RADA Electronic Industries Announces 2013 First Quarter Results

NETANYA, Israel, July 1, 2013 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended March 31, 2013. 2013 First Q uarter Results Revenues totaled $5.4 million, a 46% increase when compared with $3.7 million in the first quarter of 2012. Gross Profit totaled $0.85 million, a 15% decrease when compared with $1 million in the first quarter of 2012. Operating Expenses totaled $1.5 million, a 4% decrease when compared with $1.6 million in the first quarter of 2012. Financial Expenses totaled $475,000, a 100 % increase when compared with financial expenses of $236,000 in the first quarter of 2012. As a result, the Company reported a loss of $1,165,000, or $0.13 per share, for the first quarter of 2013 compared with a net loss of $840,000, or $0.09 per share, for the first quarter of 2012.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "While our revenues in the first quarter were at a similar level to last year's average quarter, the reduction in gross margin is due to the mix of business in the quarter, which included a higher percentage of lower margin programs than last year. As indicated in our 2012 annual report, our R&D spending has been reduced when compared to last year as both our inertial navigation and radar products are mature and our focus is on business development and marketing activities around these two product lines. We are very encouraged by the initial contracts we have secured for these new products, mainly in the radar product line, from both the domestic and the international markets and we expect additional contracts for these products to come before the end of 2013."

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production, and sales of Tactical Land Radar for Force and Border Protection, Inertial Navigation Systems for air and land applications, and Avionics Systems and Upgrades.

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 March 31, 2013 December 31, 2012
  Unaudited Audited
CURRENT ASSETS:     
Cash and cash equivalents  $1,348 $1,164
Restricted cash 625 1,311
Trade receivables (net of allowance for doubtful accounts of $ 29 and $ 15 at March 31, 2013 and at December 31, 2012 respectively) 4,906 5,381
Costs and estimated earnings in excess of billings on uncompleted contracts 2,131 1,748
Other receivables and prepaid expenses 798 939
Inventories  6,742 7,272
     
Total current assets 16,550 17,815
     
     
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,885 1,160
     
     
PROPERTY, PLANT AND EQUIPMENT, NET  3,180 3,324
     
OTHER ASSETS:    
     
Goodwill 587 587
     
Total other assets 587 587
     
Total assets $22,202 $22,886
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Bank Credit and current maturities of long-term loans $2,750 $3,172
Trade payables 2,478 1,948
Convertible note from a shareholder 3,000 3,000
Loans from shareholders, net 3,729 3,968
Other accounts payable and accrued expenses 4,325 3,750
     
Total current liabilities 16,282 15,838
     
LONG-TERM LIABILITIES:    
Accrued severance pay and other long term liability 540 519
     
Total long-term liabilities 540 519
     
     
RADA SHAREHOLDERS' EQUITY    
Share capital -    
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2013 and December 31, 2012; Issued and outstanding: 8,918,647 at March 31, 2013 and at December 31, 2012 respectively. 119 119
Additional paid-in capital 70,884 70,884
Accumulated other comprehensive income 482 468
Accumulated deficit (66,730) (65,565)
     
Total RADA shareholders' equity 4,755 5,906
Noncontrolling interest 625 623
     
Total equity  5,380 6,529
     
Total liabilities and equity $22,202 $22,886
 
 
CONSOLIDATED STATEMENTS OF OPERATIONS 
U.S. dollars in thousands, except per share data
       
       
     
  Three months ended March 31,  Year ended December 31,
  2013 2012 2012
  (unaudited) (audited)
       
Revenues $5,357 $3,672 $21,551
       
Cost of revenues 4,510 2,677 16,233
       
Gross profit  847 995 5,318
       
Operating expenses:      
Research and development 471 651 2,423
Marketing and selling 547 388 1,664
General and administrative  521 564 2,243
       
Total operating expenses 1,539 1,603 6,330
       
Operating loss (692) (608) (1,012)
Financial expenses, net 475 236 1,043
       
Net loss (1,167) (844) (2,055)
       
Less: attributable to Noncontrolling interest 2 4 4
       
Net loss attributable to RADA Electronic Industries' shareholders $(1,165) $(840) $(2,051)
       
Basic and diluted net loss per share $(0.13) $(0.09) $(0.23)
       
Weighted average number of Ordinary shares used for computing basic and diluted net loss per share 8,918,647 8,918,647 8,918,647
CONTACT: Shiri Lazarovich- C.F.O         RADA Electronic Industries Ltd.         Tel: +972-9-8921111         Shiri.Lazarovich@rada.com