Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ☐
On July 15, 2026, Frequency Electronics, Inc.
(the “Company”) issued a press release (the “Press Release”) announcing its financial results for the year ended
April 30, 2026. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by
reference.
In accordance with General Instruction B.2
of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed
“filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities
of that section. The information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be incorporated
by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth
by specific reference in such filing or document.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit 99.1
PRESS
RELEASE
Frequency
Electronics, Inc. Announces Fourth Quarter and Fiscal Year 2026 Financial Results
●
Announces Record $111 Million Funded Backlog, up 34% Sequentially and 59% Annually
●
Establishes Three-Year Minimum Gross Margin Target of 50% and Operating Margin Target of 30%
●
Reaffirms Three-Year Revenue Target of at Least $150 million, a 34% CAGR
●
Establishes Path for Strong Operating Leverage by Front-Loading Investments and Pruning Non-Core Business
Mitchel
Field, NY, July 15, 2026 – Frequency Electronics, Inc. (“FEI,” “Frequency,” the “Company,”
“we” or “us”) (NASDAQ-FEIM) today announced its financial results for the fourth quarter and fiscal year 2026
and provided significant updates to its future profitability profile.
FEI
President and CEO, Tom McClelland, commented, “As we have mentioned before, Fiscal 2026 was a year of digestion from a revenue
standpoint, as we pulled forward some revenue into last year’s Fiscal 2025. But it was also a critically important year for the
future of Frequency as we significantly expanded our funded backlog, giving us excellent visibility into coming growth. Just two quarters
ago, we told investors that we believed we could see backlog north of $100 million in the not-too-distant future. Today we are extremely
pleased to report that our backlog reached $111 million at the end of our fiscal fourth quarter, up 34% sequentially and 59% over the
same period last year. It was because of this continuing expansion of our backlog and order book, as well as the significantly larger
end-markets that we are now selling into, all of which are based on technology that leverages our long-standing market leadership in
space and defense applications, that we felt confident giving a three-year minimum revenue target of $150 million on April 30, 2026,
representing a 34% compound annual growth rate from our Fiscal 2026 revenue. Today we reaffirm our minimum revenue target of $150 million
by Fiscal 2029, and, beginning in Fiscal 2027, our current fiscal year, we will begin delivering on this target through revenue growth,
starting in our current first quarter.
Future
Margin Targets
“In
Fiscal 2027, we also intend to begin demonstrating a multi-year path to higher margins. To that end, we are today establishing a minimum
gross margin target of 50% and a minimum operating margin target of 30% by Fiscal 2029.
“The
path to these higher margins is largely in our control and is a direct result of the significant business shift we are undertaking. On
the gross margin side, we anticipate seeing meaningful improvement from two significant levers. The first is the much higher revenue
base we are targeting, as we have previously discussed, and which we believe is well supported by our backlog, order book, industry trends
and government funding. In addition, due to customer demand, we are moving from a bespoke manufacturer of exquisite products with more
episodic production schedules to a high-rate production company making many more units of similar products on a more consistent basis.
We believe this higher-rate production model will be more predictable, allow for better overhead absorption and feature less non-recurring
engineering costs as a percentage of total business, all of which should drive gross margins to at least 50% by Fiscal 2029.
“In
addition, we believe we will demonstrate very strong operating leverage in the business, such that as revenue increases sharply, we should
gain meaningful efficiencies on our research and development (“R&D”) and selling and administrative expenses (“SG&A”).
Based on the gross margin target outlined above, and those operating expense efficiencies in R&D and SG&A, we believe we will
then be able to generate minimum operating margins of 30% by Fiscal 2029.
