Netanya, Israel, May 26, 2015 - RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the quarter ended March 31, 2015.

2015 First quarter Results

Revenues totaled $3.6 million, a 32% decrease compared torevenues of $5.3 million in the first quarter of 2014.

Gross Profit was $0.6 million, a 61% decrease when compared with gross profit of $1.6 million in the first quarter of 2014.

Operating Expenses were $1.1 million, a 6% decrease when compared with operating expenses of $1.2 million in the first quarter of 2014. 

Operating loss was $0.5 million, compared with operating income of $0.5 million first quarter of 2014.

Financial Expenses totaled $330,000, a 13% increase when  compared with financial expenses of $293,000 in the first quarter of 2014.
As a result, the Company reported a net loss of $777,000, or $(0.09) per share, for the first quarter of 2015 compared with a net income of $158,000, or $0.02 per share, for the first quarter of 2014.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, “The decline in revenues in the first quarter of 2015 was mainly due to request of several customers to delay deliveries of certain avionics production items. Our operating expenses remained similar to previous quarters".

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.

CONSOLIDATED BALANCE SHEETS

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

 

     
ASSETS   March 31, 2015   December 31, 2014
    Unaudited   Audited
CURRENT ASSETS:        
Cash and cash equivalents   $       1,880   $       1,786
Restricted cash   349   349
Trade receivables (net of allowance for doubtful accounts of $ 10 and  $ 24 at March 31, 2015 and at December 31, 2014 respectively)   3,467   3,455
Costs and estimated earnings in excess of billings on uncompleted contracts   2,317   2,657
Other receivables and prepaid expenses   468   428
Inventories   6,810   6,651
         
Total current assets   15,291   15,326
         
         
LONG-TERM RECEIVABLES AND OTHER DEPOSITS   1,388   1,394
         
         
PROPERTY, PLANT AND EQUIPMENT, NET   2,912   2,790
         
         
         
GOODWILL   587   587
         
Total assets   $     20,178   $     20,097
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
CURRENT LIABILITIES:        
Bank Credit   $       2,212   $       1,589
Trade payables   1,665   1,315
Convertible note and Loans from shareholders, net   8,120   8,120
Other accounts payable and accrued expenses   4,149   4,267
         
Total current liabilities   16,146   15,291
         
LONG-TERM LIABILITIES:        
Accrued severance pay and other long term liability   636   634
         
Total long-term liabilities   636   634
         
         
RADA SHAREHOLDERS' EQUITY      
Share capital -        
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2015 and December 31, 2014; Issued and outstanding: 8,988,396 at March 31, 2015 and at December 31, 2014 respectively.   119   119
Additional paid-in capital   70,884   70,884
Accumulated other comprehensive income   546   536
Accumulated deficit   (68,769)   (67,992)
         
Total RADA shareholders’ equity   2,780   3,547
Non-controlling interest   616   625

 

Total equity

  3,396   4,172

 

Total liabilities and equity

  $     20,178   $     20,097

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

Three months ended

March 31,

  Year ended December 31,
  2015   2014   2014
  Unaudited   (audited)
           
Revenues $ 3,648    $ 5,347    $      22,481
           
Cost of revenues 3,013   3,733   15,944
           
Gross profit 635   1,614   6,537
           
Operating expenses:          
Research and development 171   230   789
Marketing and selling 530   470   2,392
General and administrative 392   467   1,901
           
Total operating expenses 1,093   1,167   5,082
           
Operating income (loss) (458)   447   1,455
Financial expenses, net 330   293   1,254
           
Net income (loss) (788)   154   201
           
Less: loss attributable to Non-controlling interest 11   4   7
           
Net income (loss) attributable to RADA Electronic Industries’ shareholders $     (777)   $      158   $      208
           
           
Basic and diluted net earnings (loss) per share $   (0.09)     $   0.02     $         0.02
             

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

  8,988,396   8,918,647   8,944,803