Frequency Electronics, Inc. Announces Contract Increase for Approximately $12 Million
Frequency Electronics (NASDAQ:FEIM) subsidiary FEI-Zyfer has secured a $12 million contract increase for developing and manufacturing a customized high-precision airborne time, synchronization, and frequency distribution system. The deliveries are scheduled through 2027.
The airborne-rated systems are designed to operate in high-dynamic environments and provide interoperability with assured and Alternate-Position, Navigation and Timing (Alt-PNT) avionics. They support collaborative airborne operations and meet requirements for Joint Airborne Signals Intelligence Architecture (JASA), Time, Frequency, Navigation and Geodesy (TFNG), and Airborne Overhead Cooperative Operations Communications Intelligence Joint Interface Control Document (AOCO COMINT JICD).
Frequency Electronics (NASDAQ:FEIM) ha annunciato che la sua controllata FEI-Zyfer ha ottenuto un incremento contrattuale di 12 milioni di dollari per lo sviluppo e la produzione di un sistema personalizzato di alta precisione per il tempo, la sincronizzazione e la distribuzione della frequenza in volo. Le consegne sono programmate fino al 2027.
I sistemi progettati per l'uso in volo sono concepiti per operare in ambienti ad alta dinamicità e garantire interoperabilità con avioniche di Posizionamento, Navigazione e Tempistica (PNT) assicurate e alternative (Alt-PNT). Supportano operazioni aeree collaborative e soddisfano i requisiti per l'Architettura di Intelligenza dei Segnali Aerei Congiunti (JASA), Tempo, Frequenza, Navigazione e Geodesia (TFNG) e il Documento di Controllo dell'Interfaccia Congiunta per le Comunicazioni di Intelligenza Operativa Aerea (AOCO COMINT JICD).
Frequency Electronics (NASDAQ:FEIM) ha anunciado que su subsidiaria FEI-Zyfer ha asegurado un aumento de contrato de 12 millones de dólares para el desarrollo y fabricación de un sistema personalizado de alta precisión para el tiempo, sincronización y distribución de frecuencia en vuelo. Las entregas están programadas hasta 2027.
Los sistemas diseñados para uso en vuelo están concebidos para operar en entornos de alta dinámica y proporcionar interoperabilidad con avionics de Posicionamiento, Navegación y Tiempo (PNT) asegurados y alternativos (Alt-PNT). Apoyan operaciones aéreas colaborativas y cumplen con los requisitos de la Arquitectura de Inteligencia de Señales Aéreas Conjuntas (JASA), Tiempo, Frecuencia, Navegación y Geodesia (TFNG), y el Documento de Control de Interfaz Conjunta de Inteligencia de Comunicaciones de Operaciones Aéreas (AOCO COMINT JICD).
Frequency Electronics (NASDAQ:FEIM)의 자회사 FEI-Zyfer가 1,200만 달러 규모의 계약 증액을 확보하여 맞춤형 고정밀 공중 시간, 동기화 및 주파수 분배 시스템을 개발 및 제조하게 되었습니다. 납품은 2027년까지 예정되어 있습니다.
공중에서 사용하도록 설계된 시스템은 고동적 환경에서 작동하도록 설계되었으며, 보장된 및 대체 위치, 내비게이션 및 타이밍(Alt-PNT) 항법 장치와의 상호 운용성을 제공합니다. 이 시스템은 협력적인 공중 작전을 지원하며, 공동 공중 신호 정보 아키텍처(JASA), 시간, 주파수, 내비게이션 및 지오데시( TFNG), 공중 협력 작전 통신 정보 공동 인터페이스 제어 문서(AOCO COMINT JICD)에 대한 요구 사항을 충족합니다.
Frequency Electronics (NASDAQ:FEIM) a annoncé que sa filiale FEI-Zyfer a obtenu une augmentation de contrat de 12 millions de dollars pour le développement et la fabrication d'un système personnalisé de haute précision pour le temps, la synchronisation et la distribution de fréquence en vol. Les livraisons sont prévues jusqu'en 2027.
Les systèmes certifiés pour le vol sont conçus pour fonctionner dans des environnements à haute dynamique et garantir l'interopérabilité avec les systèmes avioniques de Positionnement, Navigation et Timing (PNT) assurés et alternatifs (Alt-PNT). Ils soutiennent les opérations aériennes collaboratives et répondent aux exigences de l'Architecture de Renseignement des Signaux Aériens Conjoints (JASA), Temps, Fréquence, Navigation et Géodésie (TFNG), ainsi que du Document de Contrôle d'Interface Conjointe pour les Renseignements en Communication des Opérations Aériennes (AOCO COMINT JICD).
