SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 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
August 2007
RADA ELECTRONIC INDUSTRIES LIMITED
(Name of Registrant)
7 Giborei Israel Street, Netanya 42504, 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. 333-12074, 333-115598, 333-117954,
and 333-127491 and Form S-8 Registration Statement File No. 333-111437.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Announces Q2 2007 Results
dated August 22, 2007.
ITEM 1
Press Release Source: Rada Electronic Industries Ltd
RADA Electronic Industries Announces Q2 2007 Results
Wednesday August 22, 9:00 am ET
NETANYA, Israel, August 22 /PRNewswire-FirstCall/ -- RADA Electronic Industries
Ltd. (Nasdaq Capital Market: RADA) today reported its financial results for the
second quarter ended June 30, 2007.
Financial Highlights
- Total revenues were $4.2 million, a 53% increase over Q1 2007 and 64% increase
over Q2 2006.
- Operating income was $55,000 compared to operating losses of $339,000 in Q1
2007 and $ 1.1 million in Q2 2006.
The company reported revenues of $4.2 million for the second quarter of 2007, an
increase of 53% from the $2.8 million reported in the first quarter of 2007, and
an increase of 64% compared to the $2.6 million reported in the second quarter
of 2006. Gross profit for the second quarter of 2007 was $942,000, compared to
$473,000 in the first quarter of 2007 and a gross loss of $474,000 in the second
quarter of 2006. Operating income for the second quarter of 2007 was $55,000,
compared to operating losses of $339,000 in the first quarter of 2007 and $1.1
million loss in the second quarter of 2006. Financing and other expenses were
$145,000 for the second quarter of 2007, compared to $192,000 in the first
quarter of 2007 and $221,000 in the second quarter of 2006. As a result, the
company reported a net loss of $90,000 for the second quarter of 2007, compared
to a loss of $ 531,000 in the first quarter of 2007 and $1.4 million loss in the
second quarter of 2006.
For the first six months of 2007, revenues were $7.0 million, operating loss was
$284,000 and net loss was $621,000. This compares with revenues of $4.6 million,
operating loss of $2.3 million and net loss of $2.5 million for the first six
months of 2006.
Commenting on the results, Mr. Zvika Alon, RADA's CEO said, "Although we
reported a loss this quarter, Q2 2007 results improved significantly compared to
Q2 2006 results. We expect that 2007 will be the third and last year of our
current investment program aimed at developing new products that will become the
backbone of our new product offerings. Our recently reported new contracts as
well as those we expect to receive in the near future indicate an increase in
production activity that is expected to generate improved operating results in
the future."
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries. The Company specializes in
Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores
Management Systems, Flight Data Recorders, Inertial Navigation Systems),
Trainers Upgrades, Avionics systems for the UAV market, and Electro optic
cameras for airplanes and armored vehicles.
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
June 30, December
2007 31, 2006
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,339 $ 990
Restricted cash 417 704
Trade receivables (net of allowance for doubtful
accounts of $ 34 at June 30, 2007 and December
31, 2006) 3,570 4,296
Other accounts receivable and prepaid expenses 599 200
Costs and estimated earnings in excess of
billings on uncompleted contracts 663 668
Inventories 2,375 2,468
Total current assets 8,963 9,326
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 67 78
Severance pay fund 1,737 1,624
Total long-term receivables and deposits 2,787 2,685
PROPERTY AND EQUIPMENT, NET 2,931 3,359
OTHER ASSETS:
Intangible assets, net and goodwill 1,826 2,072
Deferred charges, net - 13
Total other assets 1,826 2,085
Total assets $ 16,507 $ 17,455
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 395 $ 559
Convertible note 3,000 2,858
Trade payables 1,424 1,611
Other accounts payable and accrued expenses 3,264 3,419
Deferred revenues 60 84
Billings in excess of costs and estimated
earnings on uncompleted contracts 178 285
Total current liabilities 8,321 8,816
LONG-TERM LIABILITIES:
Long-term loan 65 142
Accrued severance pay 2,126 2,026
Total long-term liabilities 2,191 2,168
MINORITY INTERESTS 410 397
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 shares at March 31, 2007
and December 31, 2006; Issued and outstanding:
8,728,509 shares at June 30, 2007 and December
31, 2006 116 116
Additional paid-in capital 67,371 67,239
Accumulated deficit (61,902) (61,281)
Total shareholders' equity 5,585 6,074
Total liabilities and shareholders' equity $ 16,507 $ 17,455
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Six months ended Three months ended
June 30, June 30,
2007 2006 2007 2006
(Unaudited)
Revenues 6,958 4,577 4,204 2,570
Cost of revenues 5,543 5,538 3,262 3,044
Gross profit (loss) 1,415 (961) 942 (474)
Operating expenses:
Research and development 149 69 94 44
Marketing and selling 682 440 383 213
General and administrative 868 800 410 405
Total operating expenses: 1,699 1,309 887 662
Operating income (loss) (284) (2,270) 55 (1,136)
Financial expense, net 324 347 142 227
Other income (expenses),
net - 68 - (3)
(608) (2,549) (87) (1,366)
Minority interests in
income (loss) of subsidiary 13 - 3 (9)
Net loss $ (621) $ (2,549) $ (90) $ (1,357)
Net loss per share:
Basic and diluted net loss
per share $ (0.07) $ (0.30) $ (0.01) $ (0.15)
Contact:
Elan Sigal- C.F.O
RADA Electronic Industries Ltd.
Tel: +972-9-8921-111
SIGNATURES
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/Herzle Bodinger
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Herzle Bodinger, Chairman
Date: August 22, 2007