Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2015 | Sep. 09, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FREQUENCY ELECTRONICS INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --04-30 | |
Entity Common Stock, Shares Outstanding | 8,716,083 | |
Amendment Flag | false | |
Entity Central Index Key | 39,020 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 5,924 | $ 7,222 |
Marketable securities | 10,364 | 11,186 |
Accounts receivable, net of allowance for doubtful accounts of $189 at July 31, 2015 and April 30, 2015 | 10,021 | 9,689 |
Costs and estimated earnings in excess of billings, net | 14,645 | 12,929 |
Inventories | 39,090 | 38,239 |
Deferred income taxes | 3,143 | 3,063 |
Prepaid expenses and other | 1,219 | 1,271 |
Total current assets | 84,406 | 83,599 |
Property, plant and equipment, net | 12,677 | 12,686 |
Deferred income taxes | 7,360 | 7,360 |
Goodwill and other intangible assets | 617 | 617 |
Cash surrender value of life insurance and cash held in trust | 12,334 | 11,825 |
Other assets | 1,728 | 1,738 |
Total assets | 119,122 | 117,825 |
Current liabilities: | ||
Accounts payable - trade | 883 | 1,720 |
Accrued liabilities and income taxes payable | 6,938 | 6,630 |
Total current liabilities | 7,821 | 8,350 |
Long term debt- noncurrent | 6,000 | 6,000 |
Deferred compensation | 11,447 | 11,318 |
Deferred rent and other liabilities | 356 | 347 |
Total liabilities | $ 25,624 | $ 26,015 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock - $1.00 par value | ||
Common stock - $1.00 par value, issued 9,164 shares | $ 9,164 | $ 9,164 |
Additional paid-in capital | 54,652 | 54,360 |
Retained earnings | 28,419 | 27,528 |
92,235 | 91,052 | |
Common stock reacquired and held in treasury - at cost (448 shares at July 31, 2015 and 465 shares at April 30, 2015) | (2,053) | (2,132) |
Accumulated other comprehensive income | 3,316 | 2,890 |
Total stockholders' equity | 93,498 | 91,810 |
Total liabilities and stockholders' equity | $ 119,122 | $ 117,825 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
Allowance for doubtful accounts | $ 189 | $ 189 |
Preferred stock, par value | $ 1 | $ 1 |
Common stock, par value | $ 1 | $ 1 |
Common stock shares issued | 9,164 | 9,164 |
Treasury stock, shares | 448 | 465 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Revenues | $ 16,680 | $ 19,740 |
Cost of revenues | 10,907 | 14,075 |
Gross margin | 5,773 | 5,665 |
Selling and administrative expenses | 3,685 | 3,498 |
Research and development expense | 1,147 | 1,239 |
Operating profit | 941 | 928 |
Other income (expense): | ||
Investment income | 271 | 414 |
Interest expense | (24) | (34) |
Other income, net | 403 | 1 |
Income before provision for income taxes | 1,591 | 1,309 |
Provision for income taxes | 700 | 590 |
Net income | $ 891 | $ 719 |
Net income per common share: | ||
Basic (in Dollars per share) | $ 0.10 | $ 0.08 |
Diluted (in Dollars per share) | $ 0.10 | $ 0.08 |
Average shares outstanding: | ||
Basic (in Shares) | 8,706,185 | 8,578,733 |
Diluted (in Shares) | 8,984,037 | 8,856,849 |
Condensed Consolidated Statements of Comprehensive Income | ||
Net income | $ 891 | $ 719 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 701 | 205 |
Unrealized gain (loss) on marketable securities: | ||
Change in market value of marketable securities before reclassification, net of tax of $94 and ($139) | (185) | 271 |
Reclassification adjustment for realized gains included in net income, net of tax of $47 and $95 | (90) | (185) |
Total unrealized (loss) gain on marketable securities, net of tax | (275) | 86 |
Total other comprehensive income (loss) | 426 | 291 |
Comprehensive income | $ 1,317 | $ 1,010 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income and Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Change in market value of marketable securities before reclassification, tax | $ 94 | $ (139) |
Reclassification adjustment for realized gains included in net income, tax | $ 47 | $ 95 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 891 | $ 719 |
Non-cash charges to earnings, net | 1,226 | 1,069 |
Net changes in operating assets and liabilities | (3,942) | (7,432) |
Net cash used in operating activities | (1,825) | (5,644) |
Cash flows from investing activities: | ||
Purchase of marketable securities | (172) | (1,018) |
Proceeds on redemption of marketable securities | 713 | 2,230 |
Purchase of fixed assets | (606) | (1,153) |
Net cash (used in) provided by investing activities | (65) | 59 |
Cash flows from financing activities: | ||
Borrowings from long-term credit facility | 0 | 2,300 |
