updated 5/31/2011 10:17:20 AM ET 2011-05-31T14:17:20

NETANYA, Israel, May 31, 2011 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended March 31, 2011.

2011 First quarter highlights include:

  • Revenues of $7.8 million, a 72% increase compared to the first quarter of 2010.
  • Operating Profit of $543,000.
  • Net Profit of $393,000 compared to a net loss of $518,000 for the first quarter of 2010.

2011 First quarter Results

Revenues increased by 72% to $7.8 million from $4.5 million in the first quarter of 2010. The increase is attributed mainly to projects being executed for Latin American customers. 

Gross Profit increased by 168% to $2.5 million from $929,000 in the first quarter of 2010.  

Operating Profit increased to $543,000 compared with a $247,000 loss in the first quarter of 2010.  

Financial Expenses totaled $152,000 compared with financial expenses of $279,000 in the first quarter of 2010.  

As a result, the Company reported a net profit of $393,000, or $0.04 per share, for the first quarter of 2011 compared to a net loss of $518,000 or $0.06 per share, for the first quarter of 2010.  

Management Comment 

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "We are pleased with our first quarter 2011 results, which put us on track with our strategic plan for the year. The increase in revenues can be partly attributed to the large scale integration projects we are executing for our Latin American customers. As a result of this increase, we have  increased our R&D investment, particularly in the high growth areas such as our navigation and radar products, which will help us expand our product offerings in the coming years.  Despite the weakened US dollar versus the Israeli Shekel this past quarter, we succeeded to mitigate its impact through hedging activities, which helped us reduce our financial expenses this quarter."

"Looking ahead," continued Mr. Alon, "we will continue to pursue large opportunities in the navigation and radar product markets and expect them to become major growth drivers for the Company in the future."  

To arrange a call with management to discuss the results, please reach out to our Investor Relations contact, below.

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 for air and land applications, Avionics Solutions (Aircraft Upgrades, Avionics for UAVs, Stores Management Systems, Mission & Interface Computers) and Radar Sensors for active protective systems for land 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 31,
ASSETS 2011 2010
  Unaudited Audited
CURRENT ASSETS:     
Cash and cash equivalents  $ 1,292 $ 850
Restricted cash 1,455 1,448
Trade receivables (net of allowance for doubtful accounts of $ 26

and $ 78 at March 31, 2011 and at December 31, 2010

respectively)
11,124 9,452
Other receivables and prepaid expenses 766 820
Costs and estimated earnings in excess of billings on uncompleted

contracts
692 2,698
Inventories  5,383 6,215
     
Total current assets 20,712 21,483
     
     
LONG-TERM RECEIVABLES AND OTHER DEPOSITS 1,504 1,546
     
     
PROPERTY, PLANT AND EQUIPMENT, NET  3,042 3,173
     
OTHER ASSETS:    
Intangible assets, net  271 309
Goodwill 587 587
     
Total other assets 858 896
     
Total assets $ 26,116 $ 27,098
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Bank Credit and current maturities of long-term loans $ 5,083 $ 4,274
Trade payables 1,812 3,430
Other accounts payable and accrued expenses 5,532 5,714
Billings in excess of costs and estimated earnings on uncompleted

contracts
148 471
     
Total current liabilities 12,575 13,889
     
LONG-TERM LIABILITIES:    
Loans from shareholders, net  705 881
Convertible note from a shareholder, net 2,645 2,598
Accrued severance pay and other long term liability 560 547
     
Total long-term liabilities 3,910 4,026
     
     
RADA SHAREHOLDERS' EQUITY    
Share capital --    
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333

shares at March 31, 2011 and December 31, 2010; Issued and

outstanding: 8,883,524 and 8,868,857 at March 31, 2011 and

at December 31, 2010 respectively.
119 119
Additional paid-in capital 70,093 70,060
Accumulated other comprehensive income 411 392
Accumulated deficit (61,595) (61,988)
Total RADA shareholders' equity 9,028 8,583
Noncontrolling interest 603 600
     
Total equity   9,631  9,183
Total liabilities and equity $ 26,116 $ 27,098
       
CONSOLIDATED STATEMENTS OF OPERATIONS       
U.S. dollars in thousands, except per share data      
       
     
  Three months ended

March 31, 
Year ended

December 31, 
  2011 2010 2010
  (unaudited) (audited)
       
Revenues 7,787 4,529 $ 27,523
       
Cost of revenues 5,298 3,600 20,117
       
Gross profit  2,489 929 7,406
       
Operating expenses:      
Research and development 669 259 1,182
Marketing and selling 748 509 2,563
General and administrative  530 408 1,732
       
Total operating expenses 1,947 1,176 5,477
       
Operating profit (loss) 542 (247) 1,929
Financial expenses, net 152 279 1,184
       
Consolidated net income (loss) 390 (526) 745
Less: Net (income) loss attributable to

Noncontrolling interest
3 8 (11)
       
Net income (loss) attributable to RADA

shareholders
 $ 393  $ (518) 734
       
Net income (loss) per share:      
Basic and diluted net income (loss) per share  $ 0.04  $ (0.06)  $ 0.08
CONTACT: Shiri Lazarovich- C.F.O
         RADA Electronic Industries Ltd.
         Tel: +972-9-8921111
         Shiri.Lazarovich@rada.com
         
         Investor Relations Contact
         Ehud Helft/ Porat Saar
         +1 646 233 2161
         Rada@ccgisrael.com

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