RADA Electronic Industries Announces First Quarter 2009 Results; Company Reports 11% Increase in Revenues and Net Profit
NETANYA, Israel, May 21, 2009 - RADA Electronic Industries Ltd. (Nasdaq:RADA), reported today its financial results for the quarter ended March 31, 2009. Revenues were $4.1 million, an increase of 11% compared with revenues of $3.7 million in the first quarter of 2008. Gross profit increased 96% to $1.2 million from $0.6 million in the first quarter of 2008 and gross margin was 30% compared with 17% in the first quarter of 2008. Operating expenses were $1.3 million compared with operating expenses of $1.0 million in the first quarter of 2008. Financial income was $95,000 compared with financial expenses of $432,000 in the first quarter of 2008, which includes $240,000 income and $110,000 expenses from the changes of the U.S. dollar against the Israeli Shekel, for the quarters ended March 31, 2009 and 2008, respectively.
As a result, the Company reported net profit of $42,000 or $0.01 per share. This compares with a net loss of $770,000 or $0.09 per share, for the comparable quarter in 2008.
Commenting on the results, Zvika Alon, RADA's CEO said, "The first quarter of 2009 is our third consecutive profitable quarter. The improvement in our profitability was principally made possible by the sequential growth in our revenues. This improvement occurred despite the increase in research and development expenses, which expenses are expected to increase in the second and third quarters of 2009. We are making these investments in order to allow us to enhance and broaden our product offerings, which will provide us with greater opportunities in the market. Although the current environment remains challenging, we believe that the continued execution of our strategy to increase our product offerings in the defense electronics market as well as commercial derivatives will enable us to move forward and continue to improve 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.
CONSOLIDATED BALANCE SHEETS
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U.S. dollars in thousands,
except share and per share data March 31, Dec. 31,
2009 2008
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Unaudited Audited
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,438 $ 964
Restricted cash 573 793
Trade receivables (net of allowance for
doubtful accounts of $60 at March 31,
2009 and December 31, 2008) 3,069 3,434
Other receivables and prepaid expenses 637 597
Costs and estimated earnings in excess of
billings on uncompleted contracts 2,044 2,210
Inventories 4,425 4,409
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Total current assets 12,186 12,407
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LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 773 803
Leasing deposits 55 56
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Total long-term receivables and deposits 828 859
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PROPERTY, PLANT AND EQUIPMENT, NET 3,600 3,699
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OTHER ASSETS:
Intangible assets, net 862 972
Goodwill 585 557
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Total other assets 1,447 1,529
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Total assets $ 18,061 $ 18,494
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current
maturities of long-term loans $ 165 $ 162
Trade payables 1,852 2,760
Other payable and accrued expenses 4,308 3,860
Billings in excess of costs and estimated
earnings on uncompleted contracts -- 43
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Total current liabilities 6,325 6,825
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LONG-TERM LIABILITIES:
Long-term loan -- 33
Loans from shareholders, net 1,537 1,546
Convertible note from a shareholder, net 2,090 1,980
Accrued severance pay and other long
term liability 488 558
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Total long-term liabilities 4,115 4,117
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MINORITY INTERESTS 552 556
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SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at March 31,
2009 and December 31, 2008; Issued and
outstanding: 8,858,553 at March 31,
2009 and December 31, 2008 119 119
Additional paid-in capital 69,523 69,495
Accumulated other comprehensive income 320 317
Accumulated deficit (62,893) (62,935)
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Total shareholders' equity 7,069 6,996
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Total liabilities and shareholders' equity $ 18,061 $ 18,494
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CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands, except per share data
Three months ended Year ended
March 31, Dec. 31,
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2009 2008 2008
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(unaudited) (audited)
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Revenues 4,095 3,691 17,881
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Cost of revenues 2,846 3,054 13,686
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Gross profit 1,249 637 4,195
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Operating expenses:
Research and development 474 94 686
Marketing and selling 330 367 1,496
General and administrative 502 507 1,903
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Total operating expenses 1,306 968 4,085
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Operating profit (loss) (57) (331) 110
Financial income (expenses), net 95 (432) (668)
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38 (763) 558
Minority interests in (profit) loss
of a subsidiary 4 (7) (18)
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Net Profit (loss) for the period $ 42 $ (770) $ (576)
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Profit (loss) per share:
Basic and diluted profit (loss)
per share $ 0.01 $ (0.09) $ (0.07)
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For more information contact:
RADA Electronic Industries Ltd.
Shiri Lazarovich, C.F.O.
Phone: +972-9-892-1122
www.rada.com
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