Tax benefit from exercise of stock-based compensation | 8 | 26 |
Net cash provided by financing activities | 8 | 2,326 |
Net decrease in cash and cash equivalents before effect of exchange rate changes | (1,882) | (3,259) |
Effect of exchange rate changes on cash and cash equivalents | 584 | 104 |
Net decrease in cash and cash equivalents | (1,298) | (3,155) |
Cash and cash equivalents at beginning of period | 7,222 | 7,698 |
Cash and cash equivalents at end of period | 5,924 | 4,543 |
Cash paid during the period for: | ||
Interest | 24 | 34 |
Income Taxes | $ 230 | $ 41 |
NOTE A - CONDENSED CONSOLIDATED
NOTE A - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS In the opinion of management of Frequency Electronics, Inc. (“the Company”), the accompanying unaudited condensed consolidated interim financial statements reflect all adjustments (which include only normal recurring adjustments) necessary to present fairly, in all material respects, the consolidated financial position of the Company as of July 31, 2015 and the results of its operations and cash flows for the three months ended July 31, 2015 and 2014. The April 30, 2015 condensed consolidated balance sheet was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended April 30, 2015 filed on July 29, 2015. The results of operations for such interim periods are not necessarily indicative of the operating results for the full fiscal year. |
NOTE B - EARNINGS PER SHARE
NOTE B - EARNINGS PER SHARE | 3 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE B – EARNINGS PER SHARE Reconciliation of the weighted average shares outstanding for basic and diluted Earnings Per Share are as follows: Three months ended July 31, 2015 2014 Basic EPS Shares outstanding (weighted average) 8,706,185 8,578,733 Effect of Dilutive Securities 277,852 278,116 Diluted EPS Shares outstanding 8,984,037 8,856,849 The computation of diluted earnings per share excludes those options and stock appreciation rights (“SARS”) with an exercise price in excess of the average market price of the Company’s common shares during the periods presented. The inclusion of such options and SARS in the computation of earnings per share would have been antidilutive. The number of excluded options and SARS for the three months ended July 31, 2015 and 2014 were 330,500 and 300,875, respectively. |
NOTE C - COSTS AND ESTIMATED EA
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET | 3 Months Ended |
Jul. 31, 2015 | |
Contractors [Abstract] | |
Long-term Contracts or Programs Disclosure [Text Block] | NOTE C – COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET At July 31, 2015 and April 30, 2015, costs and estimated earnings in excess of billings, net, consist of the following: July 31, 2015 April 30, 2015 (In thousands) Costs and estimated earnings in excess of billings $ 15,203 $ 14,057 Billings in excess of costs and estimated earnings (558 ) (1,128 ) Net asset $ 14,645 $ 12,929 Such amounts represent revenue recognized on long-term contracts that had not been billed at the balance sheet dates or represent a liability for amounts billed in excess of the revenue recognized. Amounts are billed to customers pursuant to contract terms, whereas the related revenue is recognized on the percentage of completion basis at the measurement date. In general, the recorded amounts will be billed and collected or revenue recognized within twelve months of the balance sheet date. Revenue on these long-term contracts is accounted for on the percentage of completion basis. During the three months ended July 31, 2015 and 2014, revenue recognized under percentage of completion contracts was approximately $9.3 million and $12.9 million, respectively. |
NOTE D - TREASURY STOCK TRANSAC
NOTE D - TREASURY STOCK TRANSACTIONS | 3 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Treasury Stock [Text Block] | NOTE D – TREASURY STOCK TRANSACTIONS During the three month period ended July 31, 2015, the Company made a contribution of 12,195 shares of its common stock held in treasury to the Company’s profit sharing plan and trust under section 401(k) of the Internal Revenue Code. Such contributions are in accordance with the Company’s discretionary match of employee voluntary contributions to this plan. During the same period, the Company issued 4,905 shares from treasury upon the exercise of SARs by certain officers and employees of the Company. |
NOTE E - INVENTORIES
NOTE E - INVENTORIES | 3 Months Ended |
