RADA Provides Financial Update
July 06 2022 - 1:29AM
RADA Electronic Industries Ltd. (NASDAQ: RADA, TASE: RADA), a
leading global provider of advanced software-defined tactical
radars for the maneuver force, today provided a financial update
for year 2022.
Revenues for the second quarter of 2022 are
expected to be approximately $22.5 million, at a similar level to
that of the first quarter of this year.
In light of the pending merger with Leonardo
DRS, which is expected to be completed during the upcoming fourth
quarter, RADA is withdrawing its full year 2022 guidance.
Dov Sella, RADA’s CEO,
commented, “It is taking longer for RADA to recover from
the U.S. Continuing Resolution (CR) pause with orders coming slower
than originally planned for and revenues from the U.S. similarly
impacted.”
Continued Mr. Sella, “We
continue to be excited about the pending merger with U.S. based
Leonardo DRS. Our combined company will be a leading defense
electronics player with capabilities serving a diverse range of
high growth budget priorities. We strongly believe it is the way
forward for RADA and its shareholders it is highly synergistic for
both sides. We are joining a leading electronic defense company in
which RADA will continue to play an important role. European, U.S.
and global militaries learning lessons from the invasion of Ukraine
are placing increased importance on the force protection systems
our radars enable. We believe that the long-term growth goals of
RADA are more achievable as part of a large global defense
group.”
About RADA
RADA is a global defense technology company
focused on proprietary radar solutions and legacy avionics systems.
The Company is a leader in mini-tactical radars, serving
attractive, high-growth markets, including critical infrastructure
protection, border surveillance, active military protection and
counter-drone applications.
Forward-Looking StatementsThis
communication includes certain forward-looking statements and
forward-looking information within the meaning of the Private
Securities Litigation Reform Act of 1995 or the Israeli Securities
Law, 1968 (as applicable) (collectively, “FLI”) to provide RADA
Electronic Industries Ltd. (“RADA”) stockholders with information
about RADA. FLI is typically identified by words such as
“anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”,
“intend”, “target”, “believe”, “likely”, “seek”, “aim”, “project”
and similar words suggesting future outcomes or statements
regarding an outlook. All statements other than statements of
historical fact may be FLI. In particular, this communication
contains FLI pertaining to, but not limited to, information with
respect to the pending merger with Leonardo DRS and its potential
benefits.
Although we believe that the FLI is reasonable
based on the information available today and processes used to
prepare it, such statements are not guarantees of future
performance and you are cautioned against placing undue reliance on
FLI. By its nature, FLI involves a variety of assumptions, which
are based upon factors that may be difficult to predict and that
may involve known and unknown risks and uncertainties and other
factors which may cause actual results and outcomes to differ
materially from those expressed or implied by these FLI, including,
but not limited to, the following: the occurrence of any event,
change or other circumstances that could give rise to a right to
terminate the merger agreement; the timing and completion of the
transaction, including receipt of regulatory approvals and RADA
shareholder approval and the satisfaction of other conditions
precedent; the realization of anticipated benefits and synergies of
the transaction and the timing thereof; the success of integration
plans; the risk that any announcements relating to the proposed
transaction could have adverse effects on the market price of RADA;
the focus of management time and attention on the transaction and
other disruptions arising from the transaction; the volatility of
the international marketplace; potential adverse reactions or
changes to business, government or employee relationships,
including those resulting from the announcement or completion of
the transaction; general U.S., Israeli and global social, economic,
political, credit and business conditions; changes in laws;
regulations and government policies; changes in taxes and tax
rates; customer, shareholder, regulatory and other stakeholder
approvals and support; material adverse changes in economic and
industry conditions; the pandemic created by the outbreak of
COVID-19 and resulting effects on economic conditions; the
ramifications of the Russia-Ukraine conflict, and other risks and
uncertainties listed in RADA’s filings with the SEC, including
under the heading “Risk Factors” in RADA’s most recently filed
Annual Report on Form 20-F as such risk factors may be amended,
supplemented or superseded from time to time.
We caution that the foregoing list of factors is
not exhaustive and is made as of the date hereof. Additional
information about these and other assumptions, risks and
uncertainties can be found in reports and filings by RADA with the
U.S. Securities and Exchange Commission, including any prospectus,
registration statement or other documents to be filed or furnished
in connection with the transaction. Due to the interdependencies
and correlation of these factors, as well as other factors, the
impact of any one assumption, risk or uncertainty on FLI cannot be
determined with certainty.
Except to the extent required by law, RADA
assumes no obligation to publicly update or revise any FLI, whether
as a result of new information, future events or otherwise. All FLI
in this communication is expressly qualified in its entirety by
these cautionary statements.
No Offer or Solicitation
This communication shall not constitute an offer
to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
appropriate registration or qualification under the securities laws
of such jurisdiction. No offering of securities shall be made
except by means of a prospectus meeting the requirements of Section
10 of the Securities Act of 1933, as amended. This communication
does not constitute an offer of securities pursuant to the Israeli
Securities Law, 1968, or a recommendation regarding the purchase of
securities of RADA.
Company Contact:Avi Israel
(CFO)Tel:
+972-76-538-6200 mrkt@rada.comwww.rada.com |
Investor Relations Contact:GK
Investor RelationsEhud HelftTel: 1 212 378 8040 ehud@gkir.com |
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