RADA Announces New Orders Amounting to $12.5 million

December 6, 2019, 4:45 AM PST

Aggregate orders of over $53 million to-date in 2019

NETANYA, Israel, Dec. 06, 2019 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (RADA) announced that it has received a total of $12.5 million in new orders during the months of October and November of 2019. This level of over $53 million new orders received so far in 2019, is an all-time record for the Company and demonstrates the market acceptance of our radar growth engine.

Over 90% of the new orders are for RADA’s growth engine: multi-mission, software-defined tactical radar systems. Applications for these radar systems are mainly for C-UAV (counter UAV/drones) solutions, for V-SHORAD (very short-range air defense) and APS (active protection systems) solutions.

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Half of the orders were growing follow-on orders from customers that have become a RADA customer in the past two years, and half were from altogether new customers.

Dov Sella, RADA’s CEO, commented, "2019 has been a year of significant growth in our radar business, while avionics remain stable. This continuously growing flow of new orders gives us the confidence that we can expect significant growth levels also in 2020.”

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.

Company Contact: Avi Israel, CFO Tel: +972-9-892-1111 mrkt@rada.com www.rada.com

Investor Relations Contact: GK Investor Relations Ehud Helft/Gavriel Frohwein Tel: 1 646 688 3559 rada@gkir.com

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RADA Announces $8 Million in New Orders

RADA Announces $8 Million in New Orders

GlobeNewswireMarch 4, 2019, 1:23 PM GMT+3

$5 Million are for RADA’s Growth Engine of Tactical Radars

NETANYA, Israel, March 04, 2019 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (RADA) announced the receipt of $8 million in new orders in the past two months.
Out of these, $5 million were orders for RADA’s software-defined radars for counter rocket artillery and mortar (C-RAM), counter UAV and short-range air defense (SHORAD). The majority of these were follow-on orders from customers that had placed initial orders previously. There were also initial orders from new defense customers with potential for significantly greater follow-on orders in the future.

The remaining $3 million out of the $8 million, were follow-on orders for RADA’s legacy avionics, including avionics for UAVs, helicopters, digital video recorders, and ongoing maintenance orders for RADA’s wide installment base of core avionics for military platforms.
All these orders are expected to be delivered during 2019.
Dov Sella, RADA’s CEO, commented, "While we are pleased that our avionics business remains a stable cash generating business, we are increasingly excited that our growth engine - the software defined radar business, is continuing to gain traction. We are now reaching the stage where we are receiving follow-on orders from our early customers, along with initial orders from new customers, a demonstration of our great future potential from this business. This momentum of new orders substantiates our recently announced revenue expectations of over $40 million for 2019, representing year-over-year revenue growth of over 40%.”
About RADA
RADA Electronic Industries Ltd., an Israel-based defense electronics company, specializes in the development, production, and sales of Tactical Land Radars for Force and Border Protection, and Avionics Systems (including Inertial Navigation Systems) for fighter aircraft and UAVs.

Company Contact:
Gil Schwartz (VP, BD & Marketing)
Tel: +972-9-892-1111  
mrkt@rada.com
www.rada.com
Investor Relations Contact:
GK Investor Relations
Ehud Helft/Gavriel Frohwein
Tel: 1 646 688 3559
rada@gkir.com

Here’s why RADA Electronic Industries Ltd.’s (NASDAQ:RADA) Returns On Capital Matters So Much

Today we’ll evaluate RADA Electronic Industries Ltd. (NASDAQ:RADA) to determine whether it could have potential as an investment idea. Specifically, we’ll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.

First of all, we’ll work out how to calculate ROCE. Second, we’ll look at its ROCE compared to similar companies. Finally, we’ll look at how its c
urrent liabilities affect its ROCE.

Understanding Return On Capital Employed (ROCE)

ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. All else being equal, a better business will have a higher ROCE. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that ‘one dollar invested in the company generates value of more than one dollar’.

So, How Do We Calculate ROCE?

Analysts use this formula to calculate return on capital employed:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

Or for RADA Electronic Industries:

0.0087 = US$2.0m ÷ (US$38m – US$7.3m) (Based on the trailing twelve months to September 2018.)

Therefore, RADA Electronic Industries has an ROCE of 0.9%.

See our latest analysis for RADA Electronic Industries

Does RADA Electronic Industries Have A Good ROCE?

One way to assess ROCE is to compare similar companies. We can see RADA Electronic Industries’s ROCE is meaningfully below the Aerospace & Defense industry average of 11%. This performance could be negative if sustained, as it suggests the business may underperform its industry. Independently of how RADA Electronic Industries compares to its industry, its ROCE in absolute terms is low; especially compared to the ~2.7% available in government bonds. There are potentially more appealing investments elsewhere.

RADA Electronic Industries has an ROCE of 0.9%, but it didn’t have an ROCE 3 years ago, since it was unprofitable. That implies the business has been improving.