FEIM - Earnings call transcript Q1 2019 | Frequency Electronics, Inc.

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Operator

Greetings and welcome to the Frequency Electronics First Quarter Fiscal Year 2019 Results 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] As a reminder, this conference is being recorded. Any statements made by the company during this conference call regarding the future constitute forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. uncertainties the cause forward-looking involve differ results inherently from materially statements. statements that actual could to Such Factors that are would the are the included cause periodic Securities or contribute the company’s press to and company’s Exchange releases filings and report further Commission. in in detailed with such differences obligation changes making date after By no of forward-looking statements these this the statements, update these call. the for undertakes conference company to revisions or of pleasure my Chairman to introduce Electronics. Martin host, Executive Board now your of Bloch, the is Frequency It

Martin Bloch

Good afternoon, everybody.

The this Go I question to the appreciate first ahead, Steve. to would like go through would of business Sloane. address order is, then to it Steve either the fiscal, open I you Bernstein effects we’ll me, And of Steve questions. if Stan and or

Steven Bernstein

and Martin, afternoon. you, good Thank

approximately XX% fiscal eliminated the Intersegment fiscal compared of of revenues period period revenues, months for compared million, July and approximately compared of over the ended to the of revenues revenues, same from period period fiscal compared period July Other three satellite increased are year XXXX, consolidated commercial the to fiscal approximately approximately same approximately are in Defense to XXXX, POC during recognized XX, Government the in from $X.X of FEI-Zyfer on U.S. consolidated the FEI-New over for decreased and three XX% FEI-New for accounted satellite revenues of are during XXXX, ended the which XXXX, York $XXX,XXX and approximately primarily these Commercial are consolidation. for accounted the programs approximately XX, approximately market and XX% same non-space contracts months XXXX. of Revenue from the York segment. XX% $XXX,XXX accounted same increased method. Department segments Government of U.S. revenues, under XX% both Revenues Revenues same fiscal of and X% in the the For customers, same consolidated XXXX. of to period the recorded fiscal XXXX. recorded during XXXX

period increased and the fiscal XX, rate period three-month the The the and the as effective gross favorable same ended mix XXXX, in due product For was July margin gross to gross higher decreased, to compared year cost margin margin management. XXXX. rate

same period period XX% XX, manage three and the products ending the July comparable and ended keep was months fiscal administrative the fiscal no the was up Research year previous declined expenditures XXXX the was same revenues. selling in and The in edge compared ended $XXX,XXX, year. technology months There business. the contracts. expenses that same the was specific to and For that to R&D expenses to enhance of of the future as of three approximately intended July previous year. of Frequency for XXXX, at XX, majority consolidated investments reduction period company XXXX compared competitiveness XX% the accounts. various spending monitor the period leading occurred sales for and development for The R&D of the represent The XX, to in rate XX%, for July decrease. made of the company’s XXXX, time and account of continues approximately the to

securities Earnings on last $XXX,XXX of these marketable Investment during the may is company’s profit primarily on income ended and the an compared Operating R&D. of first development higher payout include $XX,XXX, for changes was the to funded XX, balance the year, profit in fiscal levels. based rates securities. of research vary July level significantly customer operating For quarter of activities a year. interest for derived and holdings XXXX will the quarter

the to in company XX, period divested the XXXX, XX, For XXXX, of fiscal year lower account. securities investment holdings mainly ending months July investment the than its same in XXXX, of three in due equity ended July was its income quarter

$XX,XXX, months the same for the $XXX,XXX of net result, fraction Consolidated during period As operations XXXX. XX, a This $X or yields approximately income of expense pre-tax same compared the $X.XX ended quarter fiscal approximately per compared million diluted realized compared of tax XXXX compared diluted to the share, company of year. The last ending the for a continuing of prior income the million to gain the last year. recorded a $XXX,XXX, XXXX, provision $XX,XXX, to QX July of is an July expense from share $X.XX income or in for for year. an no pre-tax of as $X,XXX, income same XX, for gain period $X.X three period loss was to or of per a

compared XXXX, fully XX, working has a adequate the X. to of The XX, I is at the XX and needs will to to at The look to back $XX XX, million XXXX from end call the $XX believes Martin, meet million, operating million later. backlog XXXX, that for at at position over April liquidity the strong million capital to over its and months Our $XX XXXX. July questions was sheet current of company investing next up balance the and $XX July funded turn reflect ratio your company of April continues and its future. XX we forward to foreseeable

Martin Bloch

Steve. you, Thank

make in for on and for the project future. and bookings see I XXXX feel in X, line. able many the backlog to fiscal in working do to of proper very most press also the growth happy any free. you I’m it’s been revenue development both Please capture involved Frequency significant a hard Board research Stan has Frequency’s comments? had satellite business, of he’s by investment long operating Sloane beyond. we’ve still to significant grow where that guys and bottom in we’re the a very reducing report outlook elected the make time. release, and in Stan, May and a applications, future. And in And amount make for actively I’m terrestrial important, highest proposals and very the bright As progress the President you for in to company, and very want in We’ve and to as encouraged costs good stated new I

Stanton Sloane

No.

