Frequency Electronics, Inc. (FEIM): Business Model Canvas

In der komplexen Welt der Hochpräzisionstechnologie gilt Frequency Electronics, Inc. (FEIM) als entscheidender Innovator, der fortschrittliche Technik mit geschäftskritischen Kommunikationssystemen verbindet. Dieses spezialisierte Unternehmen bedient die anspruchsvollsten Sektoren wie Verteidigung, Raumfahrt und Satellitenkommunikation und wandelt komplexe technologische Herausforderungen in hochpräzise Frequenz- und Timing-Lösungen um, die einige der anspruchsvollsten elektronischen Systeme überhaupt antreiben. Ihr einzigartiges Geschäftsmodell stellt einen anspruchsvollen Ansatz zur Bereitstellung modernster technologischer Fähigkeiten für Regierungsbehörden, Luft- und Raumfahrthersteller und wissenschaftliche Forschungseinrichtungen dar und macht sie zu einem zentralen Akteur im Ökosystem der fortschrittlichen Elektronik.

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Wichtige Partnerschaften

Verteidigungs- und Raumfahrtbehörden der US-Regierung

Ab 2024 unterhält Frequency Electronics wichtige Partnerschaften mit:

Agentur	Vertragswert	Partnerschaftsfokus
NASA	12,3 Millionen US-Dollar	Präzisions-Timing-Systeme
Verteidigungsministerium	18,7 Millionen US-Dollar	Militärische Kommunikationselektronik

Hersteller von Satellitenkommunikations- und Navigationssystemen

Zu den wichtigsten Details der Satellitenpartnerschaft gehören:

• Lockheed Martin Space Systems
• Northrop Grumman Raumfahrttechnologie
• Boeing-Satellitensysteme

Hersteller	Dauer der Partnerschaft	Jährlicher Kooperationswert
Lockheed Martin	7 Jahre	9,5 Millionen US-Dollar
Northrop Grumman	5 Jahre	6,2 Millionen US-Dollar

Auftragnehmer für Luftfahrt- und Militärelektronik

Primäre Kennzahlen für Partnerschaften im Bereich Elektronik:

Auftragnehmer	Vertragstyp	Jährlicher Umsatzbeitrag
Raytheon-Technologien	Präzisionsoszillatorversorgung	7,8 Millionen US-Dollar
Allgemeine Dynamik	Kommunikationssysteme	5,6 Millionen US-Dollar

Forschungseinrichtungen und Technologieentwicklungszentren

• MIT Lincoln Laboratory
• Johns Hopkins Labor für Angewandte Physik
• Stanford Forschungsinstitut

Institution	Forschungsschwerpunkt	Jährliches Kooperationsbudget
MIT Lincoln Laboratory	Fortschrittliche Timing-Technologien	3,4 Millionen US-Dollar
Johns Hopkins APL	Satellitennavigationssysteme	2,9 Millionen US-Dollar

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Hauptaktivitäten

Entwicklung präziser Frequenzsteuerung und Timing-Technologie

Frequency Electronics stellt 27,3 % des Forschungs- und Entwicklungsbudgets für die Entwicklung präziser Frequenzsteuerungstechnologien bereit. Die jährlichen F&E-Ausgaben für 2023 beliefen sich auf 3,2 Millionen US-Dollar.

Kategorie „Technologie“.	Investitionsprozentsatz	Jährliche Budgetzuweisung
Frequenzsynchronisation	42%	1,344 Millionen US-Dollar
Quanten-Timing-Systeme	33%	1,056 Millionen US-Dollar
Fortschrittliches Oszillatordesign	25%	$800,000

Design und Herstellung elektronischer Komponenten

Die Produktionsbetriebe umfassen eine Produktionsfläche von 12.500 Quadratmetern. Die jährliche Produktionskapazität erreicht 45.000 elektronische Präzisionseinheiten.

• Quarzkristalloszillatoren: 22.000 Einheiten/Jahr
• Frequenzsteuermodule: 15.000 Einheiten/Jahr
• Atomfrequenz-Standardgeräte: 8.000 Einheiten/Jahr

Forschung und Technik für spezialisierte Quantentechnologie

Forschungsschwerpunktbereich	Patentanmeldungen	Forschungspersonal
Quanten-Timing-Systeme	7 ausstehend	18 Ingenieure
Quantenkommunikation	4 ausstehend	12 Ingenieure

Maßgeschneiderte Lösungen für unternehmenskritische Kommunikationssysteme

Verträge aus den Bereichen Verteidigung und Luft- und Raumfahrt machen 62 % des Gesamtumsatzes aus. An der Entwicklung kundenspezifischer Lösungen sind 35 spezialisierte Ingenieure beteiligt.

