RADA Electronic Industries Announces Q1 2017 Results: YoY Revenue Growth of 91%; Return to Profitability
May 24 2017 - 8:13AM
RADA Electronic Industries Ltd. (NASDAQ:RADA)
announced today its financial results for the quarter ended March
31, 2017.
Management Comments
Dov Sella, RADA's Chief Executive
Officer commented, “We are very pleased with our
significant revenue growth, which is almost double that of the
first quarter of last year. These results, combined with our
improved balance sheet, are evidence that the turnaround of the
company, focused towards sales of our radar technology is beginning
to mature. Looking ahead and given the timing of certain orders, we
expect the second quarter to be strong. On the back of our
expectations of a particularly strong first half of 2017, we are
increasing our full year revenue guidance towards $20 million for
2017, representing a year over year growth of over 50%.
Furthermore, we expect to return to profitability in 2017 on a
full-year basis.”
Continued Mr. Sella, “Strategically, we have
also made significant progress, particularly with our growth
engine, our software-defined tactical radars. At the end of the
quarter, we signed a strategic distribution agreement with a
leading Western-European defense systems provider to integrate our
radars into their Very Short Range Air Defense (VSHORAD) systems.
Furthermore, our cooperation with DRS Technologies continues. Our
pipeline is strong and we see opportunities with great potential
for our technology, especially in the U.S. market, which we intend
to capitalize on.”
Added Yossi Ben Shalom, RADA’s
chairman, “I congratulate Dov and RADA’s management team
for returning the business to growth, as well as the continued
progress in gaining market acceptance. I continue to see RADA as a
company with a lot of long-term unleashed growth potential in an
increasingly important market, and we look forward to the years
ahead.”
2017 First Quarter Summary
Revenues totaled $4.7 million
in the first quarter of 2017, up 91% compared to revenues of $2.5
million in the first quarter of 2016.
Gross Profit totaled $1.7
million in the first quarter of 2017 (gross margin of 35.7%)
compared to gross profit of $6,000 (gross margin of 0.2%) in the
first quarter of 2016.
Operating income was $0.4 million in the first
quarter of 2017 compared to an operating loss of $1.0 million in
the first quarter of 2016.
Net income attributable to RADA’s shareholders
in the first quarter of 2017 was $0.4 million, or $0.02 per share,
compared with a net loss of $1.8 million, or $0.23 per share, in
the first 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 |
|
March 31, 2017 |
|
December 31, 2016 |
|
|
Unaudited |
|
|
CURRENT
ASSETS: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,341 |
|
|
$ |
1,205 |
|
Restricted cash |
|
|
198 |
|
|
|
317 |
|
Trade
receivables (net of allowance for doubtful accounts of $14 at March
31, 2017 and December 31, 2016) |
|
|
5,201 |
|
|
|
5,006 |
|
Costs and
estimated earnings in excess of billings on uncompleted
contracts |
|
|
789 |
|
|
|
1,096 |
|
Other
receivables and prepaid expenses |
|
|
595 |
|
|
|
349 |
|
Inventories |
|
|
7,183 |
|
|
|
7,102 |
|
Current
assets related to discontinued operations |
|
|
2,304 |
|
|
|
2,254 |
|
|
|
|
|
|
Total current assets |
|
|
17,611 |
|
|
|
17,329 |
|
|
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
Long-term receivables and other deposits |
|
|
765 |
|
|
|
742 |
|
Property, plant and equipment, net |
|
|
2,850 |
|
|
|
2,650 |
|
Long-term assets related to discontinued operations |
|
|
261 |
|
|
|
266 |
|
Total long term assets |
|
|
