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FEIM Nasdaq· Frequency Electronics, Inc
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FEIM Nasdaq· Frequency Electronics, Inc
Earnings report Q4 2023

FEIM Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, FEIM reported total revenues of $25.98 million, representing a significant increase of 57.5% compared to the same period last year. The revenue growth was driven by strong performance in both the FEI-NY and FEI-Zyfer segments. FEI-NY segment revenues increased by 29.1% to $18.76 million, while FEI-Zyfer segment revenues surged by 143.7% to $8.02 million. Intersegment revenues also saw a positive growth of 54.8% amounting to $0.16 million.

Strengths

FEIM demonstrated strong revenue growth in the latest quarter, driven by robust performance in both the FEI-NY and FEI-Zyfer segments. The increase in FEI-NY segment revenues can be attributed to higher sales in satellite programs, which accounted for approximately 72.2% of FEI-NY's revenues. Additionally, FEI-Zyfer segment revenues were boosted by a significant increase in non-space U.S. Government/DOD customers, which accounted for approximately 58% of FEI-Zyfer's revenues.

Challenges

Despite the overall revenue growth, FEIM faced challenges in maintaining gross margin. The gross margin for the latest quarter was 31.9%, which is relatively low compared to the previous year's gross margin of 35.4%. This decrease in gross margin can be attributed to higher cost of revenues, which accounted for 68.1% of total revenues in the latest quarter.

Noteworthy

It is worth noting that FEIM experienced a significant improvement in its operating income (loss) in the latest quarter. The company reported an operating income of $6.9 million, compared to a loss of $25.5 million in the same period last year. This improvement can be attributed to effective cost management and increased revenues.

Summary

FEIM delivered a strong performance in the latest quarter, with a substantial increase in total revenues driven by robust growth in both the FEI-NY and FEI-Zyfer segments. The company's focus on satellite programs and non-space U.S. Government/DOD customers contributed to the revenue growth. However, FEIM faced challenges in maintaining gross margin due to higher cost of revenues. Overall, FEIM's improved operating income reflects effective cost management and positive revenue growth.

Source documents

Form 10-Q  filed on Dec 15, 2023
89 pages scanned

Reference data

Company financials Q4 revenue 13.6M
Analyst estimates Q4 EPS missed by NaN%
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