NETANYA, Israel, May 19, 2020 (GLOBE NEWSWIRE) — RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the quarter ended March 31, 2020.
Highlights of the first quarter of 2020Past and ongoing investments promoting strong growth, with quarterly revenues up 73% year-over-year to a record $15.1 million;Gross margin stability at 36%;Net income of $170,000 and positive Adjusted EBITDA of $863,000;US manufacturing facility ramping production;Quarter-end net cash position of $32.1 million.Reiterates 2020 revenues guidance in excess of $65 million, with continued sequential revenue growth throughout the year.Management CommentsDov Sella, RADA’s Chief Executive Officer commented, “Given the very significant opportunities we identified in the emerging business of mini-tactical radars a few years ago, particularly in the United States, we took the decision to invest strongly in our business over the past two years so that we can tap into the potential and meet the demand. These investments have now stabilized and are bearing their fruits. As our ahead-of-schedule profitability and our 73% revenue growth in the first quarter of 2020 demonstrate, the potential is starting to be revealed, and I believe this is only the beginning. Our end-markets are gradually shifting to the serial production phase and we expect that in the coming months we will start to build backlog for deliveries in 2021 and beyond, especially in the US. Our US manufacturing facility is ISO-certified and deliveries to US customers have commenced.”Revenues totaled $15.1 million in the quarter, compared with revenues of $8.7 million in the first quarter of 2019, an increase of 73%.Gross profit totaled $5.4 million in the quarter (36% of revenues), an increase of 71% compared to gross profit of $3.2 million in the first quarter of 2019 (36% of revenues).Operating income was $46,000 in the quarter compared to an operating loss of $558,000 in the first quarter of 2019.Net income attributable to RADA’s shareholders in the quarter was $170,000, or $0.00 per share, compared to a net loss attributable to RADA’s shareholders of $485,000, or $(0.01) per share, in the first quarter of 2019.Adjusted EBITDA was $863,000 in the quarter compared to adjusted EBITDA of ($26,000) in the first quarter of 2019.Investor Conference CallThe Company will host a conference call later today, starting at 10:00 am ET (5pm Israel time). Management will host the call and will be available to answer questions after presenting the results.To participate, please call one of the following telephone numbers a few minutes before the start of the call:A live webcast of the conference call can be accessed from a link on the RADA website at https://www.rada.com/corp/corporate-ir.html.For those unable to participate, the teleconference will be available for replay at the above link on RADA’s website beginning a few hours after the call.About RADA Electronic Industries Ltd.
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