SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of
September 2006
RADA ELECTRONIC INDUSTRIES LIMITED
(Name of Registrant)
7 Giborei Israel Street, Netanya 42504, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-___________
This Form 6-K is being incorporated by reference into the Registrant's Form F-3
Registration Statements File Nos. 333-12074, 333-115598, 333-117954, and
333-127491 and Form S-8 Registration Statement File No. 333-111437.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Announces Q2 2006 Results dated
September 15, 2006.
ITEM 1
Press Release Source: RADA Electronic Industries Ltd.
RADA Electronic Industries Announces Q2 2006 Results
Friday September 15, 4:00 pm ET
NETANYA, Israel, September 15 /PRNewswire-FirstCall/ -- RADA Electronic
Industries Ltd. (Nasdaq SmallCap: RADI - News) today reported its financial
results for the six month period ended June 30, 2006. The company reported
revenues in the six month period of $4.6 million, compared to revenues of $6.6
million for the same period in 2005. For the six months ended June 30, 2006 cost
of revenues increased to $5.5 million from $5.4 million in the comparable period
in 2005, while operating expenses decreased to $1.3 million from $1.5 million in
the first six months of 2005. As a result, the company reported a net loss of
$2.5 million for the six months ended June 30, 2006 compared to a net loss of
$0.6 million in the first six months of 2005.
Commenting on the results, Major General (Ret.) Herzle Bodinger, RADA's CEO
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. As a result of
the timing delays in the receipt of the anticipated orders, and in order to
bridge the gap, the company received a $850K three month loan from its
controlling shareholders. This loan further demonstrates the confidence and
continuing support by our shareholders. As indicated in our financials, we
maintain a relative steady cost structure and we are continuing to monitor and
tighten our expenses. We believe that we have the right cost structure and that
any increase of revenue will generate increased profit margins
MR. Bodinger noted, "We are continuing to see an increasing demand for our
products, in particular the Net Centric Digital Recorder (NCDR). RADA has
already won new program awards this year for additional NCDR programs that were
not included in our 2006 forecast. We are also receiving additional Requests For
Proposals (RFPs). During the last six months we have increased our backlog by
over $9 million and expect to further increase our backlog during the remainder
of the year from a number of significant programs."
"We continue to focus our marketing efforts on our strategic markets in the US,
India, and Israel. Reflected in our backlog this year are key contracts in the
US with Lockheed Martin, Smiths, and Boeing. In India, we won a contract for the
NCDR and we expect to further increase our presence in that market," concluded
Mr. Bodinger
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries. The company specializes in
Avionics, Ground Debriefing Stations (Video, ACMI and Maintenance) and Automatic
Test Equipment.
Note: Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially. Such risk uncertainties and other
factors include, but are 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 the Company's Annual Reports on Form 20-F and other filings with the
Securities and Exchange Commission.
Contact: Elan Sigal- C.F.O
RADA Electronic Industries Ltd.
Tel: +972-9-8921111
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
June 30, December
2006 31, 2005
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,312 $ 350
Restricted cash 1,050 1,017
Trade receivables (net of allowance for doubtful
accounts of $ 0 and $ 6 at June 30, 2006 and
December 31, 2005, respectively) 1,961 4,920
Other receivables and prepaid expenses 321 156
Costs and estimated earnings in excess of billings
on uncompleted contracts 1,229 1,396
Inventories 2,208 1,942
Total current assets 8,081 9,781
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 983
Leasing deposits 77 72
Severance pay fund 1,688 1,614
Total long-term receivables and deposits 2,748 2,669
PROPERTY AND EQUIPMENT, NET 3,578 3,931
OTHER ASSETS:
Intangible assets, net 2,210 2,469
Deferred charges, net 30 40
Total other assets 2,240 2,509
Total assets $ 16,647 $ 18,890
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and loans $ 943 $ 877
Trade payables 1,867 1,671
Other payables and accrued expenses 3,286 3,217
Deferred revenues - 50
Billings in excess of costs and estimated earnings
on uncompleted contracts 182 391
Total current liabilities 6,278 6,206
LONG-TERM LIABILITIES:
Convertible note 2,672 2,560
Accrued severance pay 2,077 2,009
Total long-term liabilities 4,749 4,569
MINORITY INTERESTS 380 380
SHAREHOLDERS' EQUITY:
Share capital
Ordinary shares of NIS 0.005 par value -
Authorized: 47,500,000 shares at March 31, 2006 and
December 31, 2005; Issued and outstanding:
26,170,527 and 26,144,027 shares at June 30, 2006
and December 31, 2005, respectively 116 116
Additional paid-in capital 66,955 66,900
Accumulated deficit (61,831) (59,281)
Total shareholders' equity 5,240 7,735
Total liabilities and shareholders' equity $ 16,647 $ 18,890
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Six months Three months Year
ended ended ended
June 30, June 30, December 31,
2006 2005 2006 2005 2005
(Unaudited) (Audited)
Revenues:
Products $ 3,661 $ 5,426 $ 2,151 $ 3,178 $ 11,303
Services 916 1,222 419 628 2,118
4,577 6,648 2,570 3,806 13,421
Cost of revenues:
Products 4,957 4,817 2,749 2,590 10,829
Services 581 596 295 290 1,481
5,538 5,413 3,044 2,880 12,310
Gross profit (loss) (961) 1,235 (474) 926 1,111
Operating expenses:
Research and
development 69 - 44 - -
Marketing and selling 440 538 213 360 927
General and
administrative 800 997 405 469 1,939
Total operating
expenses: 1,309 1,535 662 829 2,866
Operating income
(loss) (2,270) (300) (1,136) 97 (1,755)
Financial expense, net (347) (297) (227) (178) (624)
Other income
(expenses), net 68 - (3) - 33
(2,549) (597) (1,366) (81) (2,346)
Minority interests in
losses of subsidiary - 11 9 3 17
Net loss $ (2,549) $ (586) $ (1,357) $ (78) $ (2,329)
Net loss per share:
Basic and diluted net
loss per share $ (0.10) $ (0.03) $ (0.05) $ (0.004) $ (0.10)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Rada Electronic Industries Ltd.
(Registrant)
By: /s/Herzle Bodinger
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Herzle Bodinger, Chairman
Date: September 15, 2006