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
March 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 Full Year 2006
Results dated March 6, 2007.
ITEM 1
Press Release Source: RADA Electronic Industries Ltd.
RADA Electronic Industries Announces Full Year 2006 Results
Tuesday March 6, 12:10 pm ET
NETANYA, Israel, March 6 /PRNewswire-FirstCall/ -- RADA Electronic Industries
Ltd. (Nasdaq: RADID - News) today reported its financial results for the three
months and the year ended December 31, 2006. The company reported a net loss of
$2 million or $0.23 per share. This compares with a net loss of $2.3 million or
$0.31 per share, for the year ended December 31, 2005. Revenues in 2006 were $13
million, a decrease of 3% from 2005. The gross margin on sales increased to 16%
in 2006 from 10% in 2005. Operating loss for the year was $1.25 million compared
with an operating loss of $1.8 million in 2005.
The company reported revenues for the three months ended December 31, 2006 of
$5.6 million, compared to revenues of $4.2 million for the same period in 2005.
For the three months ended December 31, 2006 cost of revenues decreased to $3.7
million from $3.9 million in the comparable period in 2005 and operating
expenses increased to $1.17 million from $0.77 million in the comparable period
in 2005. As a result, the company reported a net profit of $534,000 for the
three months ended December 31, 2006 compared to a net loss of $544,000 for the
same period in 2005.
Commenting on the results, Major General (Ret.) Herzle Bodinger, RADA's CEO
said, "The improvement in our financials is a result of our investments over the
past two years. Although the company reported a loss in fiscal 2006, in the
second half of 2006 we showed an improvement and reported a net profit of
$550,000, after six quarters of losses. We are continuing with our marketing
efforts and are continuing to focus on our main markets in Israel, U.S., and
India. In our target markets we are working closely with our customers in order
to develop the next generation of products. We believe that these development
efforts, together with increasing sales of our existing state-of-the-art
products, will result in continued financial improvement."
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
December 31,
2006 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 990 $ 350
Restricted cash 704 1,017
Trade receivables (net of allowance for
doubtful accounts of $ 34 and $ 6 at
December 31, 2006 and 2005, respectively) 4,296 4,920
Other accounts receivable and prepaid
expenses 200 156
Costs and estimated earnings in excess of
billings on uncompleted contracts 668 1,396
Inventories 2,468 1,942
Total current assets 9,326 9,781
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 78 72
Severance pay fund 1,624 1,614
Total long-term receivables and deposits 2,685 2,669
PROPERTY, PLANT AND EQUIPMENT, NET 3,359 3,931
OTHER ASSETS:
Intangible assets, net and goodwill 2,072 2,469
Deferred charges, net 13 40
Total other assets 2,085 2,509
Total assets $ 17,455 $ 18,890
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current
maturities of long-term loans $ 559 $ 877
Trade payables 1,611 1,671
Other accounts payable and accrued expenses 3,419 3,217
Deferred revenues 84 50
Billings in excess of costs and estimated
earnings on uncompleted contracts 285 391
Total current liabilities 5,958 6,206
LONG-TERM LIABILITIES:
Long-term loan 142
Convertible note 2,858 2,560
Accrued severance pay 2,026 2,009
Total long-term liabilities 5,026 4,569
MINORITY INTERESTS 397 380
SHAREHOLDERS' EQUITY (see note below)
Share capital -
Ordinary shares of NIS 0.015 par value -
Authorized: 16,333,333 and 15,833,333 shares
at December 31, 2006 and 2005, respectively;
Issued and outstanding: 8,728,509 and
8,714,676 shares at December 31, 2006 and
2005, respectively 116 116
Additional paid-in capital 67,239 66,900
Accumulated deficit (61,281) (59,281)
Total shareholders' equity 6,074 7,735
Total liabilities and shareholders' equity $ 17,455 $ 18,890
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Year ended Three months ended
December 31, December 31,
2006 2005 2006 2005
(unaudited)
Revenues:
Products $ 10,984 $ 11,303 $ 4,974 $ 3,887
Services 2,053 2,118 607 363
13,037 13,421 5,581 4,250
Cost of revenues:
Products 9,517 10,601 3,246 3,514
Services 1,482 1,481 494 387
10,999 12,082 3,740 3,901
Gross profit 2,038 1,339 1,841 349
Operating expenses:
Research and development 181 - 42 -
Marketing and selling
expenses 1,316 1,155 377 271
General and
administrative expenses 1,794 1,939 753 498
Total operating expenses 3,291 3,094 1,172 769
Operating income (loss) (1,253) (1,755) 669 (420)
Financial expenses, net (775) (624) (125) (160)
Other income, net 45 33 - 33
(1,983) (2,346) 544 (547)
Minority interests in
losses (gains) of
subsidiary (17) 17 (10) 3
Net income (loss) $ (2,000) $ (2,329) $ 534 $ (544)
Net income (loss) per share:
Basic and diluted net
income (loss) per share $ (0.23) $ (0.31) $ 0.06 $ (0.08)
No. of shares used in
computing basic net
income (loss) per share 8,723 7,504 8,725 7,194
No. of shares used in
computing fully diluted
net income (loss) per
share 8,723 7,504 8,745 7,194
NOTE:
In February 2007, the Company effected a 3 to 1 reverse stock split with respect
to its Ordinary shares. All shares, stock options, warrants and net loss per
share amounts in these financial statements have been restated for all prior
periods to reflect the reverse stock split.
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: March 8, 2007