Martin Bloch

But Sloane. please are and Steve the and address questions questions him to operational your to on I Frequency, Stan help here address out.

So I questions with this, want over turn and answers. to to

Operator

please, we Steven At this Please poll One to Instructions] either we Stan will questions. question-and-answer your while Sloane. Bernstein, time, Martin be session. questions [Operator a conducting moment for Bloch, address or

first Please proceed Doscher] Securities. with question. from Our comes [Richard question [ph],National your

Unidentified Analyst

Yes. Thank my for you call. taking

and what sheet other with in balance you million your Could much those you to do what intend on are have assets. pretty them? $XX.X explain You exactly

Steven Bernstein

of – insurance our $XX That’s million made – Well, the our up policies. of policies, It’s assets of cash this are it. of other the been $XX their million It majority mainly our in there. life continually It’s a it. of grows. value

Unidentified Analyst

I Oh, I aside what had assets some sale, okay, put clear thought you. wasn’t to as thank for you and that…?

Steven Bernstein

No, no.

Unidentified Analyst

Okay. Thank you answering that. for

Operator

[Michael Our investor. next question question. Cooper], from your proceed [ph] with private Please comes

Unidentified Analyst

guys. Hi,

Martin Bloch

Hi.

Unidentified Analyst

growing on Can facility. of in to that give that? increase York bit Electronics story and of your and a my there color all, first I in has new revenue few what at people of and I new timing second drop industrial New past, base question terms your so? saw happening quarters the don’t with over a I your Can it And products then is business double-digit been XX% you when the you or XXX a And Frequency little to was customers? is, employments hire rates know see was going surprised

Stanton Sloane

this is Stan. Hi, Michael,

run with incentives that’s news associated the to, government you’re essentially over local period. and state that those XX-year referring incentives article on And a So with negotiated we here.

business unreasonable we’ll So, given outlook we and the business. Martin the in that horizon, what for articulated the think grow don’t the it’s that see

how But depend that’s on will in that well that program. what do it’s marketplace. incentive tied course, to we Of is, that the

business – terrestrial space On part a electronics the for we’re the industrials, most business and small is that’s and of DoD. of

that’s not significant So forward. for focus us going a

Unidentified Analyst

Okay, great.

Operator

your next question Please from with Richard investor. John, Our question. comes proceed private

Unidentified Analyst

afternoon. Good you. Thank

Martin Bloch

Good afternoon.

Unidentified Analyst

on a But for you time, some thinking of proposal was were the your $XX you converters, business. activity satellite the of might that you earn in say today, that Martin, million revenues is with release There per up/down from implication applications, the an business for potential the up/down really up million satellite? the have and non-space substantially anymore there area sophisticated Is future. converters can’t last year you $XX over DoD FEI’s that largest the

Martin Bloch

No, that’s not implied.

up/down are And many the on that have primarily type bureaus. on We’re are precession g-sensitivity commercial capability. getting still programs in focused this of we’re for this nation introduce of those we’re that most of low for we’re that to can do on also participation converters But for the difficult the well for new the satellites, because terrestrial to of necessary and the time business is are it. becoming that very space both that can military absolutely satellites technologies terrestrial, important future. and some for safety for that us many of how space as we and mission, exciting now commodity precision security that And States time, supply United pursuing foreseeable satellite. pursuing pursuing military the unique both are the still trying it’s one for as and that, people and But the define

death orders were new the up/down they So the have the of the have different issued, last of programs, possibly to of XX% they slowdown know, commercial on converters, skinning and possibly are satellite, the satellite you on are way because missions technology of the years we with the many given but looking been – new up and as a about all cat. three

Unidentified Analyst

is you, – more having six military customers converters? on aerospace and Okay. any being more make major of your I developed from And is side, Have business guess. business that in the interested now you also getting commercial up/down or the the

