Frequency Electronics reports $18 million in recent contract wins, including an $11 million award from an undisclosed major aerospace prime contractor to support a proliferated satellite program.
President and CEO Tom McClelland commented this was the company’s first contract with this prime contractor and is the second “significant” contract to support proliferated satellite programs this year.
Under the contract, Frequency Electronics will provide on-board precision frequency-generation systems. The company also secured $7 million in follow-on production contracts for both space oscillators and non-space U.S. government programs.
“We expect significantly more wins in this area going forward,” McClelland said of proliferated satellite programs. “The follow-on awards we won are also very attractive for FEI, as they tend to come at higher than average corporate gross margins, as we leverage previous engineering and development costs.”
Frequency Electronics recently reported a record funded backlog of $111 million, up nearly 60% year-over-year. Leadership told investors the company invested in its business over the last fiscal year, hiring engineering talent in advance of an expected large ramp-up in production and revenue.