Investments
in Growth, Business Restructuring and Non-Recurring Charges
McClelland
further added: “We invested significantly in the business during Fiscal 2026 in order to better prepare the Company for the anticipated
strong growth ahead. The majority of this investment was focused on hiring engineering talent in advance of the large ramp-up in production
and revenue we are expecting. This had near-term dampening effects on gross margin, as engineering costs flow through the manufacturing
overhead portion of our cost of goods sold, raising this expense before the corresponding revenue is generated. A second meaningful investment
during Fiscal 2026 was a significant manufacturing efficiency project. This business process improvement investment should allow us to
improve turnaround time. The related expenses flowed through overhead and had a similar adverse impact on gross margins. But with increasing
orders and strong demand, we think such investments are prudent long-term decisions and will allow the Company to be ready for that business
and to super-serve our customers, who increasingly want more work done more quickly. We believe this should meaningfully benefit our
stockholders as well, as we seek to increasingly provide higher levels of mission-critical products that perform to the highest standards
in the harshest environments and do so with high incremental margins.
“Further, we have increased our internal focus on our largest
and most profitable market opportunities, and de-emphasized or discontinued products with lower growth potential and lower margin profiles
that have historically been part of our business. Specifically, we chose to restructure our FEI-Elcom manufacturing business in New Jersey
in the fourth quarter because it simply did not have the growth or margin potential of our core space and defense markets, nor those of
the much larger addressable markets we are now starting to sell into: alternative position, navigation and timing (ALT-PNT) solutions;
quantum sensing, including magnetometers; space defense and exploration; and, proliferated satellite programs. Though we sacrificed some
near-term revenue in the fourth quarter by doing so, we believe it is the right long-term decision to better align our capital and talent
towards their highest and best use and potential returns. The FEI-Elcom restructuring included a $3.8 million inventory write-down, a
non-cash charge which flowed through cost of goods sold and further depressed gross margins for this reported period, but which we believe
is not reflective of ongoing business trends; additional severance costs flowed through selling and administrative expenses. Further,
the restructuring charge of $3.8 million yielded a tax benefit of approximately $0.9 million in Q4 2026. Additionally, including the restructuring
costs, the Company anticipates realizing approximately $9.3 million of future tax benefit, which will benefit the Company going forward as we return to profitable growth.
“Lastly,
we had several non-recurring charges that flowed through operating expenses this quarter, the majority of which was a non-cash charge
for an accrual related to a one-time change in employee sick/paid-time-off policies. Most of this charge flowed through cost of goods
sold, impacting gross margins, and the balance flowed through selling and administrative expenses. As a result of these charges this
quarter, we believe our as-reported results do not accurately reflect the core strength of our underlying business, which will pave the
path towards the much higher revenue and margin levels we described earlier.”
Reported
Results and Adjusted Levels
Revenue
for the three and twelve months ended April 30, 2026, was approximately $15.4 million and $63.2 million, respectively, compared to $20.0
million and $69.8 million, respectively, reported for the same period of fiscal year 2025. Operating loss for the three and twelve months
ended April 30, 2026 was $6.3 million and $3.0 million, respectively, compared to an operating income of $3.3 million and $11.7 million,
respectively, reported for the same period of the previous fiscal year. Net loss from operations for the three and twelve months ended
April 30, 2026, was $4.9 million or ($0.50) per diluted share and $0.9 million or ($0.09) per diluted share, respectively, compared to
a net income from operations for the three and twelve months ended April 30, 2025 of $3.2 million or $0.33 per diluted share and $23.7
million or $2.46 per diluted share, respectively. Net cash provided by operating activities was approximately $1.3 million in the twelve
months of fiscal year 2026, compared to net cash used in operations of $1.4 million for the same period of fiscal year 2025. Backlog
at April 30, 2026 was approximately $111 million compared to $70 million at April 30, 2025.