Frequency Electronics (NASDAQ:FEIM) hat bekannt gegeben, dass ihre Tochtergesellschaft FEI-Zyfer einen Vertragszuwachs von 12 Millionen Dollar für die Entwicklung und Herstellung eines maßgeschneiderten hochpräzisen Luftzeit-, Synchronisations- und Frequenzverteilungssystems gesichert hat. Die Lieferungen sind bis 2027 geplant.
Die für den Lufttransport zugelassenen Systeme sind darauf ausgelegt, in hochdynamischen Umgebungen zu arbeiten und Interoperabilität mit garantierten und alternativen Positionierungs-, Navigations- und Timing (Alt-PNT) Avioniksystemen zu bieten. Sie unterstützen kollaborative Luftoperationen und erfüllen die Anforderungen der Joint Airborne Signals Intelligence Architecture (JASA), Zeit, Frequenz, Navigation und Geodäsie (TFNG) sowie des Airborne Overhead Cooperative Operations Communications Intelligence Joint Interface Control Document (AOCO COMINT JICD).
- Secured $12 million contract increase
- Multi-year revenue visibility through 2027
- Strengthens position in defense and aerospace markets
- None.
Insights
Frequency Electronics' $12 million contract increase represents a significant win in the specialized military timing and synchronization market. At approximately 8.2% of the company's $146 million market capitalization, this award materially enhances FEIM's revenue outlook through 2027.
The contract specifically targets high-precision airborne time, synchronization, and frequency distribution systems designed to operate in demanding environments. These systems support mission-critical defense applications including Joint Airborne Signals Intelligence Architecture (JASA) and Alternate-Position, Navigation and Timing (Alt-PNT) avionics - capabilities increasingly essential for maintaining technological superiority in contested electromagnetic environments.
Defense contractors with proven expertise in ultra-precise timing systems occupy a specialized niche with substantial barriers to entry. The technical requirements for airborne-rated systems that can function in high-dynamic environments while maintaining precision timing are extraordinarily demanding. This contract suggests FEIM has successfully demonstrated their technical capabilities to a satisfied customer, potentially strengthening their position for future related contracts.
The multi-year delivery schedule provides revenue visibility through 2027, creating a stable foundation for FEIM's defense business segment. For specialized component manufacturers like FEIM, securing long-term contracts is particularly valuable as it enables more efficient resource allocation and production planning.
This $12 million contract increase represents a material financial development for Frequency Electronics. With a market capitalization of approximately $146 million, this single contract expansion represents about 8.2% of the company's total market value, making it financially significant.
The extended delivery timeframe through 2027 provides multi-year revenue visibility - a valuable characteristic for small-cap companies where predictable cash flows can be challenging to secure. This revenue stability could potentially reduce earnings volatility and improve the company's ability to plan investments in R&D and manufacturing capabilities.
For context, defense electronics suppliers specializing in mission-critical systems like FEIM typically maintain stronger margins compared to commercial electronics manufacturers due to the specialized nature of their products, stringent requirements, and complex certification processes. The contract's focus on customized high-precision systems aligns with this higher-margin profile.
From a balance sheet perspective, long-term defense contracts often include favorable payment terms that can positively impact working capital dynamics. While specific financial projections would require additional disclosure, the contract's size relative to FEIM's market capitalization suggests it will meaningfully contribute to the company's financial performance through the contract period.
The timing is particularly beneficial given current market conditions, as defense electronics companies with established contract backlogs tend to exhibit more resilience during periods of economic uncertainty compared to consumer or commercial technology providers.
GARDEN GROVE, Calif., March 20, 2025 (GLOBE NEWSWIRE) -- FEI-Zyfer, Inc., a wholly-owned subsidiary of Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce the receipt of a
Tom McClelland, President and CEO at Frequency Electronics, commented, “We are pleased to be selected as a trusted supplier for advanced avionics applications in these mission-critical programs. This contract is a testament to the quality and precision of our products and the value we provide to our customers and the war fighters. It also reflects the growing demand for advanced airborne time and frequency distribution systems vital to our country’s defense
About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in the design, development and manufacture of high precision timing, frequency generation and RF control products for space and terrestrial applications. FEI’s products are used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, energy exploration and wireline and wireless networks. FEI-Zyfer provides GPS and secure timing capabilities for critical military and commercial applications; FEI-Elcom Tech provides Electronic Warfare (“EW”) sub-systems and state-of-the-art RF and microwave products. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development to expand its capabilities and markets.
www.frequencyelectronics.com
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 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, our inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, reliance on key customers, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, other supply chain related issues, increasing costs for materials, operating related expenses, competitive developments, changes in manufacturing and transportation costs, the availability of capital, the outcome of any litigation and arbitration proceedings, 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, 2024, filed on August 2, 2024 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 |
FAQ
What is the value and timeline of FEIM's new contract increase?
What type of system will FEIM develop under this contract?
Which military standards does FEIM's new system support?
How does FEIM's new system integrate with existing avionics?
