RADA Announces Q2 2018 Results: 24% Growth in Revenue

Revenues totaled $6.6 million in the second quarter of 2018, as compared to $5.3 million in Q2 2017. The Company expects revenues of approximately $27M for FY 2018

RADA Announces Q2 2018 Results: 24% Growth in Revenue

rada.com

RADA Electronic Industries announced today its financial results for the quarter ended June 30, 2018. 

Dov Sella, RADA's Chief Executive Officer, commented, “We are very pleased with our financial performance, especially our growth in revenues and our strongly broadening pipeline of potential orders. Furthermore, the investments we have made in our newly established presence in the United States are enabling us to make some significant strategic progress and has led to increased traction for our radars in the region. We expect our presence will lead to strong growth in orders in the coming quarters.

“For the year 2018, we expect revenues of around $27 million, ahead of last year’s revenue, which itself was one of the strongest years ever for RADA. While last year’s significant step up in revenue was built on the back of one specific order in the second half of the year, in 2018 it is made up of orders from a diverse range of customers. Some of these are initial radar orders from new customers with the possibility of follow-on orders at a ten-fold potential. As we move through 2018, I am increasingly excited with regard to our future and I am very happy that RADA is beginning to realize its large inherent potential.”

Q2 2018 Summary 

Revenues totaled $6.6 million in the second quarter of 2018, up 24% compared to revenues of $5.3 million in the second quarter of 2017.

Gross Profit totaled $2.4 million in the second quarter of 2018 (gross margin of 36.2%) compared to gross profit of $1.7 million (gross margin of 31.3%) in the second quarter of 2017. 

Operating income was $104 thousand in the second quarter of 2018 compared to an operating income of $511 thousand in the second quarter of 2017. Operating expenses increased in the quarter to $2.3 million from $1.2 million in the second quarter of last year, primarily due to increased investment in R&D and SG&A, due to RADA’s recently established presence in the United States.  

Net income attributable to RADA’s shareholders in the second quarter of 2018 was $51 thousand, compared with net income of $495 thousand in the second quarter of 2017. 

EBITDA was $546 thousand in the second quarter of 2018 compared to EBITDA of $838 thousand in the second quarter of 2017.

In terms of liquidity and capital resources, as of June 30, 2018, the Company had cash and cash equivalents, of $15.6 million or $0.47 per share, compared with $12.4 million or $0.40 per share as of December 31, 2017. As of June 30, 2018, the Company did not have any financial liabilities. Cash flow from operations for the quarter was a positive $2.5 million, mainly due to strong collections from customers.