NETANYA, Israel, March 16, 2009 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) today reported its financial results for the year ended December 31, 2008. The company reported revenues in 2008 of $17.9 million, an increase of 27% from 2007. Rada's gross profit increased 26% to $4.2 million in 2008 from $3.3 million in 2007. The gross margin was 24% in both 2008 and 2007. The Company had operating profit of $110,000 in 2008 compared to an operating loss of $387,000 in 2007. As a result, the Company reported a net loss of $576,000 or $0.07 per share. This compares with a net loss of $1.08 million or $0.12 per share, for the year ended December 31, 2007.
Commenting on the results, Zvika Alon, RADA's CEO, said, "Our 2008 financial results show continuous improvement during the last three years. We are pleased with the on-going increase in revenues and, for the first time in four years, reaching operational profitability this fiscal year. Our internal investment in research and development during 2008 was $686,000, which amount exceeded our net loss, and we achieved these results despite the increasingly challenging economic environment worldwide. Going into 2009 we intend to continue to invest in research and development of new products to ensure that we are prepared to capitalize on the many opportunities we see in the defense market. We will continue our marketing efforts, which were very successful during the past year resulting in an increased order backlog. Based on our backlog and sales forecast, we maintain our expectations for revenues growth in 2009."
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
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U.S. dollars in thousands, except share and per share data
December 31,
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2008 2007
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 964 $ 835
Restricted cash 793 598
Trade receivables (net of allowance for
doubtful accounts of $ 60 and $ 62 at
December 31, 2008 and 2007, respectively) 3,434 4,907
Other receivables and prepaid expenses 597 305
Costs and estimated earnings in excess of
billings on uncompleted contracts 2,210 701
Inventories 4,409 2,609
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Total current assets 12,407 9,955
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LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 803 983
Leasing deposits 56 57
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Total long-term receivables and deposits 859 1,040
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PROPERTY, PLANT AND EQUIPMENT, NET 3,699 2,745
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OTHER ASSETS:
Intangible assets, net 972 1,414
Goodwill 557 214
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Total other assets 1,529 1,628
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Total assets $ 18,494 $ 15,368
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current
maturities of long-term loans $ 162 $ 490
Trade payables 2,760 1,472
Other accounts payable and
accrued expenses 3,860 3,847
Billings in excess of costs and estimated
earnings on uncompleted contracts 43 88
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Total current liabilities 6,825 5,897
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LONG-TERM LIABILITIES:
Long-term loan 33 --
Loans from shareholders, net 1,546 261
Convertible note from a shareholder, net 1,980 1,622
Accrued severance pay and other
long term liability 558 404
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Total long-term liabilities 4,117 2,287
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MINORITY INTERESTS 556 459
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SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at
December 31, 2008 and 2007; Issued and
outstanding: 8,858,553 and 8,705,788
shares at December 31, 2008 and
December 31, 2007 respectively 119 116
Additional paid-in capital 69,495 68,968
Accumulated other comprehensive income 317 --
Accumulated deficit (62,935) (62,359)
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Total shareholders' equity 6,996 6,725
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Total liabilities and shareholders' equity $ 18,494 $ 15,368
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CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands, except per share data
Year ended December 31,
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2008 2007 2006
-------- -------- --------
Revenues:
Products $ 15,543 $ 11,704 $ 10,984
Services 2,338 2,317 2,053
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17,881 14,021 13,037
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Cost of revenues:
Products 12,472 9,501 9,517
Services 1,214 1,180 1,482
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13,686 10,681 10,999
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Gross profit 4,195 3,340 2,038
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Operating costs and
expenses:
Research and
development 686 324 181
Marketing and selling 1,496 1,213 1,316
General and
administrative 1,903 2,190 1,794
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Total operating costs
and expenses 4,085 3,727 3,291
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Operating profit (loss) 110 (387) (1,253)
Financial expenses, net 668 629 775
Other income, net -- -- 45
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558 1,016 1,983
Minority interest in
earnings of subsidiary 18 62 17
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Net loss $ 576 $ 1,078 $ 2,000
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Net loss per share:
Basic and diluted net
loss per share $ 0.07 $ 0.12 $ 0.23
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CONTACT: RADA Electronic Industries Ltd.
Shiri Lazarovich, C.F.O.
011-972-9-8921111
