Q2 2021 Frequency Electronics Inc Earnings Call
[music].
Greetings and welcome to the frequency electronics second quarter fiscal year 2021 earnings release Conference call.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.
Any statements made by the company during this conference call regarding the future constitute forward looking statements pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1985, such statements inherently involve uncertainties that could cause actual results to differ a mature.
Really from the forward looking statements factors that would cause or contribute to such differences are included in the company's press releases and are further detailed in the Companys periodic report filings with the Securities and Exchange Commission.
By making these forward looking statements. The company undertakes no obligation to update these statements for revisions or changes. After the date of this conference call. It is now my pleasure to introduce your host Mr. Stanton Sloane, President and CEO, Sir you may begin.
For Q4.
Good afternoon, everyone. Thank you for joining us for Q2 first for your 2021 call.
Steve will walk us through financial details in a minute, let me kick things off with a couple of Hollywood's.
We had what I consider to be a very good quarter.
Revenue was up about a million dollars quarter to quarter, but also up significantly for about 24% from the comparable periods for fiscal year 2020.
We generated net income for the quarter of $329000 also a significant improvement.
And this is despite extraordinary legal expenses.
Backlog was up to $42 million for 6 million dollar increase from the end of fiscal year 2020.
Reflecting the robust new business opportunities, we have mentioned on the last couple of calls.
We generated about $2 million in cash.
We've heard about 18 people in order to meet increasing workloads.
I'm pleased with the improvement in financial performance for this quarter.
For should make a few comments about the COVID-19 situation. It was I know what's on everybody's mind.
We've managed to maintain production and delivery schedule throughout the pandemic.
Well, we've had some employees who are potentially exposed to COVID-19 through being in close proximity to someone who tested positive.
I've had only three employees in our New York facility into it or sorry for facility actually test positive.
In an abundance of caution whenever any employee has been potentially exposed there excused from work that must quarantine pending negative test results.
Of course employees, who actually test positive are required to follow the CDC guidelines regarding quarantined and subsequent return to work.
As before we've maintained production and delivery schedule through the second wave, but we remain vigilant to index.
Now, let me have Steve take us through for net financial details for Steve.
Thank you Stan and good afternoon.
For the six months ending October 31st 2020 consolidated revenue was 26.9 million up 25 per cent compared to 21.6 million for the same period of the prior fiscal year.
The components of revenue are as follows revenue from commercial and U.S. government satellite programs was 14.2 million compared to 9.4 million for the same period of the prior fiscal year and accounted for approximately 53% of consolidated revenue compared to 44% for the same period of the prior fiscal.
All year round.
Revenues on satellite payload contracts are recognized primarily under percentage of completion method and a recorded only in the GAAP The eye New York segment.
Revenues from non space U.S. government and the other the customers which are recorded in both the FBI, New York and FDIC for segments were 10.9 million compared to 9 million in the same period of the prior fiscal year and accounted for approximately 40% of consolidated revenue compared to 42% for the.
Prior fiscal year.
Other commercial and industrial revenues were 1.9 million compared to 3.2 million in the prior fiscal year Inter segment revenues are eliminated in consolidation.
For the six month period, ending October 31st 2020, gross margin and gross margin rate increased significantly as compared to the same period in fiscal year 20 day.
The increase in gross margin and gross margin rate was due to several programs identified from prior periods that are higher engineering costs incurred during the development phase and which are now completed for our near completion.
For the six months ending October 30, Onest, 2020, and 19, selling and administrative expenses were approximately 27% and 22% respectively of consolidated revenue.
The increase in SGN expenses is mainly due to an increase in professional fees relating to litigation for which we expect insurance reimbursement for a portion of the legal fees and some additional insurance costs.
R&D expense for the six months ending October 31st 2020, and 2019 decreased 2.2 million two from 3.7 million a decrease of 1.5 million and were 8% and 17% of consolidated revenue for.
The company's R&D expense decreased year over year as previous R&D efforts have ended and turned into production. However, the company plans to continue to invest in R&D to keep its products and state of the art.
For the six months ending October 31, 2020, the company reported an operating loss of 119000 compared to 5.7 million in the prior year.
Operating losses made a significant improvement from the same period other prior fiscal year and reflects improvements in revenue gross margin and gross margin rate based upon our bookings and backlog we are expecting the improving trend to continue.
