RADA Electronic Industries Announces Third Quarter 2019 Results

Continued strong revenue growth to $11.3 million in Q3, up 60% year-over-year;
Full year revenues expected to exceed $43 million, a company record.NETANYA, Israel, Nov. 19, 2019 (GLOBE NEWSWIRE) — RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the period ended September 30, 2019.2019 Third Quarter HighlightsRevenues were a record $11.3 million, up 60% year-over-year;Full year revenues are expected to surpass $43 million, representing another record;Gross margins remained stable at 36% in the third quarter;RADA’s ongoing investments in R&D and in its US presence are bearing significant fruits;Net cash of $16.7 million as of September 30.Management CommentsDov Sella, RADA’s Chief Executive Officer, commented, “We are very pleased with our strong performance in the third quarter, as revenues set at an all-time high with a significant 60% increase over the third quarter of last year. This represents the continued fruits of our long-term investments in our radar technology as well as the more recent investments in our US presence. Looking ahead, the market for tactical radars is showing tremendous growth and we are seeing significant interest and orders, not just from the US, but throughout the world. We believe this will continue to accelerate and power our growth in the quarters ahead. We maintain our expectation of full year revenues exceeding $43 million, as our high growth rate continues, bringing another record quarter and record year for RADA. We also expect our operating expenses to stabilize in the near-term, and along with the anticipated revenue growth, we expect to reach profitability during 2020.” 
2019 Third Quarter SummaryRevenues totaled $11.3 million in the quarter, compared with revenues of $7.0 million in the third quarter of 2018, an increase of 60% year-over-year and 12% sequentially.Gross profit totaled $4.1 million (36% of revenues) in the quarter, an increase of 60% compared to gross profit of $2.5 million (36% of revenues) in the third quarter of 2018.Operating expenses in the quarter were $4.6 million compared with $2.7 million in the third quarter of last year. The increase was primarily in R&D expenses and G&A expenses, and due to the investment in RADA’s presence and manufacturing facility in the United States.Operating loss was $0.5 million in the quarter compared to operating loss of $0.1 million in the third quarter of 2018.Net loss attributable to RADA’s shareholders in the quarter was $0.7 million, or $0.02 per share, compared to a net loss of $0.02 million, or $0.00 per share, in the third quarter of 2018.
As of September 30, 2019, RADA had net cash and cash equivalents of $16.7 million compared to $20.8 million as of year-end 2018. The decline reflects ongoing investments and higher inventory levels to meet the expected increase in customer demand.
2019 First Nine months SummaryRevenues totaled $30.0 million in the first nine months, compared with revenues of $19.6 million in the first nine months of 2018, an increase of 53%.Gross profit totaled $10.8 million (36% of revenues) in the first nine months, an increase of 53% compared to gross profit of $7.1 million (36% of revenues) in the first nine months of 2018.Operating Expenses in the period totaled $12.7 million compared with $6.9 million in the comparable period last year.Operating loss was $1.9 million in the first nine months compared to operating income of $0.2 million in the first nine months of 2018.Net loss attributable to RADA’s shareholders in the first nine months was $1.7 million, or $0.05 per share, compared to a net profit of $0.3 million, or $0.01 per share, in the first nine months of 2018.Investor Conference CallThe Company will host a conference call later today, starting at 9:00 am ET (4pm Israel time). Management will host the call and will be available to answer questions after presenting the results.Dial in numbers are: US 1-888-407-2553; UK 0-800-917-5108; Israel 03-918-0610 and International +972-3-918-0610.For those unable to participate, the teleconference will be available for replay on RADA’s website at www.rada.com beginning 48 hours after the call.About RADA Electronic Industries Ltd.