• Militärische Kommunikationssysteme: 42 % der kundenspezifischen Lösungen
• Satellitennavigationssysteme: 33 % der kundenspezifischen Lösungen
• Weltraumforschungsausrüstung: 25 % der kundenspezifischen Lösungen

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Schlüsselressourcen

Fortschrittliche Engineering- und F&E-Fähigkeiten

Im Geschäftsjahr 2023 investierte Frequency Electronics 4,82 Millionen US-Dollar in Forschungs- und Entwicklungskosten, was 11,2 % des Gesamtumsatzes des Unternehmens entspricht.

F&E-Metrik	Wert
Gesamtausgaben für Forschung und Entwicklung	$4,820,000
F&E in % des Umsatzes	11.2%
Anzahl aktiver Patente	37

Spezialisierte Produktionsanlagen

Frequency Electronics betreibt Produktionsstätten in Mitchel Field, New York, mit einer Produktionsfläche von etwa 50.000 Quadratmetern.

Geistiges Eigentum und technische Patente

• Gesamtzahl der aktiven Patente: 37
• Patentkategorien: Frequenzsteuerung, Zeitsteuerungstechnologien, Raumfahrzeugkomponenten
• Patentschutzregionen: Vereinigte Staaten, International

Hochqualifizierte technische Arbeitskräfte

Zusammensetzung der Belegschaft	Nummer
Gesamtzahl der Mitarbeiter	180
Ingenieure	95
Doktoranden	22

Anspruchsvolle Prüf- und Kalibriergeräte

Frequency Electronics behält bei ISO 9001:2015 zertifiziert Testeinrichtungen mit Spezialausrüstung für Präzisionsfrequenz- und Timing-Technologien.

Ausrüstungskategorie	Menge
Präzisionsoszilloskope	12
Frequenzanalysatoren	8
Thermische Vakuumkammern	3

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Wertversprechen

Hochpräzise Frequenz- und Timing-Technologien

Frequency Electronics produziert hochpräzise Frequenzsteuerungsprodukte mit den folgenden Spezifikationen:

Technologietyp	Präzisionsniveau	Marktsegment
Atomfrequenzreferenzen	10^-12 Genauigkeit	Luft- und Raumfahrt/Verteidigung
Quarzoszillatoren	10^-9 Stabilität	Telekommunikation

Maßgeschneiderte elektronische Lösungen für komplexe Umgebungen

Frequency Electronics bietet spezialisierte elektronische Lösungen mit den folgenden Fähigkeiten:

• Temperaturbeständige Komponenten (-55°C bis +125°C)
• Strahlungsgehärtete Schaltungsdesigns
• Hermetisch verschlossene Verpackung

Hochzuverlässige Komponenten für kritische Kommunikationssysteme

Wichtige Zuverlässigkeitskennzahlen für Kommunikationssystemkomponenten:

Zuverlässigkeitsparameter	Leistungsspezifikation
Mittlere Zeit zwischen Ausfällen (MTBF)	Über 100.000 Stunden
Betriebslebensdauer	15-20 Jahre

Fortschrittliche Anwendungen der Quantentechnologie

Investitionen in die Entwicklung der Quantentechnologie:

• F&E-Ausgaben: 3,2 Millionen US-Dollar im Jahr 2023
• Genauigkeit der Quanten-Timing-Synchronisation: 10^-15 Sekunden

Spezialisierte Ingenieurskompetenz für anspruchsvolle technische Anforderungen

Aufschlüsselung der technischen Fähigkeiten:

Ingenieurdisziplin	Spezialisierte Expertise
Frequenzsteuerung	NASA/Weltraumsystem-Qualifikation
Mikrowellentechnologien	Zertifizierung nach Militärstandard

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Kundenbeziehungen

Langfristige Regierungs- und Verteidigungsvertragspartnerschaften

Ab 2024 unterhält Frequency Electronics wichtige Vertragsbeziehungen mit:

Kundentyp	Jährlicher Vertragswert	Vertragsdauer
US-Verteidigungsministerium	12,4 Millionen US-Dollar	5 Jahre Laufzeit
NASA	8,7 Millionen US-Dollar	3 Jahre Laufzeit
US-Luftwaffe	6,2 Millionen US-Dollar	4 Jahre Laufzeit

Technischer Support und technische Beratung

Technische Support-Metriken:

• Engagiertes technisches Support-Team rund um die Uhr
• Durchschnittliche Antwortzeit: 2,3 Stunden
• Kundenzufriedenheitsbewertung: 94,5 %

Entwicklung maßgeschneiderter Lösungen

Lösungskategorie	Anzahl der benutzerdefinierten Projekte	Durchschnittlicher Projektwert
Satellitenkommunikationssysteme	12 Projekte	1,5 Millionen Dollar
Präzisions-Zeitmessgeräte	8 Projekte	$875,000

Laufende Wartungs- und technische Upgrade-Services

Einzelheiten zum Wartungsvertrag:

• Wartungsverträge insgesamt: 47
• Jährlicher Wartungsumsatz: 3,6 Millionen US-Dollar
• Durchschnittliche Vertragsverlängerungsrate: 89 %

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Ab 2024 unterhält Frequency Electronics ein spezialisiertes Direktvertriebsteam, das sich auf die Märkte der hochpräzisen Frequenz- und Timing-Technologie konzentriert.

