Delaware
|
11-1986657
|
(State
or other jurisdiction of incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
55
CHARLES LINDBERGH BLVD., MITCHEL FIELD,
N.Y.
|
11553
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
Common
Stock (par value $1.00 per share)
|
NASDAQ
Global
Market
|
Joseph
P. Franklin
|
-
|
Chairman
of the Board of Directors
|
Martin
B. Bloch
|
-
|
President,
Chief Executive Officer and Director
|
Markus
Hechler
|
-
|
Executive
Vice President, President of FEI Government Systems, Inc. and Assistant
Secretary
|
Steven
Strang
|
-
|
President,
FEI-Zyfer
|
Hugo
Fruehauf
|
-
|
Chief
Technical Officer
|
Charles
S. Stone
|
-
|
Vice
President, Low Noise Development
|
Leonard
Martire
|
-
|
Vice
President, Program Management
|
Oleandro
Mancini
|
-
|
Vice
President, Business Development
|
Thomas
McClelland
|
-
|
Vice
President, Commercial Products
|
Adrian
Lalicata
|
-
|
Vice
President, RF & Microwave Systems
|
-
|
Treasurer
and Chief Financial Officer
|
|
Harry
Newman
|
-
|
Secretary
|
·
|
fluctuations
in the Company’s operating
results;
|
·
|
announcements
of technological innovations, new commercial products or other
developments by the Company or its
competitors;
|
·
|
published
reports by securities analysts;
|
·
|
general
market conditions, general economic
conditions;
|
·
|
announcements
by the Company or its competitors of significant acquisitions, strategic
partnerships or joint ventures;
|
·
|
the
Company’s cash position and cash commitments;
|
·
|
additions
or departures of key personnel;
|
·
|
sales
or purchases of the Company’s Common Stock in the
marketplace;
|
·
|
an
outbreak of hostilities, diseases, natural disasters or
terrorism;
|
·
|
developments
in patents or other intellectual property rights;
and
|
·
|
developments
in the Company’s relationships with customers and
suppliers.
|
·
|
identify
emerging technological trends in the Company’s target
markets;
|
·
|
accurately
define and design new products or product enhancements to meet market
needs;
|
·
|
develop
or license the underlying core technologies necessary to create new
products and product enhancements;
and
|
·
|
respond
effectively to technological changes and product introductions by
the
Company’s competitors.
|
·
|
changing
product specifications and customer
requirements;
|
·
|
unanticipated
engineering complexities;
|
·
|
difficulties
with or delays by contract manufacturers or suppliers of key components
or
technologies;
|
·
|
difficulties
in allocating engineering resources and overcoming resource limitations;
and
|
·
|
difficulties
in hiring and retaining necessary technical
personnel.
|
·
|
changes
in a specific country’s or region’s political or economic conditions,
particularly in emerging
markets;
|
·
|
tariff
and trade policies;
|
·
|
export
license requirements and restrictions of the export of
technology;
|
·
|
import
regulations;
|
·
|
domestic
and foreign tax policies;
|
·
|
foreign
governmental regulations;
|
·
|
difficulty
in staffing and managing widespread
operations;
|
·
|
ongoing
health epidemics (e.g., Bird Flu);
|
·
|
fluctuations
in foreign currency exchange rates;
|
·
|
stability
of international monetary
conditions;
|
·
|
differing
labor regulations;
|
·
|
political
unrest, war, actual or threatened acts of terrorism, other international
conflicts and the resulting military, economic and political responses
(including, without limitation, war between sovereign nations) as
well as
heightened security measures which may cause significant disruption
to
commerce worldwide;
|
·
|
differing
protection of intellectual property;
and
|
·
|
unexpected
changes in regulatory requirements.
|
Location
|
Size
(sq. ft.)
|
Own
or Lease
|
|||||
Long
Island, NY
|
93,000
|
Lease
|
|||||
Anaheim,
CA
|
20,885
|
Lease
|
|||||
Liege,
Belgium
|
34,000
|
Own
|
|||||
5,000
|
Lease
|
||||||
Tianjin,
China
|
27,000
|
Lease
|
FISCAL
QUARTER
|
HIGH
SALE
|
LOW
SALE
|
|||||
2007
-
|
|||||||
FIRST
QUARTER
|
$
|
15.00
|
$
|
11.20
|
|||
SECOND
QUARTER
|
14.00
|
10.04
|
|||||
THIRD
QUARTER
|
13.60
|
11.01
|
|||||
FOURTH
QUARTER
|
12.47
|
9.86
|
|||||
2006
-
|
|||||||
FIRST
QUARTER
|
$
|
13.75
|
$
|
10.56
|
|||
SECOND
QUARTER
|
12.95
|
10.14
|
|||||
12.60
|
9.90
|
||||||
FOURTH
QUARTER
|
14.35
|
11.00
|
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||||
Frequency
Electronics
|
$
|
100.00
|
$
|
81.13
|
$
|
111.07
|
$
|
95.33
|
$
|
116.93
|
$
|
92.12
|
|||||||
S&P
600 Small Cap
|
100.00
|
79.05
|
110.63
|
122.17
|
160.52
|
172.80
|
|||||||||||||
New
Peer Group
|
100.00
|
90.20
|
127.68
|
145.32
|
164.03
|
190.62
|
|||||||||||||
Old
Peer Group
|
100.00
|
91.80
|
128.82
|
145.17
|
164.95
|
195.48
|
Plan
Category
|
Number
of Securities to
be
Issued upon exercise
of
Outstanding Options
Warrants
and Rights
(a)
|
Weighted-Average
Exercise
Price of
Outstanding
Options
Warrants
and Rights
(b)
|
Number
of Securities
Remaining
available for
Future
Issuance under
Equity
Compensation Plans
(Excluding
Securities
Reflected
in Column (a))
(c)
|
|||||||
Equity
Compensation Plans
|
||||||||||
Approved
by Security Holders
|
631,900
|
$
|
10.33
|
226,500
|
||||||
Equity
Compensation Plans Not
|
||||||||||
797,237
|
$
|
12.94
|
-
|
|||||||
TOTAL
|
1,429,137
|
$
|
11.79
|
226,500
|
Years
Ended April 30,
|
||||||||||||||||
|
|
|
2007
|
|
|
2006
|
2005
|
2004
|
2003
|
|||||||
(in
thousands, except share and dividend data)
|
||||||||||||||||
Net
Sales
|
||||||||||||||||
FEI-NY
|
$
|
40,184
|
$
|
35,801
|
$
|
37,067
|
$
|
35,288
|
$
|
23,957
|
||||||
Gillam-FEI
|
11,382
|
(1)
|
9,170
|
(1)
|
12,599
|
(1)
|
12,197
|
(1)
|
8,137
|
|||||||
FEI-Zyfer
|
7,542
|
10,055
|
8,803
|
6,560
|
-
|
|||||||||||
less
intersegment sales
|
(2,902)
|
(1)
|
(2,216)
|
(1)
|
(3,296)
|
(1)
|
(3,939)
|
(1)
|
(567
|
)
|
||||||
Total
Net Sales
|
$
|
56,206
|
$
|
52,810
|
$
|
55,173
|
$
|
50,106
|
$
|
31,527
|
||||||
$
|
(3,721
|
)
|
$
|
1,710
|
$
|
(1,269
|
)
|
$
|
(1,646
|
)
|
($12,490)(6
|
)
|
||||
Net
(Loss) Income
|
$
|
(257
|
)
|
$
|
4,798
|
(2)
|
$
|
5,037(3
|
)
|
$
|
320(4,5
|
)
|
($
8,811)(5
|
)
|
Average
Common Shares Outstanding
|
||||||||||||||||
Basic
|
8,620,776
|
8,537,427
|
8,484,682
|
8,374,399
|
8,331,785
|
|||||||||||
Diluted
|
8,620,776
|
8,690,617
|
8,684,758
|
8,542,575
|
8,331,785
|
|||||||||||
Earnings
(Loss) per Common Share
|
||||||||||||||||
($
0.03
|
)
|
$
|
0.56
|
$
|
0.59
|
$
|
0.04(5
|
)
|
($
1.06
|
)
|
||||||
Diluted
|
($
0.03
|
)
|
$
|
0.55
|
$
|
0.58
|
$
|
0.04(5
|
)
|
($
1.06
|
)
|
Total
Assets
|
$
|
93,826
|
$
|
86,741
|
$
|
88,374
|
$
|
92,867(7
|
)
|
$
|
85,778(7
|
)
|
||||
Long-Term
Obligations
|
||||||||||||||||
and
Deferred Items
|
$
|
9,311
|
$
|
9,120
|
$
|
9,337
|
$
|
17,609
|
$
|
17,903
|
||||||
per
common share
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
(1)
|
Includes
intercompany sales to FEI-NY
segment
of
$0.5 million, $0.9 million, $2.4 million and $3.5 million in fiscal
years
2007, 2006, 2005 and 2004, respectively, for development of US5G
product.
