Frequency Electronics, Inc. (NASDAQ:FEIM) stock fell 5.93% (As on September 14, 11:06:49 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 23 has reported the revenues of approximately $8.2 million compared to revenues of $13.0 million for the first quarter of fiscal 2022, ended July 31, 2021. Operating loss for the first quarter of fiscal 2023 was $3.1 million compared to an operating loss of $1.7 million for the same period of fiscal 2022. Net loss from operations was $3.1 million or ($0.33) per diluted share compared to a net loss of $1.6 million or ($0.17) per diluted share for the first quarter of fiscal year 2022. For the three months ended July 31, 2022, revenues from satellite payloads were approximately $3.5 million, or 42%, of consolidated revenues compared to $6.7 million, or 52%, for the same period of the prior year. For the three months ended July 31, 2022, revenues for non-space U.S. Government/DOD customers were $4.1 million, or 50%, of consolidated revenues compared to $5.5 million, or 42%, for the same period of the prior year. For the three months ended July 31, 2022, revenues from other commercial and industrial sales accounted for approximately $664,000, or 8%, of consolidated revenues compared to approximately $724,000, or 6%, for the same period of the prior year.  Net cash used in operations was $3.6 million in the first quarter of fiscal year 2023, compared to cash provided by operations of $828,000 for the same period of fiscal year 2022. Backlog at July 31, 2022 was approximately $40 million, the same as at April 30, 2022.

Meanwhile, the first quarter of fiscal 2023, continued to be challenging financially, but aggressive steps to correct things are in progress. A major leadership change was made with one month remaining in the first quarter, so the opportunity to impact the first quarter results was limited. However, since the close of the first quarter we have implemented changes which will result in a 17% reduction in labor costs for FEI-NY. These changes have been carefully planned, and designed such that no negative impact on revenue or cash generation is expected. Aggressive steps are also being taken to improve efficiency in FEI’s manufacturing, and to accelerate progress wherever possible. Finally, some of the frustrating delays which have impacted the FY-2022 and also Q1-2023 results are finally ending. A major atomic clock development program is now generating revenue after almost 8 months of government delays in getting the program started.