RADA Electronic Industries Announces Q2 2017 Results: Improvements Across all Parameters; Increasing Revenue Guidance for 20...
August 10 2017 - 8:11AM
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 SHEETSU.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 OPERATIONSU.S.
dollars in thousands, except share and per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, |
|
|
|
Three months ended June
30, |
|
|
|
Year endedDecember
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
Rada Electronics Industr... (NASDAQ:RADA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rada Electronics Industr... (NASDAQ:RADA)
Historical Stock Chart
From Apr 2023 to Apr 2024