|
(2)
|
Includes
$2.1 million from gain on the sale of REIT common shares and $680,000
from
gain on the sale of a European subsidiary’s former manufacturing
facility.
|
(3)
|
Includes
$6.9 million from gain on conversion of REIT units into REIT common
shares
and subsequent sale of a portion of the REIT common
shares.
|
(4)
|
Includes
$400,000 reversal of tax liabilities established in prior
years.
|
(5)
|
Includes
$158,000 and $49,000, respectively, for restatement of equity income
from
Morion, Inc. in fiscal years 2004 and 2003, which also increased
fiscal
year 2004 Earnings per Common Share by $0.02 from the amount reported
before restatement.
|
(6)
|
Includes
goodwill impairment of $6.2 million and adjustments to inventory
of $3.6
million.
|
(7)
|
Total
assets are restated by $207,000 for fiscal year 2004 and by $49,000
for
fiscal year 2003 from amounts reported in prior fiscal years to reflect
the Company’s equity interest in Morion,
Inc.
|
Using
Intrinsic
|
FAS
123(R)
|
As
|
||||||||
Value
Method
|
Adjustments
|
Reported
|
||||||||
Operating
Loss
|
($3,162
|
)
|
($559
|
)
|
($3,721
|
)
|
||||
Loss
before benefit
|
||||||||||
for
income taxes
|
($1,253
|
)
|
($559
|
)
|
($1,812
|
)
|
||||
Net
Income (Loss)
|
$
|
122
|
($379
|
)
|
($257
|
)
|
||||
$
|
0.01
|
($0.01
|
)
|
($0.03
|
)
|
|||||
Diluted
Earnings (Loss) per Share
|
$
|
0.01
|
($0.01
|
)
|
($0.03
|
)
|
(in
thousands, except per share data)
|
|||||||
2006
|
2005
|
||||||
Net
Income, as reported
|
$
|
4,798
|
$
|
5,037
|
|||
Cost
of stock options, net of taxes
|
(309
|
)
|
(525
|
)
|
|||
Net
Income - pro forma
|
$
|
4,489
|
$
|
4,512
|
|||
Income
per share, as reported:
|
|||||||
Basic
|
$
|
0.56
|
$
|
0.59
|
|||
Diluted
|
$
|
0.55
|
$
|
0.58
|
|||
Income
per share- pro forma
|
|||||||
$
|
0.53
|
$
|
0.53
|
||||
Diluted
|
$
|
0.52
|
$
|
0.52
|
2007
|
2006
|
2005
|
||||||||
Net
Sales
|
||||||||||
FEI-NY
|
71.5
|
%
|
67.8
|
%
|
67.2
|
%
|
||||
Gillam-FEI
|
20.3
|
17.4
|
22.8
|
|||||||
FEI-Zyfer
|
13.4
|
19.0
|
16.0
|
|||||||
Less
intersegment sales
|
(5.2
|
)
|
(4.2
|
)
|
(6.0
|
)
|
||||
100.0
|
100.0
|
100.0
|
||||||||
Cost
of Sales
|
69.6
|
64.7
|
67.1
|
|||||||
Gross
Margin
|
30.4
|
35.3
|
32.9
|
|||||||
Selling
and Administrative expenses
|
20.2
|
20.1
|
21.2
|
|||||||
Compensation
Charges
|
0.0
|
0.0
|
1.6
|
|||||||
Research
and Development expenses
|
16.8
|
11.9
|
12.4
|
|||||||
Operating
(Loss) Profit
|
(6.6
|
)
|
3.2
|
(2.3
|
)
|
|||||
Other
Income, net & Minority Interest
|
3.4
|
9.3
|
15.2
|
|||||||
(Benefit)
Provision for Income Taxes
|
(2.8
|
)
|
3.4
|
3.8
|
||||||
Net
(Loss) Income
|
(0.4
|
)%
|
9.1
|
%
|
9.1
|
%
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
||||||||||||||||||||||||
Years
ended April 30,
|
|||||||||||||||||||||||||
(in
millions)
|
|||||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
||||||||||||||||||||
FEI-NY
|
$
|
40.2
|
$
|
35.8
|
$
|
4.4
|
12%
|
|
$
|
35.8
|
$
|
37.1
|
($1.3
|
)
|
(3%)
|
|
|||||||||
Gillam-FEI
|
11.4
|
9.2
|
2.2
|
24%
|
|
9.2
|
12.6
|
(3.4
|
)
|
(27%)
|
|||||||||||||||
FEI-Zyfer
|
7.5
|
10.0
|
(2.5
|
)
|
(25%)
|
10.0
|
8.8
|
1.2
|
14%
|
|
|||||||||||||||
Intersegment
sales
|
(2.9
|
)
|
(2.2
|
)
|
(0.7
|
)
|
(2.2
|
)
|
(3.3
|
)
|
1.1
|
||||||||||||||
$
|
56.2
|
$
|
52.8
|
$
|
3.4
|
6%
|
|
$
|
52.8
|
$
|
55.2
|
($2.4
|
)
|
(4%)
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
||||||||||||||||||||||||
Years
ended April 30,
|
|||||||||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
||||||||||||||||||||
$
|
17,076
|
$
|
18,617
|
($1,541
|
)
|
(8%)
|
$
|
18,617
|
$
|
18,160
|
$
|
457
|
3%
|
|
|||||||||||
GM
Rate
|
30.4 | % |
35.3
|
%
|
35.3
|
%
|
32.9
|
%
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
||||||||||||||||||||||
Years
ended April 30,
|
|||||||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
||||||||||||||||||
$
|
0
|
$
|
0
|
$
|
0
|
NM
|
$
|
0
|
$
|
876
|
($876
|
)
|
NM
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
|||||||||||||||||||||
Years
ended April 30,
|
||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
|||||||||||||||||
$11,359
|
$
|
10,616
|
$
|
743
|
7%
|
|
$
|
10,616
|
$
|
11,719
|
($1,103
|
)
|
(9%)
|
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
|||||||||||||||||||||
Years
ended April 30,
|
||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
|||||||||||||||||
$9,438
|
$
|
6,291
|
$
|
3,147
|
50%
|
|
$
|
6,291
|
$
|
6,834
|
($543
|
)
|
(8%)
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
||||||||||||||||||||||
Years
ended April 30,
|
|||||||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
||||||||||||||||||
($3,721
|
) |
$
|
1,710
|
($5,431
|
)
|
NM
|
$
|
1,710
|
($1,269
|
)
|
$
|
2,979
|
NM
|
Fiscal
2007 to Fiscal 2006
|
Fiscal
2006 to Fiscal 2005