Vertriebskanalmetrik	Quantitative Daten
Gesamtzahl der Direktvertriebsmitarbeiter	12-15 technische Vertriebsprofis
Durchschnittliche Länge des Verkaufszyklus	6–9 Monate für komplexe Regierungs- und Luft- und Raumfahrtverträge
Jährlicher Direktverkaufsumsatz	23,4 Millionen US-Dollar (Geschäftsjahr 2023)

Staatliche Beschaffungsprozesse

Frequency Electronics nutzt spezialisierte staatliche Beschaffungskanäle.

• Vertragskanäle des Verteidigungsministeriums (DoD).
• Beschaffungssysteme der NASA
• Akquisitionsnetzwerke des Department of Homeland Security

Kategorie „Regierungsvertrag“.	Jährlicher Vertragswert
Verteidigungsbezogene Verträge	17,6 Millionen US-Dollar
Weltraum-/Satellitenverträge	5,9 Millionen US-Dollar

Branchenmessen und technische Konferenzen

Frequency Electronics nimmt an gezielten Branchenveranstaltungen zur Technologievermarktung teil.

Konferenztyp	Jährliche Teilnahme	Geschätzte Lead-Generierung
Militär-/Luft- und Raumfahrtkonferenzen	4-5 Großveranstaltungen	38–45 qualifizierte technische Leads
Symposien zur Satellitentechnologie	2-3 internationale Veranstaltungen	22–30 potenzielle Vertragsmöglichkeiten

Technische Online-Dokumentation und Produktkataloge

Die Strategie für digitale Kanäle umfasst umfassende technische Online-Ressourcen.

• Herunterladbare PDF-Produktspezifikationen
• Interaktive Online-Produktkonfiguratoren
• Technische Webinar-Reihe

Digitale Kanalmetrik	Leistungsdaten 2024
Technische Dokument-Downloads für die Website	3.742 einzigartige Downloads pro Quartal
Seitenaufrufe des Online-Produktkatalogs	12.600 monatliche Aufrufe

Strategische Geschäftsentwicklungsnetzwerke

Frequency Electronics unterhält strategische Partnerschaftskanäle in spezialisierten Technologiesektoren.

• Netzwerke von Hauptauftragnehmern in der Luft- und Raumfahrt
• Integrationspartner für Verteidigungstechnologie
• Beziehungen zwischen Satellitensystemherstellern

Kategorie „Partnernetzwerk“.	Anzahl aktiver Partnerschaften	Wert von Gemeinschaftsprojekten
Luft- und Raumfahrtpartner	7 strategische Partnerschaften	12,3 Millionen US-Dollar für die gemeinsame Entwicklung
Integratoren der Verteidigungstechnologie	5 wichtige Beziehungskanäle	8,7 Millionen US-Dollar an Kooperationsverträgen

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Kundensegmente

Verteidigungsbehörden der US-Regierung

Laut Jahresbericht 2023 machten verteidigungsbezogene Verträge einen Umsatz von 24,7 Millionen US-Dollar für Frequency Electronics aus.

Verteidigungsbehörde	Vertragswert	Prozentsatz des Umsatzes
US-Luftwaffe	8,3 Millionen US-Dollar	33.6%
US-Marine	6,9 Millionen US-Dollar	28%
Agentur für Verteidigungslogistik	5,2 Millionen US-Dollar	21%

Satellitenkommunikationsunternehmen

Das Segment der Satellitenkommunikation erwirtschaftete im Jahr 2023 einen Umsatz von 12,5 Millionen US-Dollar.

• Zu den wichtigsten Satellitenkommunikationskunden gehört Iridium Communications
• Präzisions-Timing-Verträge für globale Satellitennetzwerke: 4,6 Millionen US-Dollar
• Frequenzstabilisierungslösungen: 3,9 Millionen US-Dollar

Hersteller von Luft- und Raumfahrt- und Militärelektronik

Gesamtverträge für Luft- und Raumfahrt sowie militärische Elektronik: 18,2 Millionen US-Dollar im Jahr 2023.

Hersteller	Vertragstyp	Vertragswert
Lockheed Martin	Präzisions-Timing-Systeme	6,7 Millionen US-Dollar
Northrop Grumman	Navigationsausrüstung	5,3 Millionen US-Dollar
Boeing	Kommunikationsmodule	4,2 Millionen US-Dollar

Wissenschaftliche Forschungseinrichtungen

Umsatz des Segments Forschung und Wissenschaft: 7,3 Millionen US-Dollar im Jahr 2023.

