Frequency Electronics Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Marema - Pareto Ventures - Analyst : Along the line of the smaller, cheaper satellite direction, how would you describe the technical lift to get there? Is it -- do you need breakthroughs in physics and engineering? Or how would you characterize the difficulty in getting to a smaller, cheaper version of what you have today to be competitive?

Question: George Marema - Pareto Ventures - Analyst : Tom, have you looked at the -- it's in the final phase. It's not commercialized today, but there's a project being done for SkyWater with QuickLogic and Honeywell which is an FPGA radiation-hardened technology for space. Have you looked at that?

Question: George Marema - Pareto Ventures - Analyst : And one last thing about government budgets. I was happy to see the backlog increase by it looks like, just rough math, $25 million in the quarter over last quarter. Given an election and a new administration, I was happy to see that during this time. It appears from all available information that the space race is really going to be amped up for the next several years. There's a lot of talk on, on-orbit space services, NASA is doing stuff, DOD has a lot of plans. How would you describe the budgetary environment in the next few months? And you kind of made some comments about '25, hopefully, but is it difficult right now in the transition period? Are a lot of things getting gummed up or not necessarily?

Question: George Marema - Pareto Ventures - Analyst : Yes. I didn't want to leave Zyfer as the odd man out. How is the Zyfer unit performing?

Question: George Marema - Pareto Ventures - Analyst : Are there any R&D -- I'm sorry, are there any R&D priorities for Zyfer or any new areas or new things going on there?

Question: George Marema - Pareto Ventures - Analyst : Any cybersecurity connections with any of this -- with them?