RADA Electronic Industries Ltd. (RADI)

[midastouch017]

Rada reports 30% drop in Q2 revenue
The company posted a net loss of $2.5 million, almost five times more than for the corresponding quarter.
Amir Keidan 17 Sep 06 11:47
Rada Electronic Industries Ltd. (Nasdaq: RADI) published its financial report for the second quarter of 2006 after trading closed on Wall Street on Friday. The quarter was a stormy one ahead of the final retirement of the company’s CEO, the reason for which only became clear a few days ago. The company posted a loss on falling revenue for the quarter.
Rada posted $4.6 million revenue for the second quarter, 30% less than for the corresponding quarter of 2005. The company posted a net loss of $2.5 million, almost five times more than for the corresponding quarter.

Rada CEO Maj.-Gen. (Res.) Herzle Bodinger said, "The loss in the first half of 2006 was greater than originally expected due to delays in the receipt of orders that the company still anticipates that it will receive in 2006. The company continues to believe that there will be an improvement in its financial results in the second half of 2006.

Rada’s customers include the Israeli Ministry of Defense, Rafael Armament Development Authority Ltd., and Lockheed Martin (NYSE:LMT). The company develops military and civilian avionic systems. Since Bodinger, a former commander of the Israel Air Force, replaced Adar Azancot as CEO in June. “Globes” reported that Azancot left because the company’s controlling shareholders refused to sell the company to a US arms manufacturer.

A few days ago, Nasdaq notified Rada that it did not meet listing criteria because its share price had been less than $1 over 30 continuous trading days, and that the company risked being delisted from the Nasdaq Small Cap index.

Published by Globes [online], Israel business news - www.globes.co.il - on September 17, 2006