NETANYA, Israel, Nov. 30, 2009 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) reported today its financial results for the third quarter ended September 30, 2009. Revenues were $4.1 million compared to $5 million in the third quarter of 2008. Operating income for the third quarter of 2009 was $0.5 million compared to operating income of $0.4 million in the third quarter of 2008. The company reported a net profit of $146,000 or $0.02 per share, for the third quarter of 2009, compared to a net profit of $202,000 in the third quarter of 2008 or $0.02 per share.
For the nine-month period ended September 30, 2009, revenues were $11.2 million, compared with revenues of $12.3 million for the same period in 2008. In the 2009 nine month period, gross profit increased 32% to $3.5 million from $2.7 million in the same 2008 period, which reflects a gross margin of 31% compared to 22% in the equivalent 2008 period. Operating expenses, including research and development (R&D), in the 2009 period were $3.7 million compared to $3 million for the same period in 2008. The R&D portion of operating expenses for the period ended September 30, 2009 was $1.3 million compared to $370,000 in the same period in 2008. Financial expenses were $589,000 in the 2009 period compared with $888,000 in the nine months ended September 30, 2008, which expenses were significantly impacted by currency fluctuations arising from the devaluation of the U.S. dollar against the Israeli Shekel (financial expenses of $32,000 and $194,000 for the nine month periods ended September 30, 2009 and 2008, respectively). As a result, the Company reported a net loss of $0.8 million for the nine month period ended September 30, 2009, compared to a net loss of $1.2 million, for the comparable period in 2008.
Commenting on the results, Zvika Alon, RADA's CEO, said, "This quarter's results were significantly better compared to the first two quarters of 2009. We have succeeded in improving our gross margin as well as our operating results compared to the same period in 2008 and also in comparison to the first two quarters of 2009. At the same time, we are continuing to invest in our future products and increasing research and development. The improvement in our gross margin is due to higher margin product sales which have allowed us to increase our R&D funding. At the same time, we succeeded in increasing our order backlog during the third quarter. As a result, we continue to expect improved operating results during the last quarter of the year."
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
September December
ASSETS 30, 2009 31, 2008
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Unaudited Audited
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CURRENT ASSETS:
Cash and cash equivalents $ 904 $ 964
Restricted cash 775 793
Trade receivables (net of allowance for
doubtful accounts of $59 and $60 at September
30, 2009 and December 31, 2008, respectively) 3,512 3,434
Other receivables and prepaid expenses 1,224 597
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,191 2,210
Inventories 6,269 4,409
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Total current assets 13,875 12,407
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LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 764 803
Leasing deposits 62 56
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Total long-term receivables and deposits 826 859
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PROPERTY, PLANT AND EQUIPMENT, NET 3,349 3,699
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OTHER ASSETS:
Intangible assets, net 641 972
Goodwill 587 557
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Total other assets 1,228 1,529
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Total assets $ 19,278 $ 18,494
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities
of long-term loans $ 237 $ 162
Trade payables 2,812 2,760
Other payable and accrued expenses 4,227 3,860
Billings in excess of costs and estimated
earnings on uncompleted contracts 795 43
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Total current liabilities 8,071 6,825
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LONG-TERM LIABILITIES:
Long-term loan -- 33
Loans from shareholders, net 1,514 1,546
Convertible note from a shareholder, net 2,340 1,980
Accrued severance pay and other long term
liability 489 558
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Total long-term liabilities 4,343 4,117
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NON-CONTROLLING INTERESTS 557 556
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SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at
September 30, 2009 and December 31, 2008;
Issued and outstanding: 8,868,857 and
8,858,553 at September 30, 2009 and December
31, 2008 respectively. 119 119
Additional paid-in capital 69,567 69,495
Accumulated other comprehensive income 319 317
Accumulated deficit (63,698) (62,935)
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Total shareholders' equity 6,307 6,996
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Total liabilities and shareholders' equity $ 19,278 $ 18,494
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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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2009 2008 2009 2008
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(Unaudited)
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Revenues $ 11,235 $ 12,337 $ 4,120 $ 5,030
Cost of revenues 7,730 9,687 2,455 3,732
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Gross profit 3,505 2,650 1,665 1,298
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Operating expenses:
Research and development 1,279 369 397 137
Marketing and selling 996 1,132 277 333
General and administrative 1,403 1,488 460 460
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Total operating expenses: 3,678 2,989 1,134 930
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Operating income (loss) (173) (339) 531 368
Financial expense, net 589 888 389 162
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(762) (1,227) 142 206
Net loss (income) attributable
to non-controlling interests (1) (13) 4 (4)
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Net profit (loss) $ (763) $ (1,240) $ 146 $ 202
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Net profit (loss) per share:
Basic and diluted net profit
(loss) per share $ (0.08) $ (0.14) $ 0.02 $ 0.02
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