Jul. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE E – INVENTORIES Inventories, which are reported at the lower of cost or market, consist of the following: July 31, 2015 April 30, 2015 (In thousands) Raw Materials and Component Parts $ 24,796 $ 24,274 Work in Progress 10,338 9,948 Finished Goods 3,956 4,017 $ 39,090 $ 38,239 As of July 31, 2015 and April 30, 2015, approximately $32.5 million and $32.0 million, respectively, of total inventory is located in the United States, approximately $5.5 million and $5.4 million, respectively, is located in Belgium and approximately $1.0 million and $0.8 million, respectively, is located in China. |
NOTE F - SEGMENT INFORMATION
NOTE F - SEGMENT INFORMATION | 3 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE F – SEGMENT INFORMATION The Company operates under three reportable segments based on the geographic locations of its subsidiaries: (1) FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets- communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations and other components and systems for the U.S. military. (2) Gillam-FEI - operates out of Belgium and France and primarily sells wireline synchronization and network management systems in non-U.S. markets. All sales from Gillam-FEI to the United States are to other segments of the Company. (3) FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications. This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the United States market. The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiaries, FEI-Elcom Tech (“FEI-Elcom”) and FEI-Asia. FEI-Asia functions primarily as a manufacturing facility for the Company’s commercial product subsidiaries with historically minimal sales to outside customers. Beginning in late fiscal year 2014, FEI-Asia began shipping higher volumes of product to third parties as a contract manufacturer. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business. The Company’s chief executive officer measures segment performance based on total revenues and profits generated by each geographic location rather than on the specific types of customers or end- users. Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s management views the business. The tables below presents information about reported segments with reconciliation of segment amounts to consolidated amounts as reported in the statement of operations or the balance sheet for each of the periods (in thousands): Three months ended July 31, 2015 2014 Net revenues: FEI-NY $ 13,494 $ 17,257 Gillam-FEI 1,407 1,491 FEI-Zyfer 2,100 1,120 less intercompany revenues (321 ) (128 ) Consolidated revenues $ 16,680 $ 19,740 Three months ended July 31, 2015 2014 Operating profit (loss): FEI-NY $ 1,087 $ 2,080 Gillam-FEI (217 ) (578 ) FEI-Zyfer 123 (506 ) Corporate (52 ) (68 ) Consolidated operating profit $ 941 $ 928 July 31, 2015 April 30, 2015 Identifiable assets: FEI-NY (approximately $2.5 million in China) $ 64,164 $ 63,541 Gillam-FEI (all in Belgium or France) 9,488 9,878 FEI-Zyfer 11,902 11,088 less intersegment balances (6,668 ) (8,775 ) Corporate 40,236 42,093 Consolidated identifiable assets $ 119,122 $ 117,825 |
NOTE G - INVESTMENT IN MORION,
NOTE G - INVESTMENT IN MORION, INC. | 3 Months Ended |
Jul. 31, 2015 | |
Investment Holdings [Abstract] | |
Investment Holdings [Text Block] | NOTE G – INVESTMENT IN MORION, INC. The Company has an investment in Morion, Inc., (“Morion”) a privately-held Russian company, which manufactures high precision quartz resonators and crystal oscillators. The Company’s investment consists of 4.6% of Morion’s outstanding shares, accordingly, the Company accounts for its investment in Morion on the cost basis. This investment is included in other assets in the accompanying balance sheets. During the three months ended July 31, 2015 and 2014, the Company acquired product from Morion in the aggregate amount of approximately $32,000 and $65,000, respectively, and the Company sold product and services to Morion in the aggregate amount of approximately $423,000 and $183,000, respectively. At July 31, 2015 and April 30, 2015, accounts receivable included $429,000 and $145,000, respectively, due from Morion and $0 and $23,000, respectively, was payable to Morion. On October 22, 2012, the Company entered into an agreement to license its rubidium oscillator production technology to Morion. The agreement required the Company to sell certain fully-depreciated production equipment previously owned by the Company and to provide training to Morion employees to enable Morion to produce a minimum of 5,000 rubidium oscillators per year. Morion will pay the Company approximately $2.7 million for the license and the equipment plus 5% royalties on third party sales