RADA Electronic Industries Announces 2014 First Quarter Results

RADA Electronic Industries Announces 2014 First Quarter Results  NETANYA, Israel, June 10, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA)  announced today its financial results for the quarter ended March 31, 2014.  2014 First quarter Results  Revenues for the first quarter of 2014 of $5.4 million remained constant with the Company's revenues in the first quarter of 2013.  Gross Profit totaled $1.6 million, a 91% increase when compared with $0.85 million in the first quarter of 2013.  Operating Expenses totaled $1.2 million, a 24% decrease when compared with $1.5 million in the first quarter of 2013.  Operating Income totaled $0.5 million, compared with an operating loss of $0.7 million first quarter of 2013.  Financial Expenses totaled $293,000, a 38 % decrease when compared with financial expenses of $475,000 in the first quarter of 2013.  As a result, the Company reported net profit of $158,000, or $0.02 per share, for the first quarter of 2014 compared with a net loss of $1,165,000, or $0.13 per share, for the first quarter of 2013.  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 first quarter, we experienced a significant reduction in cost of revenues, operating expenses and financial expenses. The increase in our gross margin is attributable to the significant reduction of low margin programs during the last six months, while the decrease in operating expense is mainly due to reduction in our R&D spending as our Inertial Navigation and Ground Radar products have reached maturity. Our first quarter results, consistent with our fourth quarter 2013 results, indicate that we are maintaining the previously reported trend of improved operating and net profit. These factors, together with the growing revenues generated from Inertial Navigation and Ground Radar products' sales are expected to continue and favorably influence our 2014 results."  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, 2014 December 31, 2013                                              Unaudited      Audited CURRENT ASSETS:                                              Cash and cash equivalents                     $1,615         $2,137 Restricted cash                               488            1,033 Trade receivables (net of allowance for doubtful accounts of $39 and$ 36 at March   4,121          4,890 31, 2014 and at December 31, 2013 respectively) Costs and estimated earnings in excess of     2,103          2,031 billings on uncompleted contracts Other receivables and prepaid expenses        762            412 Inventories                                   7,666          6,798                                                             Total current assets                          16,755         17,301                                                             LONG-TERM RECEIVABLES AND OTHER DEPOSITS      1,100          1,133                                                             PROPERTY, PLANT AND EQUIPMENT, NET            2,877          2,986                                                             GOODWILL                                      587            587                                                             Total assets                                  $21,319        $22,007                                                             LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                     CURRENT LIABILITIES:                                         Bank Credit                                   $2,151         $1,887 Trade payables                                2,911          2,909 Convertible note and Loans from shareholders, 7,120          8,307 net Other accounts payable and accrued expenses   4,447          4,350                                                             Total current liabilities                     16,629         17,453                                                             LONG-TERM LIABILITIES:                                       Accrued severance pay and other long term     577            569 liability                                                             Total long-term liabilities                   577            569                                                             RADA SHAREHOLDERS' EQUITY                                    Share capital --                                             Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March31, 2014 and December 31, 2013; Issued and        119            119 outstanding: 8,918,647 at March 31, 2014 and at December31, 2013 respectively. Additional paid-in capital                    70,884         70,884 Accumulated other comprehensive income        526            547 Accumulated deficit                           (68,042)       (68,200)                                                             Total RADA shareholders' equity               3,487          3,350 Non-controlling interest                      626            635                                                             Total equity                                  4,113          3,985                                                             Total liabilities and equity                  $21,319        $22,007                                                                   CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data                                                                                                                               Three months ended  Year ended                                              March 31,           December 31,                                              2014      2013      2013                                              (unaudited)         (audited)                                                                 Revenues                                      $5,347    $5,357    $21,761                                                                 Cost of revenues                              3,733     4,510     17,160                                                                 Gross profit                                  1,614     847       4,601                                                                 Operating expenses:                                              Research and development                      230       471       1,459 Marketing and selling                         470       547       1,959 General and administrative                    467       521       1,919                                                                 Total operating expenses                      1,167     1,539     5,337                                                                 Operating profit (loss)                       447       (692)     (736) Financial expenses, net                       293       475       1,907                                                                 Net profit (loss)                             154       (1,167)   (2,643)                                                                 Less: attributable to Noncontrolling interest 4         2         8                                                                 Net profit (loss) attributable to RADA        $158      $(1,165)  $(2,635) Electronic Industries' shareholders                                                                 Basic and diluted net profit (loss) per share $0.02     $(0.13)   $(0.30)                                                                 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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