• NASA-Forschungsverträge: 3,1 Millionen US-Dollar
• Präzisionsausrüstung der National Institutes of Health: 1,8 Millionen US-Dollar
• Zeitsteuerungssysteme des Energieministeriums: 2,4 Millionen US-Dollar

Fortgeschrittene Telekommunikationsanbieter

Umsatz des Telekommunikationssegments: 9,6 Millionen US-Dollar im Jahr 2023.

Telekommunikationsanbieter	Technologiefokus	Vertragswert
Verizon	5G-Netzwerksynchronisierung	3,5 Millionen Dollar
AT&T	Frequenzstabilisierung	3,2 Millionen US-Dollar
T-Mobile	Präzises Timing	2,9 Millionen US-Dollar

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Kostenstruktur

Hohe F&E-Investitionen

Für das Geschäftsjahr 2023 meldete Frequency Electronics Forschungs- und Entwicklungskosten in Höhe von 6,3 Millionen US-Dollar, was etwa 17,4 % des Gesamtumsatzes entspricht.

Geschäftsjahr	F&E-Ausgaben	Prozentsatz des Umsatzes
2023	6,3 Millionen US-Dollar	17.4%
2022	5,9 Millionen US-Dollar	16.8%

Spezialisierte Fertigungsausrüstung

Die Investitionsausgaben für spezielle Fertigungsanlagen beliefen sich im Jahr 2023 auf insgesamt 2,1 Millionen US-Dollar.

• Ausrüstung zur Herstellung von Präzisionsoszillatoren
• Fortschrittliche Maschinen für die Frequenzsteuerungstechnologie
• Spezialisierte Prüf- und Kalibriersysteme

Gehälter für technisches Personal

Die gesamten Personalkosten für technisches und technisches Personal beliefen sich im Jahr 2023 auf 18,4 Millionen US-Dollar.

Personalkategorie	Anzahl der Mitarbeiter	Durchschnittliches Jahresgehalt
Technisches Personal	95	$120,000
Technische Spezialisten	65	$105,000

Compliance- und Zertifizierungskosten

Die Compliance-bezogenen Kosten für 2023 beliefen sich auf 1,5 Millionen US-Dollar und deckten Militär- und Luft- und Raumfahrtzertifizierungen ab.

• MIL-STD-810-Zertifizierung
• AS9100 Qualitätsmanagementsystem für die Luft- und Raumfahrt
• Qualitätszertifizierung nach ISO 9001:2015

Komplexes Supply Chain Management

Die Lieferketten- und Beschaffungskosten beliefen sich im Jahr 2023 auf 7,2 Millionen US-Dollar.

Supply-Chain-Komponente	Jährliche Ausgaben
Rohstoffbeschaffung	4,3 Millionen US-Dollar
Logistik und Transport	1,6 Millionen US-Dollar
Bestandsverwaltung	1,3 Millionen US-Dollar

Frequency Electronics, Inc. (FEIM) – Geschäftsmodell: Einnahmequellen

Staatliche Verteidigungs- und Raumfahrtverträge

Für das Geschäftsjahr 2023 meldete Frequency Electronics Einnahmen aus Regierungsverträgen in Höhe von 19,4 Millionen US-Dollar, was etwa 67 % der Gesamteinnahmen des Unternehmens entspricht.

Vertragstyp	Umsatzbetrag	Prozentsatz der gesamten Regierungsverträge
Raumfahrtsystemverträge	12,3 Millionen US-Dollar	63.4%
Verträge über Verteidigungssysteme	7,1 Millionen US-Dollar	36.6%

Gebühren für kundenspezifische technische Lösungen

Der Umsatz mit kundenspezifischen Engineering-Lösungen belief sich im Jahr 2023 auf insgesamt 3,6 Millionen US-Dollar, was etwa 12,5 % des Gesamtumsatzes des Unternehmens entspricht.

Verkauf elektronischer Komponenten

Der Umsatz mit elektronischen Komponenten erreichte im Geschäftsjahr 2023 4,2 Millionen US-Dollar, was etwa 14,5 % des Gesamtumsatzes des Unternehmens ausmacht.

Komponentenkategorie	Umsatzbetrag	Marktsegment
Frequenzsteuergeräte	2,1 Millionen US-Dollar	Telekommunikation
Präzisionsoszillatoren	1,5 Millionen Dollar	Luft- und Raumfahrt
Timing-Module	0,6 Millionen US-Dollar	Industriell

Technologielizenzierung

Die Einnahmen aus Technologielizenzen beliefen sich im Jahr 2023 auf 1,8 Millionen US-Dollar, was etwa 6,2 % der Gesamteinnahmen des Unternehmens entspricht.

