FREQUENCY ELECTRONICS Business Summary

Frequency Electronics Inc. (FEIM) generates revenue through the design and manufacture of high-precision timing, frequency generation, and RF control products for mission-critical space, defense, and commercial applications. The company operates primarily through two segments: FEI-NY, which focuses on precision time and frequency control for satellite payloads, and FEI-Zyfer, which provides secure GPS and timing systems for terrestrial and airborne military platforms. Revenue is predominantly derived from long-term government and Department of Defense (DoD) contracts, with a significant shift toward the space market, which accounted for approximately 59% of revenue in fiscal 2025. FEIM competes with industry giants such as Microchip Technology, Analog Devices, and Mercury Systems, positioning itself as a specialized niche leader that provides ultra-high-precision solutions—such as its proprietary rubidium atomic clocks—that are often unavailable from larger, broader-market competitors. Founded in 1961 by Martin Bloch, a former Bulova engineer and pioneer in electronic timekeeping, the company is currently led by Dr. Thomas McClelland, who serves as President and CEO. Dr. McClelland, a physicist with over 40 years of experience at the firm, previously served as Chief Scientist and holds the highest level of U.S. government security clearance. The leadership team also includes Steven Bernstein, who has served as CFO since 2016. The company’s strategic direction is overseen by a board that includes Chairman General (ret.) Lance W. Lord, former Commander of Air Force Space Command, and Lead Independent Director Jonathan Brolin. Brolin is the founder of Edenbrook Capital, LLC, which remains the company's largest institutional shareholder, reflecting a concentrated investment strategy focused on FEIM’s expansion into next-generation quantum sensing and PNT (Positioning, Navigation, and Timing) technologies.