FEI
Chief Financial Officer Steve Bernstein commented, “The fiscal fourth quarter in 2025 was the highest quarterly revenue in 25 years
for FEI, which made for a difficult year-over-year comparison as we digested some of that pulled forward revenue in Fiscal 2026; however,
we expect to start hitting new quarterly revenue records for the Company in the near future, based on the strength in our backlog and
order book. We took a number of actions in the fiscal fourth quarter and in Fiscal 2026, including significant cash investments, that
adversely impacted our as-reported margins. We provide tables at the end of this release that show the impact of these charges and investments
and what they would have been without the charges. We are not adjusting for foregone revenue from the restructuring of FEI-Elcom, though
certainly higher revenue would have made for an improved comparison. In sum, as the tables show below, our gross margins and operating
margins were approximately 1% and (41)%, respectively, for the quarter, and approximately 29% and (5)%, respectively, for the fiscal
year. Whereas, adjusted for the charges and investments, our gross margins and operating margins would have been approximately 36% and
1%, respectively, for the quarter, and approximately 41% and 11%, respectively, for the fiscal year.1 These are levels we
anticipate growing meaningfully in the years to come, as stated earlier. The Company made significant cash investments during Fiscal
2026, but expects to return to normal cash generation in Fiscal 2027, beginning in our current fiscal first quarter.”
Investor
Conference Call
As
previously announced, the Company will hold a conference call to discuss these results on Wednesday, July 15, 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: 941406 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: 54269). Subsequent to that, the call can be accessed via a link available on the Company’s website through October
15, 2026.
| 1 | These
adjusted financial metrics are non-GAAP measures. See “Non-GAAP Measures” below for additional information. |
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.”
Use
of Non-GAAP Financial Information: The Company reports its financial results in accordance with U.S. generally accepted accounting
principles (GAAP). Additionally, the Company provides certain financial measures in this press release that are not measures of financial
performance under GAAP. The non-GAAP financial information presented excludes certain significant items that may not be indicative of,
or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional
insight into the Company’s ongoing business performance. These non-GAAP measures, defined below, should be viewed as supplements
to (not substitutes for) our results of operations and other measures reported under GAAP. Other companies may define or calculate these
non-GAAP measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety
and not to rely on any single financial measure. Reconciliations of these non-GAAP measures to the most closely comparable GAAP measures
are presented below under “Reconciliation of Reported to Adjusted Numbers.”
“Adjusted
for Non-Recurring” measures in the statements of operations. We present certain measures, or line items, of the statements of operations
that are “Adjusted for Non-Recurring” items. To calculate these measures, we have adjusted, as applicable, for (1) one time
restructuring costs in connection with the business restructuring involving FEI-Elcom; (2) a non-cash charge for an accrual related to
