RADA Electronic Industries Announces Full Year 2013 Results

RADA Electronic Industries Announces Full Year 2013 Results

NETANYA, Israel, April 30, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries
Ltd. (Nasdaq:RADA) today announced its financial results for the year and
quarter ended December 31, 2013.

Full Year 2013 Results

Revenues totaled $21.8 million, a 1% increase when compared with $21.6 million
in 2012.

Gross profit totaled $4.7 million, a 13% decrease when comparedwith $5.3
million for 2012. 

Operating Expenses totaled 5.3 million, a 14% decrease when compared with $6.3
million in 2012.

Operating loss totaled $0.7 million, compared with an operating loss of $1
million in2012. 

As a result, the Company reporteda net loss of $2.635 million, or $0.30 per
share for the year ended December 31, 2013, compared with a net loss of $2.051
million, or $0.23 per share, for the for the year ended December 31, 2012.

2013 fourth quarter Results

Revenues totaled $6.7 million, a 3% increase when compared with $6.5 million
in the fourth quarter of 2012.

Gross Profit totaled $2.1 million, a 33% increase when compared with $1.56
million in the fourth quarter of 2012. 

Operating expenses totaled $1.5 million, a 3% increase when compared with $1.5
million in the fourth quarter of 2012.

Operating Income totaled $0.55 million, compared to an operating loss of $0.08
million in the fourth quarter of 2012. 

As a result, the Company reported net income of $39,000, or $0.004 per share,
for the fourth quarter of 2013 compared to a net loss of $242,000 or $0.02 per
share, for the fourth quarter of 2012.

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said,
"2013 marks the conclusion of three years of intensive R&D efforts to mature
our Inertial Navigation and Ground Radar products. This period was very
demanding in terms of R&D spending as well as a significant increase in our
financial expenses caused by borrowings we incurred to finance the development
efforts. Our fourth quarter results show an increase in revenues as well as a
larger volume of higher margin programs when compared to earlier quarters of
2013. These factors, together with the growing revenues generated from
Inertial Navigation and Ground Radar products' sales are expected to continue
and should benefit 2014 results. Recently delivered Ground Radars are being
operated by our first strategic customers and our marketing efforts continue
to generate worldwide interest and we look forward towards increased future
sales of our Ground Radars."

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics
contractor. The Company specializes in the development, production and sales
of Data Recording and Management Systems (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 Tactical Radars for Force and Border Protection Solutions.

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                                               December 31, December 31,
                                                     2013         2012
                                                    Audited
                                                    
CURRENT ASSETS:                                                 
Cash and cash equivalents                           $2,137       $1,164
Restricted cash                                      1,033        1,311
Trade receivables (net of allowance for doubtful
accounts of $36and $ 15 at December 31, 2013 and   4,890        5,381
at December 31, 2012 respectively)
Costs and estimated earnings in excess of billings   2,031        1,748
on uncompletedcontracts
Other receivables and prepaid expenses               412          939
Inventories                                         6,798        7,272
                                                                
Total current assets                                 17,301       17,815
                                                                
LONG-TERM RECEIVABLES AND OTHER DEPOSITS             1,133        1,160
                                                                
PROPERTY, PLANT AND EQUIPMENT, NET                  2,986        3,324
                                                                
GOODWILL                                             587          587
                                                                
Total assets                                         $22,007      $22,886
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
                                                                
CURRENT LIABILITIES:                                             
Bank Credit                                         $1,887       $3,172
Trade payables                                       2,909        1,948
Convertible note and Loans from a shareholder, net   8,307        6,968
Other accounts payable and accrued expenses         4,350        3,750
                                                                
Total current liabilities                            17,453       15,838
                                                                
LONG-TERM LIABILITIES:                                           
Accrued severance pay and other long term liability  569          519
                                                                
Total long-term liabilities                          569          519
                                                                
RADA SHAREHOLDERS' EQUITY                                        
Share capital --                                                 
Ordinary shares of NIS 0.015 par value - Authorized:
16,333,333 shares at December 31, 2013 and December
31, 2012; Issued and outstanding: 8,918,647 at       119          119
December 31, 2013 and at December31, 2012
respectively.
Additional paid-in capital                           70,884       70,884
Accumulated other comprehensive income               547          468
Accumulated deficit                                  (68,200)    (65,565)
Total RADA Electronic Industries shareholders'       3,350        5,906
equity
Noncontrolling interest                              635          623
                                                                
Total equity                                        3,985        6,529
                                                                
Total liabilities and equity                         $22,007      $22,886
                                                                

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                                                                 
                                    Year ended            Three months ended
                                     December 31,          December31,
                                    2013       2012       2013      2012
                                    Audited               Unaudited
                                                                 
Revenues:                                                         
Products                             $20,443    $20,073    6,356     $6,339
Services                             1,318      1,478      360       193
                                                                 
                                    21,761     21,551     6,716     6,532
Cost of revenues:                                                 
Products                            16,487     15,453     4,234     4,810
Services                             673        780        133       160
                                                                 
                                    17,160     16,233     4,637     4,970
                                                                 
Gross profit                        4,601      5,318      2,079     1,562
                                                                 
Operating costs and expenses:                                     
Research and development, net        1,459      2,423      378       601
Marketing and selling               1,959      1,664      670       478
General and administrative          1,919      2,137      480       402
                                                                 
Total operating costs and expenses   5,337      6,224      1,528     1,481
                                                                 
Operating profit (loss)              (736)     (906)     551       81
Financial expenses, net             1,907      1,149      500       319
                                                                 
Net income (loss)                    (2,643)   (2,055)   51        (238)
                                                                 
Less: income attributable to         8          4          12        4
non-controlling interest
                                                                 
Net income (loss) attributable to
RADA Electronic Industries'          $(2,635) $(2,051) $39     $(242)
shareholders
Net income (loss) per share
attributable to RADA Electronic                                    
Industries' shareholders:
Basic and diluted net income (loss)  $(0.30)  $(0.23)  $0.004  $(0.02)
per Ordinary share
Weighted average number of Ordinary
shares used for computing basic and  8,918,647  8,918,647  8,918,647 8,918,647
diluted net income (loss) per share

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