Frequency Electronics, Inc. Announces Fiscal Year 2010 Results
MITCHEL FIELD, N.Y., July 15, 2010 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (Nasdaq:FEIM) reported net income for fiscal year 2010, which ended April 30, 2010, of $2.7 million, or $0.33 per diluted share, compared to a net loss of $11.0 million or ($1.33) per diluted share for the prior fiscal year. Revenues for fiscal year 2010 were $49.4 million, compared to $52.7 million for fiscal 2009. Fiscal 2010 operating income was $1.8 million, compared to an operating loss of $5.9 million for the prior fiscal year. Fiscal 2010 results include a net $1.5 million tax benefit after giving effect to an additional $2.0 million tax refund created by a change in tax laws regarding the carryback of net operating losses. Fiscal 2009 results included a net tax provision of $5.3 million after recording a $7.6 million valuation allowance against deferred tax assets.
Net income for the fourth quarter of fiscal 2010 was $175,000 on revenues of $13.1 million. For the same quarter of fiscal 2009, the Company reported a loss of $9.5 million on revenues of $12.4 million. The prior year's fourth quarter results included $2.9 million in additional inventory write downs related to the Company's wireless telecommunications infrastructure products.
Chairman of the Board General Joseph Franklin made the following comments: "We are very pleased to have met our goals of achieving profitability and strengthening our cash position, even at a reduced level of revenues. We generated both overall and operating profits, which reflect our increased operating efficiencies. Cash and marketable securities increased from less than $15 million to over $20 million. During this past year, many major space programs on which we anticipated contract awards were delayed. Three of these programs, on which Frequency's bookings could exceed $50 million, have been delayed for over one year. Our outlook for increased satellite and DOD business continues to be very positive, reflecting the high level of proposal activity. In this next full fiscal year we expect to increase revenues and to continue improving our operating margins and profitability."
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