a one-time change in employee sick/paid-time-off policies; (3) costs associate with transformational engineering employment costs, including
the Company’s expansion into Colorado in Fiscal 2026; and (4) one time business improvement costs associated with a significant
manufacturing efficiency project.
“Adjusted
for Non-Recurring & Future Investment” measures in the statements of operations. We present certain measures, or line items,
of the statements of operations that are “Adjusted for Non-Recurring & Future Investment” items. To calculate these measures,
we have adjusted, as applicable, for each of the items described above with respect to “Adjusted for Non-Recurring” measures
and have further adjusted to include costs related to future investments with respect to these same items
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, 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 |
Frequency
Electronics, Inc. and Subsidiaries
Condensed
Consolidated Statements of Operations
(in
thousands except per share data)
| | |
Three Months Ended | | |
Twelve Months Ended | |
| | |
April 30, | | |
April 30, | |
| | |
(unaudited) | | |
(unaudited) | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Revenues | |
$ | 15,398 | | |
$ | 19,986 | | |
$ | 63,227 | | |
$ | 69,811 | |
| Cost of revenues | |
| 15,246 | | |
| 12,492 | | |
| 44,831 | | |
| 39,714 | |
| Gross margin | |
| 152 | | |
| 7,494 | | |
| 18,396 | | |
| 30,097 | |
| Selling and administrative | |
| 4,603 | | |
| 2,675 | | |
| 15,403 | | |
| 12,289 | |
| Research and development | |
| 1,898 | | |
| 1,540 | | |
| 5,994 | | |
| 6,076 | |
| Operating (loss) income | |
| (6,349 | ) | |
| 3,279 | | |
| (3,001 | ) | |
| 11,732 | |
| Interest and other, net | |
| (326 | ) | |
| (72 | ) | |
| 93 | | |
| 412 | |
| Income before Income Taxes | |
| (6,675 | ) | |
| 3,207 | | |
| (2,908 | ) | |
| 12,144 | |
| (Benefit) provision for Income Taxes | |
| (1,770 | ) | |
| 10 | | |
| (2,005 | ) | |
| (11,542 | ) |
| Net (loss) income | |
$ | (4,905 | ) | |
$ | 3,197 | | |
$ | (903 | ) | |
$ | 23,686 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income per share: | |
| | | |
| | | |
| | | |
| | |
| Basic income per share | |
$ | (0.50 | ) | |
$ | 0.33 | | |
$ | (0.09 | ) | |
$ | 2.46 | |
| Diluted income per share | |
$ | (0.50 | ) | |
$ | 0.33 | | |
$ | (0.09 | ) | |
$ | 2.46 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 9,854 | | |
| 9,692 | | |
| 9,783 | | |
| 9,612 | |
| Diluted | |
| 9,854 | | |
| 9,692 | | |
| 9,783 | | |
| 9,615 | |
Frequency
Electronics, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(in
thousands)
| | |
April 30,
2026 | | |
April 30,
2025 | |
| | |
(unaudited) | | |
| |
| ASSETS | |
| | |
| |
| Cash and cash equivalents | |
$ | 1,603 | | |
$ | 4,720 | |
| Accounts receivable, net | |
| 4,740 | | |
| 5,914 | |
| Contract assets | |
| 17,277 | | |
| 17,914 | |
| Inventories, net | |
| 22,618 | | |
| 23,487 | |
| Other current assets | |
| 1,738 | | |
| 1,071 | |
| Property, plant & equipment, net | |
| 7,105 | | |
| 6,188 | |
| Other assets | |
| 12,801 | | |
| 12,374 | |
| Deferred taxes | |
| 14,084 | | |
| 12,045 | |
| Right-of-use assets – operating leases | |
| 7,409 | | |
| 8,659 | |
| Restricted cash | |
| 1,331 | | |
| 1,365 | |
| | |
$ | 90,706 | | |
$ | 93,737 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Lease liability - current | |
$ | 2,002 | | |
$ | 2,027 | |
| Contract liabilities | |
| 9,418 | | |
| 13,607 | |