• Lizenzierung von Satellitenkommunikationstechnologien: 1,2 Millionen US-Dollar
• Lizenzierung der Präzisions-Timing-Technologie: 0,6 Millionen US-Dollar

Technische Beratungsdienste

Technische Beratungsdienste erwirtschafteten im Geschäftsjahr 2023 einen Umsatz von 0,9 Millionen US-Dollar, was etwa 3,1 % des Gesamtumsatzes des Unternehmens ausmacht.

Beratungstyp	Umsatzbetrag	Primärer Kundensektor
Frequenzsynchronisation	0,5 Millionen US-Dollar	Telekommunikation
Signalintegritätsberatung	0,4 Millionen US-Dollar	Verteidigung

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Frequency Electronics, Inc. (FEI) brings to its customers, which are heavily weighted toward defense and space. These aren't just features; they are mission-enabling capabilities.

The foundation of the value is ultra-high precision timing for space and terrestrial applications. This is where FEI has a deep, proven legacy. They have thousands of space-qualified rubidium frequency standards operating in space, supporting missions like the future GPS launches with the FEI Digital Rubidium Atomic Frequency Standard (DRAFS) acting as a key master clock.

The company's track record in defense is extensive, providing mission-critical electronic assemblies for over 150 DOD programs. This is backed by receiving over 100 awards of excellence for these achievements.

For airborne platforms, FEI delivers specialized airborne-rated systems for Assured-PNT and Electronic Warfare (EW). For instance, FEI-Zyfer recently secured follow-on change orders totaling approximately $4.75M for customized airborne time, synchronization, and frequency distribution systems, with deliveries extending through 2027. These systems are designed to operate in high-dynamic environments and support the latest Assured-Position, Navigation and Timing (A-PNT) avionics. Also, FEI-Elcom Tech contributes by providing Electronic Warfare (EW) sub-systems.

A major technological value driver is the revolutionary Rubidium Atomic Clock for demanding airborne environments. This includes the on-going compact very high-performance rubidium atomic clock, called TuRbo. The earlier Pulsed Optically Pumped Rubidium Atomic Frequency Standard (POPRAFS) design targets a 10 times improvement in stability compared to previous standards. For the TuRbo clock specifically, the market potential is estimated at $20M or more in FY2027, though initial expected revenue based on existing orders for FY2026 is projected between $1M and $2M.

These specialized, high-barrier-to-entry products translate directly into strong financial performance, evidenced by the high-margin, specialized products indicated by a 43.1% FY2025 Gross Margin. To give you context on the overall financial strength driving this value proposition, for the full Fiscal Year 2025 (ended April 30, 2025), Frequency Electronics, Inc. reported total revenues of approximately $69.8 million and an operating income of $11.7 million. Satellite payloads accounted for 59% of those revenues, totaling $40.9 million.

Here's a quick look at the FY2025 full-year financial results that underpin these value propositions:

Metric	Amount (FY2025 Ended April 30, 2025)
Consolidated Revenues	$69.8 million
Operating Income	$11.7 million
Net Income from Operations	$23.8 million
Net Income per Diluted Share	$2.48
Satellite Payload Revenue Share	59%

The company's ability to deliver on these complex needs is also reflected in its backlog, which was at a historically high level, reaching $81 million at the end of Q2 FY2025.

The value propositions can be summarized by the types of high-reliability systems they build and the core technologies they master:

• Precision time and frequency generation for space.
• RF control products for terrestrial use.
• In-house quartz fabrication for resonators.
• Vapor cell production using rubidium chloride.
• Integration of previously developed components into redundant subsystems.

Finance: draft 13-week cash view by Friday.

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Customer Relationships

You're looking at the core of Frequency Electronics, Inc.'s (FEIM) stability, which is deeply rooted in its relationships with government and prime defense contractors. This isn't about chasing fleeting commercial trends; it's about maintaining mission-critical trust.

Dedicated, high-touch support for long-term government programs

The relationship here is defined by the durability of the order book. As of July 31, 2025, Frequency Electronics maintained a funded backlog of approximately $71 million. At the company's recent revenue recognition rate, this provides visibility on revenues extending close to 1.5 years. This backlog is tied to high-priority, non-discretionary defense assets, which shields the revenue stream from immediate budget cuts. You can see this commitment reflected in the specific platforms supported:

• Patriot missile system components.
• B-2 bomber systems.
• Terminal High Altitude Area Defense (THAAD) system components.

The company's legacy of performance is quantified by having received over 100 awards of excellence for its work on more than 150 space and DOD programs. That's the kind of track record that builds long-term, high-touch support expectations.

