Silicon Investor - Frequency Electronics/The China Connection

[richardred] Frequency Electronics, Inc. Announces Third Quarter Fiscal Year 2013 Results[ M...

richardred — 3/14/2013 9:42:40 AM

Frequency Electronics, Inc. Announces Third Quarter Fiscal Year 2013 Results[

MITCHEL FIELD, N.Y., March 13, 2013 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. ( FEIM) reported revenues for the third quarter of fiscal 2013, which ended January 31, 2013, of $17.1 million, an 11% increase over the $15.4 million recorded in the third quarter of fiscal 2012. Revenues for the first nine months of fiscal 2013 also increased by 11% to $51.4 million compared to $46.4 million in the same period of the prior year.

The Company recorded operating profit of $1.8 million for the quarter ended January 31, 2013, compared to $1.9 million in the third quarter of the prior year. Operating profit for the first nine months of fiscal year 2013 was $4.8 million compared to $5.5 million for the same period of fiscal year 2012. Net income for the third quarter of fiscal 2013 was $1.5 million or $0.18 per diluted share compared to $1.1 million or $0.13 per diluted share for the third quarter of the prior year. For the year to date, net income was $3.7 million or $0.43 per diluted share compared to the prior year's $3.2 million or $0.37 per diluted share.

Commenting on results of the past quarter, Chairman of the Board General Joseph Franklin said: "Based on our results through the third quarter, our present backlog and our expectations for the balance of the year, we continue to anticipate year-over-year growth in revenues, operating profits and EBITDA for full fiscal year 2013. FEI-Elcom's recently announced additional order for ultra fast switching synthesizers will contribute to their profitability in our 4th quarter of this fiscal year. Also, we are making excellent progress in the development of our expanded product line of Ka and Ku band receivers/down converters for space. We expect to have prototypes available for customer evaluation and qualification this year."

Selected Fiscal 2013 Financial Metrics and Other Items

For the nine months ended January 31, 2013, satellite payload revenues increased by more than $2 million over the same period of the prior year and accounted for approximately half of consolidated revenues. Satellite payloads account for more than three-fourths of the Company's consolidated backlog of over $60 million.

Total sales for U.S. Government/DOD end-use, including revenues on U.S. Government satellite programs, rose in the third quarter and for the nine months accounted for 60% of consolidated revenues. With increasing sales from FEI-Elcom, revenues for U.S. Government/DOD end-use will continue to grow in this current fiscal year.

For the third quarter, revenues at FEI-Elcom increased by approximately 25% over the preceding quarter of this fiscal year. The additional revenues enabled this recently acquired subsidiary to record a modest operating profit from operations partially offsetting the $900,000 operating loss included in consolidated results reported for the first quarter of fiscal year 2013.

Spending on internal research and development (IR&D) for the nine months ended January 31, 2013, increased by approximately $800,000 compared to the same period of the prior year. These expenditures include increased efforts on the Company's expanded product line of satellite microwave receivers/converters. IR&D is expected to continue at a rate of less than 10% of revenues for fiscal 2013.

Reported segment revenues (in thousands):

	3 months ended January 31,		9 months ended January 31,
	2013	2012	2013	2012
FEI-NY	$14,076	$11,075	$38,211	$33,050
Gillam-FEI	1,913	3,370	6,431	7,039
FEI-Zyfer	2,054	2,001	8,742	8,588
less intersegment revenues	(906)	(998)	(1,993)	(2,235)
Consolidated revenues	$17,137	$15,448	$51,391	$46,442

Investor Conference Call

As previously announced, the Company will hold a conference call to discuss these results on Wednesday, March 13, 2013, at 2:30 PM Eastern Time. Investors and analysts may access the call by dialing 1-877-407-9205. International callers may dial 1-201-689-8054. Ask for the Frequency Electronics conference call.

The call will be archived on the Company's website through April 15, 2013. The archived call may also be retrieved at 1-877-660-6853 (domestic) or 1-201-612-7415 (international) using Conference ID #: 410788.

