FEI-Zyfer Announces Contract Award for $3.14 Million

Rhea-AI Summary

FEI-Zyfer (NASDAQ:FEIM), a subsidiary of Frequency Electronics, has secured a significant contract from the Defense Logistics Agency - Aviation Division worth $3.14 million for the base year through October 2026. The contract includes additional options of $1.71 million for Year 2 and $1.80 million for Year 3.

The contract involves providing advanced syntonization and synchronization reference systems for the Patriot Missile program, incorporating FEI's acceleration-Compensated Quartz Crystal Oscillator technology and Rubidium Atomic Clocks. These systems are designed to maintain performance under harsh ground mobile environmental conditions, meeting stringent operational requirements for accuracy, stability, and low phase noise.

Positive

• Secured base contract worth $3.14 million with potential total value of $6.65 million including options
• Contract demonstrates continued trust in FEI's critical defense technology
• Technology combination of g-comp and Rubidium Atomic Clocks provides competitive advantage
• Strong positioning in strategic defense market with Patriot Missile system support

Negative

• Contract performance extends through October 2026, indicating delayed revenue recognition
• Additional years' revenue dependent on option exercises
• High dependence on government contracts and defense sector

Insights

Defense Industry Analyst

FEI secures $3.14M defense contract with $3.51M in options, strengthening its position in mission-critical military timing systems.

FEI-Zyfer has secured a $3.14 million contract from the Defense Logistics Agency to support the Patriot Missile system, with additional options potentially bringing the total contract value to $6.65 million through Year 3. This is a strategically significant win that leverages FEI's core competencies in precision timing technologies for defense applications.

The awarded contract specifically focuses on autonomous free-running synchronization reference systems designed to withstand harsh ground mobile environments—a critical reliability requirement for battlefield-deployed missile defense systems. The technical solution combines FEI's acceleration-compensated quartz crystal oscillator technology with rubidium atomic clocks to deliver the precision timing necessary for the Patriot system's operation.

This contract reinforces FEI's established position within the defense supply chain for missile defense systems. The Patriot platform remains a cornerstone of U.S. and allied air defense capabilities, with continued investment signaling sustained demand for FEI's specialized timing components. The multi-year structure with two option years ($1.71 million for Year 2 and $1.80 million for Year 3) provides potential revenue visibility through October 2028 if fully exercised.

For investors, this contract represents approximately 5-10% of annual revenue based on the company's historical performance, making it material to financial results. The award also demonstrates FEI's continued relevance in mission-critical defense applications and validates their R&D investments in specialized timing technologies that face limited competition due to their high-performance requirements and significant barriers to entry.

GARDEN GROVE, Calif., Aug. 25, 2025 (GLOBE NEWSWIRE) -- FEI-Zyfer, Inc., a wholly-owned subsidiary of Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce the receipt of a contract from the Defense Logistics Agency - Aviation Division at Redstone Arsenal, AL for additional systems in support of the Patriot Missile system. The base year (Year 1) contract value is $3.14 million dollars, with a period of performance through October 30, 2026. In addition, the contract includes delivery options for Year 2 of $1.71 million dollars, and a Year 3 option of $1.80 million dollars.

The systems that will be provided by FEI-Zyfer are autonomous free-running syntonization and synchronization references, which are able to maintain their performance while subjected to the harshest ground mobile environmental conditions for field-deployed systems. In order to meet the operational signal accuracy and quality requirements, FEI-Zyfer incorporates acceleration-Compensated (g-comp) Quartz Crystal Oscillator technology from our parent company, Frequency Electronics (FEI) along with our control and interface electronics. When g-comp is paired with FEI’s Rubidium Atomic Clocks, the combination enables the systems to meet the most stringent operational quality needs for long-term accuracy, short and long-term stability, and low phase noise.

Tom McClelland, President and CEO at Frequency Electronics, commented, “Our contributions to the Patriot Missile program are examples of how FEI’s core technology, together with the technology provided by our FEI-Zyfer subsidiary, continue to be critical to the support of the U.S. Army, the Missile Defense Agency, and designated Allies, and demonstrate how our investments in the development of these critical technologies bear fruit.” FEI, together with its subsidiaries, is traded under the NASDAQ symbol FEIM.

About Frequency Electronics

Frequency Electronics, Inc. (FEI) is a world leader in the design, development and manufacture of high precision timing, frequency generation and RF control products for space and terrestrial applications. FEI’s products are used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, energy exploration and wireline and wireless networks. FEI-Zyfer provides GPS and secure timing capabilities for critical military and commercial applications; FEI-Elcom Tech provides Electronic Warfare (“EW”) sub-systems and state-of-the-art RF and microwave products. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development to expand its capabilities and markets.
www.frequencyelectronics.com

FEI’s Mission Statement: “Our mission is to transform discoveries and demonstrations made in research laboratories into practical, real-world products. We are proud of a legacy which has delivered precision time and frequency generation products, for space and other world-changing applications that are unavailable from any other source. We aim to continue that legacy while adapting our products and expertise to the needs of the future. With a relentless emphasis on excellence in everything we do, we aim, in these ways, to create value for our customers, employees, and stockholders.”

Forward-Looking Statements

The statements in this press release regarding future earnings and operations and other statements relating to the future constitute “forward-looking” statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, our inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, reliance on key customers, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, other supply chain related issues, increasing costs for materials, operating related expenses, competitive developments, changes in manufacturing and transportation costs, the availability of capital, the outcome of any litigation and arbitration proceedings, and failure to maintain an effective system of internal controls over financial reporting. The factors listed above are not exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the Securities and Exchange Commission. The Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025, filed on July 18, 2025 with the Securities and Exchange Commission includes additional factors that could materially and adversely impact the Company’s business, financial condition and results of operations, as such factors are updated from time to time in our periodic filings with the Securities and Exchange Commission, which are accessible on the Securities and Exchange Commission’s website at www.sec.gov. Moreover, the Company operates in a very competitive and rapidly changing environment. New factors emerge from time to time and it is not possible for management to predict the impact of all these factors on the Company’s business, financial condition or results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by the Company or its management may turn out to be incorrect. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact information:	Dr. Thomas McClelland, President and Chief Executive Officer; Steven Bernstein, Chief Financial Officer;
TELEPHONE: (516) 794-4500 ext.5000			WEBSITE: www.freqelec.com

FAQ

What is the total potential value of FEI-Zyfer's new Defense Logistics Agency contract?

The total potential contract value is $6.65 million, including a base year of $3.14 million and two option years worth $1.71 million and $1.80 million respectively.

What technology is FEI-Zyfer providing for the Patriot Missile system?

FEI-Zyfer is providing autonomous free-running syntonization and synchronization reference systems, incorporating acceleration-Compensated Quartz Crystal Oscillator technology and Rubidium Atomic Clocks.

When does FEIM's new Defense Logistics Agency contract begin and end?

The base year contract extends through October 30, 2026, with additional option years available beyond that date.

How will the Defense Logistics Agency contract affect FEIM's revenue?

The contract will provide $3.14 million in base year revenue, with potential additional revenue of $3.51 million if both option years are exercised.

What is the strategic importance of FEI-Zyfer's contract for the Patriot Missile program?

The contract demonstrates FEI-Zyfer's critical role in providing precision timing and frequency control products for strategic defense systems, specifically supporting the U.S. Army, Missile Defense Agency, and designated Allies.