Netanya, Israel, November 25, 2013 - RADA Electronic Industries Ltd. (NASDAQ: RADA) today announced its financial results for the third quarter and the nine months ended September 30, 2013.   

Revenues totaled $4.5 million, a 29% decrease when compared with  $6.3 million in the third quarter of 2012.
 
Gross Profit totaled $0.9 million, a 30% decrease when compared with $1.27 million in the third quarter of 2012. 

Operating
expenses totaled $1 million, a 40% decrease when compared with $1.6 million in the third quarter of 2012. 
Financial Expenses totaled $471,000  a 69% increase when  compared with financial expenses of $279,000 in the third quarter of 2012. 

As a result, the Company reported a net loss of $576,000, or $0.06 per share, for the third quarter of 2013 compared to a net loss of $648,000 or $0.07 per share, for the third quarter of 2012. 
 
First nine months 2013 Results
Revenues totaled approximately $15 million in both periods. 
Gross profit totaled $2.5 million, a 33% decrease when compared with $3.8 million for the same period in 2012. 
Operating expenses  totaled $3.8 million, a 21% decrease when compared with $4.8 million  for the same period in 2012
Financial expenses totaled $1,404,000, a 69% increase when compared with financial expenses of $829,000 for the same period in 2012. 
As a result, the Company reported a net loss of $ 2,675,000 or $0.3 per share for the nine months ended September 30, 2013, compared with a net loss of $1,810,000 or $0.2 per share, for the comparable period in 2012


Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, “While our revenues for the nine months ended September 30, 2013 is similar to that of 2012, there was a decrease in revenues during the third quarter of 2013 compared to the third quarter of 2012. This decrease is due to delays in deliveries, planned for the third quarter of 2013 in some of our profitable avionics programs, especially for customers in Asia. It caused a shift in the revenues to the fourth quarter and we expect an increase in revenues in the last quarter of 2013. This is the major reason for the reduction in gross margin during the third quarter of 2013. In addition, the reduction in USD/ILS exchange rate is increasing our cost of goods sold when compared to last year. On the other hand, the reduction in R&D spending due to the maturity of our newly introduced products has improved our operational margins. Our financial expenses have significantly increased when compared to the third quarter of 2012 because of the debt we incurred to finance our R&D efforts during the past years. During the third quarter, we delivered inertial navigation and radar systems to various customers and will continue deliveries in the following months.”

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, inertial navigation systems for air and land applications, and avionics systems and upgrades. 

Note: 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.

Contact:   

Shiri Lazarovich- C.F.O  

RADA Electronic Industries Ltd.

Tel: +972-9-8921111

This email address is being protected from spambots. You need JavaScript enabled to view it. ';document.getElementById('cloakdb3dffe4c3b8a29c0b5d98a3fe6589f1').innerHTML += ''+addy_textdb3dffe4c3b8a29c0b5d98a3fe6589f1+'<\/a>';


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

ASSETS

September 30, 2013

December 31, 2012

Unaudited

     Audited

CURRENT ASSETS:

Cash and cash equivalents

 $      1,483

 $      1,164

Restricted cash

1,258

1,311

Trade receivables (net of allowance for doubtful accounts of $ 29 and  $ 15 at September 30, 2013 and at December 31, 2012 respectively)

2,995

5,381

Costs and estimated earnings in excess of billings on uncompleted contracts

2,209

1,748

Other accounts receivables and prepaid expenses

1,077

939

Inventories

6,626

7,272

Total current assets

15,648

17,815

LONG-TERM RECEIVABLES AND OTHER DEPOSITS

1,165

1,160

PROPERTY, PLANT AND EQUIPMENT, NET

2,986

3,324

OTHER ASSET - GOODWILL

587

587

Total assets

20,386

$     22,886

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Bank credit

 $     1,383

$       3,172

Trade payables

2,392

1,948

Convertible note from a shareholder

3,000

3,000

Loans from shareholders, net

5,173

3,968

Other accounts payable and accrued expenses

3,968

3,750

Total current liabilities

15,916

15,838

LONG-TERM LIABILITIES:

Accrued severance pay and other long term liability

551

519

Total long-term liabilities

551

519

RADA SHAREHOLDERS' EQUITY

Share capital -

Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at September 30, 2013 and December 31, 2012; Issued and outstanding: 8,918,647 at September 30, 2013 and at December 31, 2012 respectively.

119

119

Additional paid-in capital

70,884

70,884

Accumulated other comprehensive income

536

468

Accumulated deficit

(68,240)

(65,565)

Total RADA shareholders’ equity

3,299

5,906

Noncontrolling interest

620

623

Total equity

3,919

6,529

Total liabilities and equity

20,386

$     22,886

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

Nine months ended
Sep 30,

Three months

ended
SEP 30,

Year ended

December 31 ,

2013

2012

2013

2012

2012

(Unaudited)

Audited

Revenues

$15,045

$15,018

$4,453

$6,280

$      21,551

Cost of revenues

12,523

11,263

3,560

5,006

16,233

Gross profit

2,522

3,755

893

1,274

     5,318

Operating expenses:

Research and development

1,082

1,822

266

499

    2,423

Marketing and selling

1,290

1,186

305

485

    1,664

General and administrative

1,441

1,735

435

664

    2,137

Total operating expenses:

3,813

4,743

1,006

1,648

   6,224

Operating loss

(1,291)

(988)

(113)

(374)

(1906)

Financial expense, net

1,404

829

471

279

1,149

Consolidated loss

(2,695)

   (1,817)

       (584)

  (653)

(2,055)

Less: Net loss attributable to

Non-controlling interest

20

  7

       7

 5

4

Loss attributable to

RADA shareholders

$ (2,675)

$(1,810)

$(576)

$(648)

 $(2,051)

Loss per share:

Basic and diluted loss per share

$(0.3)

$(0.2)

$(0.06)

$(0.07)

$(0.23)

Weighted average number of Ordinary shares used for computing basic and diluted loss per share

8,918,647

8,918,647

8,918,647

8,918,647

8,918,647