FEI-Zyfer Secures Contracts Worth Approximately $6M
FEI-Zyfer announced the receipt of contracts totaling approximately $6M in two of our core business areas for Assured-PNT - for secure communications systems and for time, frequency, and synchronization distribution systems in support of airborne avionics equipment.
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- Significant Contract Value: Frequency Electronics has secured follow-on contracts from a major aerospace company valued at approximately $6 million, with additional contracts anticipated within three months worth over $2 million, indicating strong ongoing demand for its core technologies in mission-critical government programs.
- Technological Edge: The precision Oven-controlled Quartz Oscillators utilize the company's patented technology to operate reliably in high dynamic environments, ensuring critical performance for the Link 16 system and reinforcing the company's leadership in high-precision timing and frequency control markets.
- Broad Market Applications: Frequency Electronics' products are utilized not only in satellite payloads but also across commercial, government, and military systems, including C4ISR, electronic warfare, and UAVs, showcasing its market penetration in multiple critical sectors.
- Ongoing R&D Investment: The company invests significant resources in research and development to expand its capabilities and markets, aiming to transform laboratory discoveries into practical applications, thereby ensuring a competitive edge in the future.

U.S. Stock Market Performance: U.S. stocks declined, with the Nasdaq Composite dropping over 400 points on Friday, while RH shares rose 5.8% after reporting better-than-expected quarterly revenue but missing earnings estimates.
Significant Stock Gains: Several stocks saw notable gains, including TryHard Holdings Ltd (+57.2%), Canopy Growth Corp (+35.4%), and Tilray Brands Inc (+28.4%), largely driven by expectations of relaxed federal marijuana regulations under President Trump.
Lululemon's Strong Performance: Lululemon Athletica Inc gained 10.1% after exceeding third-quarter estimates, raising full-year guidance, and announcing a CEO succession plan along with an increase in its share buyback program.
Other Notable Stock Movements: Companies like Rivian Automotive Inc and Clear Secure Inc also experienced significant gains, with Rivian entering the autonomous driving sector and Clear Secure receiving an upgrade from JP Morgan.
Earnings Performance: Frequency Electronics reported a strong second quarter for fiscal 2026, with revenue of $17.1 million, a 24% increase from the previous quarter, and the highest backlog in company history at $82 million, indicating a solid growth trajectory.
Market Opportunities: The company is optimistic about growth in emerging markets such as quantum sensing and proliferated satellites, while also maintaining a strong core business in defense and space technology, which is expected to contribute to long-term profitability.
Operational Challenges: Previous delays in revenue recognition were attributed to customer-driven issues and program requirements, but these have been resolved, allowing for a resumption of growth and anticipated normalization of margins in the near term.
Strategic Partnerships and Future Outlook: Frequency Electronics is focused on leveraging its strategic partnerships with major defense contractors and exploring international business opportunities, while also preparing for potential growth in both military and commercial drone applications.

- Revenue Growth: Frequency Electronics reported a revenue of $17.1 million for Q2 FY2026, reflecting a 24% increase compared to $15.8 million in the same quarter of FY2025, indicating strong market performance and recovery trends.
- Net Income Decline: Despite the revenue increase, net income fell to $1.8 million from $2.7 million year-over-year, a 33% decrease, highlighting the impact of rising costs and operational challenges.
- Increased Backlog: As of October 31, 2025, the backlog reached approximately $82 million, up 14.3% from $70 million in April 2025, suggesting enhanced future revenue potential and market demand.
- Optimistic Future Outlook: The company anticipates multiple large contract awards in the coming months, particularly in core technologies like quantum sensing, signaling long-term growth opportunities ahead.
Earnings Decline: Frequency Electronics Inc. reported a decrease in earnings for the second quarter, totaling $1.801 billion or $0.18 per share, down from $2.654 billion or $0.28 per share last year.
Revenue Increase: Despite the drop in earnings, the company's revenue increased by 8.3%, reaching $17.127 billion compared to $15.820 billion in the previous year.

- Conference Call Announcement: Frequency Electronics will hold a conference call on December 11, 2025, at 4:30 PM ET to discuss its Q2 FY2026 results, which is expected to attract significant investor and analyst interest.
- Webcast Availability: The call will be webcast by Issuer Direct Corporation, accessible via the Investor Relations section of the company's website, enhancing information transparency for stakeholders.
- International Dial-In Options: International callers can join by dialing 973-528-0011, ensuring global investor participation and reflecting the company's commitment to its international investor base.
- Telephone Replay Service: An archived replay of the call will be available for one week post-event, improving accessibility for investors who cannot attend live, thereby facilitating the dissemination of key information to a broader audience.







