NETANYA, Israel, March 27, 2017 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQ:RADA) announced today its financial results for the year and quarter ended December 31, 2016.
Dov Sella, RADA's Chief Executive Officer commented, “We are very pleased with our improved results in the fourth quarter of 2016, as our financial metrics have begun to demonstrate the successful turnaround process that we are undergoing. Following the investments in our company last year by some leading institutional funds, our balance sheet is healthy and we have the working capital to support and invest in our continued growth ahead. We plan to invest further in our growth engine, our software-defined tactical radars, where we currently see significant opportunities globally. In particular, and along with our cooperation with DRS Technologies, we see much potential in the U.S. market for our technology and plan to bolster our presence in the United States to capitalize on these opportunities. Looking ahead, as we announced a few weeks ago, we expect revenues to reach at least $18 million in 2017, representing a year over year growth of 40%.”
Added Yossi Ben Shalom, RADA’s chairman, “We congratulate Dov and his team for the strong improvement in the financial results in the quarter. RADA is a company with a lot of inherent potential in a growing market and we look forward to the improvement in performance in 2017.”
2016 Fourth Quarter Summary
Revenues totaled $4.3 million in the fourth quarter of 2016 compared to revenues of $3.5 million in the fourth quarter of 2015 and $3.3 million in the third quarter of 2016.
Gross Profit totaled $0.8 million in the fourth quarter of 2016 compared to gross profit of $0.6 million in the fourth quarter of 2015 and $0.4 million in the third quarter of 2016 .
Operating loss was reduced to $0.5 million in the fourth quarter of 2016 compared to an operating loss of $1.2 million in the fourth quarter of 2015 and $0.9 million in the third quarter of 2016.
Net loss attributable to RADA’s shareholders in the fourth quarter of 2016, was $0.5 million or $0.03 per share, an improvement when compared with a net loss of $1.9 million or $0.25 per share in the fourth quarter of 2015 and $1.0 million in the third quarter of 2016.
Full Year 2016 Results
Revenues totaled $12.8 million compared with revenues of $14.0 million in 2015.
Gross profit totaled $1.4 million compared with gross profit of $2.4 million in 2015.
Operating loss totaled $3.4 million compared with operating loss of $2.7 million in 2015.
Financial Expenses totaled $1.5 million, a 58% decrease compared to financial expenses of $3.6 million in 2015. The financial expenses in 2016 included a non-cash amortization expense of approximately $1.1 million. The non-cash amortization expense was associated with the debt discount resulting from the beneficial conversion feature applicable to a previously outstanding loan from RADA’s former principal shareholder. The Company recorded this non-cash amortization expense during the period until the repayment of the loan on June 16, 2016. On that date, RADA obtained a $3.2 million loan from institutional investment fund, DBSI, which was used to repay the loan from the former principal shareholder. The loan from DBSI has a small/limited beneficial conversion feature that would result in a non-cash amortization expense of approximately $0.1 million during the term of the loan.
As a result, the Company reported a net loss of $4.9 million, or $0.35 per share for the year ended December 31, 2016, compared with a net loss of $6.5 million, or $0.53 per share, for the for the year ended December 31, 2015.
About RADA Electronic Industries Ltd
RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, inertial navigation systems for air and land applications and avionics systems and upgrades.
Note: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.
|CONSOLIDATED BALANCE SHEETS|
|U.S. dollars in thousands, except share and per share data|
|Cash and cash equivalents||$||1,205||$||734|
|Trade receivables (net of allowance for doubtful accounts of $14 and $2 at December 31, 2016 and 2015)||5,006||3,646|
|Costs and estimated earnings in excess of billings on uncompleted contracts||1,096||2,207|
|Other accounts receivable and prepaid expenses||349||204|
|Current assets related to discontinued operations||2,254||2,288|
|Total current assets||17,329||15,379|
| LONG-TERM ASSETS:|
|Long-term receivables and other deposits||742||119|
|Property, plant and equipment, net||2,650||2,687|
|Long-term assets related to discontinued operations||266||391|
|CONSOLIDATED BALANCE SHEETS|
|U.S. dollars in thousands, except share and per share data||December 31,|
|LIABILITIES AND EQUITY|
|Convertible note and loans from shareholders, net||-||1,634|
|Other accounts payable and accrued expenses||1,987||2,630|
|Advances from customers, net||839||-|
|Current liabilities related to discontinued operations||265||226|
|Total current liabilities||6,223||8,857|
|Convertible loan from shareholders, net||3,072||-|
|Accrued severance pay and other long term liability||663||660|
|Total long-term liabilities||3,735||660|
|COMMITMENTS AND CONTINGENT LIABILITIES|
|Share capital -|
|Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 and 15,000,000 shares at December 31, 2016 and at December 31, 2015 respectively;|
|Issued and outstanding: 21,246,502 and 7,949,444 at December 31, 2016 and at December 31, 2015 respectively.||250||146|
|Additional paid-in capital||89,407||82,427|
|Accumulated other comprehensive income||222||387|
|Total RADA Electronic Industries shareholders' equity||10,516||8,507|
|Total liabilities and equity||$||20,987||$||18,576|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|U.S. dollars in thousands, except per share data|
|Three months ended|
|Cost of revenues:|
|Research and development, net||758||693||225||150|
|Marketing and selling||2,269||2,357||615||618|
|General and administrative||1,814||1,513||521||405|
|Total operating expenses:||4,841||5,150||1,361||1,760|
|Amortization of shareholders' convertible loans discount and beneficial conversion feature (BCF)||1,116||2,684||10||581|
|Other financial expenses (income), net||405||893||(8||)||152|
|Total financial expenses, net||1,521||3,577||2||733|
|Net income (loss) from continuing operations||(4,920||)||(6,318||)||(543||)||(1,908||)|
|Net income (loss) from discontinued operations||13||(179||)||57||(62||)|
|Net income (loss)||(4,907||)||(6,497||)||(486||)||(1,970||)|
|Net income (loss) attributable to non-controlling interest||3||(36||)||11||(12||)|
|Net income (loss) attributable to RADA Electronic Industries' shareholders||$||(4,910||)||$||(6,461||)||$||(497||)||$||(1,958||)|
|Basic and diluted net income (loss) from continuing operations||$||(0.35||)||$||(0.53||)||$||(0.03||)||$||(0.25||)|
|Basic and diluted net income (loss) from discontinued operations per Ordinary share||$||0.00||$||(0.00||)||$||0.00||$||(0.00||)|
|Basic and diluted net income (loss)||$||(0.35||)||$||(0.55||)||$||(0.03||)||$||(0.25||)|
|Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share||14,029,346||11,904,088||19,235,260||7,949,482|
Company Contact: Shiri Lazarovich- C.F.O RADA Electronic Industries Ltd. Tel: +972-9-8921111 Shiri.Lazarovich@rada.com Investor Relations Contact: Ehud Helft/Gavriel Frohwein GK Investor & Public Relations Tel: +1 646 688 3559 firstname.lastname@example.org
Source:RADA Electronic Industries Ltd.