Frequency Electronics issues clarification to earnings call

On yesterday’s earnings call, the Company discussed program charges that adversely affected its gross margins for the quarter ended January 31, 2024. As a result of percentage of completion accounting, these charges included a temporary reversal of revenue. The Company expects to recover approximately $1.2 million of this revenue during this calendar year. Because the costs have been conservatively estimated and already charged, when this revenue is realized, the Company estimates that it will be at normal or higher than average corporate gross margins.