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SEGMENT INFORMATION
 9 Months Ended
Jan. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE G – SEGMENT INFORMATION

 

The Company operates under two reportable segments based on the geographic locations of its subsidiaries:

 

(1)FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets: communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.

 

The FEI-NY segment also includes the operations of the Company’s wholly owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s communication satellite business.

 

(2)FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications. This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the U.S. market.

 

The Company measures segment performance based on total revenues and profits generated by each geographic location rather than on the specific types of customers or end-users.  Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s chief operating decision maker (“CODM”) views the business.

 

The accounting policies of the two segments are the same as those described in “Note 1. Summary of Accounting Policies” to the consolidated financial statements included in the Form 10-K. Our Chief Executive Officer (“CEO”) serves as our CODM who evaluates the segment performance and allocates resources to them based on operating income which is defined as income before investment income, interest expense, other expenses, and income taxes. Operating income by segment is used to monitor segment results compared to prior periods, forecasted results, and the annual plan.

The tables below present segment revenues, significant segment expenses, which consist of segment cost of revenues and segment R&D expenses, and segment operating income for each reportable segment and on a consolidated basis as reported in the condensed consolidated statements of operations for the three and nine months ended January 31, 2026 and 2025 (in thousands):

 

   Periods ended January 31, 
   Three months   Nine months 
   2026   2025   2026   2025 
Revenues:                
FEI-NY  $12,251   $14,463   $33,399   $36,984 
FEI-Zyfer   6,975    5,027    17,757    13,858 
Less intersegment revenues   (2,336)   (563)   (3,327)   (1,017)
Consolidated revenues  $16,890   $18,927   $47,829   $49,825 

                     
Cost of revenues:                    
FEI-NY  $8,283   $7,559   $22,149   $20,054 
FEI-Zyfer   4,007    3,612    10,273    8,300 
Less intersegment cost of revenues   (2,026)   (529)   (2,837)   (1,132)
Consolidated cost of revenues  $10,264   $10,642   $29,585   $27,222 
                     

Research and development expenses:                    
FEI-NY  $1,173   $732   $2,339   $2,412 
FEI-Zyfer   590    704    1,756    2,124 
Consolidated research and development expenses  $1,763   $1,436   $4,095   $4,536 
                     

Operating income (loss):                    
FEI-NY  $282   $3,546   $1,143   $7,326 
FEI-Zyfer   1,445    96    3,218    1,489 
Less intersegment operating income   (309)   (34)   (490)   115 
Corporate   (148)   (139)   (522)   (477)
Consolidated operating income  $1,270   $3,469   $3,349   $8,453 

 

Included in the determination of operating income is selling, general, and administrative expenses of $2.5 million and $2.6 million for the three months ended January 31, 2026 and 2025, respectively, for the FEI-NY segment, and $0.9 million and $0.6 million for the three months ended January 31, 2026 and 2025, respectively, for the FEI-Zyfer segment. Included in the determination of operating income is selling, general, and administrative expenses of $7.8 million and $7.2 million for the nine months ended January 31, 2026 and 2025, respectively, for the FEI-NY segment, and $2.5 million and $1.9 million for the nine months ended January 31, 2026 and 2025, respectively, for the FEI-Zyfer segment.

The tables below present the identifiable assets of each reportable segment and on a consolidated basis as reported in the consolidated balance sheets as of January 31, 2026 and April 30, 2025 and the depreciation and amortization charges related to these identifiable assets for the three and nine months then ended (in thousands):

 

   January 31,
2026		   April 30,
2025		 
Identifiable assets:        
FEI-NY  $39,527   $39,125 
FEI-Zyfer   27,953    23,865 
Less intersegment balances   (629)   (140)
Corporate   27,341    30,887 
Consolidated identifiable assets  $94,192   $93,737 

 

   Periods ended January 31, 
   Three months   Nine months 
   2026   2025   2026   2025 
Depreciation and amortization:                
FEI-NY  $498   $430   $1,350   $1,385 
FEI-Zyfer   14    28    64    84 
Consolidated depreciation and amortization expense  $512   $458   $1,414   $1,469 

 

Total revenue recognized over time as Percentage of Completion (“POC”) and Passage of Title (“POT”) was approximately $15.7 million and $1.2 million, respectively, of the $16.9 million reported for the three months ended January 31, 2026. Total revenue recognized over time as POC and POT was approximately $43.0 million and $4.8 million, respectively, of the $47.8 million reported for the nine months ended January 31, 2026. Total revenue recognized over time as POC and POT was approximately $17.7 million and $1.3 million, respectively, of the $18.9 million reported for the three months ended January 31, 2025. Total revenue recognized over time as POC and POT was approximately $47.3 million and $2.5 million, respectively, of the $49.8 million reported for the nine months ended January 31, 2025.

 

The amounts by segment and product line were as follows (in thousands):

 

   Three Months Ended January 31, 
   2026   2025 
   POC
Revenue		   POT
Revenue		   Total
Revenue		   POC
Revenue		   POT
Revenue		   Total
Revenue		 
FEI-NY  $9,481   $2,770   $12,251   $13,596   $867   $14,463 
FEI-Zyfer   6,225    750    6,975    4,055    972    5,027 
Less: intersegment   -    (2,336)   (2,336)   -    (563)   (563)
Revenue  $15,706   $1,184   $16,890   $17,651   $1,276   $18,927 

 

   Nine Months Ended January 31, 
   2026   2025 
   POC
Revenue		   POT
Revenue		   Total
Revenue		   POC
Revenue		   POT
Revenue		   Total
Revenue		 
FEI-NY  $28,943   $4,456   $33,399   $34,945   $2,039   $36,984 
FEI-Zyfer   14,028    3,729    17,757    12,338    1,520    13,858 
Less: intersegment   -    (3,327)   (3,327)   -    (1,017)   (1,017)
Revenue  $42,971   $4,858   $47,829   $47,283   $2,542   $49,825 
   Periods ended January 31, 
   Three months   Nine months 
   2026   2025   2026   2025 
Revenues by product line:                
Satellite revenue  $4,232   $11,190   $15,419   $28,843 
Government non-space revenue   12,478    7,370    31,230    19,507 
Other commercial & industrial revenue   180    367    1,180    1,475 
Consolidated revenues  $16,890   $18,927   $47,829   $49,825