RADA Reports $24 Million in New Business in Q3 of 2021

Rhea-AI Summary

RADA Electronic Industries reported $24 million in new business for Q3 2021, contributing to a total of $80 million year-to-date, marking a 36% increase over the previous year. Most of the new orders are for RADA's software-defined tactical radars in Active Protection Systems (APS) and counter UAV solutions. The company anticipates APS revenues will begin in late 2022, with a significant impact expected in 2023. CEO Dov Sella expressed optimism about maintaining strong momentum, reiterating revenue expectations of over $120 million for 2021.

Positive

• New business reported in Q3 2021: $24 million.
• Total new business for 2021 reaches $80 million, a 36% year-over-year growth.
• Significant contributions expected from APS segment starting late 2022.
• CEO reports strong momentum and affirms revenue guidance of over $120 million for 2021.

Negative

• None.

NETANYA, Israel, Oct. 7, 2021 /PRNewswire/ -- RADA Electronic Industries Ltd. (NASDAQ: RADA) (TASE: RADA) announced today the receipt of $24 million in new business in the third quarter of 2021. Including the previously reported $56 million received during the first half of 2021, the total amount of new business received in 2021 until the end of the third quarter, amounted to $80 million. This represents a 36% year-over-year growth in new business compared with the same period last year.

Out of this new business, almost all are for RADA's software-defined tactical radars to be used in Active Protection Systems (APS), counter UAV, and point defense solutions. The U.S. market accounted for 14% of the new orders and the remainder came from global markets.

The APS market segment, comprising slightly over half of this reported new business, is beginning to contribute and build RADA's backlog. APS revenues are expected to start in the second half of 2022 with significant contribution in 2023 and onwards.

RADA's radars are also to be incorporated in long-term APS programs such as the UK Modular Integration Protection System (MIPS), led by Leonardo and successfully demonstrated to the UK MOD in July, earlier this year.

Dov Sella, RADA's CEO, commented, "Our good momentum in registering new business continues. While 2021 has already been strong with business up 36% over last year, we look forward to our fourth quarter which tends to be the strongest one of the year, both in new orders and in revenues. We reiterate our revenue expectations of over $120 million for 2021 and expect that our growth momentum will continue into 2022. Of note, and after more than a decade of our investment in a nascent market with very high potential, is the momentum we are starting to see in the APS market segment, which will further ensure growth in 2023 and beyond."

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.

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in RADA's business, including, but 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 RADA's Annual Report on Form 20-F for the year ended December 31, 2020, and other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

 

Company Contact: Avi Israel (CFO) Tel: +972-76-5386200       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 new business revenue for Q3 2021?

RADA reported $24 million in new business for Q3 2021.

What is the total new business RADA received in 2021?

RADA's total new business for 2021 has reached $80 million.

How much did RADA grow its new business year-over-year?

RADA experienced a 36% growth in new business year-over-year.

When are APS revenues expected to start for RADA?

APS revenues are expected to begin in the second half of 2022.

What is RADA's revenue expectation for 2021?

RADA expects to achieve over $120 million in revenue for 2021.