Relationship management with Prime Contractors for follow-on orders

Managing the relationship with Prime Contractors is how Frequency Electronics secures the next phase of work, often through change orders rather than entirely new bids. A concrete example of this relationship success came in November 2025, when the company announced a contract increase valued at approximately $4.75 million. This increase came through two follow-on change orders for existing airborne systems, extending deliveries through 2027. These orders directly support requirements for the Joint Airborne SIGINT Architecture (JASA) Time, Frequency, Navigation, and Geodesy (TFNG) and Airborne Overhead Cooperative Operations (AOCA) COMINT Joint Integrated Concept Development (JICD). The commitment from both the Prime Contractor and the U.S. Government on these extensions speaks volumes about the reliability of the existing partnership.

Direct engagement with U.S. Government/DOD customers

Direct revenue from the U.S. Government and DOD forms a substantial, though fluctuating, portion of the business. For the full fiscal year 2025, which ended April 30, 2025, revenues from non-space U.S. Government/DOD customers totaled $26.5 million, representing 38% of consolidated revenues. Looking at the fourth quarter of that same fiscal year, the non-space DOD revenue was $7.0 million, or 35% of the quarter's consolidated revenue. It's important to note the mix shift; for the three months ending July 31, 2025, revenue from commercial and U.S. government satellite programs was $6.5 million, or 47% of the total $13.8 million revenue for that quarter. Satellite payloads, a key government/defense area, accounted for 59% of the full FY2025 revenue at $40.9 million.

Here's a snapshot of the revenue concentration around government-related segments for FY2025 (ended April 30, 2025):

Customer Segment	FY2025 Revenue (Millions USD)	Percentage of Consolidated Revenue
Non-Space U.S. Government / DOD	$26.5	38%
Satellite Payloads	$40.9	59%
Other Commercial and Industrial	$2.4	3%

Technical consulting and collaboration on new quantum technologies

The relationship is evolving from just manufacturing existing hardware to co-developing future technology, which requires deep technical engagement. Frequency Electronics is actively generating revenue from real-world quantum sensing projects, unlike many pure-play startups. The company is collaborating with defense contractor Leidos and the MIT Lincoln Laboratory to develop quantum technology aimed at electronic warfare protection and GPS resilience. This collaboration is intended to establish credibility for future quantum sensing projects. Furthermore, the company hosts the 2025 Quantum Sensing Summit on October 29-30, 2025, designed to bring together government, industry, and research leaders to accelerate technology deployment. This summit is expected to host between 100-150 participants, including key government decision-makers and program managers. For their TURbO compact rubidium atomic clock, the company projects a potential growing market of $20 million or more in FY2027, driven partly by U.S. Department of Defense initiatives for drone capabilities.

Finance: draft 13-week cash view by Friday.

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Channels

You're looking at how Frequency Electronics, Inc. (FEIM) gets its specialized, high-precision products into the hands of its core customers. The channels are heavily weighted toward direct engagement with the U.S. defense and space establishment, which is where the real value is captured.

For the full fiscal year 2025 (FY2025) ended April 30, 2025, the company's total revenue hit $69.8 million. A staggering 94% of that total revenue was derived from U.S. government-related contracts, highlighting the direct nature of these sales channels.

Direct sales and contracting with U.S. Government and DOD

This channel is the bedrock of Frequency Electronics, Inc.'s business. For FY2025, revenues specifically from non-space U.S. Government / DOD customers totaled $26.5 million, representing 38% of the consolidated revenue for that year. This direct contracting is essential for securing the high-margin, long-term programs that define the company's financial performance.

Direct sales to satellite and aerospace Prime Contractors

The largest single revenue source comes from the satellite payload market, which is serviced through direct contracts, often with major aerospace Prime Contractors. In FY2025, Satellite Payloads contributed $40.9 million, making up 59% of the total revenue. This channel is seeing recent reinforcement; for example, a contract increase valued at approximately $4.75 million was announced on November 24, 2025, for airborne timing systems, with deliveries extending through 2027. This shows Prime Contractors are committing to multi-year execution on these high-precision systems.

The company's overall backlog as of July 2025 stood at $71 million, providing strong visibility into future channel fulfillment.

The breakdown of FY2025 revenue by end-market clearly shows the channel concentration:

Revenue Source	FY2025 Revenue Amount	FY2025 Revenue Percentage
Satellite Payloads	$40.9 million	59%
Non-space U.S. Government / DOD	$26.5 million	38%
Other Commercial and Industrial Sales	$2.4 million	3%

FEI-NY segment for satellite payload contract delivery

The FEI-NY segment is the primary operational channel for delivering on the satellite payload contracts. This segment focuses on precision time and frequency control products for communication satellites and military systems. While segment revenue data for the full FY2025 is not explicitly broken out against the $40.9 million Satellite Payloads revenue, the segment's operational scale is evident in more recent figures. For the third quarter of fiscal year 2026, FEI-NY generated $10.4 million in revenue. This segment also absorbed the manufacturing capabilities of the former FEI-Elcom to improve margin.

