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Frequency Electronics Inc. (FEIM-3.05%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in revenues to $18,927,000 from $13,714,000 in the same quarter the previous year. The increase is attributed to higher sales to U.S. Government space customers and Government non-space customers.
Cost of revenues for the quarter was $10,642,000, representing 56% of sales, compared to 77% in the same quarter of the previous year. This decrease in cost ratio is due to a large space program completing a major milestone.
The company reported a gross margin of $8,285,000 for the quarter, compared to $3,104,000 in the previous year, with the increase attributed to higher revenues and improved efficiency.
Selling, general, and administrative expenses increased to $3,380,000 from $2,619,000, mainly due to increased payroll expenses and costs related to a company summit.
Research and development expenses rose to $1,436,000 from $958,000, reflecting a focus on product modernization.
Net income for the quarter was $15,405,000, up from $130,000 in the previous year. The increase is largely due to a reduction in the valuation allowance on deferred tax assets.
Cash used in operating activities was $1,273,000, while cash used in investing and financing activities was $1,177,000 and $9,944,000, respectively.
Frequency Electronics had a working capital of $27,286,000 as of January 31, 2025. The company maintains a strong liquidity position to meet future obligations.
The filing also notes a material weakness in internal controls over financial reporting related to loss provision accruals, which the company is addressing.
Frequency Electronics continues to focus on its core markets, including communication satellites and U.S. Government contracts, with a reported backlog of $73 million.
The company does not anticipate cash dividend payments to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Frequency Electronics Inc. quarterly 10-Q report dated March 17, 2025. To report an error, please email earnings@qz.com.