(Source: PrimeNewswire)
NETANYA, Israel, Aug. 26, 2009 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) reported today its financial results for the second quarter ended June 30, 2009. Revenues were $3.0 million compared to $3.6 million in the second quarter of 2008. Operating loss for the second quarter of 2009 was $647,000 compared to operating loss of $376,000 in the second quarter of 2008. The company reported a net loss of $951,000 for the second quarter of 2009, compared to a net loss of $672,000 in the second quarter of 2008.
For the six-month period ended June 30, 2009, revenues were $7.1 million, a decrease of 2.6% compared with revenues of $7.3 million for the same period in 2008. In the six months ended June 30, 2009, gross profit increased 47% to $1.8 million from $1.3 million in the 2008 period and gross margin was 26% up from 17% in the 2008 period. Operating expenses in the 2009 period were $2.5 million compared to $1.9 million for the same period in 2008. Operating expenses for the period ended June 30, 2009 includes $882,000 of research and development expenses compared to $232,000 of research and development expenses in the same period in 2008. Financial expenses were $200,000 in the 2009 period compared with financial expenses of $726,000 in the period ended June 30, 2008, which expenses were significantly impacted by currency fluctuations of the exchange rate of the U.S. dollar against the Israeli Shekel (financial income of $130,000 and financial expenses of $196,000 for the periods ended June 30, 2009 and 2008, respectively). As a result, the Company reported a net loss of $0.9 million or $0.10 per share for the six-month period ended June 30, 2009. This compares with a net loss of $1.4 million or $0.16 per share, for the comparable period in 2008.
Commenting on the results, Zvika Alon, RADA's CEO said, "The increase in research and development expenses to support future product development has significantly affected the results during the first half of 2009. We expect that our R&D efforts will continue during the second half of 2009. Our order backlog continued to increase during the second quarter; therefore we maintain our expectation for an improvement in our operating results."
About RADA
RADA Electronic Industries Ltd. is an Israel based defense electronics contractor. The Company specializes in data recording and management (Digital Video & Data Recorders, Ground Debriefing Stations Head-Up Display Cameras), inertial navigation systems, avionics solutions (Trainer Aircraft Upgrades, Stores Management Systems, Interface Computers) and avionics systems for 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 June 30, Dec. 31, ASSETS 2009 2008 --------- -------- Unaudited Audited --------- -------- CURRENT ASSETS: Cash and cash equivalents $ 1,529 $ 964 Restricted cash 544 793 Trade receivables (net of allowance for doubtful accounts of $59 and $60 at June 30, 2009 and December 31, 2008, respectively) 2,959 3,434 Other receivables and prepaid expenses 928 597 Costs and estimated earnings in excess of billings on uncompleted contracts 1,469 2,210 Inventories 4,823 4,409 --------- -------- Total current assets 12,252 12,407 --------- -------- LONG-TERM RECEIVABLES AND DEPOSITS: Long-term receivables 770 803 Leasing deposits 60 56 --------- -------- Total long-term receivables and deposits 830 859 --------- -------- PROPERTY, PLANT AND EQUIPMENT, NET 3,475 3,699 --------- -------- OTHER ASSETS: Intangible assets, net 752 972 Goodwill 587 557 --------- -------- Total other assets 1,339 1,529 --------- -------- Total assets $ 17,896 $ 18,494 ========= ======== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit and current maturities of long-term loans $ 156 $ 162 Trade payables 1,645 2,760 Other payable and accrued expenses 5,103 3,860 Billings in excess of costs and estimated earnings on uncompleted contracts 73 43 --------- -------- Total current liabilities 6,977 6,825 --------- -------- LONG-TERM LIABILITIES: Long-term loan -- 33 Loans from shareholders, net 1,528 1,546 Convertible note from a shareholder, net 2,210 1,980 Accrued severance pay and other long term liability 491 558 --------- -------- Total long-term liabilities 4,229 4,117 --------- -------- MINORITY INTERESTS 561 556 --------- -------- SHAREHOLDERS' EQUITY Share capital - Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at June 30, 2009 and December 31, 2008; Issued and outstanding: 8,858,553 at June 30, 2009 and December 31, 2008 119 119 Additional paid-in capital 69,535 69,495 Accumulated other comprehensive income 319 317 Accumulated deficit (63,844) (62,935) --------- -------- Total shareholders' equity 6,129 6,996 --------- -------- Total liabilities and shareholders' equity $ 17,896 $ 18,494 ========= ========
CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data Six months Three months ended ended June 30, June 30, ---------------- ---------------- 2009 2008 2009 2008 ------- ------- ------- ------- (Unaudited) ---------------------------------- Revenues $ 7,115 $ 7,307 $ 3,020 $ 3,616 Cost of revenues 5,275 6,055 2,429 3,001 ------- ------- ------- ------- Gross profit 1,840 1,252 591 615 ------- ------- ------- ------- Operating expenses: Research and development 882 232 408 138 Marketing and selling 719 699 389 332 General and administrative 943 1,016 441 521 ------- ------- ------- ------- Total operating expenses: 2,544 1,947 1,238 991 ------- ------- ------- ------- Operating loss (704) (695) (647) (376) Financial expense, net 200 726 295 294 ------- ------- ------- ------- (904) (1,421) (942) (670) Minority interests in profits of a subsidiary 5 21 9 2 ------- ------- ------- ------- Net loss $ (909) $(1,442) $ (951) $ (672) ======= ======= ======= ======= Net loss per share: Basic and diluted net loss per share $ (0.10) $ (0.16) $ (0.11) $ (0.08) ======= ======= ======= =======
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CONTACT: RADA Electronic Industries Ltd. Shiri Lazarovich- C.F.O 011-972-9-8921111
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