| Other current liabilities | |
| 9,564 | | |
| 7,821 | |
| Other long-term obligations | |
| 7,671 | | |
| 7,933 | |
| Operating lease liability – non-current | |
| 5,648 | | |
| 6,729 | |
| Stockholders’ equity | |
| 56,403 | | |
| 55,620 | |
| | |
$ | 90,706 | | |
$ | 93,737 | |
Frequency
Electronics, Inc. and Subsidiaries
Reconciliation
of Reported to Adjusted Numbers
(in
thousands)
(unaudited)
| | |
Three Months Ended | | |
Twelve Months Ended | | |
Three Months
Ended | | |
Twelve Months
Ended | |
| | |
April 30, 2026 | | |
April 30, 2026 | | |
April 30, 2026 | | |
April 30, 2026 | |
| | |
(unaudited) | | |
(unaudited) | | |
(unaudited) | | |
(unaudited) | |
| | |
| | |
| | |
| | |
| | |
Adjusted for | | |
Adjusted for | |
| | |
| | |
| | |
| | |
| | |
Non-Recurring | | |
Non-Recurring | |
| | |
| | |
Adjusted for | | |
| | |
Adjusted for | | |
& Future | | |
& Future | |
| | |
Reported | | |
Non-Recurring | | |
Reported | | |
Non-Recurring | | |
Investment | | |
Investment | |
| Revenues | |
$ | 15,398 | | |
$ | 15,398 | | |
$ | 63,227 | | |
$ | 63,227 | | |
$ | 15,398 | | |
$ | 63,227 | |
| Cost of revenues | |
| 15,246 | | |
| 10,873 | | |
| 44,831 | | |
| 40,458 | | |
| 9,832 | | |
| 37,147 | |
| Gross margin | |
| 152 | | |
| 4,525 | | |
| 18,396 | | |
| 22,769 | | |
| 5,566 | | |
| 26,080 | |
| Gross Margin % | |
| 1.0 | % | |
| 29.4 | % | |
| 29.1 | % | |
| 36.0 | % | |
| 36.1 | % | |
| 41.2 | % |
| Selling and administrative | |
| 4,603 | | |
| 3,835 | | |
| 15,403 | | |
| 14,082 | | |
| 3,462 | | |
| 12,968 | |
| Research and development | |
| 1,898 | | |
| 1,898 | | |
| 5,994 | | |
| 5,994 | | |
| 1,898 | | |
| 5,994 | |
| Operating (loss) income | |
| (6,349 | ) | |
| (1,208 | ) | |
| (3,001 | ) | |
| 2,693 | | |
| 206 | | |
| 7,118 | |
| Operating (loss) income % | |
| -41.2 | % | |
| -7.8 | % | |
| -4.7 | % | |
| 4.3 | % | |
| 1.3 | % | |
| 11.3 | % |
| Reconciliation of Reported to Adjusted for Non-Recurring (Non-GAAP) for the Three Months Ended April 30, 2026 (unaudited) |
| | |
| | |
| | |
| | |
| | |
Business | | |
| |
| | |
| | |
One Time | | |
| | |
Transformational | | |
Improvement | | |
| |
| | |
| | |
Restructuring | | |
Change in | | |
Employment | | |
Transformation | | |
Adjusted for | |
| | |
Reported | | |
Cost | | |
PTO Policy | | |
Costs | | |
Costs | | |
Non-Recurring | |
| Revenues | |
$ | 15,398 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 15,398 | |
| Cost of revenues | |
| 15,246 | | |
| (4,373 | ) | |
| - | | |
| - | | |
| - | | |
| 10,873 | |
| Gross margin | |
| 152 | | |
| 4,373 | | |
| - | | |
| - | | |
| - | | |
| 4,525 | |
| Gross Margin % | |
| 1.0 | % | |
| | | |
| | | |
| | | |
| | | |
| 29.4 | % |
| Selling and administrative | |
| 4,603 | | |
| (446 | ) | |
| (164 | ) | |
| (89 | ) | |
| (69 | ) | |
| 3,835 | |
| Research and development | |
| 1,898 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,898 | |
| Operating (loss) income | |
| (6,349 | ) | |
| 4,819 | | |
| 164 | | |
| 89 | | |
| 69 | | |
| (1,208 | ) |
| Operating (loss) income % | |
| -41.2 | % | |
| | | |
| | | |
| | | |
| | | |
| -7.8 | % |
Frequency
Electronics, Inc. and Subsidiaries
Reconciliation
of Reported to Adjusted Numbers
(in
thousands)
(unaudited)
| Reconciliation of Reported to Adjusted for Non-Recurring & Future Investment (Non-GAAP) for the Three Months Ended April 30, 2026 (unaudited) |
| | |
| | |
| | |
| | |
| | |
Business | | |
Adjusted for | |
| | |
| | |
One Time | | |
| | |
Transformational | | |
Improvement | | |
