Frequency Electronics, Inc., together with its subsidiaries engages in the designing, development and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications.
The company is incorporated into commercial and Government Satellites, Command, Control, Communication, Computer, Intelligence, Surveillance and Reconnaissance (‘C4ISR’), and Electronic Warfare (‘EW’) systems. Its technology is used for a wide range of space and non-space...
Frequency Electronics, Inc., together with its subsidiaries engages in the designing, development and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications.
The company is incorporated into commercial and Government Satellites, Command, Control, Communication, Computer, Intelligence, Surveillance and Reconnaissance (‘C4ISR’), and Electronic Warfare (‘EW’) systems. Its technology is used for a wide range of space and non-space applications. The Company’s technology is the key element in enhancing the functionality and performance of many electronic systems.
Markets
The company’s principal end markets are time and frequency generation and distribution systems for use in satellite payloads and terrestrial secure command control and communications systems.
For the satellite market, the company has a unique legacy of providing master timing systems, power converters, and frequency generation, synthesis and distribution systems. These products are applicable for both commercial and U.S. Government end-use.
For the terrestrial secure command control and communications systems market, the company’s products support multiple C4ISR and EW applications for the U.S. Government on land, sea and air-borne platforms. In addition, similar types of threats to the public and enterprise networks have been identified by the U.S. Department of Homeland Security. The company’s high precision, ruggedized clocks combined with specialized software are essential for certain secure communication systems.
To address these markets, the company has several corporate entities which operate under two segments primarily based on the geographic locations of its subsidiaries. The two segments are FEI-NY, which includes the subsidiaries FEI Government Systems, Inc., FEI Communications, Inc., and FEI-Elcom Tech, Inc. (‘FEI-Elcom’) and FEI-Zyfer, Inc. (‘FEI-Zyfer’).
FEI-NY
The U.S. Government and commercial satellite electronics, as well as products for the U.S. military and commercial telecom customers, are designed and manufactured at the company’s Long Island.
FEI-Elcom designs and manufactures Radio Frequency (‘RF’) microwave modules, devices and subsystems up to 60 GHz including fast switching, ultra-low phase noise synthesizers, up-down converters, receivers, tuners, ceramic resonance oscillators and dielectric resonance oscillators. These instruments and components are mission critical for multiple applications in the EW market, SATCOM communication, surveillance, signal intelligence (COMINT, MASINT and ELINT), threat simulation, electronic attack (‘EA’) and electronic prevention (‘EP’) systems. FEI-Elcom’s RF microwave technology has also been utilized to develop new products for application in the company’s satellite payload end market.
FEI-Zyfer
Precision time references for terrestrial secure communications and command and control, and frequency products that incorporate GPS technology are manufactured by the company’s subsidiary, FEI-Zyfer. FEI-Zyfer’s GPS capability complements the company’s existing technologies and permits the combined entities to provide a broader range of embedded systems for a variety of timing functions and anti-spoofing applications.
In addition to its subsidiaries, the company made a strategic investment in and licensed certain technology to Morion, Inc. (‘Morion’), a Russian crystal oscillator manufacturer located in St. Petersburg, Russia. The company’s relationship with Morion, which includes ownership of 4.6% of the Morion’s, permits it to secure high precision quartz resonators and crystal oscillators.
Segments and Products
The FEI-NY segment, which includes the parent company, FEI, and operates out of the company’s Long Island, includes the operations of the company’s wholly owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s business. The products manufactured by the FEI-NY segment are principally marketed to the commercial and the U.S. Government satellite markets, to other U.S. Department of Defense (DOD) customers and to wireless communications network providers. The FEI-Zyfer segment, which operates out of California, designs and manufactures products, which incorporate GPS technologies and high-precision clocks designed and manufactured at FEI-NY. FEI-Zyfer sells its products to both commercial and the U.S. Government customers and collaborates with FEI-NY on joint product development activities.
FEI-NY Segment
The company provides precision time, frequency generation and synchronization products and subsystems that are found on-board satellites, in ground-based communication systems and imbedded in mobile platforms operated by the U.S. military. The company has made a substantial investment in research and development (‘R&D’) to apply its core technologies to satellite payloads, non-space DOD programs and commercial and industrial markets. Revenues from satellite payloads, both for commercial and U.S. Government applications, has become the company’s largest business area while the portion of commercial network infrastructure sales has declined relatively. The company expects to continue to generate substantial revenues from deployment of new and replacement satellites and other U.S. Government/DOD applications including sales of ruggedized subsystems for mobile U.S. military platforms.
