Frequency Electronics shares jump on report of narrower loss
Frequency Electronics shares rose Friday after the company reported a narrower loss. Credit: Howard Schnapp
Shares of Frequency Electronics Inc. climbed Friday after the maker of timing and synchronization devices for satellites, aircraft and global positioning system devices reported a narrower loss for the third quarter.
The Uniondale company posted a net loss from continuing operations of $321,000, or 4 cents per diluted share, for the period ended Jan. 31, versus a net loss of $10.1 million, or $1.15 per diluted share, in the year-earlier quarter.
Revenue increased to $13.2 million compared to $10.6 million in the 2018 period. Frequency Electronics released its earnings report after Thursday's stock market close.
The stock on Friday closed up 14.7 percent to $12.39. Twelve months ago the stock was trading at $9.36.
In a conference call after the earnings release, president and chief executive Stanton D. Sloane pointed to the announcement earlier this week of a $5.9 million contract with Lockheed Martin to use Frequency's timing technology in GPS satellites.
"This is a game changer for us," he said.
Martin B. Bloch, executive chairman and chief scientist, said the "opportunity is approximately $15 million per satellite" and the federal government plans to launch 22 of the GPS satellites over the next five to eight years.
Martin B. Bloch, executive chairman and chief scientist at Frequency Electronics, said a new contract for GPS satellites creates an opportunity of "about $15 million per satellite." Credit: Barry Sloan
Earlier this week, officials announced that Frequency Electronics would receive $1 million in New York State tax credits over 10 years in exchange for a commitment to create 116 jobs over the next five years.
The company had 140 employees last year.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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