NETANYA, Israel, May 21 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. (Nasdaq SmallCap: RADA) today reported its financial results for the first quarter ended March 31, 2008. Revenues were $3.7 million, an increase of 34% from 2007 and gross profit was $0.6 million, an increase of 35% from 2007. Operating loss for the quarter was $319 thousand compared with an operating loss of $339 thousand in the first quarter of 2007. The financial expenses of the period increased to $432 thousand from $182 thousand in 2007. As a result the company reported a net loss of $0.77 million or $0.09 per share. This compares with a net loss of $0.53 million or $0.06 per share, for the comparable quarter in 2007.
Commenting on the results, Zvika Alon, RADA's CEO said, "The revenues and gross profits of the first quarter have improved compared to the Q1 2007 results. Traditionally we have experienced that the first half of the year is weaker than the second, we maintain our view that we will continue to show improvement in our orders backlog resulting from our marketing efforts. While our production deliveries keep increasing, we plan to continue investing during 2008 in research and development mainly in our new Inertial Navigation product line." 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 March 31, December
2008 31, 2007
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,308 $ 835
Restricted cash 633 598
Trade receivables (net of allowance for doubtful
accounts of $ 62 at March 31, 2008 and December 31,
2007) 3,607 4,907
Other accounts receivable and prepaid expenses 521 305
Costs and estimated earnings in excess of billings
on uncompleted contracts 1,137 701
Inventories 3,192 2,609 Total current assets 10,398 9,955 LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 50 57
Severance pay fund 2,228 2,038 Total long-term receivables and deposits 3,261 3,078 PROPERTY AND EQUIPMENT, NET 2,976 2,745 OTHER ASSETS:
Intangible assets, net 1,304 1,414
Goodwill 396 214
Total other assets 1,700 1,628 Total assets $ 18,335 $ 17,406 LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 258 $ 490
Trade payables 1,876 1,472
Other accounts payable and accrued expenses 4,097 3,666
Deferred revenues 70 181
Billings in excess of costs and estimated earnings
on uncompleted contracts 109 88
Total current liabilities 6,410 5,897 LONG-TERM LIABILITIES:
Loan from shareholders, net 67 261
Convertible note from a shareholder, net 1,700 1,622
Long-term loan 282 -
Accrued severance pay 2,691 2,442
Total long-term liabilities 4,740 4,325 MINORITY INTERESTS 532 459 SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at March 31, 2008 and
December 31, 2007; Issued and outstanding:
8,858,553 and 8,705,788 shares at March 31, 2008
and December 31, 2007 respectively 119 116
Additional paid-in capital 69,398 68,968
Accumulated other comprehensive income 265 -
Accumulated deficit (63,129) (62,359)
Total shareholders' equity 6,653 6,725
Total liabilities and shareholders' equity $ 18,335 $ 17,406
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data Year
Three months ended ended
December
March 31, 31,
2008 2007 2007
(unaudited) (audited) Revenues 3,691 2,754 14,021 Cost of revenues 3,054 2,281 10,681 Gross profit (loss) 637 473 3,340 Operating expenses:
Research and development 94 55 324
Marketing and selling 367 299 1,213
General and administrative 495 458 2,190 Total operating expenses 956 812 3,727 Operating loss (319) (339) (387)
Financial expenses, net (432) (182) (629) (751) (521) (1,016)
Minority interests in profits of
subsidiary (7) (10) (62) Loss before tax (758) (531) (1,078) Tax expenses (12) - - Net loss for the period $ (770) $ (531) $ (1,078) Loss per share: Basic and diluted loss per share $ (0.09) $ (0.06) $ (0.12) 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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