Other income consists primarily of investment income derived from the company's holdings of marketable securities for.
For the six month period, ending October 30, Onest 2020 investment income includes a $105000 dividend from Morgan compared to $125000 dividend from oriented in the same period in fiscal 20.
This yields pre tax income of approximately 93000 compared to a pre tax loss of approximately $5.5 million for the prior year.
For the six months ending October 30, Onest 2020, the comp day recorded a tax provision of 25000 compared to 29000 for the same period of fiscal 20.
Consolidated net income for the six months ending October 31st 2020 was 67000 or one cents per diluted share compared to a net loss of 5.5 million or 61 cents per diluted share in the previous year.
Our fully funded backlog at the end of October 2020 was approximately 42 million approximately 6 million from the previous year ended April Thirtyth 2020.
The company's balance sheet continues to reflect a strong working capital position of approximately $40 million at October 30, Onest 2020, and a current ratio of approximately 4.5 to one.
The company believes that its liquidity is adequate to meet its operating and investing needs for the next 12 months and the foreseeable future I will turn the call back the standard and we look forward to your questions later.
Thank you Steve will be happy to take some questions. Let me turn this back over to Laura will explain how to do that for.
At this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad a confirmation from indicate your line is in the question queue. You may price start Q. If you would like to remove your question from the queue for participants using speaker equipment. It maybe.
Be necessary for you to pick up your handset before pressing the star key.
Well, we poll for questions.
Our first question comes from the line of Brett Reece with Janney Montgomery Scott You May proceed with your question.
Hi, Dan Hi, Steve I agree for water, Yeah, Hi.
De employment for your highest 18 people.
Does that sales.
They see a queue now for you're looking to hire even more over and above that we.
We will we will add additional people here for a going forward. So.
So its adequate for our current needs, but we will be adding some more.
Hi, good.
Now you know it last call I think in response to one of the Questioners you you had a billings number you know that you've got a big.
Bids outstanding 600 million per 625 million.
Is there a number you know this quarter that you can share with us.
I think you're referring to what a what I call the opportunity set in other words the sum total of everything that we're looking at that's about 680 million at the moment keep in mind or for that that fluctuates pretty regularly as things go in and out but Ah, but the current numbers about 680.
Okay.
And one of these days, maybe offline I can get a a tutorial on.
On oscillator, I mean, sometimes the news releases.
Talk about other been controlled quality oscillators day, and then master oscillator I mean, all oscillators, you know created equal or are there some that are better but higher margin than than others.
They don't pine on that a little bit I. Appreciate it yeah. That's a good discussion have offline yeah. There was no they're not all equal [laughter], okay, I'm going to drop back in queue. Good quarter. Thanks for taking my questions you bet.
Our next question comes from the line other Michael Eisner.
You May proceed with your question.
Great job I think that's the first time, you've been profitable in the world in a while yeah.
Yeah.
Do you need more sales people.
Oh, well current them almost the other team we ever is pretty seasoned and are doing a really good job of keeping up with all the new business opportunities.
You know for Us Oh, we're really not so.
So much a what I would call a sales organization you know, we believe the way we generate and businesses.
Businesses through a drilling through writing complicated technical proposals.
That really has to be done here, it's a little different than having a you know what I think you're thinking of a sales now in the field.
We do have a representatives that that handle that part of the business, but but steamers is doing a pretty good job keeping up with everything when rates are good ER, we're booking thing so.
So I think we're doing good.
Oh, all be a problem programs is are they completely over.
The the few programs that we've been talking about past couple of quarters are done.
Really it's great to hear.
So do you expect margins to increase now.
We always work hard to keep the margins increasing the revenue increasing yeah.
What do you do you expect them to increase at this point, that's my job I'm working on it.
All right.
[laughter] knew how bad for the legal expenses can you comment.
Well, Steve talked about the EPS DNA that was up and about 1.6, so that was professional fees.
That's not strictly legal but Ah that's that's the number about 1.6.
That's something you should get back.
We we anticipate receiving some of that back sales.
Alright, so you.
He took the hit that you may get some money back on that.
That's correct.
All right just two more questions how see advance for like let's tronic warfare contract coming along.
ER telecom yeah technically good there's.
There's been some delays in the.