Martin Bloch

the absolutely, military, – yes. I

XX these seven up/down Iridium We participating XX up/down course, system. receivers now this are already XX companies and, of, for for And units, with finished right of job of very we a total of satellites but we channel converters supplied We the those functioning and in I delivered think, – of which what largest all, just orbit NEXT. well.

up/down big on that about job which converters, worth the – was $XX that million. was So

Unidentified Analyst

was what to than That piece less sell said in right? hoping you the great you’re on converters the But are a ones sophisticated based business. past of – those the

Martin Bloch

L-Band business. the and very is less converters gigahertz. than higher that aspects at provide sophisticated They yes transceiver Well, were But to the a we X.X converters up/down The and is – more frequency. L-Band all very approximately were lower the Iridium XX some they way at frequency, no. was In gigahertz. not operating they were sophisticated. sophisticated

Unidentified Analyst

I see.

Martin Bloch

for which And that pursuing are large DoD FEI for we’re very purpose, quantity But of deliver reputation our program that past XX opportunity years space to proud other that anything, one that but we a and because that, demonstrated quantity. demonstrate doing job that. very significant time, reasonable is can never the had we business the space us to served have a do hardware Iridium important is key can that. important of future in we in we demonstrate for was

Unidentified Analyst

for I that life And down business call, fact years Okay. that the the to lot last lives that XX you to the that per satellite the of potential have believe five Does eight the are on past. versus million years you the might said, shorter? satellite now reduce their in $XX was

Martin Bloch

to they more would have because because often, and gone build vulnerable – down. lot is more their idea costs does, probably them them them make need cheaper, replace launch whole It a

Unidentified Analyst

Okay.

Martin Bloch

lot been to date. all successful a aim them the going successful, we’re the they see. something satellite Are Nobody to is of So to has cheaper. make be waiting new that’s to

Unidentified Analyst

All Thanks Okay. very much. right.

Martin Bloch

You’re welcome. very

Operator

comes question next from question. Our investor. [ph] with proceed private Please [Michael Eisner], your

Unidentified Analyst

are you. how Martin,

Martin Bloch

is out. you don’t voice address running to I Stan. Why it good. – I’m my

Unidentified Analyst

it we today? Steve, bookings the had All conference this. Where address I are to you year. about to he $XX in right. able calendar bookings be I’ll call, million answer would think Last for with

Steven Bernstein

the year? calendar For

Martin Bloch

Martin, this we’ll you’re in XXXX. Yes, referring projected Mike. million is, book that be What we calendar to $XX able is

date. have booked that We amount, million to $XX have I exceeded we think,

Steven Bernstein

year. the calendar For

Martin Bloch

what, calendar months five have, very year we the but happy. and ago, still For

Unidentified Analyst

at see roughly. now I million $XX

Martin Bloch

million. Over sorry? $XX I’m

Martin Bloch

five have months $XX go. million Over to still we and

Unidentified Analyst

right. All

completed revenue? for affect that You quarter’s something to next just Iridium. said, you going Is

Martin Bloch

No.

for press my read – profitability – on I – XXXX. I forward with fiscal increase Stan and As we’re discussed release. This basically looking it to revenue

Unidentified Analyst

I last, million, or And last think, is million at am the million? we’re right. quarter Now was $X quarter All I $X $XX like correct? fourth

Martin Bloch

revenue. Of

Steven Bernstein

yes. Sales,

Martin Bloch

about QX X.X. was

Stanton Sloane

Yes.

Martin Bloch

it’s quarter, this $XX revenue million. Of about

Unidentified Analyst

sorry, I’m so hear you. hard it’s And to

Stanton Sloane

of million was QX Last over a million, $X.X about $X.X little revenue.

This million. quarter $XX is just over

Unidentified Analyst

million Force that most Did contract? of come from Air $XX

Martin Bloch

No.

Stanton Sloane

No.

Martin Bloch

little that Very one. for

Stanton Sloane

Yes.

Unidentified Analyst

very Really, little.

Stanton Sloane

Yes, running it.

Martin Bloch

Well, the got remember, contract, we that April. XXth think I of

be of very it the So contract revenue. fiscal went in of in Most will the this for XXXX, fiscal XXXX into the beyond. bookings but revenue little and

Unidentified Analyst

the next next Beginning couple quarters? For of quarter?

Martin Bloch

Well, mean…. the I year.

Stanton Sloane

It of little out over It’s a spread bit stretches lumpy. time. out. not It’s

you won’t see So it.

Unidentified Analyst

to a of to take complete? years you It’s couple going

Stanton Sloane

Correct.

