UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of
November 2017

 

RADA ELECTRONIC INDUSTRIES LIMITED

(Name of Registrant)

 

7 Giborei Israel Street, Netanya 4250407, Israel

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F [X] Form 40-F [  ]

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ]

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ]

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes [  ] No [X]

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                         

 

This Form 6-K is being incorporated by reference into the Registrant’s Form F-3 Registration Statements File Nos. 333-212643 and 333-216973 and Form S-8 Registration Statement File No. 333-212284.

 

 

 

   

 

 

RADA ELECTRONIC INDUSTRIES LTD.

 

EXPLANATORY NOTE

 

The following exhibit is attached:

 

99.1 Press release: RADA Electronic Industries Announces 2017 Q3 Results

 

   

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Rada Electronic Industries Ltd.
  (Registrant)
     
  By: /s/ Dov Sella
    Dov Sella
    Chief Executive Officer

 

Date: November 28, 2017

 

   

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
     
99.1   Press release: RADA Electronic Industries Announces 2017 Q3 Results

 

   

 


 

EXHIBIT 99.1 

 

RADA Electronic Industries Announces Q3 2017 Results:

 

Over 100% Growth in Revenue and

Strong Improvement in Profitability;

Increasing Revenue Guidance for 2017

 

Investor conference call to be held today at 10am ET

 

Netanya, Israel, November 28, 2017 – RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the quarter ended September 30, 2017.

 

Management Comments

 

Dov Sella, RADA’s Chief Executive Officer commented, “We are very pleased with our third quarter results. Driven by our software-defined tactical radar sales, we achieved growing profitability and more than doubled revenues over last year. Furthermore, we attained very strong margins across the board. In the past few months, we have beefed up our investments in infrastructure in order to support our higher level of business and our expectations for long-term future growth. This has allowed us to successfully deliver on our major strategic order of multi-mission hemispheric radars to the US military in record time, providing it with unparalleled on-the-move air surveillance and counter-UAV capabilities. We believe this order marks the initial implementation of our strategy, and see significant further potential for orders in the United States and elsewhere over the coming years.”

 

Continued Mr. Sella, “As we move towards the end of 2017, our balance sheet is strong with $9 million in net cash providing us with the working capital we need to support the growth in our business. Following the successful completion and delivery of our radar sale to the US military, our expectations are for strong positive cash flows into the fourth quarter. Due to the strength we have experienced in our business in the past few months, we are increasing our 2017 revenue guidance to approximately $26 million up from $25 million previously. This represents a year over year growth in revenue of over 100%.”

 

2017 Third Quarter Summary

 

Revenues totaled $7.1 million in the third quarter of 2017, up 112% compared to revenues of $3.3 million in the third quarter of 2016.

 

Gross Profit totaled $2.8 million in the third quarter of 2017 (gross margin of 39%) compared to gross profit of $0.4 million (gross margin of 12.4%) in the third quarter of 2016.

 

Operating income was $1.0 million in the third quarter of 2017 (operating margin of 14.4%) compared to an operating loss of $0.9 million in the third quarter of 2016.

 

Net income attributable to RADA’s shareholders in the third quarter of 2017 was $0.8 million (net margin of 11.3%), or $0.03 per diluted share, compared with a net loss of $1.0 million, or $0.06 loss per share, in the third quarter of 2016.

 

Investor Conference Call

 

The 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.

 

Dial in numbers are: US 1-888-407-2553; UK 0800-917-5108; 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 http://www.rada.com beginning 24 hours after the call.

 

   

 

 

About RADA Electronic Industries Ltd

 

RADA Electronic Industries Ltd. is an Israel-based defense electronics company. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, and avionics systems (including inertial navigation systems) for fighters and UAVs.

 

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle and changing economic conditions. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in our Annual Report on Form 20-F and subsequent reports and filings made from time to time with the Securities and Exchange Commission.

 

Company Contact:

Avi Israel, CFO

RADA Electronic Industries Ltd.

