RADA Electronic Industries Ltd. (RADI)

[midastouch017]

Rada CEO quits, Herzle Bodinger taking over

01.6.06 | 20:43 By Omri Cohen

Rada Electronic Industries (Nasdaq: RADI), which makes flight data recorders and navigation systems for the aerospace industry, on Thursday said its chief executive office, Adar Azancot, resigned. His resignation takes effect immediately.

Herzle Bodinger, Rada's chairman and president and a general in reserves, will assume the CEO position, the company said. Bodinger had formerly served as the chief of Israel's Air Force.

In the last year Rada has lost about half its value on the stock exchange, partly due to disappointing results.

In the company's press statement, Bodinger commented that Azancot had led a process of restructuring at Rada and led the company to leading status in the market for air combat systems.

Azancot said that in the last three years Rada had reached significant technological achievements, and that he hopes it will soon find finding to turn these technological achievements into financial ones too.

Rada has not yet published its results for the first quarter of 2006. For the year 2005 it reported a 5% drop in year over year revenues to $13.4 million, and a 71% plunge in gross profit to $1.1 million.

For the year it lost $2.3 million or 10 cents per share, after netting $0.8 million the year before.

By year-end 2005 Rada's cash position had shrunk to $350,000, from $3.5 million at the end of 2004.

http://www.haaretz.com/hasen/spages/722267.html

Additional remarks:

1/The General was CEO prior to present booted CEO, hence
the blame is on him as well.

2/Unless a real 'killer' CEO is appointed, there is no
outlook for an upside.

3/Markets reaction to the booting of a CEO is usually positive, and bears an immediate positive impact on pps.

4/Seems like the market has a grim opinion about the company,
and even this step was not appreciated.

Dubi