RADA Announces $10 Million in New Orders since mid-July 2020

Rhea-AI Summary

RADA Electronic Industries Ltd. (NASDAQ: RADA) reported receiving $10 million in new orders since mid-July 2020, bringing total new orders to $59 million for the year, a 68% increase from $35 million in the same period of 2019. Notably, 70% of the recent orders are for RADA's tactical radars, primarily for counter UAV and counter fires. The company expects to achieve over $70 million in revenues for 2020, marking a 58% year-over-year growth. The CEO expressed confidence in sustained growth and increased backlog for 2021.

Positive

• New orders totaled $59 million in 2020, up 68% from 2019.
• Recent orders include $10 million, primarily for tactical radars, indicating strong demand.
• Revenue guidance for 2020 increased to over $70 million, reflecting 58% year-over-year growth.

Negative

• None.

NETANYA, Israel, Sept. 14, 2020 /PRNewswire/ --  RADA Electronic Industries Ltd. (NASDAQ: RADA) announced the receipt of $10 million in accumulated new orders since mid-July 2020. To date, the aggregate amount of new orders since the beginning of 2020 has reached $59 million, compared to $35 million received for the same period in 2019, demonstrating an increase of over 68% year-over-year.

Out of the $10 million new orders, 70% were for RADA's growth-engine, software-defined tactical radars, for counter UAV and counter fires (C-RAM). Most of the new radar orders were follow-ons from existing customers. Deliveries of these orders are planned to be concluded within the next six months. The rest of the orders were for digital video recorders and debriefing stations for fighter aircraft, along with maintenance orders for RADA's avionics installed base.

RADA reiterates its recently increased guidance for 2020, provided on August 11, 2020, with revenues expected to grow to over $70 million and representing an increase of over 58% year-over-year.

Dov Sella, RADA's CEO, commented, "We are very satisfied with the continuous growth of new orders. We expect that by year-end this sustained growth rate of new orders will establish significant backlog for 2021. While our radars' business is growing at a significant rate, the repeated orders for avionics from our loyal customer base also ensure stability of this business of ours. We reiterate our expectations of sequential quarterly growth and growing operating profit throughout the remainder of 2020 and into 2021."

About RADA

RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.

Company Contact: Avi Israel (CFO) Tel: +972-9-892-1111        mrkt@rada.com www.rada.com

Investor Relations Contact: GK Investor Relations Ehud Helft Tel: 1 646 201 9246 rada@gkir.com

 

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SOURCE RADA