3,876 |
|
|
|
3,658 |
|
|
|
|
|
|
Total assets |
|
$ |
21,487 |
|
|
$ |
20,987 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Bank
credit |
|
$ |
1,000 |
|
|
$ |
575 |
|
Trade
payables |
|
|
2,020 |
|
|
|
2,557 |
|
Other
accounts payable and accrued expenses |
|
|
2,166 |
|
|
|
1,987 |
|
Advances
from customers, net |
|
|
323 |
|
|
|
839 |
|
Current
liabilities related to discontinued operations |
|
|
270 |
|
|
|
265 |
|
|
|
|
|
|
Total current liabilities |
|
|
5,779 |
|
|
|
6,223 |
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Convertible note and loans from shareholders, net |
|
|
3,082 |
|
|
|
3,072 |
|
Accrued
severance pay and other long-term liabilities |
|
|
724 |
|
|
|
663 |
|
Total long-term liabilities |
|
|
3,806 |
|
|
|
3,735 |
|
|
|
|
|
|
RADA SHAREHOLDERS' EQUITY |
|
|
|
|
Share
capital - |
|
|
|
|
Ordinary
shares of NIS 0.03 par value - Authorized: 37,500,000 shares at
March 31, 2017 and December 31, 2016; Issued and outstanding:
21,778,417 at March 31, 2017 and 21,246,502 at December 31,
2016. |
|
|
253 |
|
|
|
250 |
|
Additional paid-in capital |
|
|
89,861 |
|
|
|
89,407 |
|
Accumulated other comprehensive income |
|
|
240 |
|
|
|
222 |
|
Accumulated deficit |
|
|
(78,973 |
) |
|
|
(79,363 |
) |
|
|
|
|
|
Total
RADA shareholders’ equity |
|
|
11,381 |
|
|
|
10,516 |
|
Non-controlling interest |
|
|
521 |
|
|
|
513 |
|
Total equity |
|
|
11,902 |
|
|
|
11,029 |
|
Total liabilities and equity |
|
$ |
21,487 |
|
|
$ |
20,987 |
|
CONSOLIDATED STATEMENTS OF
OPERATIONS U.S. dollars in thousands, except
share and per share data |
|
Three months ended March
31, |
|
Year ended December 31, |
|
|
2017 |
|
|
2016 |
|
|
|
2016 |
|
|
Unaudited |
|
|
|
|
|
|
|
|
Revenues |
$ |
4,675 |
|
|
$ |
2,454 |
|
|
$ |
12,821 |
|
|
|
|
|
|
|
Cost of
revenues |
|
3,006 |
|
|
|
2,448 |
|
|
|
11,379 |
|
|
|
|
|
|
|
Gross
profit |
|
1,669 |
|
|
|
6 |
|
|
|
1,442 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Research
and development |
|
198 |
|
|
|
166 |
|
|
|
758 |
|
Marketing
and selling |
|
436 |
|
|
|
476 |
|
|
|
2,269 |
|
General
and administrative |
|
686 |
|
|
|
398 |
|
|
|
1,814 |
|
|
|
|
|
|
|
Total
operating expenses |
|
1,320 |
|
|
|
1,040 |
|
|
|
4,841 |
|
|
|
|
|
|
|
Operating income (loss) |
|
349 |
|
|
|
(1,034 |
) |
|
|
(3,399 |
) |
Amortization of shareholders' convertible loans discount and
beneficial conversion feature |
|
10 |
|
|
|
574 |
|
|
|
1,116 |
|
Other
financial expenses (income), net |
|
(39 |
) |
|
|
206 |
|
|
|
405 |
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
|
378 |
|
|
|
(1,814 |
) |
|
|
(4,920 |
) |
|
|
|
|
|
|
Net
income (loss) from discontinued operations |
|
12 |
|
|
|
(34 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
Net
income (loss) |
$ |
390 |
|
|
$ |
(1,848 |
) |
|
$ |
(4,907 |
) |
|
|
|
|
|
|
Net
income (loss) attributable to non-controlling interest |
|
2 |
|
|
|
(7 |
) |
|
|
3 |
|
Net
income (loss) attributable to RADA Electronic Industries'
shareholders |
$ |
388 |
|
|
$ |
(1,841 |
) |
|
$ |
(4,910 |
) |
Basic
and diluted net income (loss) from continuing operations |
$ |
0.02 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.35 |
) |
Basic
and diluted net income (loss) from discontinued operations per
Ordinary share |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
Basic
and diluted net income (loss) |
$ |
0.02 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of Ordinary shares used for computing basic and
diluted net income (loss) per share |
|
21,666,124 |
|
|
|
7,949,483 |
|
|
|
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
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