Frequency Electronics Receives US Defense Contract for Precision Timing and Frequency Generation Products

Frequency Electronics has been awarded a contract by the US Defense Department. The company specializes in precision timing, frequency generation, and radio frequency control products for space and terrestrial applications. The contract is for FEI-NY and FEI-Zyfer segments, which provide precision time, frequency generation, and synchronization products, and products incorporating Global Navigation Satellite System technology.

Frequency Electronics, Inc. (FEI) has been awarded a significant contract by the U.S. Defense Department, highlighting its expertise in precision timing, frequency generation, and radio frequency control products. The contract, valued at $3.14 million for the base year and extending through October 2026, is a strategic win for FEI's segments, FEI-NY and FEI-Zyfer [1].

The contract, awarded by the Defense Logistics Agency - Aviation Division, involves providing advanced syntonization and synchronization reference systems for the Patriot Missile program. These systems incorporate FEI's acceleration-compensated quartz crystal oscillator technology and rubidium atomic clocks, designed to maintain performance under harsh ground mobile environmental conditions [1].

The contract includes additional options for Years 2 and 3, with potential values of $1.71 million and $1.80 million, respectively, bringing the total potential contract value to $6.65 million through Year 3. This multi-year structure provides potential revenue visibility through October 2028 if fully exercised [1].

For investors, this contract represents approximately 5-10% of FEI's annual revenue based on the company's historical performance, making it material to financial results. The award also underscores FEI's continued relevance in mission-critical defense applications and validates its research and development investments in specialized timing technologies [1].

FEI, with its subsidiaries, is a leading provider of precision timing and frequency control products for space and terrestrial applications. The company's products are used in various military systems, including C4ISR, electronic warfare, missiles, UAVs, and GPS [2].

References:
[1] https://www.stocktitan.net/news/FEIM/fei-zyfer-announces-contract-award-for-3-14-158jnc19nhtk.html
[2] https://www.marketscreener.com/news/fei-zyfer-announces-contract-award-for-3-14-million-ce7c50d8d880fe2d