Product Lines
Products
- Data Recording & Management
  - DVDR
  - VRDS
  - HCVC
  - HRDR
  - GDS
- Inertial Navigation
- Avionics Solutions
  - Sys. Architecture
  - MDC
  - WMS
  - DIU
  - DVDR
  - VRDS
  - HCVC
  - R-100F EGI
  - MAVINS
- UAV Avionics
  - ECC
  - EPMU
  - ICP
  - MAVINS
  - PIU
  - PMC
Corporate
Careers
Contact

RADA Electronic Industries Announces Second Quarter 2009 Results

Netanya, Israel, August 26, 2009 – RADA Electronic Industries Ltd. (NASDAQ: RADA) reported today its financial results for the second quarter ended June 30, 2009. Revenues were $3.0 million compared to $3.6 million in the second quarter of 2008. Operating loss for the second quarter of 2009 was $647,000 compared to operating loss of $376,000 in the second quarter of 2008. The company reported a net loss of $951,000 for the second quarter of 2009, compared to a net loss of $672,000 in the second quarter of 2008.

For the six-months period ended June 30, 2009, Revenues were $7.1 million, a decrease of 2.6% compared with revenues of $7.3 million for the same period in 2008. In the six months ended June 30, 2009, gross profit increased 47% to $1.8 million from $1.3 million in the 2008 period and gross margin was 26% up from 17% in the 2008 period. Operating expenses in the 2009 period were $2.5 million compared to $1.9 million for the same period in, 2008. Operating expenses for the period ended June 30, 2009 includes $882,000 of research and development expenses compared to $232,000 of research and development expenses in the same period in 2008. Financial expenses were $200,000 in the 2009 period compared with financial expenses of $726,000 in period ended June 30, 2008, which expenses were significantly impacted by currency fluctuations of the exchange rate of the U.S. dollar against the Israeli Shekel (financial income of $130,000 and financial expenses of $196,000 for the periods ended June 30, 2009 and 2008, respectively). As a result, the Company reported a net loss of $0.9 million or $0.10 per share for the six month period ended June 30, 2009. This compares with a net loss of $1.4 million or $0.16 per share, for the comparable period in 2008.

Commenting on the results, Zvika Alon, RADA's CEO said, "The increase in research and development expenses to support future product development has significantly affected the results during the first half of 2009. We expect that our R&D efforts will continue during the second half of 2009. Our order backlog continued to increase during the second quarter; therefore we maintain our expectation for an improvement in our operating results."

About RADA

RADA Electronic Industries Ltd. is an Israel based defense electronics contractor. The Company specializes in data recording and management (Digital Video & Data Recorders, Ground Debriefing Stations Head-Up Display Cameras), inertial navigation systems, avionics solutions (Trainer Aircraft Upgrades, Stores Management Systems, Interface Computers) and avionics systems for UAVs.
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.

For more information contact:

RADA Electronic Industries Ltd.
Shiri Lazarovich, C.F.O.
Phone: +972-9-892-1122
www.rada.com