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LI firm sees growth in satellite payload market
Frequency Electronics Inc., of Mitchel Field, reports that its strong performance in the space technology market has resulted in an increase in both revenue and profit in its most recent quarter.
The company's shares, traded on the Nasdaq, rose 4.6 percent after its premarket disclosure of the quarterly report, filed with the Securities and Exchange Commission.
The company reports $1.07 million income on $15.4 million sales for the quarter ended Jan. 31, up from income of $508,000 on sales of $12.6 million in the same quarter last year. Income per diluted share more than doubled, from 6 cents to 13 cents, from quarter to quarter.
Future profit from sales of payloads -- the guts of a satellite, including transponders to receive and send signals -- is expected to keep improving, the company said, now that it has completed its purchase of a New Jersey engineering and manufacturing firm, Elcom Technologies Inc.
"Elcom's synthesizer technology and Ka-band microwave expertise will help us increase the dollar value of our content on U.S. Government and commercial satellite payloads, today under $10 million to potentially over $25 million per single satellite," Joseph Franklin, chairman of Frequency's board, said in a statement.
Ka-band amplifiers are part of a generation of high-frequency satellite technology that can transmit more data than standard Ku-band equipment. Ka-band transmissions also have the benefit of requiring smaller receivers than previous-generation signals.
Franklin said he expects Frequency's satellite payload program will be its dominant business area for the next two years.
Founded 51 years ago by Martin Bloch, Frequency Electronics specializes in clocks and synchronization devices for missiles, unmanned aircraft, GPS, secure radios, energy exploration, hard-wired and wireless telecom networks; and for military command-and-control systems.
Photo: One of the satellites that Frequency Electronics, of Mitchel Field, supplies.
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