Tel: +972-9-892 1111

mrkt@rada.com

Investor Relations Contact:

Ehud Helft/Gavriel Frohwein

GK Investor & Public Relations

Tel: +1 646 688 3559

rada@gkir.com

 

   

 

 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

 

 

   September 30, 2017   December 31, 2016 
   Unaudited     
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents  $9,282   $1,205 
Restricted cash   586    317 
Trade receivables (net of allowance for doubtful accounts of $12 at September 30, 2017 and $14 at December 31, 2016)   8,830    5,006 
Costs and estimated earnings in excess of billings on uncompleted contracts   324    1,096 
Other receivables and prepaid expenses   779    349 
Inventories   10,234    7,102 
Current assets related to discontinued operations   2,363    2,254 
           
Total current assets   32,398    17,329 
           
LONG-TERM ASSETS:           
Long-term receivables and other deposits   753    742 
Property, plant and equipment, net   3,442    2,650 
Long-term assets related to discontinued operations   33    266 
Total long term assets   4,228    3,658 
           
Total assets  $36,626   $20,987 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
CURRENT LIABILITIES:          
Bank credit  $424   $575 
Trade payables   5,026    2,557 
Other accounts payable and accrued expenses   2,601    1,987 
Advances from customers, net   -    839 
Current liabilities related to discontinued operations   326    265 
           
Total current liabilities   8,377    6,223 
           
LONG-TERM LIABILITIES:          
Convertible note and loans from shareholders, net   -    3,072 
Accrued severance pay and other long-term liabilities   744    663 
Total long-term liabilities   744    3,735 
           
RADA SHAREHOLDERS’ EQUITY          
Share capital -          
Ordinary shares of NIS 0.03 par value - Authorized: 37,500,000 shares at September 30, 2017 and December 31, 2016; Issued and outstanding: 29,982,127 at September 30, 2017 and 21,246,502 at December 31, 2016.   323    250 
Additional paid-in capital   103,997    89,407 
Accumulated other comprehensive income   325    222 
Accumulated deficit   (77,679)   (79,363)
           
Total RADA shareholders’ equity   26,966    10,516 
Non-controlling interest   539    513 
           

Total equity

   27,505    11,029 
           

Total liabilities and equity

  $36,626   $20,987 

 

   

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except share and per share data

 

 

   Nine months ended
September 30,
   Three months ended
September 30,
  

Year ended

December 31,

 
   2017   2016   2017   2016   2016 
       (Unaudited)     
                     
Revenues  $17,063   $8,518   $7,071   $3,330   $12,821 
                          
Cost of revenues   10,975    7,896    4,316    2,916    11,379 
                          
Gross profit   6,088    622    2,755    415    1,442 
                          
Operating expenses:                         
Research and development   886    534    480    218    758 
Marketing and selling   1,484    1,653    629    593    2,269 
General and administrative   1,839    1,293    627    458    1,814 
Goodwill impairment                         
Total operating expenses:   4,209    3,480    1,736    1,269    4,841 
Operating Income (loss)   1,879    (2,858)   1,019    (855)   (3,399)
Amortization of shareholders’ convertible loans discount and beneficial conversion feature   102    1,106    83    10    1,116 
Other financial expenses (income), net   95    413    105    109    405 
Net income (loss) from continuing operations   1,682    (4,377)   831    (974)   (4,920)
Net income (loss) from discontinued operations   3    (44)   (37)   (22)   13 
Net income (loss)   1,685    (4,421)   794    (996)   (4,907)
Net income (loss) attributable to non-controlling interest   1    (9)   (7)   (4)   3 
Net income (loss) attributable to RADA Electronic Industries’ shareholders  $1,684   $(4,413)  $801   $(992)  $(4,910)
Basic net income (loss) from continuing operations  $0.07   $(0.36)  $0.03   $(0.06)  $(0.35)
Basic net income (loss) from discontinued operations per Ordinary share  $0.00   $0.00   $(0.00)  $0.00   $(0.00)
Basic and diluted net income (loss)  $0.07   $(0.36)  $0.03   $(0.06)  $(0.35)
Weighted average number of Ordinary shares used for computing basic and diluted net income (loss) per share   22,915,032    12,244,643    25,146,803    16,719,929    14,029,346