RADA Electronic Industries Announces 2013 First Quarter Results

RADA Electronic Industries Announces 2013 First Quarter Results

NETANYA, Israel, July 1, 2013 (GLOBE NEWSWIRE) -- RADA Electronic Industries
Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended
March 31, 2013.

2013 First Quarter Results

Revenues totaled $5.4 million, a 46% increase when compared with $3.7 million
in the first quarter of 2012.

Gross Profit totaled $0.85 million, a 15% decrease when compared with $1
million in the first quarter of 2012.

Operating Expenses totaled $1.5 million, a 4% decrease when compared with $1.6
million in the first quarter of 2012.

Financial Expenses totaled $475,000, a 100 % increase when compared with
financial expenses of $236,000 in the first quarter of 2012.

As a result, the Company reported a loss of $1,165,000, or $0.13 per share,
for the first quarter of 2013 compared with a net loss of $840,000, or $0.09
per share, for the first quarter of 2012.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said,
"While our revenues in the first quarter were at a similar level to last
year's average quarter, the reduction in gross margin is due to the mix of
business in the quarter, which included a higher percentage of lower margin
programs than last year. As indicated in our 2012 annual report, our R&D
spending has been reduced when compared to last year as both our inertial
navigation and radar products are mature and our focus is on business
development and marketing activities around these two product lines. We are
very encouraged by the initial contracts we have secured for these new
products, mainly in the radar product line, from both the domestic and the
international markets and we expect additional contracts for these products to
come before the end of 2013."

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics
contractor. The Company specializes in the development, production, and sales
of Tactical Land Radar for Force and Border Protection, Inertial Navigation
Systems for air and land applications, and Avionics Systems and Upgrades.

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
                                                                    
ASSETS                                                      March 31, December
                                                            2013      31, 2012
                                                           Unaudited Audited
CURRENT ASSETS:                                                     
Cash and cash equivalents                                  $1,348    $1,164
Restricted cash                                             625       1,311
Trade receivables (net of allowance for doubtful accounts
of $29 and$ 15 at March 31, 2013 and at December 31, 2012 4,906     5,381
respectively)
Costs and estimated earnings in excess of billings on       2,131     1,748
uncompleted contracts
Other receivables and prepaid expenses                      798       939
Inventories                                                6,742     7,272
                                                                    
Total current assets                                        16,550    17,815
                                                                    
                                                                    
LONG-TERM RECEIVABLES AND OTHER DEPOSITS                    1,885     1,160
                                                                    
                                                                    
PROPERTY, PLANT AND EQUIPMENT, NET                         3,180     3,324
                                                                    
OTHER ASSETS:                                                        
                                                                    
Goodwill                                                    587       587
                                                                    
Total other assets                                          587       587
                                                                    
Total assets                                                $22,202   $22,886
                                                                    
LIABILITIES AND SHAREHOLDERS' EQUITY                                 
                                                                    
CURRENT LIABILITIES:                                                 
Bank Credit and current maturities of long-term loans       $2,750    $3,172
Trade payables                                              2,478     1,948
Convertible note from a shareholder                         3,000     3,000
Loans from shareholders, net                                3,729     3,968
Other accounts payable and accrued expenses                 4,325     3,750
                                                                    
Total current liabilities                                   16,282    15,838
                                                                    
LONG-TERM LIABILITIES:                                               
Accrued severance pay and other long term liability         540       519
                                                                    
Total long-term liabilities                                 540       519
                                                                    
                                                                    
RADA SHAREHOLDERS' EQUITY                                            
Share capital -                                                      
Ordinary shares of NIS 0.015 par value - Authorized:
16,333,333 shares at March31, 2013 and December 31, 2012;  119       119
Issued and outstanding: 8,918,647 at March 31, 2013 and at
December31, 2012 respectively.
Additional paid-in capital                                  70,884    70,884
Accumulated other comprehensive income                      482       468
Accumulated deficit                                         (66,730)  (65,565)
                                                                    
Total RADA shareholders' equity                             4,755     5,906
Noncontrolling interest                                     625       623
                                                                    
Total equity                                               5,380     6,529
                                                                    
Total liabilities and equity                                $22,202   $22,886



CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                                                               
                                                               
                                                                
                                             Three months ended  Year ended
                                              March 31,          December 31,
                                             2013      2012      2012
                                             (unaudited)         (audited)
                                                               
Revenues                                      $5,357    $3,672    $21,551
                                                               
Cost of revenues                              4,510     2,677     16,233
                                                               
Gross profit                                 847       995       5,318
                                                               
Operating expenses:                                             
Research and development                      471       651       2,423
Marketing and selling                         547       388       1,664
General and administrative                   521       564       2,243
                                                               
Total operating expenses                      1,539     1,603     6,330
                                                               
Operating loss                                (692)     (608)     (1,012)
Financial expenses, net                       475       236       1,043
                                                               
Net loss                                      (1,167)   (844)     (2,055)
                                                               
Less: attributable to Noncontrolling interest 2         4         4
                                                               
Net loss attributable to RADA Electronic      $(1,165)  $(840)    $(2,051)
Industries' shareholders
                                                               
Basic and diluted net loss per share          $(0.13)   $(0.09)   $(0.23)
                                                               
Weighted average number of Ordinary shares
used for computing basic and diluted net loss 8,918,647 8,918,647 8,918,647
per share

CONTACT: Shiri Lazarovich- C.F.O
         RADA Electronic Industries Ltd.
         Tel: +972-9-8921111
         Shiri.Lazarovich@rada.com
 
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