for a 5-year period following an initial production run. During the same 5-year period, the Company commits to purchase from Morion a minimum of approximately $400,000 worth of rubidium oscillators per year although Morion is not obligated to sell that amount to the Company. In November 2012, Morion paid the Company a $925,000 deposit under the agreement which amount had been recorded on the Company’s balance sheet as deferred revenue. In October 2013, after amending the original document to clarify certain billing events, the Company invoiced Morion for the equipment, certain component parts for the production of rubidium oscillators, training of certain Morion employees and transfer of the production technology and license to Morion. The $925,000 deposit previously recorded as deferred revenue was recognized as income during the second quarter of fiscal year 2015. For the three months ended July 31, 2015, sales to Morion included $375,000 for product and training services under this agreement. During the first quarter of fiscal year 2015, there were no sales to Morion under the agreement. Per the amended agreement, the balance of $1 million for the transfer of the license will be due once the United States Department of State (“State Department”) approves the removal of certain provisions of the original agreement. The State Department has approved the technology transfer called for under the agreement. |
NOTE H - FAIR VALUE OF FINANCIA
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Jul. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE H – FAIR VALUE OF FINANCIAL INSTRUMENTS The cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale securities at July 31, 2015 and April 30, 2015 are as follows (in thousands): July 31, 2015 Gross Gross Fair Unrealized Unrealized Market Cost Gains Losses Value Fixed income securities $ 3,225 $ 70 $ (27 ) $ 3,268 Equity securities 6,764 667 (335 ) 7,096 $ 9,989 $ 737 $ (362 ) $ 10,364 April 30, 2015 Gross Gross Fair Unrealized Unrealized Market Cost Gains Losses Value Fixed income securities $ 3,379 $ 104 $ (16 ) $ 3,467 Equity securities 7,018 834 (133 ) 7,719 $ 10,397 $ 938 $ (149 ) $ 11,186 The following table presents the fair value and unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position (in thousands): Less than 12 months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses July 31, 2015 Fixed Income Securities $ 92 $ (5 ) $ 453 $ (22 ) $ 545 $ (27 ) Equity Securities 2,778 (279 ) 749 (56 ) 3,527 (335 ) $ 2,870 $ (284 ) $ 1,202 $ (78 ) $ 4,072 $ (362 ) April 30, 2015 Fixed Income Securities $ 96 $ (1 ) $ 461 $ (15 ) $ 557 $ (16 ) Equity Securities 3,323 (133 ) - - 3,323 (133 ) $ 3,419 $ (134 ) $ 461 $ (15 ) $ 3,880 $ (149 ) The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. The Company does not believe that its investments in marketable securities with unrealized losses at July 31, 2015 are other-than-temporary due to market volatility of the security’s fair value, analysts’ expectations and the Company’s ability to hold the securities for a period of time sufficient to allow for any anticipated recoveries in market value. During the three months ended July 31, 2015 and 2014, the Company sold or redeemed available-for-sale securities in the amounts of $713,000 and $2.2 million, respectively, realizing gains of approximately $137,000 and $280,000, respectively. Maturities of fixed income securities classified as available-for-sale at July 31, 2015 are as follows, at cost (in thousands): Current $ 101 Due after one year through five years 1,622 Due after five years through ten years 1,502 $ 3,225 The fair value accounting framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in inactive markets - Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. All of the Company’s investments in marketable securities are valued on a Level 1 basis. |
NOTE I - RECENTLY ISSUED ACCOUN
NOTE I - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jul. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE I – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09 , Revenue from Contracts with Customers (Topic 606) |
NOTE J - CREDIT FACILITY
