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
February 2004
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 Company's Form
F-3 Registration Statement File No. 333-11716.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Announces Full Year 2003
Results with Significant Growth in Revenues dated February 26, 2004.
ITEM 1
Press Release Source: Rada Electronic Industries Ltd
RADA Electronic Industries Announces Full Year 2003 Results with Significant
Growth in Revenues. RADA Has Achieved $758,000 Net Profit after Six Years of
Losses
Thursday February 26, 1:36 pm ET
NETANYA, Israel, February 26 /PRNewswire-FirstCall/ --
RADA Electronic Industries Ltd. (Nasdaq SmallCap: RADIF - News) today reported
its financial results for the year ended December 31, 2003. The company reported
net profit of $758,000 after six years of losses. Revenues in 2003 increased by
18% to $12.3 million. The Company's net income of $758,000, or $0.04 per share,
compares with a loss of $2.5 million, or $0.15 per share, for the year ended
December 31, 2002. Gross operating margin increased to 22% in 2003 from 11% at
2002.
Commenting on the results, RADA's CEO, Mr. Adar Azancot stated, "2003 was an
important year for RADA, as the impact of the efforts of management and
employees over the past five years began to materialize. We foresee continued
growth in 2004 and expect that our operating results will continue to improve,
as we emerge from our turnaround period. We have defined both a short and long
term growth strategy for our company and we are implementing those actions that
are necessary to achieve our growth targets."
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries, with 110 staff. The company
specializes in Avionics, Ground Debriefing Stations (Video, ACMI and
Maintenance) and Automatic Test Equipment.
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 Reports on Form 20-F and other filings with the
Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEETS
US dollars in thousands, except share and per share data
December 31,
2003 2002
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 467 $ 570
Trade receivables (net of allowance for
doubtful accounts of $ 214 at December 31,
2003 and 2002, respectively) 3,496 1,832
Other accounts receivable and prepaid
expenses 250 93
Cost and estimated earnings in excess of
billing on uncompleted contracts 176 -
Inventories 873 1,077
Total current assets 5,262 3,572
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 990 893
Leasing deposits 71 70
Severance pay fund 1,511 1,334
2,572 2,297
PROPERTY AND EQUIPMENT, NET 4,728 5,611
INTANGIBLE ASSETS, NET 1,987 3,127
Total assets $ 14,549 $ 14,607
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and loans $ 2,343 $ 5,697
Trade payables 640 635
Other accounts payable and accrued expenses 3,317 2,949
Deferred revenues 1,062 1,771
Billings in excess of costs and estimated
earnings on uncompleted contracts 1,836 575
Total current liabilities 9,198 11,627
ACCRUED SEVERANCE PAY 2,048 2,043
CONTINGENCIES, COMMITMENTS AND CHARGES
MINORITY INTEREST 425 452
SHAREHOLDERS' EQUITY:
Share capital
Ordinary shares of NIS 0.005 par value -
Authorized: 45,000,000 shares at December 31,
2003 and 2002; Issued and outstanding:
18,510,716 shares at December 31, 2003 and
2002 108 108
Additional paid-in capital 59,139 58,785
Warrants 1,405 124
Accumulated deficit (57,774) (58,532)
Total shareholders' equity 2,878 485
Total liabilities and shareholders' equity $ 14,549 $ 14,607
CONSOLIDATED STATEMENTS OF OPERATIONS
US dollars in thousands, except share and per share data
Year ended December 31,
2003 2002 2001
Revenues:
Products $ 8,977 $ 6,773 $ 5,883
Services 3,338 3,626 2,459
12,315 10,399 8,342
Cost of revenues:
Products 6,933 6,685 6,079
Services 2,659 2,538 1,337
9,592 9,223 7,416
Gross profit 2,723 1,176 926
Operating expenses:
Research and development expenses - 122 534
Marketing, selling, general and
administrative expenses 2,698 3,089 3,617
Total operating expenses 2,698 3,211 4,151
Operating income (loss) 25 (2,035) (3,225)
Financial income (expenses), net 708 (364) (210)
Other expenses, net (2) (290) (30)
731 (2,689) (3,465)
Minority interest in losses of
subsidiaries 27 206 96
Net income (loss) $ 758 $ (2,483) $ (3,369)
Basic net income (loss) per share $ 0.04 $ (0.15) $ (0.24)
Diluted net income (loss) per
share $ 0.04 $ (0.15) $ (0.24)
Weighted average number of shares
used in computing basic net
income (loss) per share (in
thousands) 18,511 16,555 13,817
Weighted average number of shares
used in computing diluted net
income (loss) per share (in
thousands) 19,704 16,555 13,817
Contact:
Elan Sigal- C.F.O,
RADA Electronic Industries Ltd.,
Tel: +972-9-8921111
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: February 26, 2004