About Frequency Electronics

Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high precision timing, frequency control and synchronization products for space and terrestrial applications. Frequency's products are used in commercial, government and military systems, including satellite payloads, C4ISR markets, missiles, UAVs, aircraft, GPS, secure radios, energy exploration and wireline and wireless communication networks. Frequency 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 and strategic acquisitions world-wide to expand its capabilities and markets.

Frequency's Mission Statement: "Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 42 GHz, for space and other challenging environments."

Subsidiaries and Affiliates: Gillam-FEI provides expertise in wireline network synchronization and SCADA; FEI-Zyfer provides GPS and secure timing ("SAASM") capabilities for critical military and commercial applications; FEI-Asia provides cost effective manufacturing and distribution capabilities; FEI-Elcom Tech provides added resources for state-of-the-art RF microwave products. Frequency's Morion affiliate supplies high-quality, cost effective quartz oscillators and components. Additional information is available on the Company's website: www.frequencyelectronics.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The Statements in this press release regarding 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, inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, consumer spending trends, 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, competitive developments, changes in manufacturing and transportation costs, the availability of capital, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Frequency Electronics, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations

	Quarter Months ended January 31,		Nine Months Ended January 31,
	2013	2012	2013	2012
	(unaudited)
	(in thousands except per share data)

Net Revenues	$17,137	$15,448	$51,391	$46,442
Cost of Revenues	10,387	9,233	31,928	27,970
Gross Margin	6,750	6,215	19,463	18,472
Selling and Administrative	3,887	3,390	10,883	10,017
Research and Development	1,113	882	3,731	2,954
Operating Profit	1,750	1,943	4,849	5,501
Interest and Other, Net	70	(369)	280	(537)
Income before Income Taxes	1,820	1,574	5,129	4,964
Income Tax Provision	300	500	1,400	1,770
Net Income	$1,520	$1,074	$3,729	$3,194

Net Income per Share:
Basic	$0.18	$0.13	$0.44	$0.38
Diluted	$0.18	$0.13	$0.43	$0.37
Average Shares Outstanding
Basic	8,424,162	8,323,912	8,401,348	8,319,740
Diluted	8,603,774	8,508,297	8,583,616	8,537,591


Frequency Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets


	January 31, 2013	April 30, 2012
	(in thousands)
ASSETS
Cash & Marketable Securities	$21,631	$22,440
Accounts Receivable	8,357	10,866
Costs and Estimated Earnings
in Excess of Billings, net	8,617	7,207
Inventories	37,756	34,299
Other Current Assets	4,357	4,550
Property, Plant & Equipment	8,391	8,374
Other Assets	19,171	18,491
	$108,280	$106,227

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities	$14,701	$16,109
Long-term Obligations and Other	11,133	10,986
Stockholders' Equity	82,446	79,132
	$108,280	$106,227

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[richardred] FEIM new 52 week high today on a low volume trade.

richardred — 2/20/2013 1:03:21 PM

[richardred] Frequency Electronics, Inc. will be open on Wednesday (10/31) October 30, 2012, ...

richardred — 10/31/2012 11:21:33 AM

Frequency Electronics, Inc. will be open on Wednesday (10/31) October 30, 2012, 4:15 PM EDT - UNIONDALE, NY

Frequency Electronics will open as usual tomorrow after our building was spared the worst of Hurricane Sandy.

[richardred] Frequency Electronics Reports Over $10 Million Contract Awards [graphic]Press Re...

richardred — 7/24/2012 12:57:45 AM

Frequency Electronics Reports Over $10 Million Contract Awards Press Release: Frequency Electronics, Inc. – 16 hours ago

MITCHEL FIELD, N.Y., July 23, 2012 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. ( FEIM) has received new contract awards totaling over $10 million for U.S. Government secure communications satellite payloads.

Frequency will supply precision timing systems and low-phase-noise frequency sources with a substantial portion of the work to be completed within 18 months. These contracts call for product based on systems previously developed by Frequency and currently deployed in orbit, which enables cost-effective and timely performance of the contracts.

