NETANYA, Israel, Nov. 20, 2008 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) reported today its financial results for the third quarter ended September 30, 2008. Revenues were $5 million compared to $2.8 million in the third quarter of 2007. Operating income for the third quarter of 2008 was $368,000 compared to operating loss of $419,000 in the third quarter of 2007 and financing expenses were $162,000 for the third quarter of 2008, compared to $118,000 in the third quarter of 2007. As a result, the company reported a net income of $202,000 for the third quarter of 2008, compared to a net loss of $559,000 in the third quarter of 2007.
For the first nine months of 2008 the company reported total revenues of $12.3 million, an operating loss of $339,000, financing expenses of $888,000 and a net loss of $1.2 million. This compares with total revenues of $9.7 million, an operating loss of $703,000 financing expenses of $442,000 and a net loss of $1.2 million for the first nine months of 2007.
Commenting on the results, Zvika Alon, RADA's CEO said, "We are pleased with the increasing pace of revenue growth throughout this fiscal year and are maintaining our expectations that 2008 revenues will increase over 2007. This quarter's results were significantly better than the comparable period in 2007 and also in comparison to the first two quarters of 2008. Despite the current global recession, we have succeeded in increasing our revenues as well as our operating results this year and based on our backlog and sales forecast, we expect revenue growth in 2009."
About RADA
RADA Electronic Industries Ltd. is an Israel-based company involved in the military and commercial aerospace industries. The Company specializes in Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores Management Systems, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Electro optic cameras for airplanes and armored vehicles.
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
------------------
September December
30, 2008 31, 2007
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Unaudited Audited
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,364 $ 835
Restricted cash 636 598
Trade receivables (net of allowance for
doubtful accounts of $60 and of $62 at
September 30, 2008 and December 31, 2007
respectively) 3,336 4,907
Other accounts receivable and prepaid expenses 579 305
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,482 701
Inventories 4,728 2,609
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Total current assets 12,125 9,955
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LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 845 983
Leasing deposits 57 57
Severance pay fund 2,441 2,038
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Total long-term receivables and deposits 3,343 3,078
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PROPERTY AND EQUIPMENT, NET 3,439 2,745
OTHER ASSETS:
Intangible assets, net 1,083 1,414
Goodwill 549 214
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Total other assets 1,632 1,628
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Total assets $ 20,539 $ 17,406
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities
of long-term loans $ 239 $ 490
Trade payables 2,991 1,472
Other accounts payable and accrued expenses 3,907 3,666
Deferred revenues 472 181
Billings in excess of costs and estimated
earnings on uncompleted contracts 89 88
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Total current liabilities 7,698 5,897
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LONG-TERM LIABILITIES:
Long term liability 124 --
Loan from shareholders, net 1,030 261
Convertible note from a shareholder, net 1,879 1,622
Long-term loan 57 --
Accrued severance pay 2,903 2,442
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Total long-term liabilities 5,993 4,325
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MINORITY INTERESTS 550 459
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SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at
September 30, 2008 and December 31, 2007;
Issued and outstanding: 8,858,553 and
8,705,788 shares at September 30, 2008 and
December 31, 2007 respectively 119 116
Additional paid-in capital 69,467 68,968
Accumulated other comprehensive income 311 --
Accumulated deficit (63,599) (62,359)
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Total shareholders' equity 6,298 6,725
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Total liabilities and shareholders' equity $ 20,539 $ 17,406
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CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands, except per share data
Nine months ended Three months ended
September 30, September 30,
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2008 2007 2008 2007
-------- -------- -------- --------
(Unaudited)
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Revenues $ 12,337 $ 9,720 $ 5,030 $ 2,762
Cost of revenues 9,687 7,791 3,732 2,286
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Gross profit 2,650 1,929 1,298 476
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Operating expenses:
Research and development 369 210 137 61
Marketing and selling 1,132 1,012 333 292
General and administrative 1,488 1,410 460 542
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Total operating expenses: 2,989 2,632 930 895
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Operating income (loss) (339) (703) 368 (419)
Financial expense, net 888 442 162 118
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(1,227) (1,145) 206 (537)
Minority interests in
profits of subsidiary 13 35 4 22
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Net income (loss) $ (1,240) $ (1,180) $ 202 $ (559)
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Net income (loss) per share:
Basic and diluted net
income (loss) per share $ (0.14) $ (0.14) $ 0.02 $ (0.06)
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