NETANYA, Israel, May 24, 2017 (GLOBE NEWSWIRE) -- 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.
Investor Conference Call
The Company will host a conference call later today, starting at 10:00 am ET (5pm Israel time). Dov Sella, Chief Executive Officer and Shiri Lazarovich, Chief Financial Officer, will host the call and will be available to answer questions after presenting the results.
Dial in numbers are: US 1-866-744-5399; UK 0800-404-8418; Israel 03-918-0663 and International +972-3-918-0663.
For those unable to participate, the teleconference will be available for replay on RADA’s website at http://www.rada.com beginning 24 hours after the call.
About RADA Electronic Industries Ltd
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.
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, 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 | |||||||||