SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
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
November 2004
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 Company's
Form F-3 Registration Statements File Nos. 333- 12074, 333-115598 and
333-117954.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Ltd. Q3 Financial Results -
Steady Growth and Improved Margins dated November 1, 2004.
ITEM 1
Press Release Source: Rada Electronic Industries Ltd
RADA Electronic Industries Ltd. Q3 Financial Results - Steady Growth and
Improved Margins
Monday November 1, 6:15 am ET
NETANYA, Israel, November 1 /PRNewswire-FirstCall/ -- RADA Electronic Industries
Ltd. (Nasdaq SmallCap: RADIF - News) today reported its financial position and
results of operations for the three month ended September 30, 2004.
Third quarter 2004 revenues reached US$3.74 million an increase of 35% compared
with U$2.77 million reported in the same period in 2003.
Gross profit reached US$1.20 million in the third quarter of 2004, compared with
US$640,000 in the third quarter of the last year. Gross margins reached 32.1% in
the third quarter of 2004 compared with gross margins of 23.1% in the same
period of 2003.
Operating income reached US$455,000 in the third quarter of 2004, compared with
an operating loss of US$34,000 in the same period last year.
For the nine-month period ended September 30, 2004, the company reported $10.66
million in revenues, an increase of 46 percent compared to $7.32 million for the
same period of 2003.
Gross profit reached US$2.89 million, representing a gross margin of 27.1% in
the nine-month period ended September 30, 2004 compared with US$1.56 million,
representing a gross margin of 21.3% in the same period in 2003.
Operating income reached US$762,000 in the nine-month period ended September 30,
2004 compared with an operating loss of US$422,000 in the same period of 2003.
Financial expenses in the nine-month period ended September 30, 2004 were
US$321,000 compared with a financial income of US$733,000 in the same period of
2003.
Net income reached US$476,000, representing diluted net earnings per share of
US$0.02 in the nine-month period ended September 30, 2004 compared with
US$261,000, representing diluted net earnings per share of US$0.01 in the same
period of 2003.
"Our business has seen significant growth throughout 2004, with our financials
showing improvements across the board. In particular, we are proud of our
improving gross margins." said Adar Azancot, CEO of RADA. "We believe that our
organic growth rate has stabilized at an annual rate of between 15-20%, above
the industry average. Furthermore, we foresee additional growth due to
acquisitions that we are currently looking into, as well as larger scale
contracts that we are pursuing," concluded Azancot.
Conference call
The company will host a conference call to discuss these results today Monday,
November 2 at 09:00 am EDT (16:00 Israel time). To participate, please call
+1-866-860-9642 (U.S. toll free), or +972-3-918-0600 (International).
The conference call also will be available for replay for two days starting
11:00am EDT on the day of the call, by calling +1-866-276-1002 (U.S.) or
+972-3-925-5936 (International).
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries, with 90 staff. 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.
Contacts
Company: Investor Relations:
RADA Electronic Industries Ltd. Gelbart Kahana
Elan Sigal - CFO Ehud Helft, Kenny Green
Tel: +972-9-8921129 +1-866-704-6710
Elan_Sigal@rada.com Ehud@gk-biz.com, Kenny@gk-biz.com
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
September December
30, 31,
2004 2003
ASSETS
CURRENT ASSETS 8,699 5,262
LONG-TERM RECEIVABLES AND DEPOSITS 3,828 2,572
PROPERTY AND EQUIPMENT, NET 4,381 4,728
OTHER ASSETS, NET 1,843 1,987
Total assets 18,751 14,549
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES 7,041 7,978
LONG-TERM LIABILITIES 4,689 3,268
MINORITY INTERESTS 407 425
SHAREHOLDERS' EQUITY:
Share capital
Ordinary shares of NIS 0.005 par value -
Authorized: 45,000,000 shares at September
30, 2004 and December 31, 2003; Issued and
outstanding: 20,417,446 and 18,510,716
shares at September 30, 2004 and December
31, 2003, respectively 110 108
Additional paid-in capital 61,845 59,139
Warrants 1,957 1,405
Accumulated deficit (57,298) (57,774)
Total shareholders' equity 6,614 2,878
Total liabilities and shareholders' equity 18,751 14,549
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Nine months Three months Year
ended ended ended
September 30, September 30, December 31,
2004 2003 2004 2003 2003
Revenues:
Products 8,372 4,806 3,162 1,921 8,977
Services 2,286 2,515 578 853 3,338
10,658 7,321 3,740 2,774 12,315
Cost of revenues:
Products 6,579 4,323 2,219 1,639 6,933
Services 1,192 1,439 319 495 2,659
7,771 5,762 2,538 2,134 9,592
Gross profit 2,887 1,559 1,202 640 2,723
Operating expenses:
Marketing, selling,
general and
administrative expenses 2,125 1,981 747 674 2,698
Operating income (loss) 762 (422) 455 (34) 25
Financial income
(expenses), net (321) 733* (149) 964 708
Other income (expenses),
net 17 (79)* 7 (141) (2)
458 232 313 789 731
Minority interests in
losses of subsidiary 18 29 - 22 27
Net income 476 261 313 811 758
Earnings per share:
Basic net earnings per
share $ 0.02 $ 0.01 $ 0.02 $ 0.04 $ 0.04
Diluted net earnings per
share $ 0.02 $ 0.01 $ 0.01 $ 0.04 $ 0.04
* Reclassified
STATEMENTS OF CHANGES IN SHARHOLDERS' EQUITY
U.S. dollars in thousands, except share data
Number of Additional Total
Ordinary Share paid-in Accumulated share-
shares capital capital Warrants deficit holders'
equity
Balance at
January 1,
2003 18,510,716 108 58,785 124 (58,532) 485
Adjustment
of accrual
for
issuance
expenses - - 354 - - 354
Fair value
of warrants
issued in
connection
with
settlement
of debt,
net * - - - 1,267 - 1,267
Fair value
of warrants
issued to
suppliers - - - 14 - 14
Net income - - - - 758 758
Balance at
December
31, 2003 18,510,716 108 59,139 1,405 (57,774) 2,878
Issuance of
Ordinary
shares, net
** 1,864,313 2 2,624 - - 2,626
Issuance of
warrants - - - 552 - 552
Beneficial
conversion
feature
on
convertible
note - - 53 - - 53
Exercise of
options 42,417 - 29 - - 29
Net income - - - - 476 476
Balance at
September
30, 2004 20,417,446 $ 110 $ 61,845 $ 1,957 $ (57,298) $ 6,614
o Net of issuance expenses of approximately $ 38 ended December 31, 2003.
o Net of issuance expenses of approximately $ 95 ended September 30, 2004.
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: November 1, 2004