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RADA Electronic Industries Announces Third Quarter and First Nine Months 2014 Results

NETANYA, Israel, Nov. 28, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today announced its financial results for the third quarter and the nine months ended September 30, 2014.

2014 third quarter Results

Revenues totaled $4.8 million, an 8% increase compared to $4.5 million in the third quarter of 2013.

Gross Profit totaled $1.3 million, a 47% increase compared to $0.9 million in the third quarter of 2013.

Operating expenses totaled $1.2 million, a 20% increase compared to $1.0 million in the third quarter of 2013.

Financial Expenses totaled $299,000 a 36% decrease compared to $471,000 in the third quarter of 2013. As a result, the Company reported a net loss of $202,000, or $0.02 per share, for the third quarter of 2014 compared to a net loss of $576,000 or $0.06 per share, for the third quarter of 2013.

First nine months 2014 Results

Revenues totaled $16.6 million, a 10% increase compared to $15 million for the same period in 2013.

Gross profit totaled $4.9 million, a 97% increase compared to $2.5 million for the same period in 2013.

Operating expenses totaled $3.7 million, a 2% decrease to compared to $3.8 million for the same period in 2013.

Financial expenses totaled $855,000, a 39% decrease compared to financial expenses of $1,404,000 for the same period in 2013. As a result, the Company reported net income of $ 338,000 or $0.04 per share for the nine months ended September 30, 2014, compared to a net loss of $2,675,000 or $0.3 per share, for the comparable period in 2013.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "We continued to achieve improved gross margins in the third quarter and for the nine months ended September 30, 2014 as compared to the comparable periods in 2013. The improved gross margins and reduced financial expenses contributed to the improvement in our bottom line results for the third quarter and for the nine months ended September 30, 2014. Consistent with prior quarters in 2014, our research and development expenses continued to decline and our selling and marketing expenses rose as the result of the maturation of our radar products and our increased sales efforts for these products. During the quarter, we delivered our combat proven radar products to various worldwide customers and we expect that these customers will commence general operational use of these radar products and further boost new contracts for this product line during the following quarters."

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 September 30, 2014 December 31, 2013
Unaudited Audited
CURRENT ASSETS:
Cash and cash equivalents $2,235 $2,137
Restricted cash 453 1,033
Trade receivables (net of allowance for doubtful accounts of $ 23 and $ 36 at September 30, 2014 and at December 31, 2013 respectively) 2,818 4,890
Costs and estimated earnings in excess of billings on uncompleted contracts 1,966 2,031
Other accounts receivables and prepaid expenses 572 412
Inventories 7,876 6,798
Total current assets 15,920 17,301
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,290 1,133
PROPERTY, PLANT AND EQUIPMENT, NET 2,841 2,986
OTHER ASSET - GOODWILL 587 587
Total assets 20,638 $22,007
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank credit $1,573 $1,887
Trade payables 1,661 2,909
Convertible note from a shareholder 3,000 3,000
Loans from shareholders, net 5,120 5,307
Other accounts payable and accrued expenses 4,304 4,350
Total current liabilities 15,658 17,453
LONG-TERM LIABILITIES:
Accrued severance pay and other long term liability 692 569
Total long-term liabilities 692 569
RADA SHAREHOLDERS' EQUITY
Share capital --
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at September 30, 2014 and December 31, 2013; Issued and outstanding: 8,988,396 at September 30, 2013 and 8,918,647 at December 31, 2013 respectively. 119 119
Additional paid-in capital 70,884 70,884
Accumulated other comprehensive income 527 547
Accumulated deficit (67,860) (68,200)
Total RADA shareholders' equity 3,670 3,350
Non-controlling interest 618 635
Total equity 4,288 3,985
Total liabilities and equity 20,638 $22,007
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Nine months ended Three months ended Year ended
Sep 30, SEP 30, December 31,
2014 2013 2014 2013 2013
(Unaudited) Audited
Revenues $16,602 $15,045 $4,818 $4,453 $21,761
Cost of revenues 11,638 12,523 3,509 3,560 17,160
Gross profit 4,964 2,522 1,309 893 4,601
Operating expenses:
Research and development 566 1,082 187 266 1,459
Marketing and selling 1,733 1,290 526 305 1,959
General and administrative 1,484 1,441 503 435 1,919
Total operating expenses: 3,783 3,813 1,216 1,006 5,337
Operating Income (loss) 1,181 (1,291) 93 (113) (736)
Financial expense, net 855 1,404 299 471 1,907
Consolidated Income (loss) 326 (2,695) (206) (584) (2,643)
Less: Net loss attributable to Non-controlling interest 12 20 4 7 8
Income (Loss) attributable to RADA shareholders $338 $ (2,675) $ (202) $ (576) $ (2,635)
Income (Loss) per share:
Basic and diluted loss per share $0.04 $ (0.3) $ (0.02) $ (0.06) $ (0.30)
Weighted average number of Ordinary shares used for computing basic and diluted loss per share 8,988,396 8,918,647 8,988,396 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.