|
||||||||||||||||||||||||
Years
ended April 30,
|
|||||||||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||||||
2007
|
2006
|
Change
|
2006
|
2005
|
Change
|
||||||||||||||||||||
Investment
income
|
$
|
1,024
|
$
|
3,280
|
($2,256
|
)
|
(69%)
|
|
$
|
3,280
|
$
|
3,850
|
($570
|
)
|
(15%)
|
||||||||||
Equity
income
|
708
|
634
|
74
|
12%
|
|
634
|
315
|
319
|
101%
|
|
|||||||||||||||
Interest
expense
|
(136
|
)
|
(118
|
)
|
(18
|
)
|
(15%)
|
(118
|
)
|
(298
|
)
|
180
|
60%
|
|
|||||||||||
Other,
net
|
313
|
1,121
|
(808
|
)
|
(72%)
|
1,121
|
4,548
|
(3,427
|
)
|
(75%)
|
|||||||||||||||
$
|
1,909
|
$
|
4,917
|
($3,008
|
)
|
(61%)
|
$
|
4,917
|
$
|
8,415
|
($3,498
|
)
|
(42%)
|
Contractual
Obligations
|
Total
(in
thousands)
|
Less
than
1
Year
|
1
to 3 Years
|
3
to 5 Years
|
More
than
5
Years
|
||||||||||||
Long-Term
Debt Obligations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
Operating
Lease Obligations
|
7,193
|
588
|
2,558
|
2,670
|
1,377
|
||||||||||||
Deferred
Compensation
|
8,669
|
* |
340
|
294
|
172
|
7,863
|
|||||||||||
Total
|
$
|
15,862
|
$
|
928
|
$
|
2,852
|
$
|
2,842
|
$
|
9,240
|
/s/
Holtz Rubenstein Reminick LLP
|
|||
Holtz
Rubenstein Reminick LLP
Melville,
New York
July
13, 2007
|
2007
|
2006
|
||||||
(In
thousands)
|
|||||||
ASSETS:
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
1,336
|
$
|
2,639
|
|||
Marketable
securities
|
14,268
|
21,836
|
|||||
Accounts
receivable, net of allowance for
|
|||||||
doubtful
accounts of $276
|
15,626
|
15,868
|
|||||
Inventories,
net
|
31,201
|
22,971
|
|||||
Deferred
income taxes
|
3,075
|
2,135
|
|||||
Income
taxes receivable
|
596
|
68
|
|||||
Prepaid
expenses and other
|
1,501
|
1,246
|
|||||
Total
current assets
|
67,603
|
66,763
|
|||||
Property,
plant and equipment, at cost,
|
|||||||
less
accumulated depreciation and amortization
|
7,839
|
6,663
|
|||||
Deferred
income taxes
|
2,945
|
2,842
|
|||||
Goodwill
and other intangible assets
|
453
|
513
|
|||||
Cash
surrender value of life insurance
|
6,815
|
6,318
|
|||||
Investment
in and loans receivable from affiliates
|
7,354
|
2,825
|
|||||
Other
assets
|
817
|
817
|
|||||
Total
assets
|
$
|
93,826
|
$
|
86,741
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY:
|
|||||||
Current
liabilities:
|
|||||||
Short-term
credit obligations
|
$
|
5,011
|
$
|
8
|
|||
Accounts
payable - trade
|
3,771
|
2,202
|
|||||
Accrued
liabilities
|
3,980
|
3,921
|
|||||
Dividend
payable
|
869
|
857
|
|||||
Total
current liabilities
|
13,631
|
6,988
|
|||||
Deferred
compensation
|
8,669
|
8,122
|
|||||
Deferred
gain and other liabilities
|
642
|
998
|
|||||
Total
liabilities
|
22,942
|
16,108
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders'
equity:
|
|||||||
Preferred
stock - authorized 600,000 shares
|
|||||||
of
$1.00 par value; no shares issued
|
-
|
-
|
|||||
Common
stock - authorized 20,000,000 shares
|
|||||||
of
$1.00 par value; issued - 9,163,940 shares
|
9,164
|
9,164
|
|||||
Additional
paid-in capital
|
47,138
|
45,688
|
|||||
Retained
earnings
|
13,541
|
15,527
|
|||||
69,843
|
70,379
|
||||||
Common
stock reacquired and held in treasury -
|
|||||||
at
cost (474,693 shares in 2007 and
|
|||||||
592,194
shares in 2006)
|
(2,080
|
)
|
(2,437
|
)
|
|||
Accumulated
other comprehensive income
|
3,121
|
2,691
|
|||||
Total
stockholders' equity
|
70,884
|
70,633
|
|||||
Total
liabilities and stockholders' equity
|
$
|
93,826
|
$
|
86,741
|
2007
|
2006
|
2005
|
||||||||
(In
thousands, except share data)
|
||||||||||
Net
sales
|
$
|
56,206
|
$
|
52,810
|
$
|
55,173
|
||||
Cost
of sales
|
39,130
|
34,193
|
37,013
|
|||||||
Gross
margin
|
17,076
|
18,617
|
18,160
|
|||||||
Selling
and administrative expenses
|
11,359
|
10,616
|
11,719
|
|||||||
Compensation
charges
|
-
|
-
|
876
|
|||||||
Research
and development expenses
|
9,438
|
6,291
|
6,834
|
|||||||
Operating
(loss) profit
|
(3,721
|
)
|
1,710
|
(1,269
|
)
|
|||||
Other
income (expense):
|
||||||||||
Investment
income
|
1,024
|
3,280
|
3,850
|
|||||||
Equity
income
|
708
|
634
|
315
|
|||||||
Interest
expense
|
(136
|
)
|
(118
|
)
|
(298
|
)
|
||||
Other,
net
|
313
|
1,121
|
4,548
|
|||||||
(Loss)
Income before minority interest and
|
||||||||||
(benefit)
provision for income taxes
|
(1,812
|
)
|
6,627
|
7,146
|
||||||
Minority
interest in loss of consolidated subsidiary
|
-
|
-
|
(1
|
)
|
||||||
(Loss)
Income before (benefit) provision for income taxes
|
(1,812
|
)
|
6,627
|
7,147
|
||||||
(Benefit)
Provision for income taxes
|
(1,555
|
)
|
1,829
|
2,110
|
||||||
Net
(loss) income
|
$
|
(257
|
)
|
$
|
4,798
|
$
|
5,037
|
|||
Net
(loss) income per common share:
|
||||||||||
Basic
|
$
|
(0.03
|
)
|
$
|
0.56
|
$
|
0.59
|
|||
Diluted
|
$
|
(0.03
|
)
|
$
