RADA Electronic Industries Announces Full Year 2012 Results

NETANYA, Israel, April 24, 2013 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today announced its financial results for the year ended December 31, 2012.

Full Year 2012 Results

Revenues totaled $21.6 million, an 11% increase when compared to $19.4 million in 2011.

Gross profit totaled $5.3 million, a 5% decrease when compared to $5.6 million for 2011.

Operating Expenses totaled 6,3million, a 5% decrease when compared to $6.6 million in 2011.

Operating loss totaled $1 million, compared to an operating loss of $1 million in 2011.  

As a result, the Company reported a net loss of $2.05 million, or $0.23 per share for the year ended December 31, 2012, compared with net profit of $1.5 million, or $0.17 per share, for the comparable period in 2011.

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "During 2012 we succeeded to increase our sales volume. Partly because two delayed programs came back on track. While our operating loss remained similar to that of 2011, our net loss increased due to significantly higher financial expenses in 2012. Our R&D spending remained at the similar high level it was during 2011, mainly for the development of our ground radar products. As a result, we are now under contract with two new customers that are using our radars as part of their systems and we expect two additional contracts during the second quarter of 2013. We expect that our R&D efforts in 2013 will be lower than in 2012, as our inertial navigation and radar products are mature enough to enable business development and marketing activities. Further investments are still needed to broaden the product offering and to support marketing activities. We are continuing to pursue large opportunities in our traditional avionics market, in particular, large programs for our Digital Video Recorders and Ground Debriefing Systems in the US. At the same time, we are offering our navigation and radar products to a growing number of customers and markets and we expect them to become major growth drivers for the Company in the future."

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production and sales of Data Recording and Management Systems (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 Tactical Radars for Force and Border Protection Solutions.

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 December 31, 2012 December 31, 2011
  Audited
     
CURRENT ASSETS:     
Cash and cash equivalents  $1,164 $1,107
Restricted cash 1,311 1,385
Trade receivables (net of allowance for doubtful accounts of $ 15 and $ 7 at December 31, 2012 and at December 31, 2011 respectively) 5,381 6,920
Costs and estimated earnings in excess of billings on uncompleted contracts 1,748 814
Other receivables and prepaid expenses 939 727
Inventories  7,272 7,655
     
Total current assets 17,815 18,608
     
     
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,160 1,563
     
     
PROPERTY, PLANT AND EQUIPMENT, NET  3,324 3,277
     
OTHER ASSETS:    
Intangible assets, net  -- 155
Goodwill 587 587
     
Total other assets 587 742
     
Total assets $22,886 $24,190
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Bank Credit  $3,172 $3,933
Trade payables 1,948 2,380
Loans from shareholders 3,968 2,405
Convertible note from a shareholder, net 3,000 2,810
Other accounts payable and accrued expenses  3,750 4,126
     
Total current liabilities 15,838 15,654
     
LONG-TERM LIABILITIES:    
Loans from shareholders, net  -- 176
Accrued severance pay and other long term liability 519 516
     
Total long-term liabilities 519 692
     
     
RADA SHAREHOLDERS' EQUITY    
Share capital --    
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at December 31, 2012 and December 31, 2011; Issued and outstanding: 8,918,647 at December 31, 2012 and at December 31, 2011 respectively. 119 119
Additional paid-in capital 70,884 70,176
Accumulated other comprehensive income 468 443
Accumulated deficit (65,565) (63,514)
Total RADA Electronic Industries shareholders' equity 5,906 7,224
Noncontrolling interest 623 620
     
Total equity  6,529 7,844
     
Total liabilities and equity $22,886 $24,190
 
CONSOLIDATED STATEMENTS OF OPERATIONS 
U.S. dollars in thousands, except per share data
         
  Year ended  Three months ended 
  December 31, December 31,
  2012 2011 2012 2011
  Audited Unaudited
         
Revenues:        
Products $20,073 $17,469 $6,339 $2,427
Services 1,478 1,936 193 126
         
  21,551 19,405 6,532 2,553
Cost of revenues:        
Products  15,453 12,707 4,810 1,550
Services 780 1,093 160 93
         
  16,233 13,800 4,970 1,643
         
Gross profit  5,318 5,605 1,562 910
         
Operating costs and expenses:        
Research and development, net 2,423 2,543 426 514
Marketing and selling 1,664 2,106 478 269
General and administrative  2,243 1,997 602 566
         
Total operating costs and expenses 6,330 6,646 1,506 1,349
         
Operating profit (loss) (1,012) (1,041) 56 (439)
Financial expenses, net  1,043 478 294 120
         
Net income (loss)  (2,055)  (1,519)  (238)  (559)
         
Less: income (loss) attributable to non-controlling interest 4 (7) 4 (3)
Net income (loss) attributable to RADA Electronic Industries' shareholders  $ (2,051)  $ (1,526)  $ (242)  $ (556)
Net income (loss) per share attributable to RADA Electronic Industries' shareholders:        
Basic and diluted net income (loss) per Ordinary share  $ (0.23)  $ (0.17)  $ (0.02)  $ (0.06)
Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share 8,918,647 8,899,161 8,918,647 8,918,647
CONTACT: Shiri Lazarovich- C.F.O         RADA Electronic Industries Ltd.         Tel: +972-9-8921111         Shiri.Lazarovich@rada.com

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