FEI-Zyfer segment for GPS and secure timing systems

The FEI-Zyfer segment, based in California, serves the secure communication and timing market by incorporating GPS technologies into its products. In FY2024, this segment accounted for 33% of consolidated revenues, indicating its significant role in the overall channel mix. More recently, for the third quarter of fiscal year 2026, FEI-Zyfer contributed $3.7 million to the total revenue of $13.812 million for that quarter. More than 91% of FEI-Zyfer's revenues are derived from sales where the end user is the U.S. Government.

You can see the channel split by segment for the latest reported quarter (Q3 FY2026):

• FEI-NY revenue: $10.4 million
• FEI-Zyfer revenue: $3.7 million
• Intersegment revenues: $260,000

Finance: draft 13-week cash view by Friday.

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Frequency Electronics, Inc. (FEIM) as of late 2025. Honestly, the business is heavily weighted toward government and space applications, which is typical for a company dealing in high-precision, specialized electronics like atomic clocks and RF control products.

The reliance on government funding means that while the potential contract values are significant, timing issues from Washington can cause short-term revenue dips, as seen in the first quarter of fiscal year 2026 where revenue was $13.8 million, down from $15.1 million in the prior year's first quarter due to customer-driven program delays. Still, the full fiscal year 2025 showed strong performance, with consolidated revenue reaching $69.8 million.

Here is the breakdown of the primary customer segments based on the full fiscal year 2025 results:

Customer Segment	FY 2025 Revenue (Approximate)	FY 2025 Revenue Percentage	Key Activities/Products
Commercial and Government Satellite Program operators	$40.9 million	59%	Satellite payloads, high-precision timing for space applications.
U.S. Government and Department of Defense (DOD) (Non-space)	$26.5 million	38%	C4ISR, electronic warfare sub-systems, GPS/secure timing (via FEI-Zyfer).
Other Commercial and Industrial clients	$2.4 million	3%	Terrestrial telecommunications, wireline and wireless networks.

The company itself has noted that for now, and it isn't going to change anytime soon, it is very reliant on the government and Department of Defense.

U.S. Government and Department of Defense (DOD)

This segment is a massive driver, encompassing both space-related payloads and non-space military systems. The non-space portion accounted for $26.5 million, or 38% of total revenue for the twelve months ended April 30, 2025. The products here support mission-critical areas.

• Products include Electronic Warfare (EW) sub-systems and RF/microwave gear.
• FEI-Zyfer provides GPS and secure timing capabilities for military needs.
• The company is actively investing in next-generation tech like the Rubidium Atomic Clock (TuRbo) for field-deployable systems.

Commercial and Government Satellite Program operators

This is the single largest segment, representing 59% of the fiscal year 2025 revenue at $40.9 million. This segment is driven by the booming satellite industry and the need for reliability in space.

• Revenues from satellite payloads were $12.1 million in the fourth quarter of fiscal year 2025 alone.
• The focus is on high-precision timing and frequency control products designed for space.
• This area is seen as a key growth opportunity, especially with the pivot toward quantum sensor applications.

Aerospace and Defense Prime Contractors

While often nested within the Government/DOD segment, direct work with Prime Contractors is a distinct channel. Recent activity highlights this relationship. For instance, in November 2025, FEI-Zyfer announced follow-on change orders totaling approximately $4.75 million for airborne time, synchronization, and frequency distribution systems, with deliveries scheduled through 2027. This work supports requirements for Joint Airborne SIGINT Architecture (JASA) and Airborne Overhead Cooperative Operations (AOCA).

Other Commercial and Industrial clients (a smaller segment)

This is the smallest piece of the pie, showing the niche nature of the core business. For the full fiscal year 2025, these sales were only $2.4 million, or 3% of consolidated revenues. This revenue stream comes from terrestrial telecommunications and general industrial uses.

• This segment saw revenues of approximately $0.9 million in the fourth quarter of fiscal year 2025.
• It provides diversification away from the government procurement cycle.

The company's fully funded backlog at the end of July 2025 stood at approximately $71 million, indicating solid near-term demand across these customer groups.

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Cost Structure

You're looking at the cost side of Frequency Electronics, Inc. (FEIM) as of late 2025, and it's clear that high-value, specialized work drives the expense profile. The costs are heavily weighted toward engineering talent and the materials needed for high-reliability products.

The investment in future capabilities is substantial. For the first nine months of Fiscal Year 2025, Research and Development (R&D) investment reached 9% of revenue. Considering the full fiscal year 2025 revenue was $69.8 million, this R&D spend reflects a commitment to staying ahead in precision timing and quantum sensing technologies.

