RADA Announces $20 Million in New Orders since mid-September 2020

Rhea-AI Summary

RADA Electronic Industries (NASDAQ: RADA) reported $20 million in new orders since mid-September 2020, contributing to an impressive $79 million total for the year—up 92% from $41 million in 2019. These orders for software-defined tactical radars cater to various segments, including counter-drone and short-range air defense. RADA's CEO, Dov Sella, expressed optimism about ongoing growth, anticipating continued operational profits into 2021. The company emphasizes its transition from urgent needs to a growing market phase, signaling strong future demand.

Positive

• Total new orders for 2020 reached $79 million, a 92% increase from 2019.
• Recent $20 million orders highlight strong demand in tactical radar segments.
• CEO forecasts continued growth and operational profit into 2021.

Negative

• None.

NETANYA, Israel, Nov. 2, 2020 /PRNewswire/ -- RADA Electronic Industries Ltd. (NASDAQ: RADA) announced the receipt of $20 million in accumulated new orders since mid-September 2020. To date, the aggregate amount of new orders since the beginning of 2020 has reached $79 million, compared to $41 million received over the same period in 2019, showing an increase of over-92% year-over-year.

All of these $20 million in new orders are for software-defined tactical radars for the US market, demonstrating immediate needs for RADA's tactical radars in all of the relevant market segments that these radars are addressing: counter small unmanned aerial systems (C-sUAS), short range air defense (SHORAD), counter rockets, artillery and mortars (C-RAM), and vehicle protection solutions (VPS). Most of these new orders were follow-ons from customers which have placed initial orders earlier this year and moved to wider-scale orders after rigorous testing and evaluation.

Deliveries of these orders are planned to be spread along the first half of 2021.

Dov Sella, RADA's CEO, commented, "The level of new orders that we have experienced throughout 2020 makes us optimistic that our strong growth will continue into 2021. Our recent orders are starting to build a significant backlog for 2021, substantiate our growth expectations and demonstrate the transition of the market from the 'urgent need' to the 'growing' phase. While 2020 is not over yet, the current level of new orders this year already surpassed the level of the whole of 2019, which was $60 million. Furthermore, we are still expecting additional orders during the remainder of 2020, with emphasis on the US Army IM-SHORAD program, which was recently awarded to General Dynamics (GD) and is in process of reaching RADA as well. We reiterate our expectations of continued sequential quarterly growth and growing operating profit throughout the remainder of 2020 and also 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 counter-drone applications, active military protection, critical infrastructure protection and border surveillance.

 

Company Contact: Avi Israel (CFO) Tel: +972-765-386-200      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

FAQ

What were RADA's new orders since mid-September 2020?

RADA announced $20 million in new orders since mid-September 2020.

How much has RADA's total new orders increased in 2020 compared to 2019?

RADA's total new orders for 2020 reached $79 million, up 92% from $41 million in 2019.

What market segments do RADA's new orders address?

The new orders are for software-defined tactical radars, addressing counter drone, short-range air defense, and vehicle protection.

What is RADA's outlook for growth in 2021?

RADA's CEO indicated optimism for continued growth and operational profit throughout 2021.