MITCHEL FIELD, N.Y. - Frequency Electronics, Inc. (NASDAQ:FEIM), a manufacturer of precision timing and frequency generation products, addressed program charges in its recent earnings call that impacted its gross margins for the quarter ending January 31, 2024.
The company, which serves both space and terrestrial applications, experienced a temporary reversal of revenue due to percentage of completion accounting. Despite this setback, Frequency Electronics anticipates the recovery of approximately $1.2 million in revenue within the current calendar year.
The company's conservative estimation and upfront charging of costs suggest that upon realization of this revenue, gross margins are expected to align with or exceed the company's average. This forecast is a silver lining for the company, which has provided high-performance electronic assemblies for over 150 space and Department of Defense programs.
Frequency Electronics operates in a highly competitive sector, developing products for satellite payloads and various systems including C4ISR, electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, and networks for energy exploration. The company's subsidiaries, FEI-Zyfer and FEI-Elcom Tech, enhance its offerings with GPS and secure timing capabilities for critical applications and state-of-the-art RF microwave products respectively.
This news is based on a press release statement from Frequency Electronics, Inc.
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