Satellite Payloads
The use of satellites launched for communications, navigation, weather forecasting, video and data transmissions and Internet access has expanded the need to transmit increasing amounts of voice, video, and data to earth-based receivers. This requires more precise timing and frequency control at the satellite. The company manufactures the master timing systems (quartz, rubidium) and other significant timing and frequency generation products for navigation, communication and intelligence collection satellites, and many of the company’s other space assemblies are used onboard spacecraft for command, control and power distribution. Efficient and reliable DC-DC power converters are also manufactured for the company’s own assemblies and as stand-alone products for space applications. The company’s oven-controlled quartz crystal oscillators are cost-effective precision frequency sources suited for high-end performance required in satellite communications, airborne and terrestrial datalinks and geophysical survey positioning systems. Commercial satellite programs which utilize the company’s space-qualified products include Iridium NEXT Constellation, Intelsat EPIC, O3B, WAAS, MexSat, MSV, ICO, TerreStar, EchoStar, Inmarsat and others. The company is also pursuing core product opportunities for planned satellite constellations that will operate in low- or mid-earth orbits.
In the years ahead, the company expects that the DOD will require more secure communication capabilities, more assets in space and greater bandwidth. The Global Positioning Satellite System, the MILSTAR Satellite System and the AEHF Satellite System are examples of the programs in which the company has participated or plans to participate - programs which management believes are important to the success of the U.S. Government’s communication, intelligence and Precision Navigation and Timing (‘PNT’) needs. It is likely that the DOD will move to adopt smaller and less expensive satellites for Low Earth Orbit (‘LEO’) applications, which the company anticipates will necessitate the adaptation of its products or development of new products to better suit this type of satellite architecture. The company’s product offerings for U.S. Government satellite programs are similar in design and function to those used on commercial satellites.
U.S. Government- Non-space
In addition to space-based programs, the company’s proprietary products have been used in airborne and ground-based guidance, navigation, communications, radar, sonar and electronic countermeasures and timing systems. The company has developed and patented a low acceleration-sensitive technology which offers an approximate 100 times improvement in performance under shock, vibration and other environmental effects as compared to devices not so designed. Products are built in accordance with DOD standards and are in use on many of the U.S. Government’s important military applications. The company anticipates that adequate funds will be provided by the U.S. Government to ensure that these programs are sustained.
FEI-Elcom addresses RF microwave modules and subsystems up to 60 GHz including fast switching, ultra-low phase noise synthesizers, up-down converters, receivers, tuners, ceramic resonance oscillators and dielectric resonance oscillators. These instruments and components are mission critical for many applications in the EW market, including SATCOM communication, surveillance, intelligence collection (SIGINT, COMINT, MASINT, and ELINT) and threat simulation systems.
FEI-Zyfer Segment
FEI-Zyfer designs, develops and manufactures products which provide PNT, primarily incorporating Global Navigation Satellite System(s) technology. FEI-Zyfer’s products make use of both ‘in-the-clear’ civil and ‘crypto-secured’ military signals for GPS. FEI-Zyfer’s products are integrated into radar systems, airborne SIGINT/COMINT platforms, information networks, test equipment, military command and control terminals, and satellite ground stations. High precision, ruggedized clocks combined with specialized software are essential for the security of government communication and systems. More than 91% of FEI-Zyfer’s revenues are derived from sales where the end user is the U.S. Government.
Customers
The company markets its products both directly and through independent sales representative organizations located in the U.S., Europe and Asia.
The company’s products are sold to both commercial and governmental customers. For the years ended April 30, 2024, approximately 98%, of the company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.
During fiscal year 2024, Lockheed Martin Corporation (‘Lockheed Martin’), Northrop Grumman Company (‘Northrop Grumman’), Office of Naval Research and BAE Systems each accounted for more than 10% of the company’s consolidated revenues.
Research and Development
The company continues to focus a significant portion of its own resources and efforts on developing hardware for satellites (commercial and U.S. Government) and terrestrial commercial communications systems, including wireless and GPS-related systems. During the year ended April 30, 2024, the company expended $3.4 million of its own funds, on such R&D activity.
Competition
The company’s principal competition for space products is the in-house capability of its major customers, such as the Boeing Company, Northrop Grumman and Lockheed Martin.
With respect to non-space products, such as systems for precision time for terrestrial secure communication and command and control, and products for multiple applications in the EW market, the company competes with larger domestic companies such as Microchip Technology Inc. and Mercury Systems.
History
Frequency Electronics, Inc. was founded in 1961. The company, a Delaware corporation, was incorporated in 1968.