Unidentified Analyst

So or years. over, two up it’ll guessing next the be give take? I broken I’m hypothetically guess,

Martin Bloch

number. a That’s good

Unidentified Analyst

All right.

Martin Bloch

the to and and we to us want in a we to the it stability major for the that in. a very which develop clock. exciting never going XX – just job Michael, demonstrated They cheapest. satellites were that’s chosen for is are they to I success. contract improvement mentioned out milestone This large tell is us, jump times now great to a we’re And I’m and a group than progress felt And XX we and we’ve feel us get you, we used in we us, of not more system, X rubidium chose accurate because excited – applications. timing were being best the that so very terrestrial Force this have you it’s Air chose because on to capability

Unidentified Analyst

I a you up see like the Force you in barely last from touched from this Air quarter, turnaround is because million big revenue? it revenue in sounds and $XX went million contract, to $X.X

Steven Bernstein

fairly accurate. of financials, very course, are that’s Yes, encouraging. sequential The

So yes, right. you’re

Unidentified Analyst

Good Thank you. All job. right.

Steven Bernstein

you, Michael. Thank

Operator

Please next proceed Sam question comes Management. Rebotsky, Our from your Asset question. SER with

Sam Rebotsky

Good and XX% you million, expect $XX afternoon, at The the year, end Steven. complete of Martin, to and in it year. backlog fiscal the the Stanton

What have in expect fiscal you complete year? the to do current Now $XX you million.

Steven Bernstein

Sam, always loaded We ask, a question.

predict for FEI year, can All in or we revenue a and exact know, the income. I is, see never As you increase you tell profitability. significant policy, we revenue

Sam Rebotsky

of the that [indiscernible]. you expect the so the in Okay. million that No, complete said to meant That’s Yes, year. $XX the you I’m because in XX-K, XX% meant… fiscal – of what

Martin Bloch

higher don’t I exactly. Well, this year. to be know It’s percentage going a

bunch a we’ll of have finishing. be that We jobs

Sam Rebotsky

then And profitable to the year. okay. for Okay, expect be we

or and Do to expect be going lumpy? each quarter. We’re break-even uneven be to currently first profitable is whatever least, in in we we quarter, at the sales profitable do need, it

Steven Bernstein

working we’re going not Well, hard just… be to forward, profitable

Martin Bloch

Break-even.

Steven Bernstein

the …next quarter intent. that’s and not just but this year,

Sam Rebotsky

– are And there, the same year-end? was our than are it as they or bids there end bids the of to relative the quarter, that time Okay. what as at previously that far out out at significantly is year, what are our higher are – out, the –

Stanton Sloane

add in I up, But company. the probably been certainly of don’t know I’ve level of with all business things associated highest worth that So have, $XXX we north new we since activity the have when of probably you million pending.

estimates we up Now with, get we start then and followed in also people many have – proposals. get we with those cases,

of have So on… of probably it, we like million, have the lot the we bids firm out say, north I rounds it’s activity $XXX that and

Sam Rebotsky

your at seeing will – the I true. guess Right. Good the most and your XS Hopefully, of New Yes, everybody, new congratulations. to luck, a for this Year. future trading some some And offices and Form recently, I bought filed, future. be stock look forward to will seems because to Good being level some relative a hopefully, more come low stock

Martin Bloch

Thank you.

Steven Bernstein

you. Thank

Operator

comes Please question from Montgomery proceed Brett your next question. Janney Scott. Our with Reiss,

Brett Reiss

Steve. this is Yes. some last me letting is quarter Hi, million cash quarter. Thanks questions. for guess, The ask less one I this $X.X than for

where it go? did Just

Steven Bernstein

Well, we up. decrease cash – – the AR went in went

a down $X million. payables we almost little purchased Our million, some for equipment over $X.X went and

Brett Reiss

your and current were was Receivables like liabilities inventory up $XXX,XXX. $X.X flat, right. down All million, were

Steven Bernstein

Correct.

Brett Reiss

So the is equipment? million other $X

Steven Bernstein

was part a the receivables majority. equipment, of the of and a was the that. was more small the rest was the It accounts, No, in in but it receivables, – receivables over larger It it. was couple wasn’t. up $X.X than went the million There

Brett Reiss

so, how much? positive Okay. flow And this were quarter? And you if cash

Steven Bernstein

not. were we No,

Brett Reiss

What the flow Okay. drain? cash was

Steven Bernstein

I number me. with don’t the have

Martin Bloch

you’ll actual you’ll it. it as and Listen, take Okay. an item report

Steven Bernstein

it get back I’ll to you.

