NETANYA, Israel, Aug. 19, 2010 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today announced its financial results for the second quarter ended June 30, 2010.

Second Quarter highlights include:
  • Revenues totaled $6.8 million, an increase of 125% compared with second quarter 2009
  • Operating expenses totaled $0.9 million, a decrease of 24% compared with second quarter 2009
  • Net income of $70,000 or $0.01 per share  

Second Quarter 2010 Results  

Revenues totaled $6.8 million, increasing by 125% when compared with revenues of $3.0 million in the second quarter of 2009.  

Gross profit totaled $1.3 million, increasing by 117% when compared with $0.6 million in the second quarter of 2009.

Operating Profit was $338,000 compared with Operating loss of $647,000 million in the second quarter of 2009.

Financial expenses in the second quarter of 2010 totaled $262,000 compared with $295,000 in the same quarter of 2009. 

As a result, the Company reported a net income for the quarter of $70,000 or $0.01 per share. This is compared with a net loss of $951,000 or $0.11 per share, for the comparable quarter in 2009.  

First Half 2010 Results  

Revenues totaled $11.3 million, increasing by 59% when compared with revenues of $7.1 million for the same period in 2009.  

Gross profit totaled $2.1 million, increasing by 13% when compared with $1.8 million in 2009.  

Operating profit totaled $91,000, compared with Operating loss of $704,000 for the same period in 2009.   

Financial expenses in the first half of 2010 totaled $541,000 compared with the financial expenses of $200,000 in 2009.

As a result, the Company reported a net loss of $448,000 or $0.05 per share for the six month period ended June 30, 2010, decreasing by 51% when compared with a net loss of $909,000 or $0.10 per share, for the comparable period in 2009.

Management Comment  

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "We see major improvement in all financial parameters in the second quarter of 2010 when compared with the second quarter of 2009 as well as with the first quarter of this year. The significant increase in backlog during the first half of 2010, which was first reported in July 2010, indicates continuous growth and encouraging prospects for the future. The growth in revenue is the result of higher volume programs, including major aircraft upgrades performed this past year, which we expect to leverage for our future business. In addition, we are introducing new products that were developed during the last 2 years, such as the 'Sentinel' radar, designed for Active Protection Systems, which will be marketable to existing as well as new key customers."  

To arrange a call with management to discuss the results, please reach out to the 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 June 30, 2010 December 31, 2009
  Unaudited Audited
CURRENT ASSETS:     
Cash and cash equivalents  $994 $987
Restricted cash 1,307 760
Trade receivables (net of allowance for doubtful accounts of $ 78 at June 30, 2010 and December 31, 2009) 5,548 4,675
Other receivables and prepaid expenses 618 604
Costs and estimated earnings in excess of billings on uncompleted contracts 931 1,291
Inventories  6,419 5,685
     
Total current assets 15,817 14,002
     
LONG-TERM RECEIVABLES AND OTHERS 973 602
     
PROPERTY, PLANT AND EQUIPMENT, NET  3,007 3,268
     
OTHER ASSETS:    
Intangible assets, net  442 530
Goodwill 587 587
     
Total other assets 1,029 1,117
     
Total assets $20,826 $18,989
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Current maturities of long-term loans $455 $184
Trade payables 2,840 2,590
Convertible note from a shareholder, net 2,811 2,482
Other accounts payable and accrued expenses 4,753 3,458
Billings in excess of costs and estimated earnings on uncompleted contracts 750 515
     
Total current liabilities 11,609 9,229
     
LONG-TERM LIABILITIES:    
Loans from shareholders, net  1,234 1,410
Accrued severance pay and other long term liability 525 489
     
Total long-term liabilities 1,759 1,899
     
RADA SHAREHOLDERS' EQUITY    
Share capital --    
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at June 30, 2010 and December 31, 2009; Issued and outstanding: 8,868,857 at June 30, 2010 and December 31, 2009. 119 119
Additional paid-in capital 69,609 69,578
Accumulated other comprehensive income 328 316
Accumulated deficit (63,170) (62,722)
Total RADA shareholders' equity 6,886 7,291
Noncontrolling interest 572 570
     
Total equity  7,458 7,861
     
Total liabilities and equity $20,826 $18,989
CONSOLIDATED STATEMENTS OF OPERATIONS         
U.S. dollars in thousands, except per share data        
         
  Six months ended  June 30,  Three months ended  June 30, 
  2010 2009 2010 2009
  (Unaudited)
         
Revenues $11,334 $7,115 $6,805 $3,020
         
Cost of revenues 9,260 5,275 5,524 2,429
         
Gross profit 2,074 1,840 1,281 591
         
Operating expenses:        
Research and development 470 882 211 408
Marketing and selling 691 719 318 389
General and administrative 822 943 414 441
         
Total operating expenses: 1,983 2,544 943 1,238
         
Operating profit ( loss) 91 (704) 338 (647)
Financial expense, net 541 200 262 295
         
Consolidated net income (loss) (450) (904) 76 (942)
         
Less: Net (income) loss attributable to Noncontrolling interest  2  5  (6)  9
         
Net income (loss) attributable to RADA shareholders $(448) $(909) $70 $(951)
         
Net income (loss) per share:        
Basic and diluted net income (loss) per share $(0.05) $(0.10) $0.01 $(0.11)
CONTACT:  RADA Electronic Industries Ltd.          Shiri Lazarovich - C.F.O          +972-9-8921111          Shiri.Lazarovich@rada.com          CCG Israel          Investor Relations Contact          Ehud Helft          Porat Saar          +1 646 233 2161          Rada@ccgisrael.com

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