Frequency Electronics, Inc. Announces First Quarter of Fiscal Year 2027 Financial Results
Record revenue, margins, backlog, and cash position underscore a sharp improvement in growth, profitability, and liquidity for Frequency Electronics.
Rhea-AI Summary
Frequency Electronics (FEIM) reported record fiscal Q1 2027 revenue of $23.5 million, up 70% year-over-year and 52% sequentially, with operating margin above 22%.
For the three months ended July 31, 2026, revenue was $23.451 million versus $13.812 million a year earlier. Operating income rose to $5.2 million from $0.364 million, and net income increased to $4.216 million, or $0.41 per diluted share, from $0.634 million, or $0.07 per diluted share. Gross margin expanded to approximately 46%. Net cash provided by operating activities was about $3.0 million, compared with $1.2 million of cash used a year ago.
Funded backlog reached a record $129 million, up 82% year-over-year and 16% sequentially. Cash and cash equivalents increased to $61.4 million from $1.6 million at April 30, 2026, supported by a secondary offering that added approximately $73 million in cash. The company remained debt-free and reported stockholders’ equity of $119.8 million.
Positive
- Revenue $23.451M, up 70% YoY and 52% sequentially in fiscal Q1 2027
- Operating income $5.2M vs. $0.364M a year earlier
- Net income $4.216M ($0.41/share) vs. $0.634M ($0.07/share)
- Gross margin about 46% vs. $5.082M on $13.812M revenue a year ago
- Funded backlog $129M, up 82% YoY and 16% sequentially
- Cash & equivalents $61.4M vs. $1.6M at April 30, 2026, aided by ~$73M offering
Negative
- None.
News Explained
The completed offering added approximately
Details
Market reaction after 1Q27 earnings report: FEIM +23.69%
Following this news, FEIM has gained 23.69%, reflecting a significant positive market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $76.76.
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Key Figures
- Quarterly Revenue
- $23.5 million
- Q1 fiscal 2027
- Funded Backlog
- $129 million
- At July 31, 2026
- Operating Income
- $5.2 million
- Three months ended July 31, 2026
- Net Income
- $4.2 million
- Three months ended July 31, 2026
- Diluted EPS
- $0.41 per diluted share
- Q1 fiscal 2027
- Operating Cash Flow
- $3.0 million
- Three months of fiscal 2027
- Gross Margin
- Approximately 46%
- Q1 fiscal 2027
- Cash Added
- Approximately $73 million
- Secondary offering completed during the quarter
Previous Earnings Reports
-
Fiscal-year revenue declined and the company reported an operating loss.
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Quarterly and nine-month revenue declined despite positive net income.
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Revenue, operating income, net income and funded backlog increased.
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Revenue and operating income declined year over year.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
operating leverage financial
funded backlog financial
gross margin financial
secondary offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
· Announces Record Quarterly Revenue of
· Announces Record
· Strong Operating Leverage Demonstrated, with Operating Margin North of
MITCHEL FIELD, N.Y., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI,” “Frequency,” the “Company,” “we” or “us”) (NASDAQ-FEIM) today announced its financial results for the first quarter of fiscal year 2027.
FEI President and CEO, Tom McClelland, commented, “I am very pleased to report first quarter revenue of
“Further growth is supported by our funded backlog, which reached a record
“The strong revenue growth this quarter also allowed FEI to demonstrate significant profitability improvement, with gross margin expanding to approximately
“In short, business is booming for FEI. We have many attractive organic growth opportunities that leverage our core strengths, and we look forward to continuing to demonstrate our ability to generate more profitable, cash-generative revenue growth for years to come.”
Reported Results and Adjusted Levels
Revenue for the three months ended July 31, 2026, was approximately
Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on Thursday, September 10, 2026, 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: 582877 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: 54512). Subsequent to that, the call can be accessed via a link available on the Company’s website through December 10, 2026.
About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in precision time and frequency generation technology, which is incorporated into commercial and U.S. Government satellites, Command, Control, Communication, Computer, Intelligence, Surveillance and Reconnaissance (“C4ISR”), and Electronic Warfare (“EW”) systems. Its technology is used for a wide range of space and non-space applications. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOW programs. The Company invests significant resources in research and development to expand its capabilities and markets.
