Frequency Electronics, Inc. Declares Special Cash Dividend of $1.00 Per Share

Rhea-AI Summary

Frequency Electronics, Inc. (NASDAQ: FEIM) has declared a special cash dividend of $1.00 per share of common stock, payable on August 29, 2024, to stockholders of record as of August 8, 2024. The total dividend payment will be approximately $9.4 million. CEO Tom McClelland highlighted the company's improved profitability and cash generation, allowing for this dividend while maintaining investment capacity. FEI remains debt-free and focuses on sustained profitability. The company specializes in high-precision timing, frequency generation, and RF control products for space and terrestrial applications, serving commercial, government, and military systems.

Positive

• Declaration of a $1.00 per share special cash dividend
• Improved profitability and cash generation
• Debt-free status maintained after dividend payment
• Growth in revenue, backlog, and positioning on critical next-generation platforms
• Strong balance sheet allowing for dividend payment and future business investment

Negative

• None.

MITCHEL FIELD, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Today the Board of Directors of Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM) declared a special cash dividend of $1.00 per share of common stock. The special dividend is payable on August 29, 2024, to stockholders of record as of the close of business on August 8, 2024. Based on the current number of shares outstanding, the total amount of the special dividend payment will be approximately $9.4 million.

FEI President and CEO, Tom McClelland commented, “Today our Board of Directors declared a $1.00 per share special cash dividend. Since we paid our previous special dividend 18 months ago, we have continued to improve the profitability and cash generation of the Company, allowing us to once again return cash to stockholders. Our strong balance sheet allows us to pay this dividend while maintaining our ability to invest in the business for future success, and our growth in revenue, backlog and positioning on critical next-generation platforms has demonstrated that we can both profitably grow the business and return capital to stockholders as we do so. After paying this dividend we will remain debt free, and our focus on sustained profitability and cash generation should help us maintain a strong balance sheet in the future.”

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, 2023, filed on July 27, 2023 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

When will Frequency Electronics (FEIM) pay its special cash dividend?

Frequency Electronics (FEIM) will pay its special cash dividend of $1.00 per share on August 29, 2024.

What is the record date for Frequency Electronics' (FEIM) special dividend?

The record date for Frequency Electronics' (FEIM) special dividend is August 8, 2024, at the close of business.

How much is the total special dividend payment for Frequency Electronics (FEIM)?

Based on the current number of shares outstanding, the total special dividend payment for Frequency Electronics (FEIM) will be approximately $9.4 million.

How has Frequency Electronics' (FEIM) financial performance improved since its last special dividend?

Since its last special dividend 18 months ago, Frequency Electronics (FEIM) has improved its profitability and cash generation, allowing for this new dividend while maintaining investment capacity for future growth.