RADA Electronic Industries Ltd. (RADI)

[midastouch017]

RADA Electronic Industries Announces Full Year 2005 Results

Wednesday March 8, 7:23 am ET

NETANYA, Israel, March 8 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. (Nasdaq: RADI - News) today reported its financial results for the year ended December 31, 2005. The company reported a net loss of $2.3 million or $0.10 per share (on a fully diluted basis). This compares with net income of $822,000, or $0.03 per share (on a fully diluted basis), for the year ended December 31, 2004. Operating loss for the year was $1.8 million compared with operating profit of $1.0 million in 2004.

Revenues in 2005 were $13.4 million, a decrease of 5% from 2004. The gross margin on sales also decreased from 27% in 2004 to 8% in 2005. The decrease in gross margin is attributed to the high percentage of development programs, which programs have a lower profit margin than the sales of pre-existing products offered by the Company.

Looking forward to 2006, we believe that the development efforts over the last three years will be reflected in additional sales during 2006. In addition to our pre-existing products of FACE (DATA Recorder) and CATS (Commercial Aviation Test Station), we now also offer off the shelf our Network Centric Digital Recorder (NCDR), Ground Debriefing Systems (GDS), Heads Up Display (HUD) Cameras, Rear Sentry Cameras and several core avionics computers. In addition we have increased our marketing efforts towards our strategic markets: US, India, and Israel. In the US we have received an order to supply NCDRs for the T-45. As a result of our acquisition in 2005 of the assets of Vectop, Ltd., which had existing sales to India, we are positioned to enter that market. We have also won a contract to supply our NCDR and HUD Camera for the Sea Harrier in India. As a result of our broader product range, we have begun to see an increasing number of RFP's that we are able to respond to with bids.

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.

http://biz.yahoo.com/prnews/060308/ukw018.html?.v=29

A sour lemon ???

:(

Dubi