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, including statements regarding our three-year gross margin target, our three-year operating margin target, our three-year revenue target and similar targets or objectives, 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, the risks associated with reliance on key customers, including the U.S. government, the Company’s use of estimates when accounting for contracts, actions by significant customers or competitors, competitive factors, new products and technological changes, continued acceptance of the Company’s products in the marketplace, dependence upon third-party vendors, product prices and raw material costs, the Company’s ability to attract and retain key employees, general domestic and international economic conditions, health epidemics and pandemics, external disruptions to the Company’s facilities or supply chain, the Company’s operations in a highly regulated industry, the outcome of any litigation and arbitration proceedings, cybersecurity attacks, noncompliance with any of the covenants in the credit agreement, volatility in the Company’s stock price, including due to the relatively low trading volume of its common stock, 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, 2026, filed on July 17, 2026 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 |
| Frequency Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands except per share data) | |||||||
| Three Months Ended | |||||||
| July 31, | |||||||
| (unaudited) | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 23,451 | $ | 13,812 | |||
| Cost of revenues | 12,701 | 8,730 | |||||
| Gross margin | 10,750 | 5,082 | |||||
| Selling, general, and administrative | 4,105 | 3,585 | |||||
| Research and development | 1,445 | 1,133 | |||||
| Operating income | 5,200 | 364 | |||||
| Interest and other, net | 42 | 193 | |||||
| Income before Income Taxes | 5,242 | 557 | |||||
| (Benefit) provision for Income Taxes | 1,026 | (77 | ) | ||||
| Net income | $ | 4,216 | $ | 634 | |||
| Net income per share: | |||||||
| Basic and diluted income per share | $ | 0.41 | $ | 0.07 | |||
| Weighted average shares outstanding | |||||||
| Basic and diluted | 10,232 | 9,723 | |||||
| Frequency Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) | ||||||
| July 31, 2026 | April 30, 2026 | |||||
| (unaudited) | ||||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 61,407 | $ | 1,603 | ||
| Accounts receivable, net | 6,224 | 4,637 | ||||
| Contract assets | 19,637 | 17,277 | ||||
| Inventories, net | 22,206 | 22,618 | ||||
| Other current assets | 1,578 | 1,841 | ||||
| Property, plant & equipment, net | 7,661 | 7,105 | ||||
| Other assets | 13,354 | 12,801 | ||||
| Deferred taxes | 13,219 | 14,084 | ||||
| Right-of-use assets – operating leases | 6,953 | 7,409 | ||||
| Restricted cash | 1,338 | 1,331 | ||||
| $ | 153,577 | $ | 90,706 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Lease liability - current | $ | 1,679 | $ | 2,002 | ||
| Contract liabilities | 11,519 | 9,418 | ||||
| Other current liabilities | 7,612 | 9,564 | ||||
| Other long-term obligations | 7,647 | 7,671 | ||||
| Operating lease liability – non-current | 5,283 | 5,648 | ||||
| Stockholders’ equity | 119,837 | 56,403 | ||||
| $ | 153,577 | $ | 90,706 | |||
FAQ
How profitable was Frequency Electronics on an operating and net basis in fiscal Q1 2027?
For the quarter ended July 31, 2026, operating income was $5.2 million compared with $0.364 million in the prior-year quarter. Net income was $4.216 million, or $0.41 per diluted share, versus $0.634 million, or $0.07 per diluted share, in the same period of fiscal 2026.
What changes occurred in Frequency Electronics’ backlog and what does it represent?
Funded backlog at July 31, 2026 was approximately $129 million, compared with $111 million at April 30, 2026, representing a 16% sequential increase and an 82% increase year-over-year. The backlog reflects contracted, funded orders expected to convert into revenue.
How did operating cash flow and the balance sheet change during the quarter?
Net cash provided by operating activities was about $3.0 million in the first quarter of fiscal 2027, compared with $1.2 million of net cash used in operations a year earlier. Cash and cash equivalents increased to $61.407 million from $1.603 million at April 30, 2026, and stockholders’ equity rose to $119.837 million from $56.403 million.
What was the impact of the secondary offering mentioned by Frequency Electronics?
The company completed a secondary offering during the quarter that added approximately $73 million in cash to its balance sheet, of which about $14 million was received after the quarter ended.
How can investors access the fiscal Q1 2027 earnings conference call and replay?
The live call is scheduled for Thursday, September 10, 2026, at 4:30 PM Eastern Time. Domestic participants may dial 1-888-506-0062 and international participants may dial 1-973-528-0011, using access code 582877 or asking for the Frequency Electronics conference call. For one week following the call, the replay can be accessed domestically at 1-877-481-4010 and internationally at 1-919-882-2331 using replay passcode 54512. After that, a replay link will be available on the company’s website through December 10, 2026.