In the production contract through nothing to do with US just the for prime contractor for Hudson delays are getting system through their milestone C event with the government. So that that's delayed things a bit but technically very well performing very well technically did you any revenue from the past quarter from that.
Not significant but yes.
Hi, small amount.
And right.
Revenue for G.P.S. three yes.
Yes.
Have you.
Some of that in there yeah.
Yeah. There was there's revenue we've been on that job now for probably a year and a half for so.
That's progressing through qualification. So yes, there are some revenue in there I think if you're asking about the production contract that hasn't started yet so.
That's a that's what I was getting when do getting that when do you expect that.
You know a probably a than the next a year or so we'll start to see I hope, we'll see the initial awards for that and we are also a a bidding that particular.
Clark for some other things so I'm, hoping we'll see some some other awards not just GPS three yeah.
Yeah. He just recently had another announcement the other day I guess that programs continue while.
Are you referring to the December 3rd announcement on the oscillator or yeah exactly that's that's continuing from little I think last year for a while ago.
Yeah, Yeah. So it's.
It's options that were added to a prior contract, which you had talked about before keep in mind. That's after the quarter that's not in the.
Q2 numbers Oh.
Oh, Yeah, I realize how losses and how long is that program than.
That particular, one is about two years.
All right.
Really a great job.
Change is that'd be one margins up revenue up.
Thank you.
Thank you.
Our next question comes from the line of Sam Rebotsky, that's actually our assets Moms from you May proceed with your question.
Yeah. Good afternoon stay then Steve wonderful job every no but nobody's disappointed.
So I do think we're ready to tell the story or when do you think we're going to ready to share the our performance with other investors I'm ready to tell the story I think we've got a great story.
Okay.
Okay now one other things I'm not sure you are aware this interest was released earlier.
Earlier today, a company add Burcon, Acquirees Fox electronics and day frequency control supplier headquartered in for it to Fort Myers, Florida did they compete when do you do you compete with them how large are they and what.
Kind of products that they have if they do compete with you.
I'm not familiar with the company other name rings, a bell ER and and the fact that they're in Fort Myers because Ah.
That sounds like a good place to be but [laughter] I don't know the details of it and I'm not that they're not our principal competitor for a for the finished oscillators as far as I know or at least I haven't run across it is a day sincerely 19 Fox is focused on U.S. innovation free for the free.
Couldn't see control markets.
Well its series a quick turn Crystal oscillator.
Yeah, well a lot of people make crystal oscillator okay.
Somebody said before your own oscillator is Ah you know can be many things. So okay sounds good okay. Thank you.
Ladies and gentlemen, we have reached the end of today's question and answer session I would like to turn this call back over to Mr. Stanton flow for closing remarks.
Great. Thank you Laura let me, let me just finish by wishing everybody a happy healthy and healthy healthy holiday season, and also a a hope a great. A 2021, thanks for joining US today, we look forward to talking to you next quarter.
Mr. Standard is actually one more question that just popped up okay. Our net.
Question comes from the line of Michael Wasserman with more you May proceed with your question.
Yeah, Hi is it fair to say that given that we had a Republican President then day Republican controlled Senate the past for years have been a bit disappointing in terms of business generated for frequency. That's government related then.
What might the new administration.
Perhaps do that would make things better or worse for frequency specifically in your judgment.
Oh, my opinions, we fared pretty well, we're winning a heck of a lot of new business. So I don't I don't see that as a disappointment.
You know as to the New administration, I I I suspect they'll be driven largely by a global geopolitics and other things that influence defense budget. So you know what.
Adjusted in space I think is likely to continue.
Looks like there is going to continue to invest in the Navy. So you know what that translates into in terms of growth for them.
Or or not in the defense budgets, obviously remains to be seen but oh I think that's a much bigger driver for us than they are.
Politics.
All right. Thank you.
Yep.
Floor and from questions.
Yes, one more just pops and the next question comes from the line of Richard Johns You May proceed with your question.
Hi, nice to see the improvement and a.
In past years management, and giving a rough idea of what the income statement might look like going forward.
Management has talked about the S.G.N.A. being about 20% and.
R&D being roughly 10 per cent.
I know I know that you can't you can pin it down exactly but.
Are those good numbers to think about going forward.
Yeah generally speaking the thing you know we had a this this period, obviously, we had some anomalies right, though professional fees, but yeah ballpark, Okay. All right and you mentioned that you're a you're up for telling your story have you signed up with any specific brokers to present at conferences come.