NOTE J - CREDIT FACILITY | 3 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE J – CREDIT FACILITY The Company has a credit facility (the “Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan”) pursuant to a credit agreement (the “Credit Agreement”) between the Company and JPMorgan. Under the Facility the Company may make borrowings from either Tranche A or Tranche B or a combination of both, not to exceed $25.0 million. Pursuant to the Credit Agreement, the amount of Tranche A borrowings may not exceed the value of the Pledged Investments (as defined in the Credit Agreement). The amount of Tranche B borrowings may not exceed the lesser of (i) $15.0 million and (ii) the Borrowing Base (as defined in the Credit Agreement). Current outstanding borrowings of $6.0 million under the Facility are all under Tranche A. The Facility is fully guaranteed by certain of the Company’s subsidiaries and is secured by, among other things, a pledge of substantially all personal property of the Company and certain of the Company’s subsidiaries. Borrowings under the Facility are evidenced by a line of credit note (the “Note”) and bear interest, payable monthly, at a rate equal to the LIBOR Rate, as determined from time to time by JPMorgan pursuant to the terms of the Note, plus a margin of 0.75% for Tranche A borrowings and 1.75% for Tranche B borrowings. The principal balance on the Note, along with any accrued and unpaid interest, is due and payable no later than June 5, 2018, which is the maturity date of the Facility. In addition, the Company is required to pay JPMorgan fees equal to 0.1% per annum on any unused portion of the Facility. The Credit Agreement contains a number of affirmative and negative covenants, including limitations on the incurrence of additional debt, liens on property, acquisitions, loans and guarantees, mergers, consolidations, liquidations and dissolutions, asset sales, and distributions and other payments in respect of the Company’s capital stock. The Credit Agreement also contains certain events of default customary for credit facilities of this type, including nonpayment of principal or interest when due, material incorrectness of representations and warranties when made, breach of covenants, bankruptcy and insolvency, unstayed material judgment beyond specified periods, and acceleration or payment default of other material indebtedness. The Credit Agreement requires the Company to maintain, as of the end of each fiscal quarter, a funded debt to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ratio and an interest charge coverage ratio. The calculation of both ratios is defined in the Credit Agreement. For the period ended July 31, 2015, the Company met the required covenants for its borrowings under Tranche A. |
NOTE K - VALUATION ALLOWANCE ON
NOTE K - VALUATION ALLOWANCE ON DEFERRED TAX ASSETS | 3 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE K – VALUATION ALLOWANCE ON DEFERRED TAX ASSETS In prior fiscal years, the Company reduced the valuation allowance on the deferred tax assets of its U.S. subsidiaries. Consequently, for the three months ended July 31, 2015 and 2014, the Company recorded provisions for income taxes based on both current taxes due in the United States as well as the tax provision or benefit to be realized from temporary tax differences. As of July 31, 2015 and April 30, 2015, the remaining deferred tax asset valuation allowance is approximately $2.4 million and is primarily related to deferred tax assets of the Company’s non-U.S.-based subsidiaries. |
NOTE B - EARNINGS PER SHARE (Ta
NOTE B - EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Reconciliation of the weighted average shares outstanding for basic and diluted Earnings Per Share are as follows: Three months ended July 31, 2015 2014 Basic EPS Shares outstanding (weighted average) 8,706,185 8,578,733 Effect of Dilutive Securities 277,852 278,116 Diluted EPS Shares outstanding 8,984,037 8,856,849 |
NOTE C - COSTS AND ESTIMATED 19
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Contractors [Abstract] | |
Costs and Estimated Earnings in Excess of Billings, Net [Table Text Block] | At July 31, 2015 and April 30, 2015, costs and estimated earnings in excess of billings, net, consist of the following: July 31, 2015 April 30, 2015 (In thousands) Costs and estimated earnings in excess of billings $ 15,203 $ 14,057 Billings in excess of costs and estimated earnings (558 ) (1,128 ) Net asset $ 14,645 $ 12,929 |
NOTE E - INVENTORIES (Tables)
NOTE E - INVENTORIES (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, which are reported at the lower of cost or market, consist of the following: July 31, 2015 April 30, 2015 (In thousands) Raw Materials and Component Parts $ 24,796 $ 24,274 Work in Progress 10,338 9,948 Finished Goods 3,956 4,017 $ 39,090 $ 38,239 |
NOTE F - SEGMENT INFORMATION (T
