RADA Announces a Record $102 million in New Orders for 2020

Rhea-AI Summary

RADA Electronic Industries Ltd. (NASDAQ: RADA) announced record new orders totaling $102 million for 2020, marking a 70% increase from $60 million in 2019. Recent orders include $23 million for software-defined tactical radars, primarily for the IM-SHORAD Stryker program in collaboration with Leonardo DRS and the Elbit/IMI Iron Fist system. These contracts mark the start of a backlog that will drive growth into 2021. CEO Dov Sella emphasized the emerging market's potential and RADA's strong position within it.

Positive

• Record new orders of $102 million for 2020, a 70% increase from the previous year.
• $23 million in new orders received in November and December 2020.
• Growth driven by software-defined tactical radars.
• Initial production orders for IM-SHORAD Stryker and Iron Fist systems create future backlog.

Negative

• None.

NETANYA, Israel, Dec. 18, 2020 /PRNewswire/ -- RADA Electronic Industries Ltd. (NASDAQ: RADA) today announced the receipt of $23 million in accumulated new orders for the months of November and December 2020, to-date. The aggregate total of new orders received during 2020 is at a record level of $102 million, showing year-over-year growth of 70%, when compared with the $60 million received over the full year 2019.

The vast majority of these recent $23 million in new orders, is for RADA's software-defined tactical radars.

The new orders incorporate the initial serial production orders for two of RADA's major future-growth programs:

• The IM-SHORAD Stryker for the US Army, performed in cooperation with Leonardo DRS. General Dynamics Land Systems (GDLS), the Stryker vehicle manufacturer which received a $1.2 billion contract from the US Army in October 2020, recently awarded DRS with an initial order for 28 mission equipment packages for this program, out of a potential of 144 systems in total. RADA's current order from DRS is for the production of over 110 MHR radars. Further production orders under this program are expected to be received during 2021.
• Elbit/IMI "Iron Fist" active protection system (APS), where RADA is the supplier of the CHR search-and-track radar. The initial order is for 200 radars, while further and larger orders are expected in 2021 and mainly in 2022. Future programs targeted to be equipped with Iron Fist, among others include the Bradley AFV with the potential of over 150 vehicles (implying over 600 radars).

While majority of orders for RADA's tactical radars in recent years were for urgent-need programs, these new initial serial production orders are starting to build backlogs for RADA for 2021 and onwards.

Dov Sella, RADA's CEO, commented, "The very strong 70% increase in our new orders reflects the growth of this new emerging market of tactical radars for the maneuver force, where we play a leading role. It ensures that accelerated growth for RADA will continue into 2021 and for the foreseeable future."

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 is RADA's total new orders for 2020?

RADA reported total new orders of $102 million for 2020.

How much did RADA receive in new orders in November and December 2020?

RADA received $23 million in new orders during November and December 2020.

What growth percentage did RADA's new orders achieve in 2020?

RADA's new orders achieved a 70% growth in 2020 compared to 2019.

What are the major projects driving RADA's new orders?

Major projects include the IM-SHORAD Stryker program and the Elbit/IMI Iron Fist active protection system.

What did RADA's CEO say about the company's growth?

CEO Dov Sella stated that the strong increase in orders reflects growth in the tactical radar market and ensures continued accelerated growth.