Frequency Electronics designs and manufactures precision timing and frequency control products — essentially ultra-precise clocks and oscillators — for satellites, military communications, and defense electronics. The company sells almost entirely to the U.S. government or to prime defense contractors like Northrop Grumman, Lockheed Martin, and BAE Systems as a subcontractor, with roughly 94% of revenue tied to U.S. government contracts. The company operates through two segments: FEI-NY, which designs satellite payload electronics and RF microwave modules for electronic warfare and signals intelligence applications, and FEI-Zyfer, which makes GPS-disciplined timing and synchronization products for military platforms including radar, airborne SIGINT, and satellite ground stations. Satellite programs have grown to roughly 58% of revenue. Frequency Electronics earns revenue under fixed-price and cost-plus contracts, recognizing revenue on a percentage-of-completion basis for satellite payloads. Margins are driven by program mix — sole-source, high-precision satellite programs carry the best margins — and by engineering execution on fixed-price contracts. The company is pursuing growth in two areas: adapting its timing products for proliferated small satellite constellations, which represent higher unit volume but lower margins and more competition, and developing quantum sensor technologies including quantum magnetometers for GPS-denied navigation and Rydberg sensors for compact wideband antennas. The quantum sensor effort is pre-commercial, with government-funded development contracts expected in coming years.