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RADA Electronic Industries Announces Second Quarter and First Half 2014 Results

NETANYA, Israel, Sept. 8, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today announced its financial results for the second quarter and the six months ended June 30, 2014.

2014 Second quarter Results

Revenues totaled $6.4 million, 23% increase compared to $5.2 million in the second quarter of 2013.

Gross Profit totaled $2.04 million, 164% increase compared to $0.8 million in the second quarter of 2013.

Operating expenses totaled $1.4 million, 11% increase compared to $1.3 million in the second quarter of 2013.

Financial Expenses totaled $262,000, 43% decrease compared to financial expenses of $459,000 in the second quarter of 2013.

As a result, the Company reported Net Income of $385,000, or $0.04 per share, for the second quarter of 2014 compared to a net loss of $935,000 or $0.10 per share, for the second quarter of 2013.

First Half 2014 Results

Revenues totaled $11.8 million, 11% increase compared to $10.6 million for the same period in 2013.

Gross profit totaled $3.7 million, 124% increase compared to $1.6 million for the same period in 2013.

Operating expenses totaled $2.6 million, 9% decrease compared to $2.8 million for the same period in 2013.

Financial expenses totaled $555,000, 41% decrease compared to financial expenses of $934,000 for the same period in 2013.

As a result, the Company reported Net Income of $542,000 or $0.06 per share for the six months ended June 30, 2014, compared with a net loss of $2,100,000 or $0.23 per share, for the comparable period in 2013.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "The increase in gross margin to approximately 32% of our total revenues, is attributable in large measure to the high margin programs that accounted for a significant portion of our revenues during this quarter. As well as the reduction in financial expenses, these two major factors generated the growth in our net profit. We have increased our marketing expenses to pursue new business, in particular in our Radars product line, which has gained operational experience in various applications during the recent Operation Protective Edge and is expected to account for a growing part of our future revenues. We expect to continue the year with similar gross margins and therefore maintain our expectation for favorable 2014 results."

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 SHEET
U.S. dollars in thousands, except per share data
ASSETS June 30, 2014 December 31, 2013
Unaudited Audited
Cash and cash equivalents $ 1,734 $ 2,137
Restricted cash 453 1,033
Trade receivables (net of allowance for doubtful accounts of $ 19 and $ 36 at June 30, 2014 and at December 31, 2013 respectively) 4,808 4,890
Costs and estimated earnings in excess of billings on uncompleted contracts 1,918 2,031
Other accounts receivables and prepaid expenses 621 412
Inventories 7,668 6,798
Total current assets 17,202 17,301
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,289 1,133
PROPERTY, PLANT AND EQUIPMENT, NET 2,774 2,986
OTHER ASSET - GOODWILL 587 587
Total assets $ 21,852 $ 22,007
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank credit and current maturities of long-term loans $ 1,744 $ 1,887
Trade payables 2,192 2,909
Convertible note and Loans from shareholders, net 8,120 8,307
Other accounts payable and accrued expenses 4,688 4,350
Total current liabilities 16,744 17,453
LONG-TERM LIABILITIES:
Accrued severance pay and other long term liability 614 569
Total long-term liabilities 614 569
RADA SHAREHOLDERS' EQUITY
Share capital --
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at June 30, 2014 and December 31, 2013; Issued and outstanding: 8,918,647 at June 30, 2014 and at December 31, 2013 respectively. 119 119
Additional paid-in capital 70,884 70,884
Accumulated other comprehensive income 527 547
Accumulated deficit (67,658) (68,200)
Total RADA shareholders' equity 3,872 3,350
Non-controlling interest 622 635
Total equity 4,494 3,985
Total liabilities and equity $ 21,852 $ 22,007
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Six months ended
June 30,
Three months ended
June 30,
Year ended
December 31
,
2014 2013 2014 2013 2013
(Unaudited) Audited
Revenues $11,784 $10,592 $6,437 $5,235 $ 21,761
Cost of revenues 8,132 8,964 4,398 4,463 17,160
Gross profit 3,652 1,628 2,039 772 4,601
Operating expenses:
Research and development 380 816 150 337 1,459
Marketing and selling 1,206 985 737 438 1,959
General and administrative 977 1,006 510 485 1,919
Total operating expenses: 2,563 2,807 1,397 1,260 5,337
Operating profit (loss) 1,089 (1,179) 642 (488) (736)
Financial expenses, net 555 934 262 459 1,907
Consolidated profit (loss) 534 (2,113) 380 (947) (2,643)
Less: Net Loss attributable to Non-controlling interest 8 13 5 12 8
Net income (loss) attributable to RADA's shareholders $542 $(2,100) $385 $(935) $ (2,635)
Income (loss) per share:
Basic and diluted loss per share $0.06 $(0.23) $0.04 $(0.10) $ (0.30)
Weighted average number of Ordinary shares used for computing basic and diluted loss per share 8,918,647 8,918,647 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.comSource:RADA Electronic Industries Ltd.