Frequency Electronics Inc. Files Q3 2024 10-Q Report

TL;DR

FREQ 10-Q filed for Q3 2024. Check financials.

AI Summary

Frequency Electronics, Inc. filed its 10-Q for the quarterly period ended July 31, 2024. The company, incorporated in Delaware, is based in Mitchel Field, NY. This report details the company's financial performance and condition for the specified period.

Why It Matters

This filing provides investors with an update on Frequency Electronics' financial health and operational performance for the latest quarter, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided header information.

Key Players & Entities

• FREQUENCY ELECTRONICS INC (company) — Registrant
• July 31, 2024 (date) — Quarterly Period End Date
• Delaware (jurisdiction) — State of Incorporation
• 55 Charles Lindbergh Blvd. (address) — Principal Executive Offices
• Mitchel Field, NY 11553 (address) — Principal Executive Offices Location

FAQ

Key Financial Figures

• $1.00 — ch registered Common Stock (par value $1.00 per share) FEIM NASDAQ Global Marke

Filing Documents

• freqelec20240731_10q.htm (10-Q) — 660KB
• ex_723198.htm (EX-31.1) — 8KB
• ex_723199.htm (EX-31.2) — 8KB
• ex_723200.htm (EX-32) — 8KB
• 0001185185-24-000882.txt ( ) — 3397KB
• feim-20240731.xsd (EX-101.SCH) — 33KB
• feim-20240731_cal.xml (EX-101.CAL) — 31KB
• feim-20240731_def.xml (EX-101.DEF) — 122KB
• feim-20240731_lab.xml (EX-101.LAB) — 215KB
• feim-20240731_pre.xml (EX-101.PRE) — 131KB
• freqelec20240731_10q_htm.xml (XML) — 384KB

Financial Information

Part I. Financial Information:

- Financial Statements

Item 1 - Financial Statements: Condensed Consolidated Balance Sheets – July 31, 2024 (unaudited) and April 30, 2024 3 Condensed Consolidated Statements of Operations and Comprehensive Income – Three Months Ended July 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Cash Flows Three months ended July 31, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended July 31, 2024 and 2023 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7-12

- Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 13-17

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 18

- Controls and Procedures

Item 4 - Controls and Procedures 18-19

Other Information

Part II. Other Information:

– Risk Factors

Item 1A – Risk Factors 20

– Other Information

Item 5 – Other Information 20

- Exhibits

Item 6 - Exhibits 20

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FREQUENCY ELECTRONICS, INC. and SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value) July 31, April 30, 2024 2024 (UNAUDITED) ASSETS: Current assets: Cash and cash equivalents $ 16,201 $ 18,320 Accounts receivable, net of allowances of $ 110 at July 31, 2024 and April 30, 2024 5,922 4,614 Contract assets 10,817 10,523 Inventories 24,308 23,431 Prepaid income taxes - 37 Prepaid expenses and other 1,977 1,196 Total current assets 59,225 58,121 Property, plant, and equipment, net 6,304 6,438 Goodwill 617 617 Cash surrender value of life insurance 10,379 10,221 Right-of-use assets – operating leases 5,646 6,036 Restricted cash 1,217 945 Other assets 876 875 Total assets $ 84,264 $ 83,253 LIABILITIES AND STOCKHOLDERS ' EQUITY: Current liabilities: Accounts payable – trade $ 1,553 $ 2,348 Accrued liabilities 4,938 4,765 Loss provision accrual 234 404 Dividend payable 9,567 - Income taxes payable 79 - Operating lease liability – current portion 1,468 1,640 Contract liabilities 20,854 21,639 Total current liabilities 38,693 30,796 Deferred compensation 8,050 8,088 Deferred taxes 18 8 Operating lease liability – non-current portion 4,301 4,545 Total liabilities 51,062 43,437 Stockholders' equity: Preferred stock - $ 1.00 par value; authorized 600 shares, no shares issued - - Common stock - $ 1.00 par value; authorized 20,000 shares, 9,568 shares issued and 9,562 shares outstanding at July 31, 2024; 9,512 shares issued and 9,511 shares outstanding at April 30, 2024 9,568 9,512 Additional paid-in capital 41,296 50,334 Accumulated deficit ( 17,597 ) ( 20,027 ) Common stock reacquired and held in treasury - at cost ( 5 shares at July 31, 2024 and 1 share at April 30, 2024) ( 65 ) ( 3 ) Total stockholders' equity 33,202 39,816 Tota

Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations "Safe Harbor " Statement under the Private Securities Litigation Reform Act of 1995 : The statements in this Quarterly Report on Form 10-Q 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, including the U.S government, 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, competitive developments, changes in manufacturing and transportation costs, the availability of capital, and the outcome of any litigation and arbitration proceedings. The factors listed above are not exhaustive. Other sections of this Form 10-Q and in Part I, Item 1A (Risk Factors) of the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (the "Form 10-K") include additional factors that could materially and adversely impact the Company's business, financial condition and results of operations. 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

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View this 10-Q filing on SEC EDGAR