0001185185-26-002997
SEC filingThe Notes reveal a $3.8M inventory write-off from FEI-Elcom restructuring and $9.4M in contract liabilities.
The Notes disclose contract liabilities of $9.4 million, representing deferred revenue on customer advances. Inventory totaled $22.6 million, net of reserves of $10.0 million. Property, plant and equipment net was $7.1 million, and right-of-use operating lease assets were $7.4 million. No cash, debt, or equity figures are provided in the Notes themselves.
No purchase commitments are disclosed in the Notes. The only contractual obligations are operating lease liabilities, which total $7.7 million ($2.0 million current, $5.6 million non-current) as per Note 6.
The Notes do not contain explicit information on share buybacks, dividends, debt changes, or capital expenditures. However, the restructuring of FEI-Elcom resulted in $3.8 million of inventory write-offs, $0.4 million goodwill derecognition, and $0.4 million in severance and legal costs, all charged to the FEI-NY segment.
Note 1 provides segment revenue disaggregation by recognition method. For fiscal 2026, FEI-NY revenue was $45.7 million (down 14.3% from $53.3 million), and FEI-Zyfer revenue was $21.7 million (up 16.5% from $18.7 million). Intersegment revenue was $4.2 million. Revenue by product line: satellite $23.1 million, government non-space $38.0 million, and other commercial $2.1 million.
Operating cash flow (OCF) improved significantly from negative $1,428K in FY2025 to positive $1,282K in FY2026, reversing the prior year's cash burn. This turnaround occurred despite a net loss of $903K, as large non-cash charges (depreciation, amortization, employee benefit plans, and stock-based compensation totaling over $8.2M) more than offset the loss. Key working capital sources included a $1,245K decrease in accounts receivable and a $1,620K increase in accounts payable, while contract liabilities declined $4,189K.
Capital expenditures rose by 58% to $2,859K, reflecting investment in property and equipment. Free cash flow, if computed as OCF minus capex, would be negative ($1,282K - $2,859K = -$1,577K), but the company does not report it. The company allocated $1,574K to share repurchases (treasury stock) and paid no dividends, compared to $9,567K in dividends and $377K in buybacks the prior year. Overall, cash and equivalents decreased by $3,151K to $2,934K.
Notable items include a $3,768K inventory write-off from restructuring, a $399K goodwill derecognition, and a $2,039K deferred tax benefit. These non-cash adjustments significantly boosted OCF. The working capital swing in contract assets and liabilities was a net use of cash, reflecting project timing.