NOTE F - SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The tables below presents information about reported segments with reconciliation of segment amounts to consolidated amounts as reported in the statement of operations or the balance sheet for each of the periods (in thousands): Three months ended July 31, 2015 2014 Net revenues: FEI-NY $ 13,494 $ 17,257 Gillam-FEI 1,407 1,491 FEI-Zyfer 2,100 1,120 less intercompany revenues (321 ) (128 ) Consolidated revenues $ 16,680 $ 19,740 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three months ended July 31, 2015 2014 Operating profit (loss): FEI-NY $ 1,087 $ 2,080 Gillam-FEI (217 ) (578 ) FEI-Zyfer 123 (506 ) Corporate (52 ) (68 ) Consolidated operating profit $ 941 $ 928 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | July 31, 2015 April 30, 2015 Identifiable assets: FEI-NY (approximately $2.5 million in China) $ 64,164 $ 63,541 Gillam-FEI (all in Belgium or France) 9,488 9,878 FEI-Zyfer 11,902 11,088 less intersegment balances (6,668 ) (8,775 ) Corporate 40,236 42,093 Consolidated identifiable assets $ 119,122 $ 117,825 |
NOTE H - FAIR VALUE OF FINANC22
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale securities at July 31, 2015 and April 30, 2015 are as follows (in thousands): July 31, 2015 Gross Gross Fair Unrealized Unrealized Market Cost Gains Losses Value Fixed income securities $ 3,225 $ 70 $ (27 ) $ 3,268 Equity securities 6,764 667 (335 ) 7,096 $ 9,989 $ 737 $ (362 ) $ 10,364 April 30, 2015 Gross Gross Fair Unrealized Unrealized Market Cost Gains Losses Value Fixed income securities $ 3,379 $ 104 $ (16 ) $ 3,467 Equity securities 7,018 834 (133 ) 7,719 $ 10,397 $ 938 $ (149 ) $ 11,186 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | The following table presents the fair value and unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position (in thousands): Less than 12 months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses July 31, 2015 Fixed Income Securities $ 92 $ (5 ) $ 453 $ (22 ) $ 545 $ (27 ) Equity Securities 2,778 (279 ) 749 (56 ) 3,527 (335 ) $ 2,870 $ (284 ) $ 1,202 $ (78 ) $ 4,072 $ (362 ) April 30, 2015 Fixed Income Securities $ 96 $ (1 ) $ 461 $ (15 ) $ 557 $ (16 ) Equity Securities 3,323 (133 ) - - 3,323 (133 ) $ 3,419 $ (134 ) $ 461 $ (15 ) $ 3,880 $ (149 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | Maturities of fixed income securities classified as available-for-sale at July 31, 2015 are as follows, at cost (in thousands): Current $ 101 Due after one year through five years 1,622 Due after five years through ten years 1,502 $ 3,225 |
NOTE B - EARNINGS PER SHARE (De
NOTE B - EARNINGS PER SHARE (Details) - shares | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Equity Option [Member] | ||
NOTE B - EARNINGS PER SHARE (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 330,500 | 300,875 |
NOTE B - EARNINGS PER SHARE (24
NOTE B - EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - shares | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||
Basic EPS Shares outstanding (weighted average) | 8,706,185 | 8,578,733 |
Effect of Dilutive Securities | 277,852 | 278,116 |
Diluted EPS Shares outstanding | 8,984,037 | 8,856,849 |
NOTE C - COSTS AND ESTIMATED 25
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET (Details) [Line Items] | ||
Revenues | $ 16,680 | $ 19,740 |
Contracts Accounted for under Percentage of Completion [Member] | ||
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET (Details) [Line Items] | ||
Revenues | $ 9,300 | $ 12,900 |
NOTE C - COSTS AND ESTIMATED 26
NOTE C - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET (Details) - Costs and Estimated Earnings in Excess of Billings, Net - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
Costs and Estimated Earnings in Excess of Billings, Net [Abstract] | ||
Costs and estimated earnings in excess of billings | $ 15,203 | $ 14,057 |
Billings in excess of costs and estimated earnings | (558) | (1,128) |
Net asset | $ 14,645 | $ 12,929 |
NOTE D - TREASURY STOCK TRANS27
NOTE D - TREASURY STOCK TRANSACTIONS (Details) | 3 Months Ended |
Jul. 31, 2015shares | |
Disclosure Text Block Supplement [Abstract] | |
Defined Contribution Plan, Employer Discretionary Contribution, Shares | 12,195 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,905 |
NOTE E - INVENTORIES (Details)
NOTE E - INVENTORIES (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
NOTE E - INVENTORIES (Details) [Line Items] | ||
Inventory, Net | $ 39,090 | $ 38,239 |
UNITED STATES | ||
NOTE E - INVENTORIES (Details) [Line Items] | ||
Inventory, Net | 32,500 | 32,000 |
BELGIUM | ||
NOTE E - INVENTORIES (Details) [Line Items] | ||
Inventory, Net | 5,500 | 5,400 |
CHINA | ||
NOTE E - INVENTORIES (Details) [Line Items] | ||
