Here, too, I remain invested.
Frequency Electronics shares have outperformed the Zacks Instruments - Control sector index over the last six months (+122.3% versus -4.7%). The microcap company with a market capitalization of USD 470.5 million is benefiting from strong momentum from US defense contracts and secured multi-year government contracts, including the USD 3.1 million Patriot missile system contract and USD 4.8 million in aircraft synchronization contracts.
Frequency Electronics' order backlog of USD 82 million, up 17% in six months, provides short-term revenue certainty; 69% of orders are realizable within twelve months. The sales mix is shifting towards defense, with government contracts (outside the aerospace sector) now accounting for 70% of sales. FEIM's rubidium atomic clocks give the company a technological edge in military avionics and strengthen its competitive position. A share buyback program worth 20 million US dollars contributes to the return for shareholders.
