NETANYA, Israel, June 10, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended March 31, 2014.
2014 First quarter Results
Revenues for the first quarter of 2014 of $5.4 million remained constant with the Company's revenues in the first quarter of 2013.
Gross Profit totaled $1.6 million, a 91% increase when compared with $0.85 million in the first quarter of 2013.
Operating Expenses totaled $1.2 million, a 24% decrease when compared with $1.5 million in the first quarter of 2013.
Operating Income totaled $0.5 million, compared with an operating loss of $0.7 million first quarter of 2013.
Financial Expenses totaled $293,000, a 38 % decrease when compared with financial expenses of $475,000 in the first quarter of 2013.
As a result, the Company reported net profit of $158,000, or $0.02 per share, for the first quarter of 2014 compared with a net loss of $1,165,000, or $0.13 per share, for the first quarter of 2013.
Management Comment
Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "While our revenues in the first quarter were at a similar level to last year's first quarter, we experienced a significant reduction in cost of revenues, operating expenses and financial expenses. The increase in our gross margin is attributable to the significant reduction of low margin programs during the last six months, while the decrease in operating expense is mainly due to reduction in our R&D spending as our Inertial Navigation and Ground Radar products have reached maturity. Our first quarter results, consistent with our fourth quarter 2013 results, indicate that we are maintaining the previously reported trend of improved operating and net profit. These factors, together with the growing revenues generated from Inertial Navigation and Ground Radar products' sales are expected to continue and favorably influence our 2014 results."
About RADA
RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production, and sales of Tactical Land Radar for Force and Border Protection, Inertial Navigation Systems for air and land applications and Avionics Systems and Upgrades.
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 | ||
| U.S. dollars in thousands, except share and per share data | ||
| ASSETS | March 31, 2014 | December 31, 2013 |
| Unaudited | Audited | |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $1,615 | $2,137 |
| Restricted cash | 488 | 1,033 |
| Trade receivables (net of allowance for doubtful accounts of $ 39 and $ 36 at March 31, 2014 and at December 31, 2013 respectively) | 4,121 | 4,890 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 2,103 | 2,031 |
| Other receivables and prepaid expenses | 762 | 412 |
| Inventories | 7,666 | 6,798 |
| Total current assets | 16,755 | 17,301 |
| LONG-TERM RECEIVABLES AND OTHER DEPOSITS | 1,100 | 1,133 |
| PROPERTY, PLANT AND EQUIPMENT, NET | 2,877 | 2,986 |
| GOODWILL | 587 | 587 |
| Total assets | $21,319 | $22,007 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Bank Credit | $2,151 | $1,887 |
| Trade payables | 2,911 | 2,909 |
| Convertible note and Loans from shareholders, net | 7,120 | 8,307 |
| Other accounts payable and accrued expenses | 4,447 | 4,350 |
| Total current liabilities | 16,629 | 17,453 |
| LONG-TERM LIABILITIES: | ||
| Accrued severance pay and other long term liability | 577 | 569 |
| Total long-term liabilities | 577 | 569 |
| RADA SHAREHOLDERS' EQUITY | ||
| Share capital -- | ||
| Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2014 and December 31, 2013; Issued and outstanding: 8,918,647 at March 31, 2014 and at December 31, 2013 respectively. | 119 | 119 |
| Additional paid-in capital | 70,884 | 70,884 |
| Accumulated other comprehensive income | 526 | 547 |
| Accumulated deficit | (68,042) | (68,200) |
| Total RADA shareholders' equity | 3,487 | 3,350 |
| Non-controlling interest | 626 | 635 |
| Total equity | 4,113 | 3,985 |
| Total liabilities and equity | $21,319 | $22,007 |
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| U.S. dollars in thousands, except per share data | |||
| Three months ended | Year ended | ||
| March 31, | December 31, | ||
| 2014 | 2013 | 2013 | |
| (unaudited) | (audited) | ||
| Revenues | $5,347 | $5,357 | $21,761 |
| Cost of revenues | 3,733 | 4,510 | 17,160 |
| Gross profit | 1,614 | 847 | 4,601 |
| Operating expenses: | |||
| Research and development | 230 | 471 | 1,459 |
| Marketing and selling | 470 | 547 | 1,959 |
| General and administrative | 467 | 521 | 1,919 |
| Total operating expenses | 1,167 | 1,539 | 5,337 |
| Operating profit (loss) | 447 | (692) | (736) |
| Financial expenses, net | 293 | 475 | 1,907 |
| Net profit (loss) | 154 | (1,167) | (2,643) |
| Less: attributable to Noncontrolling interest | 4 | 2 | 8 |
| Net profit (loss) attributable to RADA Electronic Industries' shareholders | $158 | $(1,165) | $(2,635) |
| Basic and diluted net profit (loss) per share | $0.02 | $(0.13) | $(0.30) |
| Weighted average number of Ordinary shares used for computing basic and diluted net loss per share | 8,918,647 | 8,918,647 | 8,918,647 |