Inventory, Net | $ 1,000 | $ 800 |
NOTE E - INVENTORIES (Details)
NOTE E - INVENTORIES (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
Schedule of Inventory, Current [Abstract] | ||
Raw Materials and Component Parts | $ 24,796 | $ 24,274 |
Work in Progress | 10,338 | 9,948 |
Finished Goods | 3,956 | 4,017 |
$ 39,090 | $ 38,239 |
NOTE F - SEGMENT INFORMATION (D
NOTE F - SEGMENT INFORMATION (Details) - Jul. 31, 2015 | Total |
NOTE F - SEGMENT INFORMATION (Details) [Line Items] | |
Number of Reportable Segments | 3 |
Frequency Electronics Inc New York [Member] | |
NOTE F - SEGMENT INFORMATION (Details) [Line Items] | |
Number Of Principal Markets | 3 |
NOTE F - SEGMENT INFORMATION 31
NOTE F - SEGMENT INFORMATION (Details) - Reconciliation of Revenue from Segments to Consolidated - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Net revenues: | ||
Revenues | $ 16,680 | $ 19,740 |
Frequency Electronics Inc New York [Member] | ||
Net revenues: | ||
Revenues | 13,494 | 17,257 |
Gillam Frequency Electronics Inc [Member] | ||
Net revenues: | ||
Revenues | 1,407 | 1,491 |
Frequency Electronics Inc Zyfer [Member] | ||
Net revenues: | ||
Revenues | 2,100 | 1,120 |
Inter Segment [Member] | ||
Net revenues: | ||
Revenues | $ (321) | $ (128) |
NOTE F - SEGMENT INFORMATION 32
NOTE F - SEGMENT INFORMATION (Details) - Reconciliation of Operating Profit (Loss) from Segments to Consolidated - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Operating profit (loss): | ||
Operating profit (loss) | $ 941 | $ 928 |
Frequency Electronics Inc New York [Member] | ||
Operating profit (loss): | ||
Operating profit (loss) | 1,087 | 2,080 |
Gillam Frequency Electronics Inc [Member] | ||
Operating profit (loss): | ||
Operating profit (loss) | (217) | (578) |
Frequency Electronics Inc Zyfer [Member] | ||
Operating profit (loss): | ||
Operating profit (loss) | 123 | (506) |
Corporate Segment [Member] | ||
Operating profit (loss): | ||
Operating profit (loss) | $ (52) | $ (68) |
NOTE F - SEGMENT INFORMATION 33
NOTE F - SEGMENT INFORMATION (Details) - Schedule of Reconciliation of Assets from Segment to Consolidated - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 |
Identifiable assets: | ||
Identifiable Assets | $ 119,122 | $ 117,825 |
Frequency Electronics Inc New York [Member] | ||
Identifiable assets: | ||
Identifiable Assets | 64,164 | 63,541 |
Gillam Frequency Electronics Inc [Member] | ||
Identifiable assets: | ||
Identifiable Assets | 9,488 | 9,878 |
Frequency Electronics Inc Zyfer [Member] | ||
Identifiable assets: | ||
Identifiable Assets | 11,902 | 11,088 |
Inter Segment [Member] | ||
Identifiable assets: | ||
Identifiable Assets | (6,668) | (8,775) |
Corporate Segment [Member] | ||
Identifiable assets: | ||
Identifiable Assets | $ 40,236 | $ 42,093 |
NOTE F - SEGMENT INFORMATION 34
NOTE F - SEGMENT INFORMATION (Details) - Schedule of Reconciliation of Assets from Segment to Consolidated (Parentheticals) $ in Millions | Jul. 31, 2015USD ($) |
Frequency Electronics Inc New York [Member] | CHINA | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Identifiable assets | $ 2.5 |
NOTE G - INVESTMENT IN MORION35
NOTE G - INVESTMENT IN MORION, INC. (Details) - Morion Inc [Member] - USD ($) | Oct. 22, 2012 | Nov. 30, 2012 | Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2015 |
NOTE G - INVESTMENT IN MORION, INC. (Details) [Line Items] | |||||
Cost Method Investment Ownership Percentage | 4.60% | ||||
Related Party Transaction, Purchases from Related Party | $ 32,000 | $ 65,000 | |||
Revenue from Related Parties | 423,000 | $ 183,000 | |||
Accounts Receivable, Related Parties, Current | 429,000 | $ 145,000 | |||
Accounts Payable, Related Parties, Current | 0 | 23,000 | |||
Licensing Agreement [Member] | |||||
NOTE G - INVESTMENT IN MORION, INC. (Details) [Line Items] | |||||
Revenue from Related Parties | $ 925,000 | ||||
Long-term Purchase Commitment, Description | The agreement required the Company to sell certain fully-depreciated production equipment previously owned by the Company and to provide training to Morion employees to enable Morion to produce a minimum of 5,000 rubidium oscillators per year. | ||||
License And Equipment Fee Receivable | $ 2,700,000 | ||||
Percentage Of Royalties Payable On Third Party Sales | 5.00% | ||||
Long-term Purchase Commitment, Period | 5 years | ||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 400,000 | ||||
Proceeds from Deposits from Customers | $ 925,000 | ||||
Product and Training Services [Member] | |||||
NOTE G - INVESTMENT IN MORION, INC. (Details) [Line Items] | |||||
Revenue from Related Parties | 375,000 | ||||