Martin Bloch, President and CEO, said, "These new awards continue to affirm the technical excellence and innovative solutions we provide, along with our aerospace customers, for critical space applications. These contracts also confirm our Government's commitment to fund the strategic programs which we address."

About Frequency Electronics

Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high precision timing, frequency control and synchronization products for space and terrestrial applications. Frequency's products are used in commercial, government and military systems, including satellite payloads, C4ISR markets, missiles, UAVs, aircraft, GPS, secure radios, energy exploration and wireline and wireless communication networks. Frequency 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 and strategic acquisitions world-wide to expand its capabilities and markets.

Frequency's Mission Statement: "Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 46 GHz, for space and other challenging environments."

Subsidiaries and Affiliates: Gillam-FEI provides expertise in wireline network synchronization and SCADA; FEI-Zyfer provides GPS and secure timing ("SAASM") capabilities for critical military and commercial applications; FEI-Asia provides cost effective manufacturing and distribution capabilities; FEI-Elcom Tech provides added resources for state-of-the-art RF microwave products. Frequency's Morion affiliate supplies high-quality, cost effective quartz oscillators and components. Additional information is available on the Company's website: www.frequencyelectronics.com

[richardred] Frequency Electronics, Inc. Announces Fiscal Year 2012 Results RELATED QUOTES S...

richardred — 7/13/2012 9:16:10 AM

Frequency Electronics, Inc. Announces Fiscal Year 2012 Results

RELATED QUOTES
SymbolPriceChange

FEIM	7.85

MITCHEL FIELD, N.Y., July 12, 2012 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. ( FEIM) reported revenues of $63.6 million for fiscal year 2012, which ended April 30, 2012, a 20% year-over-year increase compared to revenues of $53.2 million for fiscal 2011.

Operating profit for fiscal 2012 almost doubled to $6.9 million, compared to operating profit of $3.5 million for fiscal 2011.

Net income for fiscal 2012 was $7.4 million or $0.86 per diluted share, compared to net income of $6.0 million or $0.72 per diluted share, for fiscal 2011. In accordance with GAAP, net income included $3.1 million from the reversal of a deferred tax valuation allowance and recognition of a gain of $700,000 from the step acquisition of Elcom Technologies. Fiscal 2011 results included a $3.7 million reversal of the deferred tax valuation allowance established in prior years.

Commenting on the Company's performance and business outlook, Chairman of the Board General Joseph Franklin stated: "We are very pleased to have achieved this substantial increase in revenues and profitability for fiscal 2012. The outlook for this year, fiscal 2013, is excellent for both the US Government/DOD and Commercial sectors based on our pipeline of present recurring business and multiple long-term programs already under contract. In addition, we expect the acquisition of Elcom, completed in the final quarter of fiscal 2012, to be accretive this year. Opportunities for new business are also expanding as a result of the military's need to derive greater performance with less incremental cost by upgrading existing systems instead of funding new platforms. FEI's proprietary technology is a key element that supports the mission of "doing more with less." We are looking forward to another very good year and continued growth in fiscal 2013."

Selected Fiscal 2012 Financial Metrics and Other Items

For fiscal year 2012, operating profit plus depreciation and amortization, cashless contributions to employee benefit plans and stock-based compensation ("Modified EBITDA") was $11.2 million compared to $7.0 million for fiscal year 2011, an increase of 61% year over year.

Satellite payloads, the Company's dominant and fastest growing business area, represented 49% of consolidated revenues, up from 33% in the prior year, reflecting increases in both the US Government/DOD and Commercial sectors. More than two thirds of year-end backlog represents satellite business, about equally divided between US Government/DOD and Commercial applications.

Activity to support hosted payloads accelerated with the award of three contracts in fiscal 2012, compared to a total of four such contracts over the prior five years. Frequency was an early participant in hosted payload development, in which third party payloads ride piggy-back in separate spaces that are set aside aboard satellites performing other missions. These payloads are a prime example of achieving increased productivity at lower cost, or "doing more with less." Participation in hosted payloads represents a major opportunity for FEI.

