Sep 10, 2026 earnings call — Record revenue, backlog and capital raise
FEI reported first quarter revenue of $23.5 million, an all-time record, up 70% year over year.
Revenue $0.0B (est $0.0B) · EPS $0.41 (est $0.15)
Key quotes
"I am very pleased to report first quarter revenue of $23.5 million an all time record for FEI, up 70% year over year and up 52% sequentially."
"The capital we raised will allow us to pursue expansion to help meet these additional customer requests, which may have the effect of our both reaching the $150 million minimum target sooner and making that target a substantially larger number, by fiscal 29."
"In quantum sensing, we are making rapid progress in the development of advanced sensors for magnetic navigation in GPS denied environments."
Analyst Q&A 5
Turbo product, backlog, ramp, margins
Q (Jeff Van Rhee · Craig-Hallum): Asked for an update on Turbo bookings, uses, and revenue; the funded vs unfunded backlog and the portion for next 12 months; status of ramping production; updates on proliferated LEO; and any gross-margin drivers ahead.
A: They are beginning to deliver production-rate Turbo units in relatively small quantities and expect volumes to pick up; current Turbo applications are manned aircraft, with drone discussions and early work to radiation-harden Turbo for space. Reported backlog is fully funded and they do not report unfunded amounts; management said unfunded is multiple times the reported number and about 65% of backlog is for the next 12 months. They are ramping production successfully but face limits and must be selective on schedules; they see growing PLEO programs moving from demonstrations to initial production, and they do not see major margin pressure now though they stay disciplined.
"Beginning to deliver production rate turbo units at this point in time." — Thomas McClelland (CEO)
New defense tech and missile batteries
Q (John Sigmund · Stifel): Asked about penetration and wins with new defense tech companies and any success there; and asked how Patriot and THAAD production increases could affect their battery business.
A: Most success with newer companies so far has been in space, with conversations with newer space firms including Intuitive Machines and Stennis; in defense they are pursuing opportunities but have less success so far, while noting communications with Anduril. On Patriot and THAAD they see a very significant amount of business; more missile activity and batteries needed in additional locations translates into more business for them.
"I think it is true that at this point in time, most of our success in this arena is in the space environment." — Thomas McClelland (CEO)
Automation and quantum sensor uses
Q (Steve Levinson · Big Rock): Asked whether automation could increase margins and throughput in manufacturing, and if the quantum sensor can gather world magnetic model data from space.
A: They are evaluating automation and higher-throughput equipment, especially for quartz crystal manufacturing, while noting their production is still relatively small and somewhat boutique but increasing; they also need more test equipment like thermal-vacuum chambers. For the quantum sensor, meaningful measurements can be made from space, though overall quantities would likely remain relatively small and they are interested in pursuing it.
"we are looking at putting in place additional equipment that has higher throughput capabilities." — Thomas McClelland (CEO)
Where space revenue comes from; book-to-bill
Q (Michael Eisner): Asked which space areas are driving the most revenue or opportunity and what the current book-to-bill is.
A: Revenue is increasing from a variety of directions, including traditional satellite activity and new proliferated satellite programs, with many programs coming in as they demonstrate success. Management reported the book-to-bill for the quarter is about 1.76-to-1.
"the book to bill is about 1.76-to-1 for the quarter." — Steven L. Bernstein (CFO)
R&D spend and possible dividend
Q (Robert Smith · Center of Performance Investing): Asked the current R&D figure and how R&D as a percent of revenue will trend given growth targets; and whether management would consider a small cash dividend to attract institutions.
A: They aim to get as much external funding for R&D as possible and focus internal R&D on government-funded applications. They anticipate internal R&D will stay under 10% of revenue, though absolute R&D dollars may rise as revenue grows. On dividends, they have paid in the past and will consider a cash dividend in the future, but made no promise.
"But I think that we anticipate the end R&D funding to stay under, 10%, revenue at this point in time." — Thomas McClelland (CEO)