Revenue slips 11% to $16.9M; backlog hits $83M with $45M contracts
Frequency Electronics reported third‐quarter revenue of $16.9 million, down from $18.9 million year-over-year, with net income of $1.6 million ($0.16/share) versus $15.4 million ($1.60). Backlog climbed to a record $83 million from $70 million, and two new contracts totaling $45 million were awarded.
1. Third-Quarter Financial Results
Frequency Electronics generated $16.9 million in Q3 revenue, a 10.6% decline from $18.9 million a year earlier. Operating income fell to $1.3 million from $3.5 million, while net income dropped to $1.6 million ($0.16 per share) compared to $15.4 million ($1.60). Net cash used in operations improved to $0.8 million over nine months versus $1.3 million last year.
2. Backlog Growth and Contract Awards
Funded backlog reached a record $83 million at January 31, up from $70 million at April 30. The company secured two satellite program contracts valued at approximately $45 million, which are expected to enter funded backlog in the fiscal fourth quarter.
3. Outlook and Cash Position
Since February 1, the company has collected over $11 million in cash, with management expecting the reported quarter-end cash level to represent the low point. Remaining debt-free, Frequency Electronics plans to leverage core timing technologies and pursue quantum sensing and proliferated satellite growth opportunities to drive multi-year top-line expansion.