|
0.55
|
$
|
0.58
|
|||
Average
shares outstanding:
|
||||||||||
Basic
|
8,620,776
|
8,537,427
|
8,484,682
|
|||||||
Diluted
|
8,620,776
|
8,690,617
|
8,684,758
|
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Cash
flows from operating activities:
|
||||||||||
Net
(loss) income
|
$
|
(257
|
)
|
$
|
4,798
|
$
|
5,037
|
|||
Adjustments
to reconcile net (loss) income
|
||||||||||
to
net cash (used in) provided by operating activities:
|
||||||||||
Deferred
tax (benefit) expense
|
(1,305
|
)
|
886
|
(2,610
|
)
|
|||||
Depreciation
and amortization
|
1,725
|
1,870
|
2,014
|
|||||||
Provision
for losses on accounts
|
||||||||||
receivable
and inventories
|
1,946
|
797
|
771
|
|||||||
Gain
on REIT conversion
|
(353
|
)
|
(353
|
)
|
(4,629
|
)
|
||||
Loss
(gain) on marketable securities and other assets, net
|
77
|
(2,815
|
)
|
(2,169
|
)
|
|||||
Minority
interest in loss of consolidated subsidiary
|
-
|
-
|
(1
|
)
|
||||||
Equity
income
|
(708
|
)
|
(634
|
)
|
(315
|
)
|
||||
Stock
compensation expense
|
559
|
-
|
-
|
|||||||
Changes
in assets and liabilities, exclusive of
|
||||||||||
assets
and liabilities acquired:
|
||||||||||
Accounts
receivable
|
(260
|
)
|
(3,667
|
)
|
2,868
|
|||||
Inventories
|
(9,012
|
)
|
(904
|
)
|
(1,526
|
)
|
||||
Prepaid
expenses and other
|
(189
|
)
|
62
|
364
|
||||||
Other
assets
|
(559
|
)
|
(455
|
)
|
(526
|
)
|
||||
Accounts
payable - trade
|
1,272
|
388
|
(1,729
|
)
|
||||||
Accrued
liabilities
|
118
|
189
|
(118
|
)
|
||||||
Liability
for employee benefit plans
|
1,330
|
1,052
|
1,655
|
|||||||
Income
taxes
|
(525
|
)
|
(3,253
|
)
|
3,517
|
|||||
Other
liabilities
|
(505
|
)
|
(465
|
)
|
(67
|
)
|
||||
Net
cash (used in) provided by operating activities
|
(6,646
|
)
|
(2,504
|
)
|
2,536
|
|||||
Cash
flows from investing activities:
|
||||||||||
Purchase
of minority interest in technology partners
|
(1,817
|
)
|
(20
|
)
|
(835
|
)
|
||||
Loan
to investee technology partner
|
(1,500
|
)
|
-
|
-
|
||||||
Payment
for acquisition
|
-
|
(84
|
)
|
(135
|
)
|
|||||
Purchase
of marketable securities
|
(1,490
|
)
|
(11,518
|
)
|
(6,393
|
)
|
||||
Proceeds
from sale or redemption of marketable
|
||||||||||
securities
|
9,568
|
13,068
|
12,514
|
|||||||
Proceeds
from sale of real property
|
-
|
975
|
-
|
|||||||
Capital
expenditures
|
(2,712
|
)
|
(2,104
|
)
|
(1,640
|
)
|
||||
Other-
net
|
-
|
-
|
72
|
|||||||
Net
cash provided by investing activities
|
2,049
|
317
|
3,583
|
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from short-term debt
|
5,000
|
1,000
|
1,548
|
|||||||
Payment
of short-term credit and
|
||||||||||
other
long-term obligations
|
-
|
(1,009
|
)
|
(5,264
|
)
|
|||||
Payment
of cash dividend
|
(1,717
|
)
|
(1,706
|
)
|
(1,692
|
)
|
||||
Repurchase
of stock for treasury
|
-
|
-
|
(66
|
)
|
||||||
Repayment
of officer loan
|
-
|
-
|
17
|
|||||||
Exercise
of stock options
|
293
|
144
|
177
|
|||||||
Net
cash provided by (used in) financing activities
|
3,576
|
(1,571
|
)
|
(5,280
|
)
|
|||||
Net
(decrease) increase in cash and cash equivalents
|
||||||||||
before
effect of exchange rate changes
|
(1,021
|
)
|
(3,758
|
)
|
839
|
|||||
Effect
of exchange rate changes on cash and
|
||||||||||
cash
equivalents
|
(282
|
)
|
(304
|
)
|
163
|
|||||
Net
(decrease) increase in cash and cash equivalents
|
(1,303
|
)
|
(4,062
|
)
|
1,002
|
|||||
Cash
and cash equivalents at beginning of year
|
2,639
|
6,701
|
5,699
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
1,336
|
$
|
2,639
|
$
|
6,701
|
||||
Supplemental
disclosures of cash flow information:
|
||||||||||
Cash
paid during the year for:
|
||||||||||
Interest
|
$
|
92
|
$
|
118
|
$
|
303
|
||||
Income
taxes
|
$
|
319
|
$
|
4,204
|
$
|
1,200
|
||||
Other
activities which affect assets or liabilities but
|
||||||||||
did
not result in cash flow during the fiscal years:
|
||||||||||
Declaration
of cash dividend, not paid
|
$
|
869
|
$
|
857
|
$
|
852
|
Additional
|
Treasury
stock
|
Other
|
Accumulated
other
|
|||||||||||||||||||||||||
Common
Stock
|
paid
in
|
Retained
|
(at
cost)
|
Stockholders’
|
comprehensive
|
|||||||||||||||||||||||
Shares
|
Amount
|
capital
|
earnings
|
Shares
|
Amount
|
equity
|
income
(loss)
|
Total
|
||||||||||||||||||||
Balance
at May 1, 2004
|
9,163,940
|
$
|
9,164
|
$
|
44,442
|
$
|
9,104
|
738,428
|
($2,797
|
)
|
$
|
(17
|
)
|
$
|
3,487
|
$
|
63,383
|
|||||||||||
Exercise
of stock options
|
109
|
(24,950
|
)
|
68
|
177
|
|||||||||||||||||||||||
Contribution
of stock to 401(k) plan
|
300
|
(30,621
|
)
|
93
|
393
|
|||||||||||||||||||||||
Repayment
of receivable common stock
|
17
|
17
|
||||||||||||||||||||||||||
Cash
dividend
|
(1,701
|
)
|
(1,701
|
)
|
||||||||||||||||||||||||
Additional
investment in Morion, Inc.
