Netanya, Israel, August 10, 2017 - RADA Electronic Industries Ltd. (Nasdaq: RADA), announced today its financial results for the quarter ended June 30, 2017.

Improvements Across all Parameters; Increasing Revenue Guidance for 2017 to $25M, YoY growth of 100%

 

Management Comment

Dov Sella, RADA's Chief Executive Officer commented, “We are very pleased with our results of the second quarter, showing an almost doubling of revenues (compared to Q2 2016) and a strong turnaround back to profitability. The primary driver of our growth is our software-defined tactical radar sales which are becoming the majority of our revenues, while the avionics business is stable. As we progress through 2017, we are now finally seeing the fruits of our significant investments over the years in the radar product line, which is generating strong interest amongst customers in our target markets, especially in the United States.”

Continued Mr. Sella, “Based on our backlog and pipeline, we are increasing our full year revenue guidance towards $25 million for 2017, representing a year over year growth of almost 100%.”

Concluded Mr. Sella, “We still believe we are at the early stages of unleashing the very significant long-term potential of our radar technology. We look forward to realizing it, in the years ahead.”

 

2017 Second Quarter Summary

Revenues totaled $5.3 million in the second quarter of 2017, up 94% compared to revenues of $2.7 million in the second quarter of 2016.

Gross Profit totaled $1.7 million in the second quarter of 2017 (gross margin of 31.3%) compared to gross profit of $0.2 million (gross margin of 7.4%) in the second quarter of 2016.

Operating income was $0.5 million in the second quarter of 2017 compared to an operating loss of $1 million in the second quarter of 2016.

Net income attributable to RADA’s shareholders in the second quarter of 2017 was $0.5 million, or $0.02 per share, compared with a net loss of $1.6 million, or $0.13 per share, in the second quarter of 2016.

 

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics company. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, and avionics systems (including inertial navigation systems) for fighters and UAVs.

 

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.

 

Company Contact:

Shiri Lazarovich | CFO
RADA Electronic Industries Ltd.
Tel: +972-9-892-1111
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IR Contact
Ehud Helft / Gavriel Forhwoein
GK Investor & Public Relations
Tel: +1-646-688-3559
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CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

ASSETS

 

June 30, 2017

 

December 31, 2016

   

Unaudited

 

 

CURRENT ASSETS:

       

Cash and cash equivalents

 

$          743

 

$       1,205

Restricted cash

 

586

 

317

Trade receivables (net of allowance for doubtful accounts of $17 at June 30, 2017 and $14 at December 31, 2016)

 

5,860

 

5,006

Costs and estimated earnings in excess of billings on uncompleted contracts

 

613

 

1,096

Other receivables and prepaid expenses

 

575

 

349

Inventories

 

7,871

 

7,102

Current assets related to discontinued operations

 

2,374

 

2,254

         

Total current assets

 

18,622

 

17,329

         

LONG-TERM ASSETS:

       

Long-term receivables and other deposits

 

737

 

742

Property, plant and equipment, net

 

3,159

 

2,650

Long-term assets related to discontinued operations

 

186

 

266

Total long term assets

 

4,082

 

3,658

         

Total assets

 

$     22,704

 

$     20,987

         

LIABILITIES AND SHAREHOLDERS' EQUITY

       

 

       

CURRENT LIABILITIES:

       

Bank credit

 

$          522

 

$          575

Trade payables

 

2,906

 

2,557

Other accounts payable and accrued expenses

 

2,489

 

1,987

Advances from customers, net

 

-

 

839

Current liabilities related to discontinued operations

 

286

 

265

       

Total current liabilities

 

6,203

 

6,223

         

LONG-TERM LIABILITIES:

       

Convertible note and loans from shareholders, net

 

3,091

 

3,072

Accrued severance pay and other long-term liabilities

 

747

 

663

Total long-term liabilities

 

3,838

 

3,735

 

       

RADA SHAREHOLDERS' EQUITY

       

Share capital -

       

Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 shares at June 30, 2017 and December 31, 2016; Issued and outstanding: 22,172,699 at June 30, 2017 and 21,246,502 at December 31, 2016.

 

258

 

250

Additional paid-in capital

 

90,068

 

89,407

Accumulated other comprehensive income

 

280

 

222

Accumulated deficit

 

(78,480)

 

(79,363)

 

       

Total RADA shareholders’ equity

 

12,126

 

10,516

Non-controlling interest

 

537

 

513

Total equity

 

12,663

 

11,029

Total liabilities and equity

 

$     22,704

 

$    20,987

 

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except share and per share data

 

 

 

Six months ended
June 30,

 

 

 

Three months ended
June 30,

 

 

 

Year ended

December 31,

 

2017

2016

 

2017

2016

 

2016

 

(Unaudited)

               

Revenues

$  9,992

$  5,188

 

$  5,317

$  2,734

 

$  12,821

               

Cost of revenues

6,659

4,980

 

3,653

2,532

 

11,379

               

Gross profit

3,333

208

 

1,664

202

 

1,442

               

Operating expenses:

             

Research and development

406

316

 

208

150

 

758

Marketing and selling

855

1,060

 

419

584

 

2,269

General and administrative

1,212

835

 

526

437

 

1,814

Goodwill impairment

             

Total operating expenses:

2,473

2,211

 

1,153

1,171

 

4,841

Operating Income (loss)

860

(2,003)

 

511

(969)

 

(3,399)

Amortization of shareholders' convertible loans discount and beneficial conversion feature

18

1,096

 

8

522

 

1,116

Other financial expenses (income), net

(9)

304

 

30

98

 

405

Net income (loss) from continuing operations

851

(3,403)

 

473

(1,589)

 

        (4,920)

Net income (loss) from discontinued operations

40

(22)

 

28

12

 

(13)

Net income (loss)

891

(3,425)

 

501

(1,577)

 

(4,907)

Net income (loss) attributable to non-controlling interest

8

(4)

 

6

3

 

3

Net income (loss) attributable to RADA Electronic Industries' shareholders

 $   883

$   (3,421)

 

$    495

$  (1,580)

 

$ (4,910)

Basic and diluted net income (loss) from continuing operations

 $   0.04

  $   (0.24)

 

 $   0.02

$    (0.13)

 

$        (0.35)

Basic and diluted net income (loss) from discontinued operations per Ordinary share

$    0.00

$    0.00

 

$    0.00

$    0.00

 

$   ( 0.00)

Basic and diluted net income (loss)

 $     0.04

  $   (0.24)

 

 $   0.02

$    (0.13)

 

    $    (0.35)

Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share

21,780,651

14,496,127

 

21,893,919

12,532,134

 

14,029,346