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)
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