|
438
|
(42,448
|
)
|
101
|
539
|
|||||||||||||||||||||||
Repurchase
of stock for treasury
|
6,300
|
(66
|
)
|
(66
|
)
|
|||||||||||||||||||||||
Increase
in market
|
||||||||||||||||||||||||||||
value of
marketable securities
|
1,018
|
1,018
|
||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
396
|
396
|
||||||||||||||||||||||||||
Net
income
|
5,037
|
5,037
|
||||||||||||||||||||||||||
Comprehensive
income- 2005
|
|
|
|
|
|
6,451
|
||||||||||||||||||||||
Balance
at April 30, 2005
|
9,163,940
|
9,164
|
45,289
|
12,440
|
646,709
|
(2,601
|
)
|
-
|
4,901
|
69,193
|
||||||||||||||||||
Exercise
of stock options
|
84
|
(19,792
|
)
|
60
|
144
|
|||||||||||||||||||||||
Contribution
of stock to 401(k) plan
|
315
|
(34,723
|
)
|
104
|
419
|
|||||||||||||||||||||||
Cash
dividend
|
(1,711
|
)
|
(1,711
|
)
|
||||||||||||||||||||||||
Decrease
in market
|
||||||||||||||||||||||||||||
value
of marketable securities
|
(1,390
|
)
|
(1,390
|
)
|
||||||||||||||||||||||||
Foreign
currency translation adjustment
|
(820
|
)
|
(820
|
)
|
||||||||||||||||||||||||
Net
income
|
4,798
|
4,798
|
||||||||||||||||||||||||||
Comprehensive
income- 2006
|
|
|
2,588
|
|||||||||||||||||||||||||
Balance
at April 30, 2006
|
9,163,940
|
9,164
|
45,688
|
15,527
|
592,194
|
(2,437
|
)
|
-
|
2,691
|
70,633
|
||||||||||||||||||
Exercise
of stock options
|
171
|
(40,300
|
)
|
122
|
293
|
|||||||||||||||||||||||
Contribution
of stock to 401(k) plan
|
340
|
(37,550
|
)
|
115
|
455
|
|||||||||||||||||||||||
Cash
dividend
|
(1,729
|
)
|
(1,729
|
)
|
||||||||||||||||||||||||
Investment
in Elcom Technologies
|
380
|
(39,651
|
)
|
120
|
500
|
|||||||||||||||||||||||
Stock
compensation expense
|
559
|
559
|
||||||||||||||||||||||||||
Increase
in market value of
|
||||||||||||||||||||||||||||
marketable
securities
|
333
|
333
|
||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
97
|
97
|
||||||||||||||||||||||||||
Net
loss
|
(257
|
)
|
(257
|
)
|
||||||||||||||||||||||||
Comprehensive
income- 2007
|
|
|
|
|
|
|
|
173
|
||||||||||||||||||||
Balance
at April 30, 2007
|
9,163,940
|
$
|
9,164
|
$
|
47,138
|
$
|
13,541
|
474,693
|
($2,080
|
)
|
$
|
-
|
$
|
3,121
|
$
|
70,884
|
Using
Intrinsic
|
FAS
123(R)
|
As
|
||||||||
Value
Method
|
Adjustments
|
Reported
|
||||||||
Operating
Loss
|
($3,162
|
)
|
($559
|
)
|
($3,721
|
)
|
||||
Loss
before benefit
|
||||||||||
for
income taxes
|
($1,253
|
)
|
($559
|
)
|
($1,812
|
)
|
||||
Net
Income (Loss)
|
$
|
122
|
($379
|
)
|
($257
|
)
|
||||
Basic
Earnings (Loss) per Share
|
$
|
0.01
|
($0.01
|
)
|
($0.03
|
)
|
||||
Diluted
Earnings (Loss) per Share
|
$
|
0.01
|
($0.01
|
)
|
($0.03
|
)
|
(in
thousands, except per share data)
|
|||||||
2006
|
2005
|
||||||
Net
Income, as reported
|
$
|
4,798
|
$
|
5,037
|
|||
Cost
of stock options, net of taxes
|
(309
|
)
|
(525
|
)
|
|||
Net
Income pro forma
|
$
|
4,489
|
$
|
4,512
|
|||
Income
per share, as reported:
|
|||||||
Basic
|
$
|
0.56
|
$
|
0.59
|
|||
Diluted
|
$
|
0.55
|
$
|
0.58
|
|||
Income
per share- pro forma
|
|||||||
Basic
|
$
|
0.53
|
$
|
0.53
|
|||
Diluted
|
$
|
0.52
|
$
|
0.52
|
Years
ended April 30,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Basic
EPS Shares outstanding
|
||||||||||
(weighted
average)
|
8,620,776
|
8,537,427
|
8,484,682
|
|||||||
Effect
of Dilutive Securities
|
***
|
153,190
|
200,076
|
|||||||
Diluted
EPS Shares outstanding
|
8,620,776
|
8,690,617
|
8,684,758
|
2007
|
2006
|
||||||
Raw
Materials and Component Parts
|
$
|
18,380
|
$
|
11,172
|
|||
Work
in Progress
|
12,821
|
11,799
|
|||||
$
|
31,201
|
$
|
22,971
|
April
30, 2007
|
||||||||||
Unrealized
|
||||||||||
Market
|
Holding
|
|||||||||
Cost
|
Value
|
(Loss)
Gain
|
||||||||
Fixed
income securities
|
$
|
14,172
|
$
|
13,943
|
$
|
(229
|
)
|
|||
Equity
securities
|
283
|
325
|
42
|
|||||||
$
|
14,455
|
$
|
14,268
|
$
|
(187
|
)
|
April
30, 2006
|
||||||||||
Unrealized
|
||||||||||
Market
|
Holding
|
|||||||||
Cost
|
Value
|
(Loss)
|
||||||||
Fixed
income securities
|
$
|
22,531
|
$
|
21,799
|
$
|
(732
|
)
|
|||
Equity
securities
|
46
|
37
|
(9
|
)
|
||||||
$
|
22,577
|
$
|
21,836
|
$
|
(741
|
)
|
Current
|
$
|
-
|
||
Due
after one year through five years
|
11,792
|
|||
Due
after five years through ten years
|
2,380
|
|||
$
|
14,172
|
2007
|
2006
|
||||||
Buildings
and building improvements
|
$
|
3,046
|
$
|
2,649
|
|||
Machinery,
equipment and furniture
|
35,186
|
32,765
|
|||||
38,232
|
35,414
|
||||||
Less,
accumulated depreciation
|
30,393
|
28,751
|
|||||
$
|
7,839
|
$
|
6,663
|
Years
ending April
30,
|
||||
2008
|
$
|
588
|
||
2009
|
696
|
|||
2010
|
926
|
|||
2011
|
936
|
|||
2012
|
947
|
|||
Thereafter
|
3,100
|
|||
$
|
7,193
|
7.
|
Related
Party Transaction
|
8.
|
Debt
Obligations
|
9.
