Frequency Electronics Inc. (NASDAQ:FEIM) Q1 2021 Earnings Conference Call - Final Transcript

Sep 10, 2020 • 04:30 pm ET


Frequency Electronics Inc. (NASDAQ:FEIM) Q1 2021 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Frequency Electronics First Quarter Fiscal Year 2021 Earnings Release Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

Any statements made by the Company during this conference call regarding the future constitutes forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements inherently involve uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences are included in the Company's press releases and are further detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this conference call.

It is now my pleasure to introduce your host, Mr. Stanton Sloane, President and CEO.

Stanton Sloane

Thank you. Hello, everyone. Thank you for joining us today to discuss first quarter 2021 results. Steve will cover financial details with you in a minute, but let me first give you my perspectives on the quarter. I'll start by stating that I'm pleased with the direction I am seeing in the business. Our team has been working hard both to pursue new business and work our way through some difficult technical challenges on previous programs. We're starting to see the results from these efforts.

FEI has a long history of providing products that go into space. And as the U.S. increases its focus there, FEI is well positioned to service that market. Building electronics that have to operate reliably and effectively in that environment is very difficult. FEI has the benefit of over 50 years of experience with our systems operating in space, and that is a knowledge base that we leverage to ensure better, more reliable products. That's an invaluable FEI asset and one which fosters customer confidence in us as is reflected by the increasing number of awards for precision time and Frequency products for satellite applications. I believe we will see continuing growth in this arena as space becomes an increasingly more important domain to the U.S. Military, and that bodes very well for FEI.

Not wanting to slide our terrestrial market, I'm also pleased with recent awards for precision oscillators that will go into various U.S. military airborne platforms, one of which we announced this afternoon. We, at FEI, are proud that our electronics can be found in some of the most important tactical and strategic military assets of the United States and its allies.

As we complete a couple of the programs that have been nagging us, I expect that our overall financial performance will continue to improve. We, of course, continue to focus on internal operational improvements and cost reductions. One example is our continuing rollout of a new ERP system that is helping us streamline our manufacturing and program management processes.

While this quarter showed a