Moving up we will be presenting at the Needham conference in January Okay. Okay, all but that's the only one we signed up for but we'll be looking for some others. Okay. Okay. Good and.
You mentioned that your win rate is pretty good in past calls I believe you said that if you could win a half of that 680 number.
That that would be what you would be happy with it and kind of expect is that an accurate the idea going forward for.
80 per cent win rate is pretty good performance in my opinion are and we're you know we're close to that now.
Remember that though you know, we we bid fairly large contracts. So you know anyone contract swings that number you know one month to the next but but that's a good ballpark target you know if we can do 50 per cent I'd say, we're doing pretty good okay. Okay and my last question.
<unk> yeah.
You've talked in the past about the.
The potential for.
Solving problems related to moving in jamming could you share.
Mentioned that would give us for you ever a few words about the.
Current status of that in the price and the prospects.
So for us that all boils down to timing into the precision of timing.
Basically a that relates to ability to hold over in other words, if you're receiving a G.P.S. signal and that's simple gets jammed for spoof you want you want to be able to maintain the time reference while you don't have that signal in order to do that you need a very precise clock and the more precise your clock is the most.
For a time you have from when the signal gets jammed to when you can think back up again for another word you have longer hold over so for US everything is about a better and better clocks and you know, we're we're oh or rebidding them clocks today or a very high performance those that's what's going on to the Jeep.
Yes, three yes, no we're working on some advanced technologies for the future that will improve the pay for themselves even more.
Oh, that's really what it's about for us.
Okay, and and is the potential for the clocks and related equipment in that particular area spoofing in jamming or are you do you still think it's a.
Ah has a whole lot of potential.
Yeah that problem is just a increasing significantly up I mentioned earlier about the defense budgets and the investment in space.
The government is going to continue to invest to deal with that problem, because adversaries are getting better and better at those counter.
Counter.
Countered timing count or other GPR sort of system. So I think that's a great place to be I think I think thats good going to be a good growth area for the future.
Okay, Okay, great and way to go in the quarter and thank you.
You bet.
There are no further questions at this time debt.
Conclude today's conference you may disconnect your lines at this time, thank you for it but they should enjoy the rest of your evening.
[noise] [noise].
[music].
[music].
Greetings and welcome to the frequency electronics second quarter fiscal year 2021 earnings release Conference call.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.
Statements made by the company during this conference call regarding the future constitute forward looking statements pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1995, such statements inherently involve uncertainties that could cause actual results to the for a mature.
Lee from the forward looking statements factors that would cause or contribute to such differences are included in the company's press releases and are further detailed in the Companys periodic report filings with the Securities and Exchange Commission.
By making these forward looking statements. The company undertakes no obligation to update these statements for vision or changes. After the date of this conference call. It is now my pleasure to introduce your host Mr. Stanton Sloane, President and CEO, Sir you may begin.
Thank you Laura.
Good afternoon, everyone. Thank you for joining us for Q2 first for your 2021 call.
Steve will walk us through financial details in a minute, let me kick things off with a couple of highlights.
We had what I consider to be a very good quarter.
Revenue was up about a million dollars quarter to quarter, but also up significantly about 25% from the comparable period for fiscal year 2020.
We generated net income for the quarter of $329000.
Also a significant improvement.
And this despite extraordinary legal expenses.
Backlog was up to $42 million $6 million increase from the end of fiscal year 2020.
Reflecting the robust new business opportunities, we have mentioned on the last couple of calls.
We generated about $2 million in cash.
We've all heard about 18 people in order to meet increasing workloads.
I'm pleased with the improvement in financial performance for this quarter.
I should make a few comments about the COVID-19 situation is I know what's on everybody's mind.
We've managed to maintain production and delivery schedule throughout the pandemic.
Well, we've had some employees who are potentially exposed to COVID-19 through being in close proximity to someone who tested positive way.
We have had only three employees in our New York facility.
Who are excited for facility actually test positive.
In an abundance of caution whenever any employee has been potentially exposed there excused for work must quarantine pending negative test results.
Of course, and poised to actually test positive are required to follow the CDC guidelines regarding quarantined and subsequent return to work.
As before we have maintained production and delivery schedules for the second wave, but we remain vigilant index.