|
Accrued
Liabilities
|
2007
|
2006
|
||||||
Other
compensation including payroll taxes
|
$
|
2,104
|
$
|
2,161
|
|||
Due
customers
|
447
|
491
|
|||||
Vacation
accrual
|
839
|
593
|
|||||
Other
|
590
|
676
|
|||||
$
|
3,980
|
$
|
3,921
|
2007
|
2006
|
2005
|
|||||||||||||||||
Shares
|
Wtd
Avg
Price
|
|
Shares
|
Wtd
Avg
Price
|
Shares
|
Wtd
Avg
Price
|
|||||||||||||
Outstanding
at beginning of year
|
141,050
|
$
|
15.33
|
141,050
|
$
|
15.33
|
111,050
|
$
|
15.49
|
||||||||||
Granted
|
-
|
-
|
-
|
-
|
30,000
|
$
|
14.76
|
||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Outstanding
at end of year
|
141,050
|
$
|
15.33
|
141,050
|
$
|
15.33
|
141,050
|
$
|
15.33
|
||||||||||
Exercisable
at end of year
|
131,050
|
$
|
15.38
|
121,050
|
$
|
15.43
|
111,050
|
$
|
15.49
|
||||||||||
Available
for grant at end of year
|
-
|
-
|
189,500
|
||||||||||||||||
Weighted
average fair value
|
|||||||||||||||||||
of
options granted during the year
|
$
|
-
|
$
|
-
|
$
|
7.81
|
2007
|
2006
|
2005
|
|||||||||||||||||
Wtd
Avg
|
Wtd
Avg
|
Wtd
Avg
|
|||||||||||||||||
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||||
Outstanding
at beginning of year
|
1,133,387
|
$
|
11.32
|
1,109,987
|
$
|
11.26
|
1,081,437
|
$
|
11.00
|
||||||||||
Granted
|
172,500
|
$
|
11.93
|
39,000
|
$
|
11.32
|
59,500
|
$
|
14.40
|
||||||||||
Exercised
|
(40,300
|
)
|
$
|
7.28
|
(19,725
|
)
|
$
|
7.27
|
(24,950
|
)
|
$
|
7.06
|
|||||||
Expired
or canceled
|
-
|
-
|
-
|
(6,000
|
)
|
$
|
8.80
|
||||||||||||
Outstanding
at end of year
|
1,265,587
|
$
|
11.53
|
1,133,387
|
$
|
11.32
|
1,109,987
|
$
|
11.26
|
||||||||||
Exercisable
at end of year
|
1,007,212
|
$
|
11.45
|
972,337
|
$
|
11.39
|
895,587
|
$
|
11.46
|
||||||||||
Available
for grant at end of year
|
226,500
|
399,000
|
11,500
|
||||||||||||||||
Weighted
average fair value
|
|||||||||||||||||||
of
options granted during the year
|
$
|
6.53
|
$
|
6.08
|
$
|
7.60
|
Options
Outstanding
|
|
Options
Exercisable
|
|
|||||||||||||
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Average
|
|
Weighted
|
|
|
|
Weighted
|
|
|||||
|
|
Number
|
|
Remaining
|
|
Average
|
|
Number
|
|
Average
|
|
|||||
Actual
Range of
|
|
Outstanding
|
|
Contractual
|
|
Exercise
|
|
Exercisable
|
|
Exercise
|
|
|||||
Exercise
Prices
|
|
at
4/30/07
|
|
Life
|
|
Price
|
|
at
4/30/07
|
|
Price
|
||||||
$6.615
- 9.970
|
448,400
|
3.5
|
$
|
7.67
|
417,775
|
$
|
7.56
|
|||||||||
10.167
- 16.625
|
735,187
|
5.1
|
12.52
|
507,437
|
12.67
|
|||||||||||
23.75
|
82,000
|
3.3
|
23.75
|
82,000
|
23.75
|
2007
|
|
2006
|
|
2005
|
|
||||||||||||||
|
|
|
|
Wtd
Avg
|
|
|
|
Wtd
Avg
|
|
|
|
Wtd
Avg
|
|
||||||
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|||||||
Outstanding
at beginning of year
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
||||||||||
Exercised
|
-
|
-
|
-
|
-
|
-
|
$
|
4.00
|
||||||||||||
Outstanding
at end of year
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
||||||||||
Exercisable
at end of year
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
22,500
|
$
|
4.00
|
||||||||||
Balance
of shares available for
|
|||||||||||||||||||
grant
at end of year
|
-
|
-
|
98,250
|
14. |
Income
Taxes
|
Year
Ended April 30,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
U.S.
|
$
|
(1,944
|
)
|
$
|
5,446
|
$
|
6,977
|
|||
Foreign
|
132
|
1,181
|
170
|
|||||||
$
|
(1,812
|
)
|
$
|
6,627
|
$
|
7,147
|
||||
The
(benefit) provision for income taxes consists of
the following (in thousands):
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Current:
|
||||||||||
Federal
|
$
|
(150
|
)
|
$
|
850
|
$
|
4,200
|
|||
Foreign
|
-
|
(7
|
)
|
70
|
||||||
State
|
(100
|
)
|
100
|
450
|
||||||
Current
(benefit) provision
|
(250
|
)
|
943
|
4,720
|
||||||
Deferred
|
||||||||||
Federal
|
(950
|
)
|
650
|
(2,250
|
)
|
|||||
Foreign
|
(205
|
)
|
136
|
40
|
||||||
State
|
(150
|
)
|
100
|
(400
|
)
|
|||||
Valuation
allowance- foreign
|
-
|
-
|
-
|
|||||||
Deferred
(benefit) provision
|
(1,305
|
)
|
886
|
(2,610
|
)
|
|||||
Total
(benefit) provision
|
$
|
(1,555
|
)
|
$
|
1,829
|
$
|
2,110
|
|||
The
following table reconciles the reported income tax (benefit)
expense with
the amount computed using the federal statutory income tax rate
(in
thousands).
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Computed
"expected" tax (benefit) expense
|
$
|
(616
|
)
|
$
|
2,253
|
$
|
2,430
|
|||
State
and local tax, net of federal benefit
|
(165
|
)
|
132
|
297
|
||||||
Nontaxable
income from foreign subsidiaries
|
(73
|
)
|
(255
|
)
|
(61
|
)
|
||||
Reserve
reversal on foreign deferred taxes
|
(405
|
)
|
-
|
-
|
||||||
Nondeductible
expenses
|
75
|
164
|
159
|
|||||||
Nontaxable
life insurance cash value increase
|
(102
|
)
|
(100
|
)
|
(96
|
)
|
||||
Tax
credits
|
(251
|
)
|
(217
|
)
|
(549
|
)
|
||||
Other
items, net, none of which individually exceeds 5% of federal
taxes at
statutory rates
|
(18
|
)
|
(148
|
)
|
(70
|
)
|
||||
$
|
(1,555
|
)
|
$
|
1,829
|
$
|
2,110
|
||||
The
components of deferred taxes are as follows (in
thousands):
|
||||||||||
2007
|
2006
|
|||||||||
Deferred
tax assets:
|
||||||||||
Employee
benefits
|
$
|
4,563
|
$
|
4,157
|
||||||
Inventory
|
1,650
|
1,450
|
||||||||
Accounts
receivable
|
350
|
200
|
||||||||
Marketable
securities
|
75
|
296
|
||||||||
Research
& development
|
1,149
|
632
|
||||||||
Other
liabilities
|
66
|
61
|
||||||||
Foreign
net operating loss carryforwards
|
425
|
116
|
||||||||
Miscellaneous
|
-
|
110
|
||||||||
Total
deferred tax asset
|
8,278
|
7,022
|
||||||||
Deferred
tax liabilities:
|
||||||||||
Property,
plant and equipment