Elcom Technologies, now FEI-Elcom Tech, will add to Frequency's consolidated revenues from their existing microwave device and subsystem business. (See Press Release of June 28, 2012, re: FEI-Elcom Tech's $4 million order.) When combined with FEI's legacy and resources, FEI-Elcom's addressable markets expand to include multiple new opportunities in SIGINT and other C4ISR applications. Of special importance, FEI-Elcom's advanced technology is being integrated into FEI's satellite payload systems. This will contribute to and accelerate FEI's realization of larger potential revenue, $25 million and more, from a single satellite payload.

The fourth quarter acquisition of FEI-Elcom is considered a "step acquisition" by generally accepted accounting principles. Such an acquisition required the Company to remeasure its previously held equity interest in Elcom to fair value, resulting in the recognition of a gain of approximately $700,000. This gain partially offset previously recorded Elcom impairment charges and equity losses in fiscal year 2012 prior to the acquisition, Elcom's fourth quarter operating loss and acquisition transaction costs. The net effect of the Elcom-related reported gain and charges, reduced consolidated pretax income by approximately $1.2 million for fiscal year 2012. The Company anticipates that FEI-Elcom Tech will make a positive contribution to income in fiscal year 2013.

Based on the Company's increasingly profitable performance for fiscal year 2012, Frequency's management believes it will be able to realize the tax benefits from the future deductibility of additional items included in its deferred tax assets. Therefore, in accordance with GAAP accounting criteria, the Company reversed $3.1 million of a $4.6 million valuation allowance against its deferred tax assets in the fiscal fourth quarter resulting in a net income tax benefit of $560,000 for fiscal year 2012. In fiscal year 2011, the Company made a similar assessment and reversed $3.7 million of the valuation allowance during the fourth quarter resulting in a net income tax benefit of $2.4 million for that fiscal year.

Investor Conference Call

As previously announced, the Company will hold a conference call to discuss these results on Thursday, July 12, 2012, at 4:30 PM Eastern Time. Investors and analysts may access the call by dialing 1-877-407-9205. International callers may dial 1-201-689-8054. Ask for the Frequency Electronics conference call.

The call will be archived on the Company's website through August 10, 2012. The archived call may also be retrieved at 1-877-660-6853 (domestic) or 1-201-612-7415 (international) using Passcodes (both are required for playback): Account: 286, Conference ID: 397368.

About Frequency Electronics

Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high precision timing, frequency control and synchronization products for space and terrestrial applications. Frequency's products are used in commercial, government and military systems, including satellite payloads, C4ISR markets, missiles, UAVs, aircraft, GPS, secure radios, energy exploration and wireline and wireless communication networks. Frequency 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 and strategic acquisitions world-wide to expand its capabilities and markets.

Frequency's Mission Statement: "Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 42 GHz, for space and other challenging environments."

Subsidiaries and Affiliates: Gillam-FEI provides expertise in wireline network synchronization and SCADA; FEI-Zyfer provides GPS and secure timing ("SAASM") capabilities for critical military and commercial applications; FEI-Asia provides cost effective manufacturing and distribution capabilities; FEI-Elcom Tech provides added resources for state-of-the-art RF microwave products. Frequency's Morion affiliate supplies high-quality, cost effective quartz oscillators and components. Additional information is available on the Company's website: www.frequencyelectronics.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The Statements in this press release regarding 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, inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, consumer spending trends, 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, competitive developments, changes in manufacturing and transportation costs, the availability of capital, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.