Now, let me EPS to take us through for net financial details Steve.
Thank you Stan and good afternoon.
For the six months ending October 31st 2020 consolidated revenue was 26.9 million up 25 per cent compared to 21.6 million for the same period of the prior fiscal year the.
The components of revenue are as follows revenue from commercial and U.S. government satellite programs was 14.2 million compared to 9.4 million for the same period of the prior fiscal year and accounted for approximately 53% of consolidated revenue compared to 44% for the same period of the prior fiscal.
A year.
Revenues on satellite payload contracts are recognized primarily under percentage of completion method had a recorded only in the FDI New York segment.
Revenues from non space U.S. government and the other customers, which are recorded in both the FBI, New York and FDIC for segments were 10.9 million compared to 9 million in the same period of the prior fiscal year and accounted for approximately 40% of consolidated revenue compared to 42% for the prior for.
Fiscal year.
Other commercial and industrial revenues were $1.9 million compared to $3.2 million in the prior fiscal year Inter segment revenues are eliminated in consolidation.
For the six month period, ending October 31, 2020, gross margin and gross margin rate increased significantly as compared to the same period in fiscal year 20.
The increase in gross margin and gross margin rate was due to several programs identified in prior periods that are higher engineering costs incurred during the development phase and which are now completed for our near completion.
For the six months ending October 30, Onest, 2020, and 19, selling and administrative expenses were approximately 27% and 22% respectively of consolidated revenue.
The increase in SGN expenses is mainly due to an increase in professional fees relating to litigation for which we expect insurance reimbursement for a portion of the legal fees and some additional insurance costs.
R&D expense for the six months ending October 31st 2020, and 2019 decreased $2.2 million.
Two from 3.7 million, a decrease of $1.5 million and were 8% and 17% of consolidated revenue.
The company's R&D expense decreased year over year as previous R&D efforts have ended and turned into production. However, the company plans to continue to invest in R&D to keep its products and state of the art.
For the six months ending October 31, 2020, the company reported an operating loss of 119000 compared to $5.7 million in the prior year.
Operating losses made a significant improvement from the same period of the prior fiscal year and reflects improvements in revenue gross margin and gross margin rate based upon our bookings and backlog we are expecting the improving trend to continue.
Other income consists primarily of investment income derived from the company's holdings of marketable securities for.
For the six month period, ending October 31, 2020 investment income includes a $105000 dividend from lorien compared to $125000 dividend from oriented in the same period in fiscal 2000.
This yields pre tax income of approximately 93000 compared to a pre tax loss of approximately $5.5 million for the prior year.
For the six months ending October 30, Onest 2020, the company recorded a tax provision of 25000 compared to 29000 for the same period of fiscal 20.
Consolidated net income for the six months ending October 30, Onest 2020 was 67000 or one cents per diluted share compared to a net loss of $5.5 million or 61 cents per diluted share in the previous year.
Our fully funded backlog at the end of October 2020 was approximately 42 million approximately $6 million from the previous year end April Thirtyth 2020.
The company's balance sheet continues to reflect a strong working capital position of approximately $40 million at October 31, 2020, and a current ratio of approximately 4.5 to one.
The company believes that us liquidity is adequate to meet its operating and investing needs for the next 12 months and the foreseeable future.
I'll turn the call back the standard and we look forward to your questions later.
Thank you Steve will be happy to take some questions. Let me turn this back over to Laura will explain how to do that Laura.
At this time, we'll be conducting a question and answer session.
I would like to ask a question. Please press star one on your telephone keypad a confirmation from indicate your line is in the question queue. You May Press Star two if you would like to move your questions from the queue for participants using speaker equipment. It may be necessary for you to pick up your handset before pressing the star team.
One moment, while we poll for questions.
Our first question comes from the line of Brett Reece with Janney Montgomery Scott You May proceed with your question.
Hi, standard Hi, Steve.
Water, Yeah, hi.
The employment you hired 18 people.
Does that.
They see a queue now or you are looking to hire even more over and above that we.
We will we will add additional people here for a going.
Going forward.
So thats adequate for our current need to book, we will be adding some more.
Good.
Now you know.
Last call I think in response to one of the questioners.
Yes.
A billings number you know you've got.
Bids outstanding 600 million per 625 million.
Is there a number this quarter that you can share with us.