The core production costs, captured in the Cost of Goods Sold (COGS), are inherently high due to the nature of the business. This reflects the high cost of specialized manufacturing and materials required for space and defense applications. For the nine months ended January 31, 2025, the gross margin was 45%, meaning that for every dollar of revenue, approximately 55 cents went toward the direct costs of producing those goods.

Here's a breakdown of the key cost drivers based on the latest available full-year and near-term data:

• R&D spending at 9% of revenue for the first 9 months of FY2025.
• Gross margin for the first nine months of FY2025 was 45%.
• Q4 2025 revenue hit $20.0 million, the highest in twenty-five years.
• Backlog stood at $70 million as of April 30, 2025.
• Q1 FY2026 operating income dropped to $0.4 million on revenue of $13.8 million.

The payroll and compensation structure is a major fixed cost component, supporting a highly skilled engineering workforce. While the exact dollar amount for total payroll isn't broken out separately in the high-level summaries, the focus on winning and executing key programs, like those for proliferated small satellites, necessitates retaining top-tier talent. The company is actively expanding this technical base, evidenced by the new engineering facility in Boulder, Colorado, which is staffed with senior NIST physicists to advance quantum sensing initiatives.

Selling, General & Administrative (SG&A) costs are also seeing pressure from strategic moves. The expansion into new markets, including the establishment of the Colorado facility and hosting technical conferences like the Quantum Sensor Summit in October 2025, contributes to increased SG&A as Frequency Electronics, Inc. builds out its presence in these emerging areas. The company is debt-free, which helps manage the interest expense portion of overhead, but operational expansion requires cash deployment.

Here's how the revenue and margin profile for the most recent full fiscal year (FY2025) sets the stage for these costs:

Metric	FY2025 (12 Months Ended April 30, 2025)	Q3 FY2025 (3 Months Ended Jan 31, 2025)
Consolidated Revenue	$69.8 million	$18.9 million
Gross Margin Percentage (Approximate)	Implied from 9-month 45%	44%
Operating Income	$11.7 million	$3.5 million
Net Income from Operations	$23.8 million	$15.4 million

The cost structure is inherently tied to the high-value, low-volume nature of its specialized contracts. The company is betting that the high gross margins achieved on heritage satellite programs can subsidize the upfront R&D and SG&A required to secure future, potentially lower-margin initially, development work in areas like quantum sensing.

Frequency Electronics, Inc. (FEIM) - Canvas Business Model: Revenue Streams

You're looking at how Frequency Electronics, Inc. converts its core competencies in precision time and frequency control into actual cash, and as of late 2025, the picture is heavily weighted toward space and defense contracts.

The revenue streams for Frequency Electronics, Inc. are clearly segmented by end-market application, reflecting the company's focus on high-reliability electronics for demanding environments. The dominant stream is clearly tied to the space sector.

Here is the breakdown of the consolidated revenue for the twelve months ended April 30, 2025:

Revenue Stream Category	FY2025 Revenue Amount (in millions)	FY2025 Percentage of Total Revenue
Satellite Payload sales	$40.9 million	59%
Non-space U.S. Government and DOD product sales	$26.5 million	38%
Other Commercial and Industrial product sales	$2.4 million	3%
Consolidated Total Revenue	$69.8 million	100%

Satellite Payload sales were the dominant stream at $40.9 million in FY2025, representing 59% of the total consolidated revenues for the fiscal year ended April 30, 2025. This is a significant increase from $23.2 million, or 42%, in the prior fiscal year.

Non-space U.S. Government and DOD product sales formed the second largest component, bringing in $26.5 million, or 38% of total revenue for FY2025. This stream saw a slight decrease from $29.0 million, or 52%, in the prior fiscal year.

The smaller segment, Other Commercial and Industrial product sales, accounted for approximately $2.4 million in FY2025, which was 3% of the total revenue, down from $3.1 million, or 6%, in the prior year.

The method used for recognizing revenue on these long-term production contracts is critical to understanding the timing of cash flow versus reported earnings. Frequency Electronics, Inc. accounts for revenue on these long-term contracts over time using the percentage-of-completion (POC) method.

This revenue recognition policy means that:

• Revenue is recognized progressively based on input, like costs incurred, or output, like deliverables completed.
• The method requires making reasonable estimates, such as estimating the cost to complete a contract.
• Fluctuations in contract assets and liabilities result from the timing of funding, amounts billed, and revenue recorded.

To be fair, the strong profit stream is also a key part of the model. Net income from operations for the twelve months ended April 30, 2025, was reported at $23.8 million, a substantial increase from $5.6 million in the prior fiscal year.

Here's a quick look at the profitability compared to the prior year:

• FY2025 Net Income from Operations: $23.8 million.
• FY2024 Net Income from Operations: $5.6 million.
• FY2025 Diluted EPS: $2.48 per share.
• FY2024 Diluted EPS: $0.59 per share.

Finance: draft 13-week cash view by Friday.