Frequency Electronics, Inc. and Subsidiaries
Consolidated Condensed Summary of Operations Data

	Quarter Ended		Year Ended
	April 30,		April 30,
	2012	2011	2012	2011
	(unaudited)		(audited)
	(in thousands except per share data)
Net Revenues	$17,153	$15,936	$63,595	$53,223
Cost of Revenues	11,006	10,365	38,977	33,254
Gross Margin	6,147	5,571	24,618	19,969
Selling and Administrative	3,808	3,018	13,825	11,398
Research and Development	907	1,459	3,860	5,081
Operating Profit	1,432	1,094	6,933	3,490
Interest and Other, Net	418	(2)	(121)	105
Income before Income Taxes	1,850	1,092	6,812	3,595
Income Tax Benefit	(2,330)	(3,580)	(560)	(2,420)
Net Income	$4,180	$4,672	$7,372	$6,015

Net Income per Share:
Basic	$0.50	$0.56	$0.89	$0.73
Diluted	$0.49	$0.55	$0.86	$0.72
Average Shares Outstanding
Basic	8,357,106	8,288,282	8,329,081	8,258,989
Diluted	8,551,046	8,475,096	8,540,955	8,363,023



Frequency Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

	April 30,	April 30,
	2012	2011
	(in thousands)
ASSETS
Cash & Marketable Securities	$22,440	$20,632
Accounts Receivable	10,866	11,663
Costs and Estimated Earnings in Excess of Billings, net	7,207	2,409
Inventories	34,299	28,172
Other Current Assets	4,548	4,860
Property, Plant & Equipment	8,374	7,163
Other Assets	18,569	14,932
	$106,303	$89,831

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities	$16,181	$7,386
Long-term Obligations and Other	10,990	10,910
Stockholders' Equity	79,132	71,535
	$106,303	$89,831

Reconciliation of GAAP operating profit to Modified EBITDA:
	Year Ended
	April 30,
	2012	2011
	(in thousands)
GAAP operating profit	$6,933	$3,490
Depreciation & amortization	2,237	1,937
Deferred compensation expense	1,156	1,052
Stock-based compensation	863	476
Modified EBITDA	$11,189	$6,955

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[richardred] Frequency Electronics Announces $4 Million Order for FEI-Elcom Tech Inc. MITCHE...

richardred — 6/28/2012 9:07:56 AM

Frequency Electronics Announces $4 Million Order for FEI-Elcom Tech Inc.

MITCHEL FIELD, N.Y., June 28, 2012 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (FEIM) announced that its wholly-owned subsidiary, FEI-Elcom Tech Inc. has received an Authorization to Proceed on a contract to provide ultra-low phase noise, fast switching microwave synthesizers. The total value of the contract is expected to exceed $4 million and is to be completed in less than twelve months. The contract calls for broadband 18 GHz synthesizers with recently developed IF modulation flatness technology required for new demands within Electronic Warfare applications.

Frequency's New York operation is integrating FEI-Elcom's advanced microwave technology in synthesizers, receivers and up/down converters for use in the Company's primary satellite and hosted payload systems and additional C4ISR applications.

Jim Davis, CEO of FEI-Elcom, said, "By working collaboratively with our customers and maintaining our long term and on going strategy of investment in synthesizer technology, we were able to provide substantive new functionality to the product line resulting in the new contract award. Additional benefits include the ability to cost effectively upgrade legacy systems and adding a new core competency to our product development portfolio. It is gratifying to see a win-win solution in the form of this new order and we look forward to follow on business as the advantages of the technology become known within the EW community."

About Frequency Electronics

Frequency Electronics, Inc. is a world leader in the design, development and manufacture of high precision timing, frequency control and synchronization products for space and terrestrial applications. Frequency's products are used in commercial, government and military systems, including satellite payloads, C4ISR markets, missiles, UAVs, aircraft, GPS, secure radios, energy exploration and wireline and wireless communication networks. Frequency 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 and strategic acquisitions world-wide to expand its capabilities and markets.

Frequency's Mission Statement: "Our mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 42 GHz, for space and other challenging environments."

