Netanya, Israel, November 28, 2017 - RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the quarter ended September 30, 2017.

Over 100% Growth in Revenue and
Strong Improvement in Profitability;
Increasing Revenue Guidance for 2017

Investor conference call to be held today at 10 am ET

Management Comments

Dov Sella, RADA's Chief Executive Officer commented, “We are very pleased with our third quarter results. Driven by our software-defined tactical radar sales, we achieved growing profitability and more than doubled revenues over last year. Furthermore, we attained very strong margins across the board. In the past few months, we have beefed up our investments in infrastructure in order to support our higher level of business and our expectations for long-term future growth. This has allowed us to successfully deliver on our major strategic order of multi-mission hemispheric radars to the US military in record time, providing it with unparalleled on-the-move air surveillance and counter-UAV capabilities. We believe this order marks the initial implementation of our strategy, and see a significant further potential for orders in the United States and elsewhere over the coming years.”

Continued Mr. Sella, “As we move towards the end of 2017, our balance sheet is strong with $9 million in net cash providing us with the working capital we need to support the growth in our business. Following the successful completion and delivery of our radar sale to the US military, our expectations are for strong positive cash flows into the fourth quarter. Due to the strength, we have experienced in our business in the past few months, we are increasing our 2017 revenue guidance to approximately $26 million up from $25 million previously. This represents a year over year growth in revenue of over 100%.”

 

2017 Third Quarter Summary

Revenues totaled $7.1 million in the third quarter of 2017, up 112% compared to revenues of $3.3 million in the third quarter of 2016.

Gross Profit totaled $2.8 million in the third quarter of 2017 (gross margin of 39%) compared to gross profit of $0.4 million (gross margin of 12.4%) in the third quarter of 2016.

Operating income was $1.0 million in the third quarter of 2017 (operating margin of 14.4%) compared to an operating loss of $0.9 million in the third quarter of 2016.

Net income attributable to RADA’s shareholders in the third quarter of 2017 was $0.8 million (net margin of 11.3%), or $0.03 per diluted share, compared with a net loss of $1.0 million, or $0.06 loss per share, in the third quarter of 2016.

 

Investor Conference Call

The Company will host a conference call later today, starting at 10:00 am ET (5 pm Israel time). Management will host the call and will be available to answer questions after presenting the results.

Dial in numbers are: US 1-888-407-2553; UK 0800-917-5108; Israel 03-918-0610 and International +972-3-918-0610.

For those unable to participate, the teleconference will be available for replay on RADA’s website at http://www.rada.com beginning 24 hours after the call.

 

About RADA Electronic Industries Ltd.

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.

 

   

 Company Contact:  Investor Relations Contact:
 Avi Israel | CFO  Ehud Helft / Gavriel Frohwein
 RADA Electronic Industries LTD.   GK Investor & Public Relations
 Tel: +972-9-892-1111  Tel: +1 646 688 3559
 This email address is being protected from spambots. You need JavaScript enabled to view it.  This email address is being protected from spambots. You need JavaScript enabled to view it.

  


Cautionary Statement Regarding Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.


 

 

CONSOLIDATED BALANCE SHEETS             

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

ASSETS

September 30, 2017

 

December 31, 2016

Unaudited

 

 

CURRENT ASSETS:

Cash and cash equivalents

$       9,282

$       1,205

Restricted cash

586

317

Trade receivables (net of allowance for doubtful accounts of $12 at September 30, 2017 and $14 at December 31, 2016)

8,830

5,006

Costs and estimated earnings in excess of billings on uncompleted contracts

324

1,096

Other receivables and prepaid expenses

779

349

Inventories

10,234

7,102

Current assets related to discontinued operations

2,363

2,254

Total current assets

32,398

17,329

LONG-TERM ASSETS:

Long-term receivables and other deposits

753

742

Property, plant and equipment, net

3,442

2,650

Long-term assets related to discontinued operations

33

266

Total long term assets

4,228

3,658

Total assets

$     36,626

$     20,987

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES:

Bank credit

$          424

$          575

Trade payables

5,026

2,557

Other accounts payable and accrued expenses

2,601

1,987

Advances from customers, net

-

839

Current liabilities related to discontinued operations

326

265

Total current liabilities

8,377

6,223

LONG-TERM LIABILITIES:

Convertible note and loans from shareholders, net

-

3,072

Accrued severance pay and other long-term liabilities

744

663

Total long-term liabilities

744

3,735

 

RADA SHAREHOLDERS' EQUITY

Share capital 

Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 shares at September 30, 2017 and December 31, 2016; Issued and outstanding: 29,982,127 at September 30, 2017 and 21,246,502 at December 31, 2016.

323

250

Additional paid-in capital

103,997

89,407

Accumulated other comprehensive income

325

222

Accumulated deficit

(77,679)

(79,363)

 

Total RADA shareholders’ equity

26,966

10,516

Non-controlling interest

539

513

Total equity

27,505

11,029

Total liabilities and equity

$     36,626

$    20,987

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 Nine months ended

September 30,

 

 Three months ended

September 30,

 

 Year ended

December 31,

2017

2016

 

2017

2016

 

2016

(Unaudited)

Revenues

$  17,063

$  8,518

$  7,071

$  3,330

$  12,821

Cost of revenues

10,975

7,896

4,316

2,916

11,379

Gross profit

6,088

622

2,755

415

1,442

Operating expenses:

Research and development

886

534

480

218

758

Marketing and selling

1,484

1,653

629

593

2,269

General and administrative

1,839

1,293

627

458

1,814

Goodwill impairment

Total operating expenses:

4,209

3,480

1,736

1,269

4,841

Operating Income (loss)

1,879

(2,858)

1,019

(855)

(3,399)

Amortization of shareholders' convertible loans discount and beneficial conversion feature

102

1,106

83

10

1,116

Other financial expenses (income), net

95

413

105

109

405

Net income (loss) from continuing operations

1,682

(4,377)

831

(974)

 

        (4,920)

Net income (loss) from discontinued operations

3

(44)

(37)

(22)

13

Net income (loss)

1,685

(4,421)

794

(996)

(4,907)

Net income (loss) attributable to non-controlling interest

1

(9)

(7)

(4)

3

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

 $   1,684

$   (4,413)

$    801

$  (992)

$ (4,910)

Basic net income (loss) from continuing operations

$   0.07

$   (0.36)

 $   0.03

$    (0.06)

$   (0.35)

Basic 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)

$   0.07

$   (0.36)

$   0.03

$   (0.06)

    $   (0.35)

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

22,915,032

12,244,643

25,146,803

16,719,929

14,029,346