Friday, Frequency Electronics, Inc. (FEIM), a high precision telecommunication equipments provider, reported a net profit for the first quarter, despite a slight decline in revenues. In the early hours of trading shares are up more than 14% on the Nasdaq.
For the quarter, the Mitchell Field, New York-based company posted a net profit of $654 thousand or $0.08 per share as against a net loss of $773 thousand or $0.09 per share in the prior-year quarter.
Net revenues for the quarter slipped to $12.44 million from $13.06 million in the first quarter of fiscal 2009. Analysts estimated Frequency Electronics to generate revenues of $12.82 million during the quarter.
Satellite payloads revenues, which represents about 30% of the company's total revenues, fell by nearly 15% from the previous year, and sales of telecommunications equipment, which remains lower than 40% of total revenues, were up modestly from the year-ago period.
On a segmental basis, revenues from FEI-NY segment, which includes revenues from all major business areas, dropped to $7.1 million from $8.8 million, and revenues from Gillam-FEI, which primarily includes wireline telecommunications infrastructure and other network management products, were $2.5 million versus $2.6 million last year. Revenues from FEI-Zyfer, which consists of sales from U.S. Government/DOD programs, surged to $4.2 million from $2.3 million a year ago.
During the quarter, the company incurred selling and administrative expenses totaling $2.57 million compared to $3.12 million, and costs related to research and development declined to $1.08 million from $1.37 million in the 2009 period.
Frequency Electronics' operating profit for the three-month period was $659 thousand compared with an operating loss of $1.29 million in the same quarter last year.
Looking ahead, Frequency Electronics expects continued improvement in operations, thereby leading to a profitability in full year 2010.
FEIM is currently trading at $4.96 per share, up 14.29%, on the Nasdaq.
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