Frequency Electronics Inc. Awarded Contracts for Quartz Oscillators, Synthesizers, and Receivers

Rhea-AI Summary

Frequency Electronics (NASDAQ:FEIM) has secured multiple contracts worth approximately $11 million to provide specialized precision quartz oscillators, synthesizers, and receivers for aerospace programs. The deliveries are scheduled through 2026, with initial shipments beginning in 2025. The quartz oscillators will be utilized in navigation and timing systems, ensuring high-accuracy performance under extreme conditions.

These contracts demonstrate FEI's continued leadership in the high-performance frequency control industry and its commitment to supporting critical aerospace and defense programs. The company's products are recognized for their reliability, stability, and precision in space and defense applications.

Positive

• Secured new contracts worth $11 million
• Confirmed delivery schedule through 2026
• Strengthens position in aerospace and defense sectors

Negative

• None.

Insights

Financial Analyst

The $11 million contract win for aerospace components represents a significant revenue boost for Frequency Electronics. With a market cap of $175 million, this deal accounts for approximately 6.3% of the company's value. The extended delivery timeline through 2026 provides stable revenue visibility and demonstrates FEI's strong positioning in the aerospace/defense sector. The contract's focus on mission-critical components like precision quartz oscillators suggests healthy profit margins, as these specialized products typically command premium pricing. This win reinforces FEI's market position and could lead to follow-on orders, though investors should note the relatively long revenue recognition period spanning multiple years.

Tech Industry Analyst

The awarded contracts highlight FEI's technological edge in precision timing and frequency control products, particularly for demanding aerospace applications. The company's specialized quartz oscillators, synthesizers and receivers are important components for navigation and timing systems operating in extreme conditions. This technology win validates FEI's R&D investments and demonstrates their competitive advantage in high-performance frequency control. The aerospace industry's growing demand for advanced timing solutions suggests potential market expansion opportunities. FEI's track record of over 100 excellence awards and 150+ space/DOD programs positions them well for future contract opportunities in this specialized market segment.

MITCHEL FIELD, N.Y., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce that it has been awarded several significant contracts to supply specialized precision quartz oscillators, synthesizers, and receivers for aerospace programs. The total value of these contracts is approximately $11 million, with deliveries scheduled through 2026. These contracts highlight FEI’s continued leadership in the high-performance frequency control industry and underscore the company’s long-standing commitment to supporting critical aerospace and defense programs. The quartz oscillators will play a key role in navigation and timing systems, contributing to the overall success of the missions by ensuring highly accurate performance under extreme conditions. FEI’s quartz oscillators are renowned for their reliability, stability, and precision—critical attributes for applications in space and defense. These contracts reflect FEI’s expertise in providing tailored, mission-critical components that meet the rigorous demands of the aerospace and defense sectors.

FEI President and CEO, Tom McClelland commented, “We are proud to be selected as a trusted supplier for these high-profile programs. These contracts are a testament to the quality and precision of our products and the value we provide to our customers. They also reflect the growing demand for advanced timing solutions in the aerospace industry.”

Deliveries will commence in 2025, with the final shipments expected to be completed in 2026.

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 total value of Frequency Electronics' (FEIM) new aerospace contracts in December 2024?

The total value of the new contracts awarded to Frequency Electronics is approximately $11 million.

When will FEIM begin deliveries for the new aerospace contracts?

Deliveries will commence in 2025 and are scheduled to be completed in 2026.

What products will Frequency Electronics (FEIM) supply under the new contracts?

FEIM will supply specialized precision quartz oscillators, synthesizers, and receivers for aerospace programs.

How will FEIM's quartz oscillators be used in the aerospace programs?

The quartz oscillators will be used in navigation and timing systems, providing highly accurate performance under extreme conditions.