Brett Reiss

Okay.

market? just you could – specificity – on communications Just the seeing comment you’re that on with and what secure

Martin Bloch

Okay.

just You’re Martin is – this Bloch.

few become solution terrestrial, jamming keep touched the same just critical is I both saying my only becoming opportunity things, the space question the that both and for on that, spoofing, vulnerable. see FEI exciting but no it’s brisk GPS threats. field. a terrestrial time. very, time FEI space, short-term as new this on business this and very is is capability There’s of You and a has to love. one precision companies more for as And for applications, in very backup largest in – that offers that precision addressing, as that provide the on we world that well it’s And very

Brett Reiss

shareholder you example, I’ll All should I as you monitor company, $XXX go secure I queue. said right. back monitor to you communications, an I this for of the bids pending. Can your business have million in and in outside then that? progress how Like, ask landing in in north into

Martin Bloch

Yes.

Brett Reiss

Is of how communications? this secure of How much progress can I your the monitor is a area But of in exciting that business? portion in it company’s I how secure do – communication?

Stanton Sloane

Okay.

of report one couple our the.. of we segments is And that work in in a So lot a Zyfer. things of does here. Zyfer One, segments. And

Steven Bernstein

Terrestrial…

Stanton Sloane

non-space-related to so …in us. way look yes, – one secure arena, at comps that’s the

Brett Reiss

Right.

Stanton Sloane

Of that $XXX much really in include million, I didn’t comps. secure

So the $XXX estimate. or if comps rough you were million a off all include the probably the and to opportunities, cuff, number $XXX that’s probably is million secure

you So size give it feel the will things. for of a

Martin Bloch

In is Martin we us, tell releases, public our release. will will I’ll application definitely a customers Bloch. capture is are sensitive putting This really Whenever customers from us our make tell one many we as allow and cases, way. the I’ll business. prohibit the you you. much

benign be $XX $X do end but the that most we use. kind cannot the contract, or gotten million can we – is – release we’ll of specific million we’ve So put contract

Brett Reiss

Right.

the Now I’m Martin. I’m ahead. sorry. of – yes, sorry, because Go

Martin Bloch

It’s a business. sensitive

Brett Reiss

Right.

gentlemen. ahead, go sorry, I’m – the of because Now

Martin Bloch

ahead. Go

ahead. go You

Brett Reiss

doing do in of have specific All you of right. that secure limited a amount capable competition communications, the niche? you’re Because unique of in things

Martin Bloch

Very, very limited.

capability or United four one maybe that have or best. in might we companies the that there worldwide, we consider two the be five and but States, think I the are

Brett Reiss

you All my for right. answering Thank questions.

Martin Bloch

You’re very welcome.

Operator

questions Instructions] Stan or Bernstein Martin address to questions. Sloane. Steven One Bloch, [Operator poll for moment your either Please while we please,

next proceed Our question. comes question Please Securities. Richard with your from National Doscher,

Unidentified Analyst

is for my follow-up. This you Thank taking Stan. Yes. for

company release company rise, what’s great is the You deal continue separate part that we R&D? R&D customers. that? to going a to in that from And your coming that mentioned you your think How R&D, should Thank its so be in own the that? press of And see about increase on are takeaway final will you. reduce your we’ll or going spending

Stanton Sloane

– is yes, Stan. this So

talk and – R&D. we have development internally we for we have Typically, about R&D, when funds. R&D So more have we customer include complex particularly funded form funded electronics of in the R&D our then contracts,

pursue, so more And anticipate, business R&D, the customer the would usually the we programs, precedes the development. we funded more production that

for internal the or R&D, continue increase. funding to expect On that we would

very to production Martin mentioned also those of opportunities have that company couple them. of need of we ahead development sure position continue to us. potential several We have contracts a them. And with things. those for associated we the the significant make And longer-term

expect what that to stay close is to increase. number So it reasonably or I would

Unidentified Analyst

Okay discoveries answer more of feel how And can within all to filing bit you is some you’re call, leads me I’d more protected still on growth asked R&D, a on customer control? spending value, really you’re differential and last that call. a mentioned speak I the on find and fully you the stayed your between little is you’re little future a heart that like and company’s your important to that bonus. R&D file able bit robust can to question you didn’t a But that on the filing not making like And about that to and be our that I’d it and But of stay patents. that assists last just into getting discoveries? which see the the

Stanton Sloane

Sure. This is Stan, again.

of last us we decisions for not and think said to we to to trying our have whether firm continue individually maintaining be secrets. file file forward, more around find lot seems trade we strategy that and as protecting to patents that them We’ll the look about We a but I what patents make a time file strategy is at going or patents. for to a So whether of that, do the trade establish it IP. don’t secrets effective

found haven’t IP. helps We that, that protect the

Martin Bloch

and the years. found years to of filed example keeping a I really that the much know-how customers private And on best It’s g-sensitivity. just think later, their drug still than world around This that was XX better We is XX can in patent. find secure to best patent it. not a exposing the try you low and we People copiers. it a then the like that found we lots protection way is typical a patent for technology.

