FREQUENCY ELECTRONICS INC (FEIM) SEC Filings & Earnings Calls

CFO transition risk; reliance on key personnel for execution of long-term targets.

“CFO retirement and replacement; one-year consulting agreement for transition.”

Customer Concentration

“For the three months ended July 31, 2026, revenues from commercial and U.S. Government communication satellite programs accounted for approximately 50% of consolidated revenues.” · word for word

Dependence on Government Contracts

“Revenues from non-space U.S. Government/Department of War (“DOW”) customers, which are recorded in both the FEI-NY and FEI-Zyfer segments, accounted for approximately 47% of consolidated revenues for the three months ended July 31, 2026.” · word for word

Dependence on U.S. government and key customers; competitive and technological risks.

“risks associated with reliance on key customers, including the U.S. government...competitive factors, new products and technological changes”

Strategic investment risk

“Net income declined from $23.7 million in fiscal year 2025 to a net loss of $(0.9) million in fiscal year 2026 as a result of deliberate strategic investments in the business” · word for word

Share dilution from equity offering

“Issuance of 260,869 additional shares increases share count”

Customer Concentration

“During fiscal year 2026, Lockheed Martin Corporation, L3Harris Technologies, Inc., and The Boeing Company each accounted for more than 10% of the Company’s consolidated revenues.”

Fixed-Price Contract Risk

“In fiscal year 2026, 95% of our sales were derived from fixed-price contracts.” · word for word

Supply Chain Dependency

“FEI-NY is dependent on a limited number of suppliers for space qualified parts.” · word for word

Aging Workforce

“Our average employee tenure is approximately 11 years and the median age is approximately 53.” · word for word

U.S. Government Funding Risk

“We rely heavily on U.S. Government programs, from which we derived approximately 91% and 94% of our sales in fiscal year 2026 and fiscal year 2025, respectively.” · word for word

Execution risk on margin targets; restructuring may cause near-term disruption; reliance on government defense spending.

“Margin targets depend on revenue growth and operational leverage; restructuring of FEI-Elcom.”

New debt obligation; terms not disclosed.

“Creation of a Direct Financial Obligation” · word for word

Satellite program revenue concentration and delay risk

“several new space bookings anticipated for the three months ended January 31, 2026 have been delayed and are now anticipated in fourth quarter of fiscal 2026.” · word for word

Gross margin pressure from mix shift

“The decrease in GM and GM Rate were attributable to a change in the mix of high margin production satellite programs in the prior year periods versus lower margin programs with significant non-recurring engineering (“NRE”) effort” · word for word

Revenue and profitability declined YoY; net income dropped significantly due to prior year gain.

“Revenue down 10.6%; operating income down 62.9%; net income down 89.6% in Q3.”

Cash used in operations; cash low point in Q3, but collections improving post-quarter.

“Net cash used in operating activities $0.8M in 9 months; cash low point at Q3 end.”

Customer Concentration Risk

“Revenues from non-space U.S. Government/DOD customers accounted for approximately 70% of consolidated revenues for the three months ended October, 31, 2025.” · word for word

Margin Pressure from Program Mix

“The decrease in GM and GM Rate were attributable to a change in the mix of high margin production satellite programs in the prior year periods versus lower margin programs with significant non-recurring engineering (“NRE”) effort during the three and six months ended October 31, 2025.” · word for word

Dependence on Government Contracts

“Revenues from non-space U.S. Government/DOD customers accounted for approximately 70% of consolidated revenues for the three months ended October, 31, 2025.” · word for word

Government shutdown caused delays in contracting, though expected to reverse in Q3/Q4.

“During Q2 we did experience delays in getting under contract on several programs due to the government shutdown; however, we expect any impact from this to be reversed in Q3 and Q4.” · word for word