|
1,156
|
1,048
|
||||||||
Net
deferred tax asset
|
7,122
|
5,974
|
||||||||
Valuation
allowance
|
(1,102
|
)
|
(997
|
)
|
||||||
$
|
6,020
|
$
|
4,977
|
15. |
Product
Warranties
|
Year
Ended April 30,
|
||||||||||
2007
|
|
2006
|
|
2005
|
||||||
Balance
at beginning of year
|
$
|
350
|
$
|
200
|
$
|
400
|
||||
Warranty
costs incurred
|
(596
|
)
|
(411
|
)
|
(319
|
)
|
||||
Product
warranty accrual
|
596
|
561
|
119
|
|||||||
Balance
at end of year
|
$
|
350
|
$
|
350
|
$
|
200
|
16. |
Segment
Information
|
2007
|
|
2006
|
|
2005
|
||||||
Net
sales:
|
||||||||||
FEI-NY
|
$
|
40,184
|
$
|
35,801
|
$
|
37,067
|
||||
Gillam-FEI
|
11,382
|
** |
9,169
|
** |
12,599
|
** | ||||
FEI-Zyfer
|
7,542
|
10,055
|
8,803
|
|||||||
less
intersegment sales
|
(2,902
|
)** |
(2,215
|
)** |
(3,296
|
)** | ||||
Consolidated
Sales
|
$
|
56,206
|
$
|
52,810
|
$
|
55,173
|
||||
Operating
(loss) profit:
|
||||||||||
FEI-NY
|
$
|
(3,336
|
)** |
$
|
1,864
|
** |
$
|
(616
|
)** | |
Gillam-FEI
|
412
|
** |
(525
|
)** |
200
|
** | ||||
FEI-Zyfer
|
(339
|
)
|
903
|
292
|
||||||
Corporate
|
(458
|
)
|
(532
|
)
|
(1,145
|
)
|
||||
Consolidated
Operating (Loss) Profit
|
($
3,721
|
)
|
$
|
1,710
|
($
1,269
|
)
|
2007
|
|
2006
|
|
2005
|
||||||
Identifiable
assets:
|
||||||||||
FEI-NY
|
$
|
49,868
|
$
|
44,111
|
$
|
36,695
|
||||
Gillam-FEI
|
13,750
|
13,755
|
13,877
|
|||||||
FEI-Zyfer
|
5,366
|
5,356
|
4,796
|
|||||||
less
intersegment balances
|
(11,773
|
)
|
(14,585
|
)
|
(9,892
|
)
|
||||
Corporate
|
36,615
|
38,104
|
42,898
|
|||||||
Consolidated
Identifiable Assets
|
$
|
93,826
|
$
|
86,741
|
$
|
88,374
|
||||
Depreciation
and amortization (allocated):
|
||||||||||
FEI-NY
|
$
|
1,290
|
$
|
1,238
|
$
|
1,325
|
||||
Gillam-FEI
|
164
|
185
|
244
|
|||||||
FEI-Zyfer
|
252
|
428
|
426
|
|||||||
Corporate
|
19
|
19
|
19
|
|||||||
Consolidated
Depreciation and Amortization Expense
|
$
|
1,725
|
$
|
1,870
|
$
|
2,014
|
(in
thousands)
|
||||||||||
2007
|
|
2006
|
|
2005
|
||||||
China
|
$
|
5,799
|
$
|
5,301
|
$
|
11,422
|
||||
Belgium
|
5,612
|
4,198
|
5,171
|
|||||||
France
|
2,653
|
2,924
|
4,412
|
|||||||
Canada
|
953
|
2,447
|
1,021
|
|||||||
Other
|
2,899
|
3,748
|
5,385
|
|||||||
$
|
17,916
|
$
|
18,618
|
$
|
27,411
|
(in
thousands, except per share data)
|
|||||||||||||
2007
Quarter
|
|||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
||||||
Net
sales
|
$
|
14,314
|
$
|
14,320
|
$
|
12,117
|
$
|
15,455
|
|||||
Gross
margin
|
4,853
|
5,340
|
3,777
|
3,106
|
|||||||||
Net
income (loss)
|
898
|
187
|
(754
|
)
|
(588
|
)
|
|||||||
*Earnings
(loss) per share
|
|||||||||||||
Basic
|
$
|
0.10
|
$
|
0.02
|
$
|
(0.09
|
)
|
$
|
(0.07
|
)
|
|||
Diluted
|
$
|
0.10
|
$
|
0.02
|
$
|
(0.09
|
)
|
$
|
(0.07
|
)
|
|||
*Quarterly
earnings per share data do not equal the annual amount due to changes
in
the average common
equivalent shares outstanding.
|
|||||||||||||
(in
thousands, except per share data)
|
|||||||||||||
|
2006
Quarter
|
||||||||||||
1st
|
|
|
2nd
|
|
|
3rd
|
|
|
4th
|
||||
Net
sales
|
$
|
11,057
|
$
|
11,499
|
$
|
15,113
|
$
|
15,141
|
|||||
Gross
margin
|
4,097
|
4,098
|
5,462
|
4,960
|
|||||||||
Net
income
|
1,142
|
1,332
|
1,248
|
1,076
|
|||||||||
*Earnings
per share
|
|||||||||||||
Basic
|
$
|
0.13
|
$
|
0.16
|
$
|
0.15
|
$
|
0.13
|
|||||
Diluted
|
$
|
0.13
|
$
|
0.15
|
$
|
0.14
|
$
|
0.12
|
|||||
*Quarterly
earnings per share data do not equal the annual amount due to changes
in
the average common equivalent shares
outstanding.
|
(In
thousands)
|
||||||||||||||||
Column
A
|
|
Column
B
|
|
Column
C
Additions
|
|
Column
D
|
|
Column
E
|
|
|||||||
Description
|
|
Balance
at
beginning
of
period
|
|
Charged
to
costs
and
expenses
|
|
Charged
to
other
accounts-
describe
|
|
Deductions
-describe
|
|
Balance
at
end
of
period
|
||||||
Year
ended April 30, 2007
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
276
|
-
|
-
|
-
|
$
|
276
|
|||||||||
Inventory
reserves
|
$
|
3,923
|
$
|
1,328
|
$
|
73
|
(c)
|
$
|
296
|
(b)
|
$
|
5,028
|
||||
Year
ended April 30, 2006
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
172
|
$
|
117
|
-
|
$
|
13
|
(a)
|
$
|
276
|
||||||
Inventory
reserves
|
$
|
4,289
|
$
|
680
|
($52
|
)(c)
|
$
|
994
|
(b)
|
$
|
3,923
|
|||||
Year
ended April 30, 2005
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
140
|
$
|
45
|
$
|
13
|
(a)
|
$
|
172
|
|||||||
Inventory
reserves
|
$
|
3,495
|
$
|
726
|
$
|
68
|
(c,d)
|
-
|
$
|
4,289
|
(a) |
Accounts
written off
|
(b) |
Inventory
disposed or written off
|
(c) |
Foreign
currency translation adjustments
|
(d) |
Includes
$30 reclassification of other liabilities to inventory
reserves
|
(a) |
Index
to Financial Statements, Financial Statement Schedule and
Exhibits
|
(1) FINANCIAL STATEMENTS | |
Included
in Part II of this report:
|
|
Page(s)
|
|
Reports
of Independent Registered Public Accounting Firm
|
33
|
|
|
Consolidated
Balance Sheets April
30, 2007 and 2006
|
34
|
Consolidated
Statements of Operations-years
ended April 30, 2007, 2006 and 2005
|
35
|
|
|
Consolidated
Statements of Cash Flows -
years ended April 30, 2007, 2006 and 2005
|
36-37
|
|
|
Consolidated
Statements of Changes in Stockholders' Equity -
years ended April 30, 2007, 2006 and 2005
|
38
|
|
|
Notes
to Consolidated Financial Statements
|
39-54
|
|
|
(2)
FINANCIAL STATEMENT SCHEDULE
|
|
Included
in Part II of this report:
|
|
Schedule
II - Valuation and Qualifying Accounts
|
55
|
|
|
Other
financial statement schedules are omitted because they are not
required,
or the information
is presented in the consolidated financial statements or notes
thereto.
