NETANYA,
Israel,
August 22 /PRNewswire-FirstCall/ -- RADA Electronic
Industries Ltd. (Nasdaq Capital Market: RADA) today reported its financial
results for the second quarter ended
June 30, 2007.
Financial Highlights
- Total revenues were $4.2 million, a 53% increase over Q1 2007 and 64%
increase over Q2 2006.
- Operating income was $55,000 compared to operating losses of $339,000
in Q1 2007 and $ 1.1 million in Q2 2006.
The company reported revenues of $4.2 million for the second quarter of
2007, an increase of 53% from the $2.8 million reported in the first quarter
of 2007, and an increase of 64% compared to the $2.6 million reported in the
second quarter of 2006. Gross profit for the second quarter of 2007 was
$942,000, compared to $473,000 in the first quarter of 2007 and a gross loss
of $474,000 in the second quarter of 2006. Operating income for the second
quarter of 2007 was $55,000, compared to operating losses of $339,000 in the
first quarter of 2007 and $1.1 million loss in the second quarter of 2006.
Financing and other expenses were $145,000 for the second quarter of 2007,
compared to $192,000 in the first quarter of 2007 and $221,000 in the second
quarter of 2006. As a result, the company reported a net loss of $90,000 for
the second quarter of 2007, compared to a loss of $ 531,000 in the first
quarter of 2007 and $1.4 million loss in the second quarter of 2006.
For the first six months of 2007, revenues were $7.0 million, operating
loss was $284,000 and net loss was $621,000. This compares with revenues of
$4.6 million, operating loss of $2.3 million and net loss of $2.5 million for
the first six months of 2006.
Commenting on the results, Mr. Zvika Alon, RADA's CEO said, "Although we
reported a loss this quarter, Q2 2007 results improved significantly compared
to Q2 2006 results. We expect that 2007 will be the third and last year of
our current investment program aimed at developing new products that will
become the backbone of our new product offerings. Our recently reported new
contracts as well as those we expect to receive in the near future indicate
an increase in production activity that is expected to generate improved
operating results in the future."
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in
the military and commercial aerospace industries. The Company specializes in
Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores
Management Systems, Flight Data Recorders, Inertial Navigation Systems),
Trainers Upgrades, Avionics systems for the UAV market, and Electro optic
cameras for airplanes and armored vehicles.
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
June 30, December
2007 31, 2006
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,339 $ 990
Restricted cash 417 704
Trade receivables (net of allowance for doubtful
accounts of $ 34 at June 30, 2007 and December
31, 2006) 3,570 4,296
Other accounts receivable and prepaid expenses 599 200
Costs and estimated earnings in excess of
billings on uncompleted contracts 663 668
Inventories 2,375 2,468
Total current assets 8,963 9,326
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 67 78
Severance pay fund 1,737 1,624
Total long-term receivables and deposits 2,787 2,685
PROPERTY AND EQUIPMENT, NET 2,931 3,359
OTHER ASSETS:
Intangible assets, net and goodwill 1,826 2,072
Deferred charges, net - 13
Total other assets 1,826 2,085
Total assets $ 16,507 $ 17,455
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 395 $ 559
Convertible note 3,000 2,858
Trade payables 1,424 1,611
Other accounts payable and accrued expenses 3,264 3,419
Deferred revenues 60 84
Billings in excess of costs and estimated
earnings on uncompleted contracts 178 285
Total current liabilities 8,321 8,816
LONG-TERM LIABILITIES:
Long-term loan 65 142
Accrued severance pay 2,126 2,026
Total long-term liabilities 2,191 2,168
MINORITY INTERESTS 410 397
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at March 31, 2007
and December 31, 2006; Issued and outstanding:
8,728,509 shares at June 30, 2007 and December
31, 2006 116 116
Additional paid-in capital 67,371 67,239
Accumulated deficit (61,902) (61,281)
Total shareholders' equity 5,585 6,074
Total liabilities and shareholders' equity $ 16,507 $ 17,455
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Six months ended Three months ended
June 30, June 30,
2007 2006 2007 2006
(Unaudited)
Revenues 6,958 4,577 4,204 2,570
Cost of revenues 5,543 5,538 3,262 3,044
Gross profit (loss) 1,415 (961) 942 (474)
Operating expenses:
Research and development 149 69 94 44
Marketing and selling 682 440 383 213
General and administrative 868 800 410 405
Total operating expenses: 1,699 1,309 887 662
Operating income (loss) (284) (2,270) 55 (1,136)
Financial expense, net 324 347 142 227
Other income (expenses),
net - 68 - (3)
(608) (2,549) (87) (1,366)
Minority interests in
income (loss) of subsidiary 13 - 3 (9)
Net loss $ (621) $ (2,549) $ (90) $ (1,357)
Net loss per share:
Basic and diluted net loss
per share $ (0.07) $ (0.30) $ (0.01) $ (0.15)
Contact:
Elan Sigal- C.F.O
RADA Electronic Industries Ltd.
Tel: +972-9-8921-111
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