RADA Electronic Industries Announces Second Quarter And First Half 2012 Results

NETANYA, Israel, Aug. 29, 2012 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today announced its financial results for the second quarter and first half ended June 30, 2012.

201 2 Second quarter Results

Revenues totaled $5.2 million, a 9% decrease when compared with $5.7 million in the second quarter of 2011.

Gross Profit totaled $1.6 million, a 17% decrease when compared with $1.9 million in the second quarter of 2011.

Operating expenses totaled $1.6 million, a 6% decrease when compared with $1.7 million in the second quarter of 2011.

Financial Expenses totaled $261,720 compared with financial expenses of $31,432 in the second quarter of 2011.

As a result, the Company reported a net loss of $214,000, or $0.02 per share, for the second quarter of 2012 compared to net profit of $147,002 or $0.02 per share, for the second quarter of 2011.

First Half 2012 Results

Revenues totaled $8.85 million, a 35% decrease when compared with $13.5 million for the same period in 2011.  

Gross profit totaled $2.6 million, a 41% decrease when compared with $4.4 million for the same period in 2011.  

Operating expenses totaled $3.2 million, a 13% decrease when compared with $3.7 million for the same period in 2011.  

Financial expenses totaled $500,000 compared with financial expenses of $184,000 for the same period in 2011.

As a result, the Company reported a net loss of $ 1,053,000 or $0.12 per share for the six month period ended June 30, 2012, compared with net income of $540,000 or $0.06 per share, for the comparable period in 2011.    

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "Our revenues in the second quarter of the year were higher than in the first quarter, but still less than in the same period in 2011. The two major programs that have been delayed since last year, as we reported in our 2011 annual report, are starting to get back on track and are expected to positively impact our operations in the next two quarters. We continue to invest in research and development of our new two product lines. All our Inertial Navigation products are in serial production now and our pre-production radars are being demonstrated successfully, particularly in Israel and in the US. We maintain our expectations that the INS and radar products will be the growth drivers for the company's revenues in the future."

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.
ASSETS June 30, 2012 December 31, 2011
  Unaudited Audited
CURRENT ASSETS:     
Cash and cash equivalents  $1,541 $1,107
Restricted cash 917 1,385
Trade receivables (net of allowance for doubtful accounts of $ 7 at June 30, 2012 and December 31, 2011, respectively) 4,760 6,920
Costs and estimated earnings in excess of billings on uncompleted contracts 1,215 814
Other receivables and prepaid expenses 889 727
Inventories  9,037 7,655
     
Total current assets 18,359 18,608
     
     
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,546 1,563
     
PROPERTY, PLANT AND EQUIPMENT, NET  2,977 3,277
     
OTHER ASSETS:    
Intangible assets, net  77 155
Goodwill 587 587
     
Total other assets 664 742
     
Total assets $23,546 $24,190
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Bank Credit and current maturities of long-term loans $3,954 $6,338
Trade payables 1,823 2,380
Convertible note from a shareholder, net 2,929 2,810
Other accounts payable and accrued expenses 4,588 4,126
     
Total current liabilities 13,294 15,654
     
LONG-TERM LIABILITIES:    
Loans from shareholders, net  2,267 176
Accrued severance pay and other long term liability 480 516
     
Total long-term liabilities 2,747 692
     
     
RADA SHAREHOLDERS' EQUITY    
Share capital --    
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at June 30, 2012 and December 31, 2011; Issued and outstanding: 8,918,647 at June 30, 2012 and at December 31, 2011 respectively. 119 119
Additional paid-in capital 70,885 70,176
Accumulated other comprehensive income 448 443
Accumulated deficit (64,567) (63,514)
Total RADA shareholders' equity 6,885 7,224
Noncontrolling interest 620 620
     
Total equity  7,505 7,844
     
Total liabilities and equity $23,546 $24,190
     
     
     
  Six months ended June 30,  Three months ended June 30, 
  2012 2011 2012 2011
  (Unaudited)
         
Revenues $8,845 $13,480 $5,173 $5,693
         
Cost of revenues  6,255 9,081 3,580 3,783
         
Gross profit 2,590 4,399 1,593 1,910
         
Operating expenses:        
Research and development 1,323 1,199 673 530
Marketing and selling  700 1,436 313 688
General and administrative 1,122 1,034 558 504
         
Total operating expenses: 3,145 3,669 1,544 1,722
         
Operating profit, (loss) (555) 730 49 188
Financial expense, net 500 184 261 32
         
Consolidated net income (loss) (1,055) 546 (212) 156
         
Less: Net (income) loss attributable to Noncontrolling interest 2 (6) (2) (9)
         
         
Net income (loss) attributable to RADA shareholders  $ (1,053)  $ 540  $ (214)  $ 147
         
         
Net income (loss) per share:        
Basic and diluted net income (loss) per share  $ (0.12) $0.06  $ (0.02) $0.02
         
         
         
Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share  8,918,647 8,899,455 8,918,647 8,915,387
CONTACT: Shiri Lazarovich- C.F.O         RADA Electronic Industries Ltd.         Tel: +972-9-8921111         Shiri.Lazarovich@rada.com