I think you're referring to what what I call the opportunity set in other words the sum total of everything that we're looking at that's about $680 million at the moment keep in mind, however that that fluctuates pretty regularly as things go in and out but but the current numbers about sixeighty Oh.
Okay.
And one of these days, maybe offline I can get a.
Territorial on.
On oscillator, I mean, sometimes the news releases.
Talk about other controlled quality oscillators day, and then master oscillator, I mean are all oscillators.
Created equal or are there some that are better but higher margin than than others.
Good opine on that a little bit I. Appreciate it that's for good discussion have offline. The answer is no they're not all equal okay.
We did drop back in queue good quarter. Thanks for taking my question for you bet.
Our next question comes from the line of Michael Eisner You May proceed with your question.
Great job.
I think thats, the first time, you've been profitable in the world and while yes.
Yeah.
Do you need more salespeople.
Okay at the moment.
The other team we ever is pretty seasoned and doing a really good job of keeping up with all new business opportunities.
You know for us.
We're really not.
So much what I would call a sales organization.
Where we generate.
Businesses through a jog through writing complicated technical proposals that that really has to be done here, it's a little different than having a.
I think you're thinking for the sales now in the field.
We do have representatives that.
That handle that part of the business, but.
Lets steamers is doing a pretty good job keeping up with everything when rates are good.
We're booking things flow.
So I think we're doing good.
Oh, all be a problem programs are they completely over.
The the few programs that we've been talking about past couple of quarters or Don.
Really it's great to hear.
So do you expect margins to increase now.
We always work hard to keep the margins increasing revenue increasing.
Well the assets do you expect them to increase at this point, that's my job I'm working on it.
All right.
Knew how bad for the legal expenses can you comment.
Well, Steve talked about the SGN a that was up.
And about 1.6, so that was professional fees.
That's not strictly legal but that's.
That's that's the number about 1.6.
That's something you should get back.
We we anticipate receiving some of that back sales.
Alright, so you.
We took the hit that you may get some money back on that.
That's correct.
All right just two more questions how see advance for like let's tronic warfare.
Contract coming along.
Technology from.
Technically good there's.
There's been some delays in the.
In the production contract through nothing to do with US just the for.
The prime contractor Hudson delays getting system through their milestone C event with the government. So that that's the way things a bit but technically very well performing very well technically did you see any revenue from the past quarter from that.
Not significant but yes.
A small amount.
And.
Revenue for GPS three assets.
Yes.
Heavy.
Some of that no yeah.
The other is deferred revenue we've been on that job now for probably a year and a half for so.
Thats progressing through qualification. So yes, there are some revenue from there I think if you're asking about the production contract that hasn't started yet so.
That's what I was getting when do get NAV when do you expect that.
So probably.
Next a year or so we'll start to see I hope, we'll see the initial.
Works for that and we are also a bidding that particular cash.
Clock for some other things so im hoping we'll see some some other awards and interest GPS free.
You just recently had another announcement the other day I guess up programs continue while.
Are you referring to the December Threerd announcement on the oscillator or yeah exactly that's that's continuing from low I think last year, a while ago.
Yes, yes.
<unk>.
Options that were added to a prior contract, which we've talked about before keep in mind. That's after the quarter that's not in the Q2.
Members.
Oh, Yeah, I realize how long and how long is that program going there.
That particular one is.
About two years.
All right.
Really great job.
Change is that'd be one margins up revenue up.
Thank you.
Thank you.
Our next question comes from the line of Sam Rebotsky with LCR assets Moms from you May proceed with your question.
Yeah. Good afternoon stay and then Steve wonderful job every nobody nobody is disappointed.
Uh huh.
So do you think we're ready to tell the story or when do you think we're going to ready to share the our performance with other investors I'm ready to tell the story I think we've got a great story.
Okay.
Okay now one other things I'm not sure you are aware this interest was released earlier.
Earlier today, a company add Burcon Acquirees Fox electronics and day frequency control supplier headquartered in for Fort Myers, Florida did they compete with you do you compete with them how large is a and what.
Kind of products that they have this day do compete with you.
I'm not familiar with the company other name rings a bell.
And the fact that they're in Fort Myers, because oh.
That sounds like a good place to be but [laughter] I don't know the details of it and I'm not that they're not our principal competitor for a.
