NETANYA, Israel, March 6 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. (NASDAQ:RADA) today reported its financial results for the year ended December 31, 2007. The company reported a net loss of $1.1 million or $0.12 per share. This compares with a net loss of $2.0 million or $0.23 per share, for the year ended December 31, 2006. Revenues in 2007 were $14.0 million, an increase of 8% from 2006. The company's gross margin increased to 24% in 2007 from 16% in 2006.The company's operating loss for the year was $387,000 compared with an operating loss of $1.3 million in 2006.
Commenting on the results, Zvika Alon, RADA's CEO said, "Our financial results in 2007 improved over the last two years. The improvement is mainly due to the higher gross profit margin on our off-the-shelf products. We expect that our production deliveries will continue to increase in 2008 and we plan to continue investing during 2008 in research and development primarily in our new Inertial Navigation product line. Our marketing efforts during 2007 were very successful resulting in an increased backlog. We are continuing these efforts, focusing on our main markets in Israel, U.S. and India." 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), Trainer Aircraft 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 December 31,
2007 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 835 $ 990
Restricted cash 598 704 Trade receivables (net of allowance for doubtful
accounts of $ 62 and $ 34 at December 31, 2007 and
2006, respectively) 4,907 4,296 Other accounts receivable and prepaid expenses 305 200 Costs and estimated earnings in excess of billings
on uncompleted contracts 701 668 Inventories 2,609 2,468
Total current assets 9,955 9,326 LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 57 78
Severance pay fund 2,038 1,624
Total long-term receivables and deposits 3,078 2,685 PROPERTY, PLANT AND EQUIPMENT, NET 2,745 3,359 OTHER ASSETS:
Intangible assets, net 1,414 1,906
Goodwill 214 166
Deferred charges, net - 13 Total other assets 1,628 2,085
Total assets $ 17,406 $ 17,455 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 490 $ 559
Convertible note - 2,858
Trade payables 1,472 1,611
Other accounts payable and accrued expenses 3,666 3,419
Deferred revenues 181 84 Billings in excess of costs and estimated earnings
on uncompleted contracts 88 285 Total current liabilities 5,897 8,816 LONG-TERM LIABILITIES:
Long-term loan - 142
Loan from shareholders, net 261 -
Convertible note from a shareholder, net 1,622 -
Accrued severance pay 2,442 2,026
Total long-term liabilities 4,325 2,168 MINORITY INTERESTS 459 397 SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at December 31, 2007
and 2006; Issued and outstanding: 8,705,788 shares
at December 31, 2007 and 2006
Additional paid-in capital 116 116
Accumulated deficit 68,968 67,239
(62,359) (61,281) Total shareholders' equity 6,725 6,074
Total liabilities and shareholders' equity $ 17,406 $ 17,455 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data Year ended December 31,
2007 2006 2005
Revenues:
Products $ 11,704 $ 10,984 $ 11,303
Services 2,317 2,053 2,118 14,021 13,037 13,421
Cost of revenues:
Products 9,501 9,517 10,601
Services 1,180 1,482 1,481 10,681 10,999 12,082 Gross profit 3,340 2,038 1,339 Operating costs and expenses:
Research and development 324 181 -
Marketing and selling 1,213 1,316 1,155
General and administrative 2,190 1,794 1,939 Total operating costs and expenses 3,727 3,291 3,094 Operating loss (387) (1,253) (1,755)
Financial expenses, net (629) (775) (624)
Other income, net - 45 33 (1,016) (1,983) (2,346)
Minority interests in losses
(earnings) of a subsidiary (62) (17) 17 Net loss $ (1,078) $ (2,000) $ (2,329) Net loss per share:
Basic net loss per share $ (0.12) $ (0.23) $ (0.31)
Diluted net loss per share $ (0.12) $ (0.23) $ (0.31) Contact: Shiri Lazarovich- C.F.O
RADA Electronic Industries Ltd. Tel: +972-9-8921111
DATASOURCE: RADA Electronic Industries Ltd CONTACT: Contact: Shiri Lazarovich- C.F.O, RADA Electronic Industries Ltd. Tel: +972-9-8921111
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