YoY Revenue Growth of 91% - Return to Profitability 

Netanya, Israel, May 24, 2017 - RADA Electronic Industries Ltd. (Nasdaq: RADA) announced today its financial results for the quarter ended March 31, 2017.


Management Comments

Dov Sella, RADA's Chief Executive Officer commented, “We are very pleased with our significant revenue growth, which is almost double that of the first quarter of last year. These results, combined with our improved balance sheet, are evidence that the turnaround of the company, focused towards sales of our radar technology is beginning to mature. Looking ahead and given the timing of certain orders, we expect the second quarter to be strong. On the back of our expectations of a particularly strong first half of 2017, we are increasing our full year revenue guidance towards $20 million for 2017, representing a year over year growth of over 50%. Furthermore, we expect to return to profitability in 2017 on a full-year basis.”
Continued Mr. Sella, “Strategically, we have also made significant progress, particularly with our growth engine, our software-defined tactical radars. At the end of the quarter, we signed a strategic distribution agreement with a leading Western-European defense systems provider to integrate our radars into their Very Short Range Air Defense (VSHORAD) systems. Furthermore, our cooperation with DRS Technologies continues. Our pipeline is strong and we see opportunities with great potential for our technology, especially in the U.S. market, which we intend to capitalize on.”

Added Yossi Ben Shalom, RADA’s chairman, “I congratulate Dov and RADA’s management team for returning the business to growth, as well as the continued progress in gaining market acceptance. I continue to see RADA as a company with a lot of long-term unleashed growth potential in an increasingly important market, and we look forward to the years ahead.”

 

2017 First Quarter Summary

Revenues totaled $4.7 million in the first quarter of 2017, up 91% compared to revenues of $2.5 million in the first quarter of 2016.

Gross Profit totaled $1.7 million in the first quarter of 2017 (gross margin of 35.7%) compared to gross profit of $6,000 (gross margin of 0.2%) in the first quarter of 2016.

Operating income was $0.4 million in the first quarter of 2017 compared to an operating loss of $1.0 million in the first quarter of 2016.

Net income attributable to RADA’s shareholders in the first quarter of 2017 was $0.4 million, or $0.02 per share, compared with a net loss of $1.8 million, or $0.23 per share, in the first quarter of 2016.

 

About RADA

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.

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.

 

Company Contact:

Shiri Liazarovich | C.F.O
RADA Electronic Industries Ltd.
Tel: +972-9-892-1111
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IR Contact
Ehud Helft / Gavriel Frohwein
GK Investor & Public Relations
Tel: +1-646-688-3559
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CONSOLIDATED BALANCE SHEETS

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

ASSETS

 

March 31, 2017

 

December 31, 2016

   

Unaudited

 

 

CURRENT ASSETS:

       

Cash and cash equivalents

 

$       1,341

 

$       1,205

Restricted cash

 

198

 

317

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

 

5,201

 

5,006

Costs and estimated earnings in excess of billings on uncompleted contracts

 

789

 

1,096

Other receivables and prepaid expenses

 

595

 

349

Inventories

 

7,183

 

7,102

Current assets related to discontinued operations

 

2,304

 

2,254

         

Total current assets

 

17,611

 

17,329

         

LONG-TERM ASSETS:

       

Long-term receivables and other deposits

 

765

 

742

Property, plant and equipment, net

 

2,850

 

2,650

Long-term assets related to discontinued operations

 

261

 

266

Total long term assets

 

3,876

 

3,658

         

Total assets

 

$     21,487

 

$     20,987

         

LIABILITIES AND SHAREHOLDERS' EQUITY

       

 

       

CURRENT LIABILITIES:

       

Bank credit

 

$       1,000

 

$          575

Trade payables

 

2,020

 

2,557

Other accounts payable and accrued expenses

 

2,166

 

1,987

Advances from customers, net

 

323

 

839

Current liabilities related to discontinued operations

 

270

 

265

       

Total current liabilities

 

5,779

 

6,223

         

LONG-TERM LIABILITIES:

       

Convertible note and loans from shareholders, net

 

3,082

 

3,072

Accrued severance pay and other long-term liabilities

 

724

 

663

Total long-term liabilities

 

3,806

 

3,735

 

       

RADA SHAREHOLDERS' EQUITY

       

Share capital -

       

Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 shares at March 31, 2017 and December 31, 2016; Issued and outstanding: 21,778,417 at March 31, 2017 and 21,246,502 at December 31, 2016.

 

253

 

250

Additional paid-in capital

 

89,861

 

89,407

Accumulated other comprehensive income

 

240

 

222

Accumulated deficit

 

(78,973)

 

(79,363)

 

       

Total RADA shareholders’ equity

 

11,381

 

10,516

Non-controlling interest

 

521

 

513

Total equity

 

11,902

 

11,029

Total liabilities and equity

 

$     21,487

 

$    20,987

 

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

Three months ended March 31,

 

Year ended December 31,

 

2017

 

2016

 

2016

 

Unaudited

 

 

           

Revenues

$      4,675 

 

$         2,454 

 

$     12,821

           

Cost of revenues

3,006

 

      2,448

 

11,379

           

Gross profit

1,669

 

6

 

1,442

           

Operating expenses:

         

Research and development

198

 

166

 

758

Marketing and selling

436

 

476

 

2,269

General and administrative

686

 

398

 

1,814

           

Total operating expenses

1,320

 

1,040

 

4,841

           

Operating income (loss)

349

 

(1,034)

 

(3,399)

Amortization of shareholders' convertible loans discount and beneficial conversion feature

10

 

574

 

1,116

Other financial expenses (income), net

(39)

 

206

 

405

           

Net income (loss) from continuing operations

378

 

  (1,814)

 

(4,920)

           

Net income (loss) from discontinued operations

12

 

(34)

 

(13)

           

Net income (loss)

$          390

 

  $       (1,848)

 

$       (4,907)

           

Net income (loss) attributable to non-controlling interest

            2

 

          (7)

 

3

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

$        388

 

  $      (1,841)

 

$        (4,910)

Basic and diluted net income (loss) from continuing operations

$         0.02

 

  $       (0.23)

 

$          (0.35)

Basic and diluted net income (loss) from discontinued operations per Ordinary share

$         0.00

 

$         0.00

 

 $            0.00

Basic and diluted net income (loss)

$         0.02

 

$       (0.23)

 

$          (0.35)

             

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

 

21,666,124

 

7,949,483

 

14,029,346