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RADA Electronic Industries Announces Q2 2017 Results: Improvements Across all Parameters; Increasing Revenue Guidance for 2017 to $25M, YoY growth of 100%

NETANYA, Israel, Aug. 10, 2017 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQ:RADA) announced today its financial results for the quarter ended June 30, 2017.

Management Comments

Dov Sella, RADA's Chief Executive Officer commented, “We are very pleased with our results of the second quarter, showing an almost doubling of revenues (compared to Q2 2016) and a strong turnaround back to profitability. The primary driver of our growth is our software-defined tactical radar sales which are becoming the majority of our revenues, while the avionics business is stable. As we progress through 2017, we are now finally seeing the fruits from our significant investments over the years in the radar product line, which is generating strong interest amongst customers in our target markets, especially in the United States.”

Continued Mr. Sella, “Based on our backlog and pipeline, we are increasing our full year revenue guidance towards $25 million for 2017, representing a year over year growth of almost 100%.”

Concluded Mr. Sella, “We still believe we are at the early stages of unleashing the very significant long-term potential of our radar technology. We look forward to realizing it, in the years ahead.”

2017 Second Quarter Summary

Revenues totaled $5.3 million in the second quarter of 2017, up 94% compared to revenues of $2.7 million in the second quarter of 2016.

Gross Profit totaled $1.7 million in the second quarter of 2017 (gross margin of 31.3%) compared to gross profit of $0.2 million (gross margin of 7.4%) in the second quarter of 2016.

Operating income was $0.5 million in the second quarter of 2017 compared to an operating loss of $1 million in the second quarter of 2016.

Net income attributable to RADA’s shareholders in the second quarter of 2017 was $0.5 million, or $0.02 per share, compared with a net loss of $1.6 million, or $0.13 per share, in the second quarter of 2016.

Investor Conference Call

The Company will host a conference call later today, starting at 10:00 am ET (5pm Israel time). Dov Sella, Chief Executive Officer and Shiri Lazarovich, Chief Financial Officer, will host the call and will be available to answer questions after presenting the results.

Dial in numbers are: US 1-866-744-5399; UK 0800-404-8418; Israel 03-918-0663 and International +972-3-918-0663.

For those unable to participate, the teleconference will be available for replay on RADA’s website at http://www.rada.com beginning 24 hours after the call.

About RADA Electronic Industries Ltd

RADA Electronic Industries Ltd. is an Israel-based defense electronics company. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, and avionics systems (including inertial navigation systems) for fighters and UAVs.

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 June 30,
2017
December 31,
2016
Unaudited
CURRENT ASSETS:
Cash and cash equivalents $743 $1,205
Restricted cash 586 317
Trade receivables (net of allowance for doubtful accounts of $17 at June 30, 2017 and $14 at December 31, 2016) 5,860 5,006
Costs and estimated earnings in excess of billings on uncompleted contracts 613 1,096
Other receivables and prepaid expenses 575 349
Inventories 7,871 7,102
Current assets related to discontinued operations 2,374 2,254
Total current assets 18,622 17,329
LONG-TERM ASSETS:
Long-term receivables and other deposits 737 742
Property, plant and equipment, net 3,159 2,650
Long-term assets related to discontinued operations 186 266
Total long term assets 4,082 3,658
Total assets $22,704 $20,987
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank credit $522 $575
Trade payables 2,906 2,557
Other accounts payable and accrued expenses 2,489 1,987
Advances from customers, net - 839
Current liabilities related to discontinued operations 286 265
Total current liabilities 6,203 6,223
LONG-TERM LIABILITIES:
Convertible note and loans from shareholders, net 3,091 3,072
Accrued severance pay and other long-term liabilities 747 663
Total long-term liabilities 3,838 3,735
RADA SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 shares at June 30, 2017 and December 31, 2016; Issued and outstanding: 22,172,699 at June 30, 2017 and 21,246,502 at December 31, 2016. 258 250
Additional paid-in capital 90,068 89,407
Accumulated other comprehensive income 280 222
Accumulated deficit (78,480) (79,363)
Total RADA shareholders’ equity 12,126 10,516
Non-controlling interest 537 513
Total equity 12,663 11,029
Total liabilities and equity $22,704 $20,987


CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Six months ended
June 30,
Three months ended
June 30,
Year ended
December 31,
2017 2016 2017 2016 2016
(Unaudited)
Revenues $9,992 $5,188 $5,317 $2,734 $12,821
Cost of revenues 6,659 4,980 3,653 2,532 11,379
Gross profit 3,333 208 1,664 202 1,442
Operating expenses:
Research and development 406 316 208 150 758
Marketing and selling 855 1,060 419 584 2,269
General and administrative 1,212 835 526 437 1,814
Goodwill impairment
Total operating expenses: 2,473 2,211 1,153 1,171 4,841
Operating Income (loss) 860 (2,003) 511 (969) (3,399)
Amortization of shareholders' convertible loans discount and beneficial conversion feature 18 1,096 8 522 1,116
Other financial expenses (income), net (9) 304 30 98 405
Net income (loss) from continuing operations 851 (3,403) 473 (1,589) (4,920)
Net income (loss) from discontinued operations 40 (22) 28 12 (13)
Net income (loss) 891 (3,425) 501 (1,577) (4,907)
Net income (loss) attributable to non-controlling interest 8 (4) 6 3 3
Net income (loss) attributable to RADA Electronic Industries' shareholders $883 $(3,421) $495 $(1,580) $(4,910)
Basic and diluted net income (loss) from continuing operations

$


0.04


$


(0.24


)


$


0.02


$


(0.13


)
$(0.35)
Basic and diluted net income (loss) from discontinued operations per Ordinary share $0.00 $0.00 $0.00 $0.00 $(0.00)
Basic and diluted net income (loss) $0.04 $(0.24) $0.02 $(0.13) $(0.35)
Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share 21,780,651 14,496,127 21,893,919 12,532,134 14,029,346



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 rada@gkir.com

Source:RADA Electronic Industries Ltd.