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Frequency Electronics Issues a Clarification to Yesterday's Earnings Call

1. FEIM clarifies revenue expectations for TURbO atomic clock are understated. 2. Projected revenue for TURbO in FY2026 is $1M to $2M. 3. Potential market growth for TURbO could exceed $20M by FY2027. 4. DOD's expansion of drone applications may boost demand for FEIM's technology. 5. FEIM aims to expand capabilities in quantum sensing and magnetometers.

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FAQ

Why Bullish?

The clarification indicates strong future revenue potential, especially with military contracts. Historical examples, such as contracts awarded to tech firms during military expansions, show similar positive impacts.

How important is it?

Significant revenue projections and strategic military relevance suggest notable investor interest.

Why Long Term?

The anticipated growth due to new technological applications and DOD contracts suggests sustained revenue increases over several years.

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LMTBANOC
July 11, 2025 12:45 ET  | Source: Frequency Electronics, Inc. MITCHEL FIELD, N.Y., July 11, 2025 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency technology, would like to clarify a topic on yesterday’s earnings call. The Company discussed expected near-term revenue from its TURbO compact rubidium atomic clock. As a clarification, although the stated revenue expectation in FY2026 of $1M to $2M is accurate, that comment referred to orders already received since TURbO’s introduction a few weeks ago, and understates the very significant market for this technology. TURbO, or Time Unit Rubidium Oscillator, is our leading-edge, next generation atomic clock, which was internally developed by FEI. Given the smaller form factor and high performance of TURbO, we anticipate this opening up much larger end-market exposure for our atomic clocks. Notable expanded use cases include rapidly expanding drone applications, in addition to more traditional aircraft radar applications. Given the Department of Defense’s announcement yesterday regarding bolstering the U.S. drone manufacturing base and expanding the use of drones for military units and training programs, we believe this further grows our addressable market. It is estimated that this represents a potential growing market for FEI of $20M or more in FY2027. We look forward to sharing further developments and updates on this exciting growth market in the coming quarters, as well as additional updates on quantum sensing and magnetometers in the near 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, 2024, filed on August 2, 2024 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

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