|
|
(3)
EXHIBITS
|
|
Exhibit
21 List of Subsidiaries of Registrant
|
|
Exhibit
23.1 Consent of Independent Registered Public Accounting
Firm
|
|
Exhibit
31.1 Certification of the Chief Executive Officer pursuant to Section
302
of the Sarbanes-Oxley Act of 2002
|
|
|
|
Exhibit
31.2 Certification of the Chief Financial Officer pursuant to
Section 302
of the Sarbanes-Oxley
Act of 2002
|
|
Exhibit
32.1 Certification of the Chief Executive Officer pursuant to
Section 906
of the Sarbanes-Oxley
Act of 2002
|
|
Exhibit
32.2 Certification of the Chief Financial Officer pursuant to
Section 906
of the Sarbanes-Oxley
Act of 2002
|
|
Exhibit
99 Audited Financial Statements of Morion, Inc. for year ended
December
31, 2006
|
|
|
|
The
exhibits listed on the accompanying Index to Exhibits beginning
on page 59
are filed as part of
this annual report.
|
FREQUENCY
ELECTRONICS, INC.
|
||
|
|
|
By | /s/ Martin B. Bloch | |
Martin
B. Bloch
President
and CEO
|
By: | /s/ Alan L. Miller | |
Alan
L. Miller
Chief
Financial Officer
and
Treasurer
|
Signature
|
|
Title
|
|
Date
|
/s/
Joseph P. Franklin
Joseph
P. Franklin
|
Chairman
of the Board
|
7/27/07
|
||
/s/
Joel Girsky
Joel
Girsky
|
Director
|
7/27/07
|
||
/s/
E. Donald Shapiro
E.
Donald Shapiro
|
Director
|
7/27/07
|
||
/s/
S. Robert Foley
S.
Robert Foley
|
Director
|
7/27/07
|
||
/s/
Richard Schwartz
Richard
Schwartz
|
Director
|
7/27/07
|
||
/s/
Martin B. Bloch
Martin
B. Bloch
|
President
and CEO
(Principal
Executive Officer)
|
7/27/07
|
||
/s/
Alan L. Miller
Alan
L. Miller
|
Chief
Financial Officer
and
Treasurer
(Principal
Financial Officer)
|
7/27/07
|
Exhibit
No. in this
Form 10-K
|
Description
of Exhibit
|
NOTE
|
||
3.1
|
Copy
of Certificate of Incorporation of the Registrant filed
with the Secretary of State of Delaware
|
(1)
|
||
3.2
|
Amendment
to Certificate of Incorporation of the Registrant
filed with the Secretary of State of
Delaware on March 27, 1981
|
(2)
|
||
3.3
|
Amendment
to Certificate of Incorporation of the Registrant filed
with Secretary of State of Delaware on October 26,
1984
|
(5)
|
||
3.4
|
Amendment
to Certificate of Incorporation of the Registrant filed
with the Secretary of State of Delaware on October 22,
1986
|
(7)
|
||
|
||||
3.5
|
Amended
and Restated Certificate of Incorporation of the Registrant
filed with the Secretary of State of Delaware on October
26, 1987
|
(9)
|
||
3.6
|
Amended
Certificate of Incorporation of the Company filed with
the Secretary of State of Delaware on November 2,
1989
|
(9)
|
||
3.7
|
Copy
of By-Laws of the Registrant, as amended to date
|
(3)
|
||
4.1
|
Specimen
of Common Stock certificate
|
(1)
|
||
10.1
|
Registrant’s
1997 Independent Contractor
Stock Option Plan
|
(10)
|
||
10.8
|
Employment
agreement between Registrant and Harry Newman
|
(4)
|
||
10.9
|
Employment
agreement between Registrant and Marcus Hechler
|
(4)
|
||
10.10
|
Employment
agreement between Registrant and Charles Stone
|
(8)
|
||
10.13
|
Lease
agreement between Registrant
and Reckson Operating
Partnership,
L.P. dated
January 6, 1998
|
(11)
|
||
10.16
|
Registrant’s
Cash or Deferral Profit Sharing Plan and Trust
under Internal Revenue Code Section 401, dated
April 1, 1985
|
(6)
|
||
10.21
|
Form
of Agreement concerning Executive Compensation
|
(2)
|
||
10.23
|
Registrant’s
Senior Executive Stock Option Plan
|
(8)
|
||
10.24
|
Amendment
dated Jan. 1, 1988 to Registrant’s Cash or Deferred
Profit Sharing Plan and Trust under Section 401
of
Internal Revenue Code
|
(8)
|
Exhibit
No. in this Form
10-K
|
|
Description
of Exhibit
|
|
NOTE
|
10.25
|
Executive
Incentive Compensation Plan between Registrant and
various employees
|
(8)
|
||
21
|
List
of Subsidiaries of Registrant
|
Filed
herewith
|
||
23
.1
|
Consent
of Independent Registered Public Accounting Firm to
incorporation by reference of 2007 audit report in
Registrant’s
Form S-8 Registration
Statement.
|
Filed
herewith
|
||
31.1
|
Certification
of the Chief Executive Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
31.2
|
Certification
of the Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
32.1
|
Certification
of the Chief Executive Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
32.2
|
Certification
of the Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
99
|
Audited
financial statements of Morion, Inc. for the year ended
December 31, 2006, pursuant to Rule 3-09 of Regulation
S-X
|
Filed
herewith
|
(1) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the
registration statement of Registrant on Form S-1, File No. 2-29609,
which
exhibit is incorporated herein by
reference.
|
(2) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the
registration statement of Registrant on Form S-1, File No. 2-71727,
which
exhibit is incorporated herein by
reference.
|
(3) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061 for the year ended
April 30, 1981, which exhibit is incorporated herein by
reference.
|
(4) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the
registration statement of Registrant on Form S-1, File No. 2-69527,
which
exhibit is incorporated herein by
reference.
|
(5) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061, for the year
ended
April 30, 1985, which exhibit is incorporated herein by
reference.
|
(6) |
Filed
with the SEC as exhibit, numbered as indicated above, to the annual
report
of Registrant on Form 10-K, File No. 1-8061, for the year ended April
30,
1986, which exhibit is incorporated herein by
reference.
|
(7) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061, for the year
ended
April 30, 1987, which exhibit is incorporated herein by
reference.
|
(8) |
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061, for the year
ended
April 30, 1989, which exhibit is incorporated herein by
reference.
|
(9)
|
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061, for the year
ended
April 30, 1990, which exhibit is incorporated herein by
reference.
|
(10)
|
Filed
with the SEC as an exhibit, numbered as indicated above, to the
registration statement of Registrant on Form S-8, File No. 333-42233,
which exhibit is incorporated herein by
reference.
|
(11)
|
Filed
with the SEC as an exhibit, numbered as indicated above, to the annual
report of Registrant on Form 10-K, File No. 1-8061, for the year
ended
April 30, 1998, which exhibit is incorporated herein by
reference.
|