Non-Recurring | |
| | |
| | |
Restructuring | | |
Change in | | |
Employment | | |
Transformation | | |
& Future | |
| | |
Reported | | |
Cost | | |
PTO Policy | | |
Costs | | |
Costs | | |
Investment | |
| Revenues | |
$ | 15,398 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 15,398 | |
| Cost of revenues | |
| 15,246 | | |
| (4,373 | ) | |
| - | | |
| (718 | ) | |
| (323 | ) | |
| 9,832 | |
| Gross margin | |
| 152 | | |
| 4,373 | | |
| - | | |
| 718.00 | | |
| 323.00 | | |
| 5,566 | |
| Gross Margin % | |
| 1.0 | % | |
| | | |
| | | |
| | | |
| | | |
| 36.1 | % |
| Selling and administrative | |
| 4,603 | | |
| (446 | ) | |
| (164 | ) | |
| (89 | ) | |
| (442 | ) | |
| 3,462 | |
| Research and development | |
| 1,898 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,898 | |
| Operating (loss) income | |
| (6,349 | ) | |
| 4,819 | | |
| 164 | | |
| 807 | | |
| 765 | | |
| 206 | |
| Operating (loss) income % | |
| -41.2 | % | |
| | | |
| | | |
| | | |
| | | |
| 1.3 | % |
| Reconciliation of Reported to Adjusted for Non-Recurring (Non-GAAP) for the Twelve Months Ended April 30, 2026 (unaudited) |
| | |
| | |
| | |
| | |
| | |
Business | | |
| |
| | |
| | |
One Time | | |
| | |
Transformational | | |
Improvement | | |
| |
| | |
| | |
Restructuring | | |
Change in | | |
Employment | | |
Transformation | | |
Adjusted for | |
| | |
Reported | | |
Cost | | |
PTO Policy | | |
Costs | | |
Costs | | |
Non-Recurring | |
| Revenues | |
$ | 63,227 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 63,227 | |
| Cost of revenues | |
| 44,831 | | |
| (4,373 | ) | |
| - | | |
| - | | |
| - | | |
| 40,458 | |
| Gross margin | |
| 18,396 | | |
| 4,373 | | |
| - | | |
| - | | |
| - | | |
| 22,769 | |
| Gross Margin % | |
| 29.1 | % | |
| | | |
| | | |
| | | |
| | | |
| 36.0 | % |
| Selling and administrative | |
| 15,403 | | |
| (446 | ) | |
| (164 | ) | |
| (355 | ) | |
| (356 | ) | |
| 14,082 | |
| Research and development | |
| 5,994 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 5,994 | |
| Operating (loss) income | |
| (3,001 | ) | |
| 4,819 | | |
| 164 | | |
| 355 | | |
| 356 | | |
| 2,693 | |
| Operating (loss) income % | |
| -4.7 | % | |
| | | |
| | | |
| | | |
| | | |
| 4.3 | % |
| Reconciliation of Reported to Adjusted for Non-Recurring & Future Investment (Non-GAAP) for the Twelve Months Ended April 30, 2026 (unaudited) |
| | |
| | |
| | |
| | |
| | |
Business | | |
Adjusted for | |
| | |
| | |
One Time | | |
| | |
Transformational | | |
Improvement | | |
Non-Recurring | |
| | |
| | |
Restructuring | | |
Change in | | |
Employment | | |
Transformation | | |
& Future | |
| | |
Reported | | |
Cost | | |
PTO Policy | | |
Costs | | |
Costs | | |
Investment | |
| Revenues | |
$ | 63,227 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 63,227 | |
| Cost of revenues | |
| 44,831 | | |
| (4,373 | ) | |
| - | | |
| (2,155 | ) | |
| (1,156 | ) | |
| 37,147 | |
| Gross margin | |
| 18,396 | | |
| 4,373 | | |
| - | | |
| 2,155 | | |
| 1,156 | | |
| 26,080 | |
| Gross Margin % | |
| 29.1 | % | |
| | | |
| | | |
| | | |
| | | |
| 41.2 | % |
| Selling and administrative | |
| 15,403 | | |
| (446 | ) | |
| (164 | ) | |
| (355 | ) | |
| (1,470 | ) | |
| 12,968 | |
| Research and development | |
| 5,994 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 5,994 | |
| Operating (loss) income | |
| (3,001 | ) | |
| 4,819 | | |
| 164 | | |
| 2,510 | | |
| 2,626 | | |
| 7,118 | |
| Operating (loss) income % | |
| -4.7 | % | |
| | | |
| | | |
| | | |
| | | |
| 11.3 | % |
