Frequency Electronics, Inc. Announces Fourth Quarter and Full Fiscal Year 2024 Financial Results
FEI announces fiscal 2024 revenue of $55.3M, a 36% increase from 2023. Operating income hits $5M. Special $1.00/share dividend declared.
MITCHEL FIELD, N.Y., July 22, 2024 (GLOBE NEWSWIRE) — Mitchel Field, NY, July 22, 2024 – Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM) is reporting revenues for the three and twelve-month periods of fiscal year 2024, ended April 30, 2024, of approximately $15.6 million and $55.3 million, respectively, compared to revenues of $13.0 million and $40.8 million, respectively, for the same periods of fiscal year 2023, ended April 30, 2023. Operating income for the fourth quarter of fiscal year 2024 was $2.5 million compared to an operating income of $0.4 million for the same period of fiscal year 2023. Operating income for the twelve months ended April 30, 2024 was $5.0 million compared to an operating loss of $4.7 million for the twelve months ended April 30, 2023. Net income for the three months ended April 30, 2024 was $2.6 million or $0.28 per diluted share and net income for the twelve months ended April 30, 2024 was $5.6 million or $0.59 per diluted share, compared to net income of $0.2 million or $0.03 per diluted share for the three months ended April 30, 2023 and net loss of $5.5 million or ($0.59) per diluted share for the twelve months ended April 30, 2023. Additionally, as just announced in a separate press release, the Company will be paying a special cash dividend of $1.00 per share of common stock on August 29, 2024, to stockholders of record as of the close of business on August 8, 2024. Please see that release for further details.
FEI President and CEO, Tom McClelland commented, “In fiscal year 2024 we experienced steady revenue growth of 8 – 10% quarter over quarter for the entire year, with revenue year over year up by 36%. Revenue for FY2024 was $55.3 million, up from $40.8 million in FY2023. Operating income improved meaningfully, and we believe profits and margins should continue to do so going forward; due to both our disciplined internal management as well as a fortified product offering. The backlog of $78 million at the end of the fiscal year ended April 30, 2024 is up substantially from FY2023, and represents a historical high for the Company. This steady growth in backlog is indicative of the strong business environment for our technology as well as our reinvigorated customer focused strategy combined with our commitment to bring faster, better solutions to market. We anticipate continued growth in new business during the current fiscal year ending April 30, 2025. Our efforts have put us on a positive trajectory. The Company remains committed to achieving sustained profitability and strong cash generation going forward. I have never been more encouraged about our ability to provide important solutions that help to enhance our way of life, and to defend and protect our country and its allies.”
Fiscal Year 2024 Selected Financial Metrics and Other Items
- For the three and twelve months ended April 30, 2024, revenues from satellite payloads were approximately $6.9 million, or 44%, and $23.2 million, or 42%, respectively, of consolidated revenues compared to approximately $5.1 million, or 39%, and $17.9 million, or 44%, respectively, for the same periods of the prior fiscal year.
- For the three and twelve months ended April 30, 2024, revenues for non-space U.S. Government/DOD customers were approximately $7.9 million, or 51%, and $29.0 million, or 52%, respectively, of consolidated revenues compared to approximately $7.3 million, or 56%, and $20.3 million, or 50%, respectively, for the same periods of the prior fiscal year.
- For the three and twelve months ended April 30, 2024, revenues from other commercial and industrial sales accounted for approximately $0.8 million, or 5%, and $3.1 million, or 6%, respectively, of consolidated revenues compared to approximately $0.6 million, or 4%, and $2.6 million, or 6%, respectively, for the same periods of the prior fiscal year.
- Cash and cash equivalents at April 30, 2024 was $18.3 million compared to $12.0 million at April 30, 2023, an approximately $6 million increase.
- Net cash provided by operating activities was approximately $8.7 million and $1.2 million for fiscal years ended April 30, 2024 and 2023, respectively.
- Backlog at April 30, 2024 was approximately $78 million compared to $57 million at April 30, 2023. The ending backlog at April 30, 2024 represents the highest backlog in the Company’s history, surpassing the $71 million backlog at the end of fiscal 2011.
Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on Monday, July 22, 2024, at 4:30 PM Eastern Time. Investors and analysts may access the call by dialing 1-888-506-0062. International callers may dial 1-973-528-0011. Callers should provide participant access code: 233739 or ask for the Frequency Electronics conference call.
The archived call may be accessed by calling 1-877-481-4010 (domestic), or 1-919-882-2331 (international), for one week following the call (replay passcode: 50907). Subsequent to that, the call can be accessed via a link available on the Company’s website through October 22, 2024.