NETANYA, Israel, Nov. 30, 2010 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the third quarter and nine months ended September 30, 2010.
Third Quarter highlights include:
- Revenues of $6.4 million, a 55% YoY increase
- Net income of $93,000, or $0.01 per share
Third Quarter 2010 Results
Revenues increased by 55% to $6.4 million from $4.1 million in the third quarter of 2009.
Gross profit was $1.52 million compared with $1.67 million in the third quarter of 2009.
Operating Expenses increased by 1% to $1.15 million from $1.13 million in the third quarter of 2009.
Operating Profit was $373,000 compared with $531,000 in the third quarter of 2009.
Financial expenses in the third quarter of 2010 declined to $270,000 compared with $389,000 in the same quarter of 2009.
As a result, the Company reported net income for the quarter of $93,000, or $0.01 per share. This is compared with net income of $146,000 or $0.02 per share, for the comparable quarter in 2009.
First Nine Months of 2010 Results
Revenues increased by 58% to $17.7 million from $11.2 million in the same period in 2009.
Gross profit increased by 3% to $3.6 million from $3.5 million in the same period in 2009.
Operating Expenses decreased by 15% to $3.13 million from $3.68 million in the same period of 2009.
Operating profit was $464,000 compared with an operating loss of $173,000 in the same period in 2009.
Financial expenses for the first nine months of 2010 increased to $811,000 compared with financial expenses of $589,000 in the same period in 2009.
As a result, the Company reported a net loss of $355,000, or $0.04 per share, for the nine month period ended September 30, 2010, a decrease of 53% compared with a net loss of $763,000 or $0.08 per share, in the comparable period in 2009.
Management Comment
Commenting on the results, Zvika Alon, RADA's Chief Executive Officer, said, "We are continuing to see a major increase in revenue this year. Indeed, our company's revenue for the first three quarters of this year similar to our total revenue for all year 2009. We attribute this increase to the large scale integration projects we are executing for our Latin American customers, the impact of which is expected to be felt for the next few quarters. These large projects, while increasing total revenues, yield lower gross margins than our typical products sales programs, therefore our gross profit remains similar to 2009.
"We continue to invest in the research and development of new products," continued Mr. Alon, "particularly our Inertial Navigation products and 'Sentinel' radar, which we hope will become major growth drivers for our company in the future."
To arrange a call with management to discuss the results, please reach out to our Investor Relations contact, below.
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 for air and land applications, Avionics Solutions (Aircraft Upgrades, Avionics for UAVs, Stores Management Systems, Mission & Interface Computers) and Radar Sensors for active protective systems for land 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 | ||
| U.S. dollars in thousands, except share and per share data | ||
| ASSETS | September 30, 2010 | December 31, 2009 |
| Unaudited | Audited | |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $1,391 | $987 |
| Restricted cash | 2,717 | 760 |
|
Trade receivables (net of allowance for doubtful accounts of $78 at September 30, 2010 and December 31, 2009) |
4,327 | 4,675 |
| Other receivables and prepaid expenses | 915 | 604 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
2,400 | 1,291 |
| Inventories | 6,964 | 5,685 |
| Total current assets | 18,714 | 14,002 |
| LONG-TERM RECEIVABLES AND OTHERS | 1,021 | 602 |
| PROPERTY, PLANT AND EQUIPMENT, NET | 2,847 | 3,268 |
| OTHER ASSETS: | ||
| Intangible assets, net | 398 | 530 |
| Goodwill | 587 | 587 |
| Total other assets | 985 | 1,117 |
| Total assets | $23,567 | $18,989 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Bank credit and current maturities of long-term loans | $565 | $184 |
| Trade payables | 5,368 | 2,590 |
| Convertible note from a shareholder, net | -- | 2,482 |
| Other accounts payable and accrued expenses | 4,561 | 3,458 |
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
904 | 515 |
| Total current liabilities | 11,398 | 9,229 |
| LONG-TERM LIABILITIES: | ||
| Loans from shareholders, net | 1,058 | 1,410 |
| Convertible note from a shareholder, net | 2,971 | -- |
| Accrued severance pay and other long term liability | 535 | 489 |
| Total long-term liabilities | 4,564 | 1,899 |
| RADA SHAREHOLDERS' EQUITY | ||
| Share capital -- | ||
|
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at September 30, 2010 and December 31, 2009; Issued and outstanding: 8,868,857 at September 30, 2010 and December 31, 2009. |
119 | 119 |
| Additional paid-in capital | 69,609 | 69,578 |
| Accumulated other comprehensive income | 364 | 316 |
| Accumulated deficit | (63,077) | (62,722) |
| Total RADA shareholders' equity | 7,015 | 7,291 |
| Noncontrolling interest | 590 | 570 |
| Total equity | 7,605 | 7,861 |
| Total liabilities and equity | $23,567 | $18,989 |
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| U.S. dollars in thousands, except per share data | |||||||
|
Three months ended September 30, |
Nine months ended September 30, |
||||||
| 2010 | 2009 | 2010 | 2009 | ||||
| (Unaudited) | |||||||
| Revenues | $6,386 | $4,120 | $17,720 | $11,235 | |||
| Cost of revenues | 4,867 | 2,455 | 14,127 | 7,730 | |||
| Gross profit | 1,519 | 1,665 | 3,593 | 3,505 | |||
| Operating expenses: | |||||||
| Research and development | 465 | 397 | 935 | 1,279 | |||
| Marketing and selling | 292 | 277 | 983 | 996 | |||
| General and administrative | 389 | 460 | 1,211 | 1,403 | |||
| Total operating expenses: | 1,146 | 1,134 | 3,129 | 3,678 | |||
| Operating profit (loss) | 373 | 531 | 464 | (173) | |||
| Financial expense, net | 270 | 389 | 811 | 589 | |||
| Consolidated net income (loss) | 103 | 142 | (347) | (762) | |||
|
Less: Net (income) loss attributable to Noncontrolling interest |
(10) | 4 | (8) | (1) | |||
|
Net income (loss) attributable to RADA shareholders |
$93 | $146 | $ (355) | $ (763) | |||
| Net income (loss) per share: | |||||||
|
Basic and diluted net income (loss) per share |
$0.01 | $0.02 | $ (0.04) | $ (0.08) | |||