Balance for Transfer of License Due Once State Department Approves Removal of Certain Provisions [Member] | |||||
NOTE G - INVESTMENT IN MORION, INC. (Details) [Line Items] | |||||
License And Equipment Fee Receivable | $ 1,000,000 |
NOTE H - FAIR VALUE OF FINANC36
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sale and Maturity of Marketable Securities | $ 713,000 | $ 2,230,000 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 137,000 | $ 280,000 |
NOTE H - FAIR VALUE OF FINANC37
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Apr. 30, 2015 | |
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ||
Cost | $ 9,989 | $ 10,397 |
Gross Unrealized Gains | 737 | 938 |
Gross Unrealized Losses | (362) | (149) |
Fair Market Value | 10,364 | 11,186 |
Fixed Income Securities [Member] | ||
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ||
Cost | 3,225 | 3,379 |
Gross Unrealized Gains | 70 | 104 |
Gross Unrealized Losses | (27) | (16) |
Fair Market Value | 3,268 | 3,467 |
Equity Securities [Member] | ||
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ||
Cost | 6,764 | 7,018 |
Gross Unrealized Gains | 667 | 834 |
Gross Unrealized Losses | (335) | (133) |
Fair Market Value | $ 7,096 | $ 7,719 |
NOTE H - FAIR VALUE OF FINANC38
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Apr. 30, 2015 | |
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Line Items] | ||
Fair Value, Less than 12 months | $ 2,870 | $ 3,419 |
Unrealized Losses, Less than 12 months | (284) | (134) |
Fair Value, 12 Months or more | 1,202 | 461 |
Unrealized Losses, 12 Months or more | (78) | (15) |
Fair Value | 4,072 | 3,880 |
Unrealized Losses | (362) | (149) |
Fixed Income Securities [Member] | ||
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Line Items] | ||
Fair Value, Less than 12 months | 92 | 96 |
Unrealized Losses, Less than 12 months | (5) | (1) |
Fair Value, 12 Months or more | 453 | 461 |
Unrealized Losses, 12 Months or more | (22) | (15) |
Fair Value | 545 | 557 |
Unrealized Losses | (27) | (16) |
Equity Securities [Member] | ||
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Line Items] | ||
Fair Value, Less than 12 months | 2,778 | 3,323 |
Unrealized Losses, Less than 12 months | (279) | (133) |
Fair Value, 12 Months or more | 749 | 0 |
Unrealized Losses, 12 Months or more | (56) | 0 |
Fair Value | 3,527 | 3,323 |
Unrealized Losses | $ (335) | $ (133) |
NOTE H - FAIR VALUE OF FINANC39
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Investments Classified by Contractual Maturity Date - Fixed Income Securities [Member] $ in Thousands | Jul. 31, 2015USD ($) |
NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Investments Classified by Contractual Maturity Date [Line Items] | |
Current | $ 101 |
Due after one year through five years | 1,622 |
Due after five years through ten years | 1,502 |
$ 3,225 |
NOTE J - CREDIT FACILITY (Detai
NOTE J - CREDIT FACILITY (Details) - Jul. 31, 2015 - JP Morgan Chase Bank, N.A. [Member] - Line of Credit [Member] - USD ($) $ in Millions | Total |
NOTE J - CREDIT FACILITY (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 |
Line of Credit Facility, Borrowing Capacity, Description | Pursuant to the Credit Agreement, the amount of Tranche A borrowings may not exceed the value of the Pledged Investments (as defined in the Credit Agreement). The amount of Tranche B borrowings may not exceed the lesser of (i) $15.0 million and (ii) the Borrowing Base (as defined in the Credit Agreement). |
Line of Credit Facility, Collateral | The Facility is fully guaranteed by certain of the Company’s subsidiaries and is secured by, among other things, a pledge of substantially all personal property of the Company and certain of the Company’s subsidiaries. |
Line of Credit Facility, Expiration Date | Jun. 5, 2018 |
Line of Credit Facility, Commitment Fee Percentage | 0.10% |
Debt Instrument, Tranche B [Member] | |
NOTE J - CREDIT FACILITY (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 |
Debt Instrument, Tranche B [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
NOTE J - CREDIT FACILITY (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Debt Instrument, Tranche A [Member] | |
NOTE J - CREDIT FACILITY (Details) [Line Items] | |
Long-term Line of Credit | $ 6 |
Debt Instrument, Tranche A [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
NOTE J - CREDIT FACILITY (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
NOTE K - VALUATION ALLOWANCE 41
NOTE K - VALUATION ALLOWANCE ON DEFERRED TAX ASSETS (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 2.4 | $ 2.4 |