For the finished oscillators as far as I know or at least I haven't run across it is a descent fairly nineteena foxs focused on U.S. innovation for <unk>.
For the frequency control markets.
With series, a quick turn Crystal oscillator.
Well a lot of people make crystal oscillator okay.
Somebody said before his own oscillator is Uh huh.
Can be many things so okay sounds good okay. Thank you.
Ladies and gentlemen, we have reached the end of today's question and answer session I would like to turn this call back over to Mr. Stanton flow for closing remarks.
Great. Thank you Laura let me, let me just finish by wishing everybody a happy healthy and healthy healthy holiday season, and also Oh for great 2021, Thanks for joining US today, we look forward to talking to you next quarter.
Mr. Standard is actually one more question that just popped up okay.
Next question comes from the line of Michael watching them with more you.
You May proceed with your question.
Yes, Hi is it fair to say that given that we had a Republican president and a Republican controlled Senate. The past for years have been a bit disappointing in terms of business generated for frequency that's government related and.
What might the new administration.
Perhaps do that would make things better or worse for frequency specifically in your judgment.
Oh My opinion, we fared pretty well, we're winning a heck of a lot of new business. So our total.
That is a disappointment.
As to the New administration, I suspect they'll be driven largely by a global geopolitics and other things that influenced defense budgets.
Investment in space I think is likely to continue.
It looks like there is going to continue to invest in the Navy. So you know what that translates into in terms of growth.
Or or not in the defense budgets.
Mostly remains to be seen but I think thats much bigger driver for us and.
The other politics.
All right. Thank you.
Yep.
Laura and good questions.
Yes, one more just Pops and next question comes from the line of Richard Johnson You May proceed with your question.
Hi, nice to see the improvement.
And input.
In past years, a management and giving a rough idea of what the income statement might look like going forward.
Management has talked about the <unk> 's DNA being about 20% and.
R&D being roughly 10 per cent.
I know I know that you can't you can pin.
Pin it down exactly but.
Are those good numbers to think about going forward.
Yes, generally speaking the thing we had just just saw per it obviously, we had some anomalies right professional fees, but yeah ballpark, Okay. All right and you mentioned that you're you're up for telling your story have you signed up with any specific brokers to present at conferences come.
Moving up we will be presenting at the Needham conference in January.
Okay, Okay, all but that's the only one we signed up for but we'll be looking for some others. Okay. Okay. Good and.
You mentioned that your win rate is pretty good in past calls I believe you said that if.
If you could win a half of that 680 number.
That that would be what you would be happy with it and kind of expect is that an accurate the idea going forward.
The per cent win rate is pretty good performance in my opinion are and where we're close to that now.
Remember that though you know we bid.
Fairly large contracts so you know.
Anyone contract swings that number you know one book to the next but but that's a good ballpark target for <unk>.
50 per cent I'd say, we'll do a pretty good okay, Okay and my last question.
You've talked in the past about.
The potential for.
Solving problems related to moving in jamming goodies.
Mention or give a give you a few words about the.
Current status of that and the price and the prospects.
So for us that all boils down to timing into the precision of timing.
Basically that relates to ability to hold over in other words, if you're receiving a GPS signal and does that signal gets jammed for smoothed you want you want to be able to maintain the time reference while you don't have that signal in order to do that you need a very precise clock and more precise your clock is the most.
For time, you have from when the signal gets jammed to when you can sell it back up again or in other words, you have longer hold over so for US everything is about a better and better clocks and you know, we're a or a rebellion clocks today or a very high performance. So that's what's going on debt.
Yes, three off.
So we're working on some advanced technologies for the future that will improve the for themselves even more.
Oh, that's really what it's about for us.
Okay, and and is the potential for the clocks and related equipment in that particular area spoofing in jamming or are you do you still think it's a.
It has a whole lot of potential.
Yeah that problem is just a increasing significantly up Doug mentioned earlier about the defense budgets and the investment in space.
The government is going to continue to invest two to deal with that problem, because adversaries are getting better and better at those counter.
Counter.
Calderon time encounter a GPL sort of system. So I think that's a great place to be I think I think thats good going to be a good growth area for the future.
Okay, Okay, great and way to go in the quarter. Thank you.
You bet.
There are no further questions at this time.
This concludes today's conference you may disconnect. Your lines at this time, thank you for it but they should enjoy the rest of your evening.