility in Boulder, Colorado, for quantum sensing, which is expected to contribute positively to the bottom line by Q3 FY2026.
- Frequency Electronics reported consolidated revenue of $13.8 million for the first quarter of fiscal year 2026 (three months ending July 31, 2025), a decrease from $15.1 million in the prior fiscal year, and consolidated net income of $634,000, or $0.07 per share, down from $2.4 million, or $0.25 per share. The revenue decline was primarily due to customer-driven program delays, with the shortfall expected to be recovered in upcoming quarters.
- The company announced a $20 million authorization for the repurchase of shares and maintains a strong financial position with a debt-free balance sheet and a fully funded backlog of approximately $71 million as of July 31, 2025.
- FEIM is investing in future growth, including opening a new engineering facility in Boulder, Colorado, to support quantum sensing initiatives, and is developing advanced technologies such as the Mercury Ion atomic clock and Envi Diamond magnetometer, with prototypes for the latter expected by mid-next calendar year.
- Frequency Electronics, Inc. (FEIM) reported Q1 fiscal year 2026 revenue of $13.8 million and net income of $0.6 million or $0.07 per diluted share, a decrease compared to Q1 fiscal year 2025 revenue of $15.1 million and net income of $2.4 million or $0.25 per diluted share.
- The company's Board of Directors approved a new $20 million share repurchase authorization on September 9, 2025, which replaces the previous authorization.
- Management attributed the Q1 fiscal year 2026 declines in revenue and operating income to a timing issue and customer-driven delays, not cancellations, and anticipates these programs will contribute positively to revenue and operating profit in future quarters.
- Backlog increased to approximately $71 million at July 31, 2025, from $70 million at April 30, 2025, and the company is actively bidding on new, potentially larger programs.
- Frequency Electronics, Inc. reported revenue of $13.8 million for the first quarter of fiscal year 2026, ended July 31, 2025, a decrease from $15.1 million in the same period of fiscal year 2025.
- Net income from operations for Q1 fiscal year 2026 was $0.6 million, or $0.07 per diluted share, compared to $2.4 million, or $0.25 per diluted share, in Q1 fiscal year 2025.
- The company announced a $20 million share repurchase authorization.
- Backlog at July 31, 2025, was approximately $71 million, a slight increase from $70 million at April 30, 2025.
- Management attributed the Q1 declines to timing issues and customer-driven delays, expecting these programs to contribute positively to revenue and operating profit in coming quarters.
- FEI-Zyfer, a wholly-owned subsidiary of Frequency Electronics, Inc. (FEIM), has been awarded a contract by the Defense Logistics Agency - Aviation Division.
- The contract is for additional systems that support the Patriot Missile system.
- The base year (Year 1) of the contract is valued at $3.14 million, with a period of performance through October 30, 2026.
- The contract also includes delivery options for Year 2 of $1.71 million and Year 3 of $1.80 million.
- Frequency Electronics, Inc. (FEIM) clarified that its expected near-term revenue from the TURbO compact rubidium atomic clock for FY2026 is $1M to $2M, based on orders already received.
- The company anticipates a significant market for TURbO, with a potential growing market of $20M or more in FY2027, driven by expanded use cases like drone applications and the Department of Defense's focus on drone manufacturing and use.
- Frequency Electronics reported consolidated revenue of $69.8 million for the fiscal year ended April 30, 2025, a significant increase from $55.3 million in the prior fiscal year, with Q4 2025 marking the highest revenue quarter in 25 years.
- For the fiscal year ended April 30, 2025, the company's consolidated net income was $23.7 million, or $2.46 per share, compared to $5.6 million, or $0.59 per share, in the previous fiscal year.
- The company's fully funded backlog was approximately $70 million as of April 2025, and it maintains a debt-free balance sheet with a strong working capital position of approximately $30 million.
- FEIM is actively pursuing growth opportunities in areas like Golden Dome, Alternate Position Navigation and Timing (APNT), GPS enhancements, and quantum sensing, with R&D expense increasing to $6.1 million in FY2025 from $3.4 million in FY2024, and future R&D investment expected to be in line with or above historical spending.
- Management anticipates short-term variability in contract timing but expects medium-term growth (2-5 years) and is targeting a gross margin of 40% or more for the coming fiscal year.