Subsidiaries and Affiliates: Gillam-FEI provides expertise in wireline network synchronization and SCADA; FEI-Zyfer provides GPS and secure timing ("SAASM") capabilities for critical military and commercial applications; FEI-Asia provides cost effective manufacturing and distribution capabilities in a high growth market; FEI-Elcom Tech provides added resources for state-of-the-art RF microwave products. Frequency's Morion affiliate supplies high-quality, cost effective quartz oscillators and components. Additional information is available on the Company's website: www.frequencyelectronics.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The Statements in this press release regarding 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, inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, consumer spending trends, 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, competitive developments, changes in manufacturing and transportation costs, the availability of capital, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact:

Alan Miller, CFO, or General Joseph P. Franklin, Chairman:
TELEPHONE: (516) 794-4500
WEBSITE: www.frequencyelectronics.com

[richardred] Frequency Electronics Reports Contract Awards at Sidoti Investor Conference Glob...

richardred — 6/14/2012 1:22:22 PM

Frequency Electronics Reports Contract Awards at Sidoti Investor Conference
GlobeNewswirePress Release: Frequency Electronics, Inc. –

MITCHEL FIELD, N.Y., June 14, 2012 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (FEIM)
made a presentation to investors and analysts at the Sidoti & Co
Semi-Annual Micro Cap Conference held at the Grand Hyatt Hotel, New
York. At the conference, the Company reported that it had received
numerous contracts with strategic implications and aggregating over $15
million, confirming the Company's positive growth outlook. These
contracts include follow-ons to long-term, existing programs, contracts
involving common designs for systems previously operating in space,
upgrades to electronic systems on existing government platforms and, of
special significance, several new contracts on hosted satellite
payloads. The growth in demand for hosted payloads presents a major
business opportunity for Frequency.

Hosted payloads allow other users to "piggyback" their own additional
separate payloads on a satellite. Frequency was an early participant in
hosted payloads having applied its technology to several payloads
already operating in orbit. Currently contract and development activity
is accelerating.

Martin Bloch, President and CEO, emphasized that economic circumstances
require that military and other government procurement be focused on
achieving better functionality and performance from existing systems and
platforms with lower additional costs. He confirmed that Frequency
greatly benefits from this requirement to "do more with less."
Frequency's world-leading technologies in precision time, low
phase-noise, low g, ruggedized microwave frequency sources and
ultra-fast synthesizers are key enablers for improved performance in
electronic systems. According to Mr. Bloch, "Applying our proprietary
technology to achieve more at lower cost is a key foundation for
Frequency's continued growth this year, next year and beyond."

About Frequency Electronics

Frequency Electronics, Inc. is a world leader in the design,
development and manufacture of high precision timing, frequency control
and synchronization products for space and terrestrial applications.
Frequency's products are used in commercial, government and military
systems, including satellite payloads, C4ISR markets, missiles, UAVs,
aircraft, GPS, secure radios, energy exploration and wireline and
wireless communication networks. Frequency 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 and strategic
acquisitions world-wide to expand its capabilities and markets.

Frequency's Mission Statement: "Our mission is to provide
precision time and low phase noise frequency generation systems from 1
Hz to 42 GHz, for space and other challenging environments."

Subsidiaries and Affiliates: Gillam-FEI provides expertise in
wireline network synchronization and SCADA; FEI-Zyfer provides GPS and
secure timing ("SAASM") capabilities for critical military and
commercial applications; FEI-Asia provides cost effective manufacturing
and distribution capabilities in a high growth market; FEI-Elcom Tech
provides added resources for state-of-the-art RF microwave products.
Frequency's Morion affiliate supplies high-quality, cost effective
quartz oscillators and components. Additional information is available
on the Company's website: www.frequencyelectronics.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The Statements in this press release regarding 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, inability to integrate operations and personnel,
actions by significant customers or competitors, general domestic and
international economic conditions, consumer spending trends, 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, competitive developments, changes in manufacturing
and transportation costs, the availability of capital, and other risks
detailed in the Company's periodic report filings with the Securities
and Exchange Commission. By making these forward-looking statements, the
Company undertakes no obligation to update these statements for
revisions or changes after the date of this release.
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