– have we able very in in we’ve our technology So been way. that being good protect to

Unidentified Analyst

you. thank Well, right. All

Martin Bloch

You’re welcome.

Operator

proceed next comes Cooper, investor. Michael Our question. private question Please from with your

Unidentified Analyst

Hi, months guys. four ago… your On you that five contract $XX million won or

Martin Bloch

million. $XX

Unidentified Analyst

atomic that No, clock, next atomic the was the clock. generation

Martin Bloch

Yes.

Unidentified Analyst

$XX And then of I million believe, incorrect a was. announced series Am it I you there? contracts, had

Stanton Sloane

this We haven’t – Stan. to – my is knowledge

that. about. We million announced The certainly talked magnitude. said that one you haven’t We $XX we’re the announced opportunities talking contract anything of perhaps. else about haven’t But is for we

Unidentified Analyst

million $XX a earlier release this there Wasn’t year? news

Martin Bloch

you’re you the about same company? Are sure talking

Unidentified Analyst

Yes.

Martin Bloch

to Not and to used knowledge. like mouth But God’s mother your to ears. from my say, my

Unidentified Analyst

Okay.

Martin Bloch

advanced less significant Air booked that Force of clock, The contract $XX-plus the was million. development was which for we rubidium the the contract

planned of date which say $XX of million so we that, did in we in minimum the far to we beginning year is to a have what XXXX, book of exceeded. Now the calendar

million total $XX over We’re in bookings XXXX. calendar in

Unidentified Analyst

Okay.

In And Okay, is, when the win on your let’s have at gross other looking margins? business we the secure categories rate I million win companies? is new are you number that we the gross expect you might be or out would to And are add over But that that that – there bids that? this communications. what stronger on to what rate move us, million different $XXX margins. after, are question in $XXX you know your actually gave when in you you current

Stanton Sloane

answers. give I’ll of couple you a So

the revenue track on to gross we focused does But improving all, better that. so picture Martin gross of increase. specifically mentioned margins First that gross will improves, some been the become. the rate, margin revenue margin ensure and are degree, That rate. things the the to we’ve other doing cost more we’d reductions to expect

One On the won. ways track you the didn’t off calculated I basis the is answer. an opportunities to is the of I I’ll rates. cuff haven’t number – on win the other rates, of won, dollars win there’s it, give and but two on

the of basis contract, won, it’s won, very opportunities of of that Force the dollars number is by very And of On north well on that XX%. skewed number so high. much that’s basis Air

Unidentified Analyst

Thanks a lot. Okay. Excellent.

Martin Bloch

Yes.

Operator

Our private next comes investor. John, Richard question from Please proceed with your question.

Unidentified Analyst

in a one the the and about past the mentioned telephone that have for news is You’ve XG, But coming there’s you or XG lot business sold, now potential? in Frequency companies. of do that still that

Martin Bloch

Well, little we it. a pursue very of

Unidentified Analyst

Okay.

Martin Bloch

and now money focus our this XG very business is found on This on it. item. we communication that of to difficult have a Most business cutthroat any is make satellite secure

Unidentified Analyst

Thanks. Okay.

Operator

for Ladies end closing and Stan turn reached to remarks. Sloane of gentlemen, the session. have back the we call the And would like to question-and-answer I

Stanton Sloane

your thank attention to you, to appreciate with everybody. thank we again We call. say that, on much forward appreciate and And you goodbye We questions. you. very talking look Well, the will next

Martin Bloch

to This participating I for the with everybody have happy and else. our you Bloch. very healthy want Thank I is wish and to one same Jewish to year a a Martin stockholders. us. much

and Bye, forward to prosperous looking everybody. year. We’re profitable good a

Operator

conference. This concludes today’s

this at lines your disconnect may your Thank you for participation. time. You

Frequency Electronics (FEIM) 13 Sep 182019 Q1 Earnings call transcript