Frequency Electronics, Inc. (NASDAQ:FEIM) Q1 2024 Earnings Call Transcript

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Thomas McClelland: Well, in the space business, inventory is a challenge because in order to meet schedules, we need to have some significant inventory of parts and material. But that being said, I think it’s something that we’re actively monitoring. And I think we have things adequately under control.

Unidentified Analyst: All right. That goes back years. I was just wondering about that. And what’s the current book-to-bill?

Steven Bernstein: Good afternoon. This quarter was 0.67.

Unidentified Analyst: But that you can’t really look at on one quarter period, can you?

Steven Bernstein: You are right.

Unidentified Analyst: You should more like go back one complete year, I assume, correct?

Steven Bernstein: Yes, right now, yes.

Unidentified Analyst: Were you going to say something? Did I cut you off? I’m sorry.

Steven Bernstein: No.

Unidentified Analyst: All right. I think I look forward to hearing about the upcoming contracts. Are you going to be able to — if you get something, will you be able to release that or some of it is top secret?

Thomas McClelland: I think there might be some exceptions, but in general, we’ll at least be able to release sort of generic ad hoc statement, and we’ll do that.

Unidentified Analyst: Just like a dollar amount.

Thomas McClelland: Yes. Yes, without identifying a specific customer or application.

Unidentified Analyst: That would be fine. I would just like to see here that something is going on. And one final question, how many people do you think you need at this time throughout the whole company?

Thomas McClelland: Well, it’s hard to put a number on that. And we don’t want to get ahead of our skis, so to speak. But we’re trying to fill some key positions and at least be out there looking with some potential candidates so that when we get some of these contracts that we’re anticipating over the next couple of quarters, we can move out aggressively on them. And we’ve also initiated some work with some outside engineering sources. And to some extent, that’s sort of on an experimental basis. But I think it’s pretty important when we need to develop a good working relationship with some of these groups so that when we do get new contracts, and we can get things moving quickly. I think that in terms of a specific number, I hesitate to really say anything in this regard. Workforce perhaps 10%, 15% increase, but we’ll have to wait and see how things develop in that regard.

Unidentified Analyst: All right. I was going to say hypothetically, if you got work from [indiscernible], I’m just using picking that company, would you be able to use some of their engineers? Is that what you’re trying to do?

Thomas McClelland: No. No, I don’t think we have any thought that we would be able to do that kind of a thing. But there are some resources out there and some companies with sort of the engineering talent for hire, and we’re working with several of those at this point in time.

Unidentified Analyst: All right. Great job. Really in the last year, you turned the company around. Thank you.

Thomas McClelland: Okay, thanks.

Operator: Thank you. We have reached the end of the question-and-answer session. I will now turn the call over to Thomas McClelland, President and Chief Executive Officer for closing remarks.

Thomas McClelland: Well, I’d just like to thank everybody participating in this call. And since there are no further questions, I think we’ll end at this time. Once again, thanks, everybody, for participating.

Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

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