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RADA Electronic Industries Announces 2015 First Quarter Results

NETANYA, Israel, May 26, 2015 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended March 31, 2015.

2015 First quarter Results

Revenues totaled $3.6 million, a 32% decrease compared to revenues of $5.3 million in the first quarter of 2014.

Gross Profit was $0.6 million, a 61% decrease when compared with gross profit of $1.6 million in the first quarter of 2014.

Operating Expenses were $1.1 million, a 6% decrease when compared with operating expenses of $1.2 million in the first quarter of 2014.

Operating loss was $0.5 million, compared with operating income of $0.5 million first quarter of 2014.

Financial Expenses totaled $330,000, a 13% increase when compared with financial expenses of $293,000 in the first quarter of 2014.

As a result, the Company reported a net loss of $777,000, or $(0.09) per share, for the first quarter of 2015 compared with a net income of $158,000, or $0.02 per share, for the first quarter of 2014.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer, said, "The decline in revenues in the first quarter of 2015 was mainly due to the request of several customers to delay deliveries of certain avionics production items. Our operating expenses remained similar to previous 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 SHEETS
U.S. dollars in thousands, except share and per share data
ASSETS March 31, 2015 December 31, 2014
Unaudited Audited
CURRENT ASSETS:
Cash and cash equivalents $ 1,880 $ 1,786
Restricted cash 349 349
Trade receivables (net of allowance for doubtful accounts of $ 10 and $ 24 at March 31, 2015 and at December 31, 2014 respectively) 3,467 3,455
Costs and estimated earnings in excess of billings on uncompleted contracts 2,317 2,657
Other receivables and prepaid expenses 468 428
Inventories 6,810 6,651
Total current assets 15,291 15,326
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,388 1,394
PROPERTY, PLANT AND EQUIPMENT, NET 2,912 2,790
GOODWILL 587 587
Total assets $ 20,178 $ 20,097
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank Credit $ 2,212 $ 1,589
Trade payables 1,665 1,315
Convertible note and Loans from shareholders, net 8,120 8,120
Other accounts payable and accrued expenses 4,149 4,267
Total current liabilities 16,146 15,291
LONG-TERM LIABILITIES:
Accrued severance pay and other long term liability 636 634
Total long-term liabilities 636 634
RADA SHAREHOLDERS' EQUITY
Share capital --
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2015 and December 31, 2014; Issued and outstanding: 8,988,396 at March 31, 2015 and at December 31, 2014 respectively. 119 119
Additional paid-in capital 70,884 70,884
Accumulated other comprehensive income 546 536
Accumulated deficit (68,769) (67,992)
Total RADA shareholders' equity 2,780 3,547
Non-controlling interest 616 625

Total equity
3,396 4,172

Total liabilities and equity
$ 20,178 $ 20,097
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Three months ended Year ended
March 31, December 31,
2015 2014 2014
Unaudited (audited)
Revenues $ 3,648 $ 5,347 $ 22,481
Cost of revenues 3,013 3,733 15,944
Gross profit 635 1,614 6,537
Operating expenses:
Research and development 171 230 789
Marketing and selling 530 470 2,392
General and administrative 392 467 1,901
Total operating expenses 1,093 1,167 5,082
Operating income (loss) (458) 447 1,455
Financial expenses, net 330 293 1,254
Net income (loss) (788) 154 201
Less: loss attributable to Non-controlling interest 11 4 7
Net income (loss) attributable to RADA Electronic Industries' shareholders $ (777) $ 158 $ 208
Basic and diluted net earnings (loss) per share $ (0.09) $ 0.02 $ 0.02
Weighted average number of Ordinary shares used for computing basic and diluted net earnings (loss) per share 8,988,396 8,918,647 8,944,803

CONTACT: Shiri Lazarovich - C.F.O RADA Electronic Industries Ltd. Tel: +972-9-8921111 Shiri.Lazarovich@rada.comSource:RADA Electronic Industries Ltd.